Simplii Financial is a well-established Canadian online banking institution. They provide various financial products and services, including Simplii financial credit cards. One of their notable credit offerings is a no-annual fee card with cashback rewards, designed to offer customers a cost-effective and rewarding payment option.
In this blog, we’ll review the Simplii Financial credit card to help you determine if it’s the right one for your needs.
Features and Benefits of Simplii Credit Card
Simplii credit card holders can enjoy cost savings, earn rewards on their spending, and benefit from additional protections, making it a well-rounded choice for various spending needs and lifestyle requirements.
- No annual fee: The absence of a yearly fee is a significant advantage of the Simplii credit card. This cost-saving feature makes the Simplii credit card more appealing to beginners looking to minimize expenses and avoid unnecessary financial burdens.
- Cashback rewards: The cashback program offered by the Simplii credit card allows users to earn a certain percentage of their eligible purchases as cashback rewards. You get 1.5% cashback on groceries, 1% on gas, 2% on dining, and 0.5% on other purchases.
- Introductory offers: The Simplii credit card provides a low intro APR and a bonus cashback of 20%, up to $500 for the first three months of card membership, to attract new customers. These introductory incentives provide extra value and are a great way for new cardholders to kick-start their cashback earnings.
- Additional perks: Besides cashback rewards, the Simplii credit card includes additional perks and insurance coverage; more are available for a fee.
- For instance, the card offers purchase protection, which covers eligible items against theft or damage for a certain period after purchase.
- Extended warranty protection can extend the manufacturer’s warranty on purchased items, offering an added layer of security.
- Travel insurance benefits include trip cancellation/interruption insurance, rental car insurance, or emergency medical coverage while traveling.
Overall, the combination of no annual fee, cashback rewards, introductory offers, and supplementary perks makes the Simplii credit card an attractive option for users seeking financial convenience and added value from their Simplii financial credit card.
1. Categories and rates
- The Simplii credit card typically offers varying cashback rates for different spending categories. Cardholders can earn 1.5% cash back on groceries, 1% on gas, 2% on dining, and 0.5% on other purchases.
- Understanding these rates helps users strategize their spending to earn higher cashback in the categories where they spend the most.
2. Maximum limits
- While the Simplii credit card provides an opportunity to earn cashback rewards, there may be certain caps or restrictions on the total amount of cashback that can be earned within specific periods. For instance, the card might have a limit on the total cash back earned in a month or a year. Cardholders should know these limits to avoid surprises and plan their spending accordingly.
- Additionally, transaction limits are set for added security: $3,000 in 24 hours, $10,000 in 7 days, and $30,000 in 30 days.
3. Maximizing rewards
- Users can earn cashback on everyday expenses and bills by paying recurring bills like utility payments, streaming services, and subscriptions with the Simplii credit card.
- Furthermore, Simplii credit cards offer promotional periods with elevated cashback rates for certain merchants or specific spending categories.
- Awareness of these promotions and timing significant purchases can help maximize rewards.
- Redemption options
- Simplii credit cardholders have multiple ways to redeem their earned cashback rewards.
- One standard option is to redeem the cashback as a statement credit, directly reducing the outstanding balance on the credit card.
- Another option is to convert the cashback into reward points for various benefits within the bank’s loyalty program.
- Some credit cards may offer alternative redemption options, such as redeeming cash back for gift cards, merchandise, or charitable donations.
- Redemption rules
- While the redemption process for cashback rewards is relatively straightforward, there might be certain restrictions or minimum requirements. For instance, cardholders might need to accumulate a minimum cashback before initiating a redemption.
- Additionally, some credit cards may have specific timeframes during which cashback can be redeemed, or there might be a delay in processing the redemption request.
- Cardholders should carefully review the terms and conditions to ensure they meet all the requirements for a seamless redemption process.
- Cashback expiry
- Cardholders need to know the expiration policy for their earned cashback rewards. Most Simplii credit cards have a validity period for cashback rewards, typically 12 to 24 months. If the rewards are not redeemed within this period, they may expire and become unredeemable.
- To avoid losing their hard-earned rewards, users should keep track of the expiration dates and redeem their cash back before expiration.
Fees and Rates of Simplii credit card
1. Interest rates
- The Simplii credit card typically offers a standard Annual Percentage Rate (APR) for purchases made with the card.
- New cardholders can also take advantage of an intro purchase APR of 9.99% for the first three months of card membership. A lower interest rate may help you save on interest charges if you typically carry a balance.
- A low intro APR and a bonus cash-back rate of up to 20%
- Simplii credit Cardholders should review the terms and conditions to understand the specific rates applicable to their credit card account.
- 24.99% if you miss two payments within 12 months, as of May 2023. This penalty APR will stay in place for at least 12 months.
3. Foreign transaction fees
- When using the Simplii credit card for purchases made in foreign currencies or while traveling abroad, cardholders may be subject to foreign transaction fees.
- These fees are typically 2.5% of the transaction amount.
- As a result, it’s essential to be aware of these charges when using the Simplii credit card internationally.
4. Other fees
Besides the standard APR and foreign transaction fees, other charges might be associated with the Simplii credit card. Some common fees include:
- Late payment fees: Cardholders may incur a late payment fee if they fail to make the minimum payment by the due date. This fee is typically a set amount, 24.99%, if you miss two payments within 12 months, as of May 2023. This penalty APR will stay in place for at least 12 months.
- Cash advance fees: If a cardholder uses their Simplii credit card to obtain cash from an ATM or a cash advance, they may be subject to cash advance fees. The cash advance APR is 22.99%. Fees are usually a percentage of the cash advance amount, and the rate might be higher than the standard APR for purchases.
- Over-limit fees: If the Simplii credit card account exceeds the assigned credit limit, there may be an over-limit fee. However, due to recent regulatory changes, Simplii credit cards no longer charge over-limit fees.
Cardholders must review the credit card’s terms and conditions to understand the fees applicable to their account.
To be eligible for the Simplii credit card, potential applicants must meet certain requirements, which may include:
- Age: Applicants must be of legal age in their province or territory of residence, typically 18 or 19.
- Residency: The Simplii credit card is usually available to Canadian residents who meet the specific residency criteria.
- Income: Applicants should have a minimum annual income of $15,000. The income requirement can vary depending on the credit card and the bank’s policies. A higher income may increase the chances of approval and potentially qualify for a higher credit limit.
- Bankruptcy: Not have declared bankruptcy in the past seven years. If you’re looking to rebuild credit, bankruptcy credit cards would be more suitable.
- Creditworthiness: The bank will evaluate the applicant’s credit history and Simplii credit card score to determine their creditworthiness. A good credit score increases the likelihood of approval and may lead to better terms, such as lower APRs.
Applying for the Simplii credit card is typically straightforward. Users can follow these general steps:
- Online application: Applicants can visit the Simplii Financial credit card website or use the bank’s mobile app to access the application form. You can download the app from the Google Play Store or App Store.
- Personal information: The application form will require applicants to provide personal details, such as their name, address, date of birth, and contact information.
- Financial information: Applicants must provide their income, employment status, and other information. This helps the bank assess the applicant’s creditworthiness.
- Consent and agreement: During the application process, applicants must review and accept the terms and conditions of the credit card agreement.
- Credit check: The bank will perform a credit check to evaluate the applicant’s credit history and score.
- Approval decision: The bank will approve once they review the application and credit history. If approved, the applicant will receive their new Simplii credit card in the mail.
Pros of Simplii credit card
The Simplii no-fee credit card offers several strengths and positive aspects:
- No annual fee: The lack of an annual fee makes the Simplii credit card a cost-effective option, allowing cardholders to save money while enjoying the credit card’s benefits.
- Cashback rewards: During your first three months of card membership, get up to 20% cash back from eligible gas, grocery store, and drugstore purchases and pre-authorized payments on spending up to $500.
- Generous spending limits: The Simplii credit card provides generous spending limits of up to $5,000, offering users financial flexibility and convenience.
Cons of Simplii credit card
While the Simplii credit card has many advantages, there are some drawbacks and limitations to consider
- Foreign transaction fees: Using the Simplii credit card for purchases abroad may result in foreign transaction fees, which can add to the overall cost of international spending.
- Cash spending limits: The Simplii Financial Credit Card’s accelerated cashback rates have strict spending limits — some as low as $5,000 per year. After that, the cashback rate drops to 0.5%. The card also lacks mobile device protection. You can add CIBC Travel Medical Insurance for a fee, but it doesn’t come standard.
- Eligibility requirements: Meeting the credit card’s eligibility criteria, including income and creditworthiness, may be challenging for some applicants, potentially leading to rejection.
Simplii no-fee credit card presents an appealing option for individuals seeking cost-effective cashback credit cards. With its strengths in offering no annual fee, generous spending limits, and a rewarding cashback program, the Simplii credit card provides financial flexibility and benefits to its users.
By utilizing the Simplii credit card wisely, cardholders can enjoy the advantages of no-fee payments, cashback rewards, and additional perks, making it a valuable addition to their financial toolkit.
Q. Is Simplii a debit or credit card?
A. Simplii offers both credit cards and debit cards. They have a range of banking products, including credit cards like the Simplii Financial Cash Back Visa Card and debit cards that come with their chequing accounts.
Q. Can I get a Simplii card at CIBC?
A. CIBC provides banking products and services under the Simplii Financial brand. It’s important to note that Simplii Financial offerings are not accessible in Quebec. Furthermore, accounts for businesses and non-profit organizations are not provided.
Q. How do I get a Simplii card?
A. To get the Simplii Financial Cash Back Visa Card, you must already have a Simplii Financial account. If you’re an existing customer, just log in to your Simplii online banking and apply for the card there.
If you’re new to Simplii, you can sign up by getting a Simplii No Fee Chequing or High Interest Savings Account. You can do this online or by calling 1-888-723-8881.
Q. How long does it take to get a Simplii Financial card?
A. After you apply, you’ll hear back within a few days to know if you’re approved. If they need more info, they’ll contact you. If you have questions, you can call 1-888-723-8881.
Q. Can I use my Simplii card in the USA?
A. You can take money out of ATMs abroad if they have Interac® or PLUS* signs, but there might be extra charges, including fees from the ATM owner. When you withdraw foreign currency, CIBC will convert it to Canadian dollars at their rate, not necessarily on the withdrawal date. There are also administrative fees.