Instead of Travel Hacking I have recently become addicted to cash back card hacking, with the sole aim of reducing my expected big expenditures, like my huge annual car insurance payment. I recently applied for the CIBC Dividend Visa Infinite Cash Back Credit Card. Here’s my CIBC Dividend Visa Cash Back review.
I don’t give a hoot what my credit score is like (because I don’t plan to borrow any time soon) but I periodically check with Borrowell (it’s free). I check my credit report with Borrowell especially after I apply for credit cards. From what I have noticed with my credit card application experience, it usually drops about 10-15 points with each application and then slowly returns back the the previous Excellent score in a few months.
Before I wasn’t very organized about applying for credit cards before big expected purchases, but this year I’ve been a bit better about it. There aren’t without snags when you apply though, so you have to apply at least a few weeks or 1-2 months before your expected purchase so that you can have that card in hand when you make your purchase. For the last credit card I applied, I almost didn’t make my purchase cut off, the mail was delayed for weeks before I got my credit card.
I used to just be satisfied with getting 1.5% cash back on my car insurance, which is approximately $25. But why not get 10% cash back instead, and receive $170? It just takes a little planning and a hit to your credit score, haha.
CIBC Dividend Visa Cash Back Welcome Offer
Of course I signed up because of the special welcome offer. I liken these offers to a similar offer to a Canadian new bank account promotion except the returns are much easier to get. You don’t have to arrange for a direct deposit for $200 cash back, you just have to spend money.
You can get 10% cash back up to a $2000 spend on your first four credit card statements (roughly the first four months of use).
You also get a first year annual fee rebate which is normally $120. This will be rebated within the first two credit card statements.
This special offer is valid for people who sign up for the card after February 1, 2021 and people who switch from another CIBC credit card are not eligible.
CIBC Dividend Visa Annual Fee
As mentioned, the annual fee for the CIBC Dividend Visa Infinite is $120 a year.
There is a promotion that the first year is free.
For additional or supplementary cards, it is an extra $30 per card and you can have up to three supplemental cards.
CIBC Visa Infinite Annual INcome Requirement
The minimum personal income for the CIBC Dividend Visa Infinite card is $60,000.
Alternately if you don’t qualify for the personal income threshold, the minimum household income for this credit card is $100,000.
Features of the CIBC Dividend Visa
- 4% Cash Back on gas and groceries
- 2% Cash Back on dining, transportation, or recurring payments or bills (they have to be pre-authorized)
- 1% Cash Back on everything else with no limit
Transportation means use of the subway, bus, streetcar, taxi, limousine and ride sharing services.
The 4% and 2% cash back is only up to $80,000 in annual purchases on the card or $20,000 on gas, groceries, and dining purchases, recurring bill payments, whichever comes first. After that the rate is 1% on these purchases.
You don’t get the regular cash back percentage on purchases during your 10% cash back period. For example, if you pay $1500 for your car insurance, you can get 10% cash back, or $150, but you wouldn’t get the $150 and an additional $15 (which would be 1% cash back).
CIBC Dividend Visa Insurance Benefits
The insurance benefits are pretty standard, and similar to other Visa Infinite credit cards. The insurance benefits are underwritten by Royal & Sun Alliance Insurance Company of Canada.
- Auto Rental Collision/ Loss Damage Insurance
- Purchase Security and Extended Protection Insurance
- $500,000 Common Carrier Accident Insurance
- Out-of-Province Emergency Travel Medical Insurance
- Trip Interruption Insurance
- Flight Delay and Baggage Insurance
- Mobile Device Insurance (Repair or Replacement up to $1000 for two years following purchase with the Dividend Visa card).
CIBC Dividend Visa Cashback Redemption
The great thing about the CIBC Dividend Visa is that the cash back can be redeemed whenever you want. Unlike the Scotiabank Momentum Visa, which is just once a year in November, the points can be cashed out anytime as long as there is a minimum $25 to redeem.
To redeem your cash back, you can go on CIBC Online and Mobile Banking or by calling CIBC at 1-800-465-4653.
You’ll get your money in your credit card statement within 5 days that you made the request.
For any cash back that you have not redeemed in December, it will automatically redeemed for you and your cash back balance will be reset to zero. You will get your cash back in January automatically.
For some reason I tend to just use the CIBC credit cards and cancel them after I have received my welcome bonus. Is that called churning? I guess so. I guess because I don’t bank with CIBC and therefore can’t get an annual ongoing credit for a credit card anyway.
I think this is a great cash back bonus especially if you have a big purchase and want cash back instead of travel rewards, since we can’t travel in the foreseeable future right now.
It’d be nice to get $200 cash back for spending almost $2000 on my car insurance.
Here are some other 10% cash back credit cards in Canada.
Once I get my cash back and redeem it, I will likely cancel it. It is nice that you can get your cash back and redeem whenever, unlike the Scotia Visa Infinite Momentum where you can only redeem once a year in November.
What’s your CIBC Dividend Visa review?
When choosing a credit card, do you prefer cash back or do you prefer travel rewards?
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GYM is a 30 something millennial interested in achieving financial freedom through disciplined saving, dividend and ETF investing, and living a minimalist lifestyle. Before you go, check out my recommendations page of financial tools I use to save and invest money. Don’t forget to subscribe for blog updates, a free dividend yield spreadsheet, and the free Young Money Bootcamp eCourse.