Wealthsimple Credit Card review

How the Wealthsimple card earns cash back

Every purchase earns 1% cash back, with no categories to track. Wealthsimple Premium and Generation clients can earn up to 2%, which can double the return for those who qualify with no change in how they use the card.

As an example, $2,000 a month of spending earns $20 a month, or $240 a year, at 1%. At 2%, the same spending would earn $480 a year.

Cash back can be invested automatically, which suits people who already save and invest through Wealthsimple and would rather see rewards grow than spend them.

No foreign transaction fee

Most cards in CreditLab’s catalog charge a 2.5% foreign transaction fee, which adds $25 to every $1,000 spent in another currency. The Wealthsimple card charges nothing, so the same $1,000 costs $1,000 and still earns at least 1% back.

It’s one of only two no-fee cards in the catalog with no foreign transaction fee. If you spend $5,000 a year abroad or with online stores that bill in US dollars, that’s $125 you’d otherwise pay on a 2.5% card, more than half the cash back from the $2,000-a-month example budget.

Is a flat 1% enough?

A flat rate is simple, but it gives up the higher returns category cards pay. On $600 a month of groceries, a card paying 2% in that category would earn $144 a year, compared with $72 here.

That $72 gap is smaller than the $125 in foreign transaction fees you’d avoid on $5,000 of foreign spending, so the right choice depends on where your money goes. Many people use both: a category card for everyday spending at home and the Wealthsimple card for travel and foreign online shopping.

Fees, interest and the fine print

There’s no annual fee, so the card costs nothing to hold even in years when you use it lightly. Purchases are charged 20.99% interest and cash advances 22.99%.

A flat 1% return is quickly erased by interest at those rates, so pay the full balance by the due date each month.

Insurance coverage

Coverage is limited to purchases, with no travel insurance listed. Check the certificate for coverage periods and limits.

• Purchase security
• Extended warranty

Who it suits, and who should look elsewhere

The Wealthsimple card suits travellers, online shoppers who buy in US dollars and anyone who wants one simple card for everything, especially Premium and Generation clients who can earn up to 2%. With no annual fee, it also works as a dedicated travel card that you only take out when you leave the country.

If you spend heavily on groceries or dining and rarely leave Canada, a no-fee category card can earn more. Travellers who want travel insurance should look at a card that includes it, or pair this card with one that does.

How it compares

The Home Trust Preferred Visa is the other no-fee card in CreditLab’s catalog without a foreign transaction fee, earning up to 1% on all eligible purchases. The two are similar on paper, so the deciding factors are the issuer and whether Wealthsimple’s higher client rates apply to you.

If you’re willing to pay a fee, the Scotiabank Passport Visa Infinite+ Card costs $150 a year, also has no foreign transaction fee, and earns up to 3x at Sobeys, Safeway, IGA, Foodland and participating Co-ops.

Before you apply

The recommended credit score is 660 or higher, and Wealthsimple makes the final decision based on your full credit profile. Confirm the current earn rates and client tier requirements on Wealthsimple’s website before you apply.