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Tangerine World Mastercard® Credit Card Review

Young couple in airport using orange credit card on laptop (focus on credit card)

If you’re looking for a no annual fee cash back card that gives you some good additional benefits, then you’ll want to know about the newly announced Tangerine World Mastercard®. This is Tangerine’s second credit card and it’s basically an enhanced version of their Tangerine Money-Back credit card.

Cash back credit cards have become popular as of late since they’re easy to understand. Instead of earning points that may be tricky to redeem, you earn cash back on all of your purchases. Everyone understands that but what makes the Tangerine World Mastercard® stand out is that you can pick up to three categories that will earn you more cash back. Keep reading to find out the full details about the card.

Tangerine World Mastercard

Sign-up Bonus: Average

Currently, the sign-up bonus is an increased earn rate of 4% cash back on up to three chosen categories for the first three months of cardmembership. This is basically double the earn rate for your selected categories. Two categories of your choice are given to you right away and if you set your cash back to be automatically deposited into a Tangerine Savings Account, you can then choose the third category. Although this sign-up bonus isn’t as generous as some other cards on the market, the Tangerine World Mastercard® has no annual fee which is a bonus in its own right.

Another sign-up bonus that’s optional is a balance transfer, where you’ll only pay a 1.95% interest rate for the first six months of cardmembership. Once that promotional period ends, your interest rate increases to the standard rate of 19.95%. This offer is only good on balance transfers made within 30 days of opening your account, but it can be a good way to help you reduce your debt.

Sign-up Bonus Expiry Date: January 31, 2020

Earning Potential: Great

The regular earn rate on the Tangerine World Mastercard® is 2% cash back on up to three categories and 0.5% on all other purchases. At first glance, some people may not like the idea of just 0.5% on all the other categories, but you should be focusing on the positives instead. You can choose three categories where you earn 2% so obviously, you should choose the categories where you spend the most money. With this card, you’re not restricted by predefined categories where you earn additional cash back, you get to choose where you earn more money. For reference, here are the categories you can choose from:

  • Restaurants
  • Grocery
  • Gas
  • Entertainment
  • Home Improvement
  • Furniture
  • Hotel-Motel
  • Recurring Bills
  • Drug Store
  • Public Transport and Parking

Let’s assume that $1,600 is spent monthly among the following categories*:

  • Groceries: $494.50
  • Pharmacy: $55.33
  • Gas: $134.31
  • Other: $915.86

According to our Best of Finance methodology*, this can amount to $479.34 Money-Back over a two-year period.

The one category that’s missing is a general travel one. That means if you’re booking flights through an airline or travel through a travel agency, you would only earn 0.5% on those purchases. On a positive note, there are no limits to the cash back you can earn. Some cash back credit cards cap your earn rate once you reach a certain spending threshold but not the Tangerine World Mastercard®.

Balance Transfer Feature: Good

As mentioned above, the balance transfer is good. Paying just 1.95% interest for six months is a great rate since most credit cards typically charge 19.99% interest or more. If you’re going to take advantage of the balance transfer option, be sure to pay down your debt as soon as you can. Don’t fall into the trap of making a transfer and then making more purchases which would just increase your overall balance.

Point Redemption: Great

Since you’re earning cash back, there are no points to redeem but that’s a good thing. With the Tangerine World Mastercard®, you can deposit your cash back earned directly into your Tangerine Savings Account or apply it to your credit card as a statement credit. This can be done every month which will appeal to many people since many other cash back credit cards limit your cash back redemption to once a year. Since this can all be done from within your account, there’s no need to call anyone to get your cash back.

Benefits: Good

Typically, no-fee cards don’t come with many benefits, but since this is a World Mastercard®, you actually get some benefits which can be quite useful.

  • Free supplementary cards
  • Mastercard® Airport Experiences Provided by LoungeKey
  • Mobile Device Insurance up to $1,000
  • Rental Car Collision/Loss Damage Insurance up to 31 consecutive days
  • Purchase Assurance
  • Extended Warranty

Mastercard® Airport Experiences Provided by LoungeKey gives you access to many airport lounges, but you still need to pay the daily rate to enter.

For your mobile device insurance to apply, you need to charge the full cost of your phone to your Tangerine World Mastercard®. If your phone is subsidized with a phone contract, then you need to charge your monthly bill to your Tangerine World Mastercard®.

The Rental Car Collision/Loss Damage Insurance is good up to 31 consecutive days but the vehicle must not have an MSRP of more than $65,000. In addition, you need to charge the full expense of the rental to your Tangerine World Mastercard® and decline the car rental agency’s insurance for your insurance policy to be valid.

Purchase assurance covers your purchases for 90 days from theft, damage and loss while the extended warranty doubles your manufacturer’s warranty up to an additional year.