Tim Hortons Credit Card Review Is It Worth Getting

Do you love your Tim Hortons? Is it an addiction? Is it an addiction? It makes me happy. Do you want more free coffee? Free coffee? Awesome! Well in today's video, I've got something exciting to talk about. The brand new Tim Hortons credit card. We'll dive into the details on how this stacks up against other credit cards, so if you're curious about whether this card is worth adding to your wallet, make sure you stick around till the end. Introducing the Tim Hortons credit card, brought to you by Tim's Financial, a new division of Tim Hortons. This credit card is powered by Neo Financial and proudly bears the MasterCard logo. To be eligible for this card, you must be of legal age and be a Canadian resident. You'll also need a fair credit score and be prepared for a hard credit check. And if you're considering signing up, make sure you check for any sign-up bonuses and review the terms and conditions carefully. Now let's delve into the nitty-gritty details. The Tim Hortons credit card has a key advantage, no annual fee. However, it's essential to note that it comes with a purchase interest rate ranging from 20.99% to 24.99% and a cash advance rate ranging from 22.99% to 27.99%, which are on the higher side. So if you plan to carry a balance, you might want to consider a low interest credit card like the MBNA 2 line, which offers a purchase interest rate of just 12.99%. As for other fees, the Tim Hortons credit card aligns with industry standards. If you're on the lookout for a no annual fee credit card with no foreign transaction fees, you might want to consider the Brim Mastercard. Not only it fits the bill, but also it offers a 1% cash back on all purchases. Now let's explore the rewards aspect. With the Tim Hortons credit card, you'll earn five points for every $1 spent on gas, groceries, EV charging, and transit, which translates to approximately 2.5% in cash back value. Additionally, you'll rake in 15 points for every $1 spent at Tim Hortons restaurants when you scan your Tim's rewards card. That's about 7.5% in cash back value. For all other expenses, you'll earn one point for every $2 spent, equivalent to 0.25% in cash back value. But how do these rewards measure up against other no annual fee credit cards? The Tim Hortons credit card certainly holds its own, especially with its competitive 2.5% cash back on gas. However, it's important to note that this excludes Costco gas from this category. For groceries, while the reward rate is above average, some no annual fee cards like the BMO Cash Back Mastercard and the Triangle World Elite Mastercard offer even higher rates, sitting at 3% cash back on grocery spending. Please keep in mind that Walmart and Costco are excluded from the grocery category. Rewards for EV and transit spending also shine above the average. Now let's talk about the 15 points for every $1 spent at Tim Hortons restaurants. While it may seem impressive, remember that even without the Tim Hortons credit card, you'd still earn 5% in rewards through the Tim's rewards card. So the Mastercard essentially provides an extra 2.5% for Tim Hortons spending, which is still above average. However, consider the Simply Cash Back Visa, a no annual fee card that offers a whopping 4% cash back, not only at Tim Hortons, but also at all fast food joints, restaurants, bars, and other eateries. Combining the Simply Visa with the Tim rewards could earn you a generous 9% in rewards. As for the 1 point per $2 spent everywhere else, this reward falls below the industry average, with many cards offering at least 0.5% and some even providing 1%. While the Tim Hortons credit card offers decent reward rates, they lack flexibility. Unlike some credit cards that allow you to use rewards to pay off your balance or offer cash back directly into your bank account or travel rewards, the Tim Hortons credit card only provides Tim points, which can only be redeemed at Tim Hortons. Furthermore, you can't redeem them for just any purchase at any time. You must pre-select your redemption item through the app and only that specific item can be redeemed. Keep in mind that not all items at Tim Hortons are eligible for rewards. Rewards start at 300 points, which can get you donuts, hash browns, and cookies. For coffee, tea, and bagels and muffins, you'll need 400 points. To put this into perspective, you'll need to spend $80 at a grocery store or gas station to earn enough points for a free coffee. Items like hot chocolate, French vanilla, and iced coffee require 600 points, while cold brew, ice caps, and a box of 10 Timbits demand 800 points. For breakfast sandwiches and soups, it's 1,100 points. For farmer's wraps, belts, and sandwiches, it's 1,300 points. And loaded bowls and wraps, you'll need 1,800 points. Keep in mind that reward points expire in 12 months, which isn't an issue for a regular Tim Hortons visitor, but could be a downside for occasional customers. Beyond the rewards, the Tim Hortons credit card offers additional benefits including Apple Pay, Google Pay, a virtual card, extended warranty, and purchase protection. Now here's where the Tim Hortons credit card truly shines, its secured version. In Canada, there are limited options for secured credit cards. Most of them come with annual fees. The Tim Hortons secured credit card stands out as one of the few no-annual-fee secured credit cards that offer rewards. The competition in this category is scarce, with the NEO secured MasterCard being the only other no-annual-fee secured card with rewards. A secured credit card is ideal for those with low or poor credit history, and the beauty of these cards is that they don't require a hard credit check. Approval is almost guaranteed, as long as you provide security funds which determine your credit limit. These funds are refundable when you close your credit card. With the Tim Hortons secured credit card, the reward rates are slightly reduced. You'll earn 2 points for every $1 spent on groceries, gas, EV charging, transit, taxi, and ride sharing, 12 points for every $1 spent at Tim Hortons, and 1 point for every $4 spent everywhere else. Still, the fact that you can get rewards with a no-annual-fee secured credit card is a significant plus. I personally had to pay a $60 annual fee for years with the Capital One secured card. It didn't offer any rewards, just the opportunity to build my credit. So who is the Tim Hortons credit card for? This card is tailored for individuals who have a deep affection for Tim Hortons. If you find yourself at Tim Hortons every day or even multiple times a day, this card might be the perfect fit. There are undoubtedly other no-annual-fee credit cards on the market that offer more competitive rewards and interest rates, but the Tim Hortons credit card distinguished itself by providing you with instant rewards in the form of Tim Points. It's the ideal choice if you want to use your Tim Points for your next visit to Tim Hortons and don't want to wait till the end of the month or year to reap the benefits, as is common with most cashback credit cards. Additionally, if you have no credit history, like students or newcomers to Canada, if you're looking to rebuild your credit, the Tim Hortons secured credit card is an excellent option in a market where good secured credit card choices are limited. If you want to watch other credit card reviews, check out one of the videos on the right of the screen. Thanks for watching, until next time, keep making money moves, peace!