Selecting the right financial products, from chequing account to mortgages, requires a bit of shopping, and credit cards are certainly no exception. In a market where the options, perks and eligibility criteria are as diverse as they are numerous, the National Bank mycredit Mastercard is an easy and hassle-free solution.

Right off the bat, fans of big rewards and travel savings might skip past this, as it’s definitely not the most generous of credit cards. On the flipside, it requires very little of its cardholders, which is a nice compromise for those who prefer to keep things simple and efficient.

Hardbacon has analyzed its features from top to bottom to help you determine if you fit the ideal consumer profile for the National Bank mycredit Mastercard.

Do you prefer doing your own research? Use our credit card comparison tool to filter through hundreds of options based on your needs and your financial situation.

The mycredit Mastercard at a glance

  • Flexible eligibility criteria
  • No annual fee
  • 20.99% interest rate on purchases
  • 22.99% interest rate on balance transfer and cash advances
  • 1% cash back applied directly to the account statement for restaurant expenses and recurring direct debits
  • 0.5% cash back applied directly to the account statement for all other purchases
  • Basic insurance coverages
  • No catalogue, in-store or travel discount programs

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What we like about the mycredit Mastercard

No annual fee

It’s hard to dislike anything that’s free. Additional cards are also free of charge.

Super simplified rewards program

We like its reward program a lot for its extreme simplicity. There’s no foolishness here! There is no need to redeem your points for a slow cooker or free popcorn at the movies. Each month, a percentage of your credit card spending goes straight back onto your account.

Dining out and recurring pre-authorized withdrawals (cellphone bill, internet, gym, etc.) bring in 1%. In other words, by using the mycredit Mastercard, all of these expenses automatically come with a 1% discount, applied to your credit card balance for the following month. For all other purchases, the discount is 0.5%. Cash advances and balance transfers are obviously excluded from the calculation. Refunds, such as returned merchandise, reduce the discount according to the rate assigned at the time of purchase.

Are there programs better suited to your needs, more generous and free of charge? Possibly! Check out our article “15 best no annual fee credit cards in Canada” for other options.

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Flexible eligibility criteria

The eligibility criteria for the mycredit Mastercard are among the least restrictive on the market. All Canadian residents can apply as long as they are of legal age in their province or territory. Acceptance is subject to National Bank’s credit approval, but since the minimum limit is $500, no minimum income is required. It can therefore serve as a great starting point to build (or rebuild) your credit history.

If your credit history is really poor, however, check out our article “The 10 best credit cards to rebuild your credit in Canada” for suggestions that better suit your needs. To better understand your credit history and score, see “10 tips to improve your credit rating in Canada

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Insurance

Quite frankly, the mycredit Mastercard insurance coverages are not very exciting, but at least they’re the basics.

Mobile device insurance: Coverage of up to $1000 is paid to you in the event of breakage, loss or theft during the 24 months following the purchase of a cell phone. But beware! In order to be eligible, you must set up the device’s recurring monthly payment to be paid by your card.

Purchase protection against theft or damage 90 days from the date of purchase

Manufacturer’s warranty extension on most new items (1-year maximum and certain conditions apply)

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A “just in case” credit card

Since it costs nothing, it can simply be used as a back-up card – the one you leave at home as a last resort in the event you lose your wallet and your other cards. Because the discounts are applied directly to the balance, you’ll never lose the points accumulated with the National Bank mycredit Mastercard, even if you use it very little. This is not the case for other cards, where you have to reach a certain threshold to enjoy the rewards.

What we don’t like about this credit card

Very high interest rates

Due to its high interest rates (20.99% on purchases and 22.99% on cash advances), the mycredit Mastercard is a rather risky choice for those who are not always able to repay the full balance each month.

This credit card is definitely an essential transactional tool, but it remains a financing solution that is not beneficial over the medium and long term. With its interest rates among the highest, a $2000 balance on the mycredit Mastercard that lingers in the account for 1 year could cost you the equivalent of the annual fee and interest for some low rate cards.

Limited benefits

The mycredit Mastercard cash back program is flawed in its high quality, super simplicity. If after a while your spending habits change (especially greater spending), you’ll get more with another credit card. The same goes for insurance and discounts, as many cards will offer you more than this one, in addition savings on car rentals, for example.

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To whom do we recommend it?

Light users, that is to say:

  • Those who hate debt and simply want to own a card for the essentials.
  • Those who already have one or two credit cards, but want an extra safety net. (Note, however, that regardless of your budget, having more than 3 cards is a slippery slope!)
  • Those who need to build or improve their credit score.
  • Those who pay in full each month and don’t want to worry about shopping from a catalogue.

Who should pass on this one?

Those with irregular Income

People whose cash inflows are sometimes unstable, such as the self-employed, commissioned salespeople and start-ups, must use it with great care. It shouldn’t be relied upon as a source of working capital. This advice goes for anyone, but at 20.99%, interest charges accumulate very quickly with the mycredit Mastercard. It’s better to opt for other forms of financing such as a line of credit, or check out the reduced rate card offers on our credit card comparator tool.

Cash advances

Here’s an important piece of information to remember: there’s no grace period for cash advances. While you pay zero interest on your purchases by paying off your full balance by the statement due date, interest begins to accumulate instantly on cash withdrawals and balance transfers with the National Bank’s mycredit Mastercard.

Rewards enthusiasts and travelers

Since it doesn’t provide any enhanced benefits at particular retailers or for specific categories of purchases, many consumers will easily find credit card offers better suited to their situation and their consumption habits. For example, if you spend a lot on fuel at Costco or Canadian Tire, several credit cards offer much better programs. Check out our other articles to find credit cards with rewards, sometimes even at no cost.

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Do you prefer doing your own research? Use our credit card comparator tool to filter through hundreds of options based on your needs and your financial situation.

This article was compiled by Hardbacon, which has designed a credit card comparator listing hundreds of Canadian credit cards. Hardbacon also helps you save on savings accounts, chequing accounts, online brokers, robo-advisors, life insurance, mortgages and personal loans. If you want to go one step further and take control of your finances, you should download Hardbacon’s mobile app, which links to your bank and investing accounts, helps you plan for your financial goals, create a budget and invest better.

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