Starter Credit Cards Are Not One-Size-Fits-All

• Students don’t have to settle for a no-fee card with no rewards. Get cash back for everyday purchases with the BMO CashBack^® Mastercard^®* for students and redeem rewards for as little as $1 in purchases.
• Newcomers to Canada may be able to take advantage of one of the many banking programs tailored to international students, foreign workers, and permanent residents. Comparing banking packages and credit cards can help you make the right decision for you and your family.
• Prepaid credit cards don’t typically offer credit building solutions; however, Credit Building by KOHO does just that for a budget-friendly fee of $7 a month.

Getting approved for credit can be challenging, whether you are new to credit or new to this country. When credit card issuers have little or no information on your credit risk, they may view your application cautiously.

Fortunately, many products are designed to help beginners build their credit scores and gain financial insights into their spending habits. But there is no one-size-fits-all solution.

Depending on the circumstance, those with thin credit profiles may have one of the following options:

• Secured credit card: This type of card is more widely available and has high approval rates. Cardholders can set their credit limit, usually ranging from $200 to upwards of $10,000, since a deposit determines it.
• Prepaid credit card: Applicants can usually get instantly approved for this type of card. However, since cardholders use their own money to pay for purchases, not a lender’s, no payment history is reported to the credit bureaus. Therefore, prepaid cards will not help build or increase your credit score — unless the issuer provides an additional credit building program.
• Student credit card: This type of card is generally available to those attending post-secondary education, and proof of enrollment may be required. In terms of income requirements, scholarships and grants often count toward eligibility.

Click on the profile that you identify with the most to compare starter credit cards:

Or click here for helpful credit card tips for beginners.

Best credit cards for students

A student credit card can help young scholars build their credit score as they pay for everyday purchases like textbooks and lunch with friends. With each payment made by the due date, the issuer relays positive information to the two main credit bureaus in Canada, Equifax and TransUnion.

To qualify for this type of card, applicants not only have to be the age of majority in their province or territory but must also be within an age range, typically 18-24. Additionally, they must be enrolled in a post-secondary program at a recognized school.

Once a student ages out of this requirement, the issuer will automatically upgrade the card or offer the cardholder a new selection.

While many students choose to have part-time jobs, attending classes and studying is time-consuming. For those without employment, scholarships and grants or student loans may also count toward eligibility.

*The RATESDOTCA Best of Finance methodology assumes the cardholder spends an average of $2,000 a month on their card to determine the first-year value. The calculation includes all welcome bonuses and promotional offers at the time of publishing.

1. BMO CashBack^® Mastercard^®*

Best of Finance Winner: Best Student Credit Card

Apply for the BMO CashBack^® Mastercard^®* for students to get up to 5% cash back in the first three months on qualified purchases up to $2,500 ($500 in groceries, $500 in recurring bill payments, and $1,500 on all other purchases). You could earn up to $125 cash back.

Regular features and benefits of this card include:

• Annual fee: $0
• Annual fee for additional cards: $0
• Earn 3% cash back on your first $500 in grocery purchases monthly.
• Earn 1% cash back on your first $500 in recurring bill payments monthly.
• Earn 0.5% unlimited cash back on all other purchases.

This card also features basic shopping coverage and digital financial insights to help you stay on top of your spending and check your credit score. Redeem cash back whenever you want for statement credits or cash deposits into your BMO chequing, savings or InvestorLine account.

Offer expiry date: October 31, 2021

2. BMO AIR MILES† Mastercard* for Students

New cardholders of the BMO AIR MILES^† Mastercard* for Students can earn 800 AIR MILES Bonus Miles when they spend at least $1,000 on the card in the first three months.

Regular features and benefits of this card include:

• Annual fee: $0
• Annual fee for additional cards: $0
• Earn one Mile for every $25 spent on purchases.
• Earn 3X the Miles for every $25 spent at participating AIR MILES Partners.

Get financial insights to monitor your spending and credit score and access basic shopping coverage.

Offer expiry date: October 31, 2021

3. SCENE^®* Visa* Card-Student

Earn 1,250 bonus SCENE points upon your first purchase using the SCENE^®* VISA* Card.

Regular features and benefits of this card include:

• Annual fee: $0
• Annual fee for additional cards: $0
• Earn five SCENE points for every $1 spent at Cineplex and cineplex.com.
• Earn one SCENE point for every $1 spent on all other purchases.

Redeem rewards for free movies at Cineplex and money off meals at participating restaurants.

Offer expiry date: October 31, 2021

4. Tangerine Money-Back Credit Card

While this card is not technically a student credit card, it only requires a minimum personal income of $12,000 to be eligible. Therefore, it is worth mentioning.

Apply for the Tangerine Money-Back Credit Card by August 16, 2021, to earn 10% cash back when you spend at least $1,000 on the card within the first two months. That is up to $100 cash back.

Regular features and benefits of this card include:

• Annual fee: $0
• Annual fee for additional cards: $0
• Earn 2% in Money-Back Rewards in up to three categories of your choice. Start with two categories and earn the third when depositing your rewards into a Tangerine Savings Account. Money-Back Rewards Categories include grocery, furniture, restaurant, hotel-motel, gas, recurring bill payments, drugstore, home improvement, entertainment, and public transportation and parking. Switch your categories to match your spending habits and maximize your rewards.
• Earn 0.50% cash back on all other purchases.

This card has a “left to spend” feature that offers insights into your spending habits. Plus, get basic shopping coverage and free additional cards for authorized users.

Offer expiry date: August 16, 2021

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Best credit cards for newcomers to Canada

Most of the major banks offer programs for newcomers to Canada. Many of these banking packages provide simple, no-fee financial solutions for saving and spending within a specific period, usually up to one year. Some even help international students get their study permits.

While these packages offer excellent value and access to professional advice, it is always beneficial to compare products to ensure you find the best match for your lifestyle.

You may find that a secured credit card offers a more significant credit limit as the deposit determines it.

Here are several credit cards that these programs may offer or that have less stringent application requirements.

*The RATESDOTCA Best of Finance methodology assumes the cardholder spends an average of $2,000 a month on their card to determine the first-year value. The calculation includes all welcome bonuses and promotional offers at the time of publishing.

1. BMO CashBack Mastercard^®*