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:
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.
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.
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:
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
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:
Get financial insights to monitor your spending and credit score and access basic shopping coverage.
Offer expiry date: October 31, 2021
Earn 1,250 bonus SCENE points upon your first purchase using the SCENE®* VISA* Card.
Regular features and benefits of this card include:
Redeem rewards for free movies at Cineplex and money off meals at participating restaurants.
Offer expiry date: October 31, 2021
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:
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
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.
The BMO CashBack Mastercard®* offers 5% cash back in the first three months up to $2,500 in qualified purchases ($500 in groceries, $500 in recurring bill payments, and $1,500 on all other purchases).
Newcomers to Canada may qualify for this credit card through the BMO NewStart® Program, designed to help permanent residents, foreign workers, and international students access banking products easier.
Regular features and benefits of this card include:
Redeem cash back for as little as $1 for statement credits or deposits into a BMO chequing, savings, or InvestorLine account. Or, set up automatic deposits starting at $25. This card also features financial insights to track your spending habits and stay on top of your credit score.
Offer expiry date: October 31, 2021
Apply for the Scotia Momentum® No-Fee VISA* Card to earn 5% cash back on all purchases for the first three months, up to $2,000 in total purchases. That is up to $100 cash back.
The Scotiabank StartRight® Program has banking solutions for newcomers to Canada and international students.
Regular features and benefits of this card include:
Get a free additional card for a family member and start earning cash back faster.
Offer expiry date: October 31, 2021
Earn unlimited cash back using the RBC® Cash Back Mastercard‡ and get instant savings on fuel at Petro-Canada when you link your card.
This card may be available under the RBC Newcomer Advantage program, helping newcomers navigate financial hurdles when they first arrive in Canada.
Regular features and benefits of this card include:
Get personalized deals through RBC Offers and basic shopping coverage with this card.
The Scotiabank®* American Express® Card offers 5,000 Scotia Rewards points when you spend at least $500 in purchases in the first three months.
Regular features and benefits of this card include:
This no-fee credit card provides exclusive discounts with Scotia Rewards Travel Advantage. Plus, get special offers and access to events through American Express Invites®. This card also features basic travel insurance and shopping coverage.
Offer expiry date: N/A (Subject to change without notice)
Although the No Fee Home Trust Secured Visa Card does not offer rewards or cash back, it still provides value. Choose a credit limit that suits you means starting at $500 as a deposit determines it. You will begin to build and improve your credit score as long as you keep up to date with your payments.
Regular features and benefits of this card include:
Use this card anywhere Visa is accepted to pay bills or shop in-store or online.
For young adults and those new to financial independence, a student credit card may not always be an option. In this case, all you’ll need is a steady income to qualify for a credit card.
We’ve compiled a comprehensive list of cards for beginners — most require a minimum personal income of around $12,000 to be eligible.
*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.
The MBNA Rewards Platinum Plus® Mastercard® offers four points for every $1 spent on eligible restaurant, grocery, digital media, subscription, and household utility purchases for the first 90 days until $10,000 is spent annually.
Regular features and benefits of this card include:
This card also features mobile device insurance, shopping coverage, and deals on rental cars. Plus, you will receive annual Birthday Bonus Points, equal to a percentage of the points earned over the previous 12 months, up to 10,000 points.
This offer is not available for residents of Quebec. For residents of Quebec, please click here.
Offer expiry date: N/A (Subject to change without notice)
For the first four months, the Simplii Financial™ Cash Back Visa* Card offers 10% bonus cash back at restaurants and bars, up to $500 in total purchases. Get the regular rate of 4% cash back at restaurants and an additional 6% back during this time. That is up to an extra $30 cash back.
Plus, get a 9.99% interest rate on purchases for the first six months.
Regular features and benefits of this card include:
This card also features basic shopping coverage and free additional cards for up to three authorized users. Plus, pay no transaction fees or interest on Simplii Financial Global Money Transfers when you use your Cash Back Visa Card, as long as you pay your balance by the due date.
Offer expiry date: October 31, 2021
Get 20,000 PC Optimum points after your first purchase using the President’s Choice Financial® Mastercard®.
Regular features and benefits of this card include:
Earn rewards for your everyday purchases and redeem them for as little as 1,000 points, a $10 value. Get free groceries and merchandise for your family.
Offer expiry date: N/A (Subject to change without notice)
The Scotia Momentum® No-Fee VISA* Card offers 5% cash back on all purchases for the first three months, up to $2,000 in total purchases. That is up to $100 cash back.
Regular features and benefits of this card include:
Add a supplementary card for free and earn more cash back with an authorized user.
Offer expiry date: October 31, 2021
The Tangerine Money-Back Credit Card offers 10% cash back for the first two months on up to $1,000 in total purchases. That is up to $100 cash back.
Regular features and benefits of this card include:
This card includes basic shopping coverage and free additional cards for authorized users so you can earn rewards faster as a family.
Offer expiry date: August 16, 2021
Traditional credit cards are not for everyone. Whatever the reason, whether you had an unpleasant experience in the past or struggle with budgeting and managing money today, there are other options.
A secured credit card can help build and improve your credit score with a bit of added protection. The credit limit, determined by a deposit on the account, acts as a safety net if you can’t pay your credit card bill on time. As long as you keep up with payments, your credit rating will improve. Eventually, you should be eligible for other credit products and be able to get your deposit back.
If you choose to stick with a secured credit card, that’s okay too. While these cards typically don’t offer points or cash back — some fee cards do — improving your credit score can be more rewarding. Those with good credit scores can often access the best interest rates on mortgages and other products.
Related read: Secured Credit Card vs. Prepaid Credit Card: Which Is Right for You?
You also have the option of a prepaid card. Load funds to your account instead of using money from a lender and pay bills or shop online just like you would with any other credit card. However, since you are not borrowing money, there are no payments; therefore, there is no payment history. Unless you opt for a credit building program, like the one from KOHO, this type of card will not affect your credit score.
*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.
The KOHO Standard Prepaid Visa Card does not report payments to the credit bureaus in Canada since the money you spend is your own. However, Credit Building by KOHO is a budget-friendly feature to help you build your credit score subtly in the background. The service is a six-month subscription and can be repeated as needed.
Get an additional 1% cash back on all purchases for the first 90 days (about three months) when you sign up with a referral code and when you refer a friend.
Regular features and benefits of this card include:
This card also features low foreign exchange fees (1.5% of foreign currency purchases) and personalized financial coaching.
Offer expiry date: N/A (Subject to change without notice)
Apply for the Plastk Secured Visa Credit Card to get 5,000 points upon approval (redeemable after three months). That is a $20 value. Plus, receive a $0 interest rate on purchases for the first three months.
Regular features and benefits of this card include:
Use your points to pay your balance or buy merchandise, travel, gift cards, charitable donations, or tickets to events (250 points = $1). Plus, get a 25-day grace period on purchases, typically around 21 days on most cards.
Offer expiry date: N/A (Subject to change without notice)
The No Fee Home Trust Secured Visa Card allows cardholders to set their own credit limit ranging from $500 to $10,000 as a deposit determines it. Use the card to pay for purchases and build your credit score as you keep up with payments.
Regular features and benefits of this card include:
Shop online or pay in-store anywhere that Visa is accepted, just like a standard credit card.
Credit cards can help people build and improve their credit scores when used responsibly, setting them up for financial success. The best cards also offer shopping coverage and fraud protection, which can be particularly useful when shopping online.
Practicing healthy financial habits can ensure you benefit from the rewards or perks on your card without getting overwhelmed by debt or mounting interest charges.
Start by following these simple tips:
For more tips and tricks, check out the 7 Common Credit Card Mistakes You Should Avoid.
Rates, product information and reward estimates are subject to change at any time and do not constitute financial advice. This post was not sponsored. RATESDOTCA may receive a referral fee from our partners or affiliate links featured on the site; however, our editorial choices are objective and free from bias. The opinions expressed in this article are purely those of RATESDOTCA; thus, the credit card issuers and partners are not responsible for any editorials or reviews that may appear. Please visit the associated website for complete and current terms and conditions on any product or service mentioned. The information in this article is accurate as of the date of this posting, August 3, 2021. Read our full disclaimer.