The 7 best student credit cards in Canada for August 2023 – MoneySense

Researching bank cards as you intend for going again to high school? Whereas a scholar ID has its perks (like meal plans and reductions at native shops), the best scholar bank card can get you even higher perks (like a free tank of fuel or dinner out on the finish of the semester)—all when you’re constructing a credit score historical past. By the point you graduate and get your first huge gig, paying off your scholar bank card each month may provide help to finally purchase a house or automobile extra simply. Now’s the time to get a superb card, so you may reap the rewards throughout the faculty 12 months—when cash is tight for college kids. That’s what having a historical past with a bank card and a superb credit score rating can do. Now, let’s take a look at your choices. 

Finest bank cards for younger adults in Canada

Finest scholar bank card for money again

BMO CashBack Mastercard*

At a look: This bank card provides you a number of alternative to earn money again, particularly for getting groceries, paying payments and different purchases. And in contrast to different money again playing cards for college kids, the charges on these classes are spectacular. Plus, you may redeem your money again if you really want it—sure, even earlier than vacation buying on winter break.

Annual payment: $0Earn charge: 3% money again on groceries (as much as $500 monthly), 1% on recurring payments (as much as $500 monthly) and limitless 0.5% money again on all the things else.Rate of interest: 20.99% on purchases, 22.99% on money advances Welcome bonus: You’ll be able to earn 5% money again in your first 3 months.

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It gives a wholesome 3% money again charge on groceries as much as a most of $500 a month. No different no-fee money again bank card earns this charge.The minimal redemption requirement is barely $1, so you may redeem your money again if you really want it (fairly candy if you don’t need your subsequent meal to be KD or ramen noodles).Gadgets you buy utilizing the cardboard obtain double the producer’s authentic guarantee safety, as much as one 12 months.Rise up to 25% off base charges at eligible Nationwide and Alamo automobile rental places.

Cons:

There aren’t any journey insurance coverage or associated perks with this card. Nevertheless it’s not atypical of different no-fee playing cards.There are caps on the bonus spend classes: 3% on the primary $500 you spend on groceries monthly, with all the things over that incomes the bottom 0.5% earn charge. That mentioned, it’s a month-to-month cap, so that you begin once more the primary of the month. No boosted =earn charge for transportation or fuel, because it’s within the “all the things else” pile at 0.05%. Meaning Ubers, too.

Additionally contemplate:

CIBC Dividend Visa for College students

At a look: Earn 2% on groceries, then 1% eating, fuel, transportation and recurring invoice funds, after which earn 0.5% money again on all the things else. However a cool bonus is free entry to SPC+, which is a scholar low cost program, with offers from Apple merchandise to vogue.

Annual payment: $0Earn charge: Earn 2% on groceries; 1% on fuel, EV charging, transportation, eating and recurring funds; and 0.5% money again on all different purchases.Rate of interest: 20.99% on purchases, 22.99% on money advances, 22.99% on stability transfersWelcome bonus: You’ll be able to Earn $60 in money again after you make your first buy inside the first 4 months. Provide not obtainable to QC residents. Situations apply.

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Cardholders are eligible for an SPC membership and get free entry to SPC+, which gives greater reductions and particular experiences.The spending class caps are excessive: $80,000 in web purchases or $20,000 on grocery, fuel, transportation, eating and recurring funds in a single calendar 12 months.On high of incomes factors, you may also save $0.10 per litre at choose Pioneer, Fas Gasoline, Ultramar and Chevron fuel stations if you hyperlink your card with the Journee rewards program from CIBC.

Cons: 

At a most of two% money again, the earn charges for all spend classes are modest in comparison with different money again bank card applications. So is the 0.05% money again charge for the rest.

Finest scholar bank card for Air Miles

BMO Air Miles Mastercard*

At a look: Not dwelling at house? Finding out overseas? Why not use your bank card rewards on a visit again house by incomes Air Miles if you use your card. Plus, get perks like reductions on rental automobiles for street journeys, and the flexibility to redeem your factors to purchase baggage and different merchandise.

Annual payment: $0Earn charge: Earn 3 times the miles at taking part Air Miles companion shops for each $25 spent (together with Metro, Shell, Dollarama and extra), and two occasions the miles for each $25 spent at eligible grocery shops.Rates of interest: 20.99% on purchases, 22.99% on money advances, 22.99% on stability transfersWelcome bonus: You’ll be able to earn 800 AIR MILES Bonus Miles price $80 in the direction of purchases with AIR MILES Money

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Earn 3 times the miles when spending at taking part Air Miles companions.Plus, you may earn Air Miles twice: As soon as if you use your BMO Air Miles Mastercard, and a second time if you use your Air Miles loyalty card. For flexibility, redeem your rewards for reward playing cards and reductions at Air Miles companions, in addition to on the airmilesshops.ca retailer for offers and bonus rewards from lots of of shops.Rise up to 25% off base charges at eligible Nationwide and Alamo rental automobile places if you happen to’re taking a visit with pals.

Cons: 

Air Miles will be much less versatile than money again, as you’ll have to redeem by means of Air Miles companions. So if you happen to don’t recurrently store at Metro, Shell, and so forth., it could be inconvenient to earn rewards.Journey redemptions are much less simple, too. For instance, you may’t redeem for any airline and you should use the Air Miles journey portal when reserving.Regardless of being a journey card, there is no such thing as a journey insurance coverage hooked up to this card. So if you happen to do want some, you’ll have to pay for the insurance coverage your self or forgo it and pay out of pocket for issues like misplaced baggage or missed flights, and so forth.

Finest scholar bank card for grocery buying

PC Monetary Mastercard*

At a look: Cooking at house is an effective monetary play if you happen to’re dwelling away from the fam whereas in school. This card lets you earn factors on each buy, however you may earn bonus factors if you store for groceries at Loblaw banner shops (together with Loblaws, No Frills, Actual Canadian Superstore, Fortinos and Valu-mart). 

Annual payment: $0Earn charge: Earn 25 Optimum factors for each $1 spent at Buyers Drug Mart, 10 factors per $1 at Loblaw banner shops, and all over the place else. Get not less than 30 factors per litre if you fuel up at Esso or Mobil. Redeem your PC Optimum factors on the check-out of those locations. Redemptions begin at 10,000 factors for $10 worth.Rate of interest: 21.99% on purchases, 22.97% on money advances, 22.97% on stability transfersWelcome bonus: You’ll be able to earn 20,000 PC Optimum factors

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You’re incomes 25 factors per $1 at Buyers Drug Mart and 30 factors per litre of fuel at Esso. That’s equal to a 2.5% and three% return, respectively. These are spectacular returns for a scholar card.You’ll be able to redeem PC Optimum factors at Loblaw-affiliated shops, which suggests you may put a serious dent in your on a regular basis payments. Sure, that features groceries on the nook Buyers Drug Mart. You’ll be able to redeem factors at Canada’s largest pharmacy and grocery chain, in addition to Joe Contemporary, for a complete of over 4,500 places throughout Canada. You aren’t restricted to a small variety of area of interest places like most different retail playing cards or loyalty playing cards.There’s no cap on the variety of PC Optimum factors you may earn.

Cons: 

Not as versatile as a money again program, as you may solely redeem your rewards at sure retailers. There’s a minimal redemption requirement of $10.

Finest scholar bank card for cash administration

Koho Pay as you go Mastercard with an Straightforward subscription*

At a look: Koho’s pay as you go Mastercard works like a debit or reward card, which means you don’t have to fret about getting authorised. Plus, it’s made to assist newbie bank card holders maintain inside their finances whereas constructing a credit score rating with helpful app instruments, resembling spending insights. Whenever you open a Koho account, you’ll be mechanically enrolled into Straightforward, Koho’s free entry-level subscription plan, and obtain a digital pay as you go Mastercard. Koho Straightforward already comes with a ton of nice options, resembling “rounding up” your transactions so it can save you quicker. However in order for you extra, you may improve to Koho’s Important or Further paid plans for higher earn charges and extra perks.

Annual payment: $0Earn charge: 1% money again on groceries and transportation (together with transit, transit card top-ups, fuel and Ubers or Lyft)Rate of interest: N/AWelcome supply: You’ll be able to earn 1% money again on groceries and transportation.Further advantages: Entry to budgeting instruments, RoundUp, monetary teaching and credit score constructing for a payment ($10 monthly); earn 0.5% curiosity in your account; entry to joint accountsAnnual revenue requirement: None

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As a pay as you go bank card, you don’t pay curiosity because you don’t truly carry a stability. You place cash in your account earlier than you may spend it. That is nice for anybody trying to persist with a finances whereas constructing a credit score rating. It additionally gives a “spherical up” characteristic, which tallies up purchases to the closest quantity of your selecting ($1, $2, $5 or $10) and places that cash into your financial savings.If it is advisable to construct up your credit standing, you may enrol for Credit score Constructing with Koho for an extra $10 monthly; it is going to report your spending habits to the credit score bureaus. It options spending insights that can assist you maintain monitor of your funds. And, for individuals who want a bit extra hands-on assist, Koho gives monetary teaching (for $10 a month with the credit score constructing plan). You’ll be able to join a 30-day free trial to see if a paid plan is price it. Plus, you will get a $25 money bonus as soon as authorised for the Further plan.

Cons: 

To benefit from Koho’s credit score constructing device, you need to spend $10 monthly. For a scholar on a restricted finances, that may actually add up. If you wish to entry Koho’s finest perks and options, you need to subscribe to Koho Important or Further, which include month-to-month charges of $4 monthly (or $48 per 12 months) and $9 monthly (or $84 per 12 months), respectively.

Finest scholar bank card for credit score constructing

House Belief Secured Visa*

At a look: If you happen to’re new to bank cards and wish the possibility to construct up your credit score rating, a secured card is a great alternative. House Belief reviews your cost historical past and different information to the credit score bureaus (like Equifax and TransUnion, who decide your credit score rating) every month. With no annual payment, the House Belief Secured Visa is a stable possibility. You set your personal spending restrict, wherever from $500 to $10,000—so that you gained’t threat spending past your means. You can even select between two rates of interest: 19.99% with no annual payment or 14.90% with a $59 annual payment. 

Annual payment: $0Interest charges: 19.99% on purchases, 19.99% on money advancesEarn charges: NoneWelcome supply: This card doesn’t have a welcome bonus right now.

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You set your credit score restrict and might select both a 14.90% rate of interest (with the $59 annual payment) or a 19.99% rate of interest (with no annual payment). Having a decrease rate of interest might help you save on curiosity costs if you happen to carry a stability.The Visa card is accepted on-line and in over 200 international locations. Cardholders are protected against fraud with the Zero Legal responsibility Coverage (in case your card is stolen, you gained’t pay for fraudulent purchases.) 

Cons: 

If you happen to don’t select the decrease rate of interest of 14.90% for an annual payment of $59, the rate of interest is comparatively excessive at 19.99%. The cardboard doesn’t supply any perks like money again or rewards.College students in Quebec should not eligible for the cardboard.

Finest secured card for college kids

Neo Secured Credit score*

At a look: The Neo Secured Credit score Mastercard provides entry to advantages like limitless money again and boosted rewards when you’re constructing a credit score historical past. Plus, with opt-in perks and bundles, you may tailor the cardboard to your particular wants. 

Annual payment: $0Earn charge: A minimal of 0.5% minimal money again and a mean of 5% money again on purchases at partnersInterest charge: 19.99% on purchases (19.99% to 25.49% for Quebec residents), 24.99% on money advancesWelcome bonus: You’ll be able to earn $25 money again.

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You need to use a Neo card even if in case you have no credit score historical past, with only a low $50 minimal deposit—which is nice for college kids who’re simply beginning out.Though you get a bodily card within the mail, you should utilize the Neo app to make purchases utilizing your cellphone.Optionally available perks and bundles can help you buy upgrades on a subscription foundation to speed up your earn charges and entry advantages on an as-needed foundation. For instance, if you happen to’re heading house for the vacations, you may spring for the “journey bundle” and earn boosted money again in your journey spends, however—and that is good—you may also relax within the airport lounge. Neo Insights has a great deal of instruments that can assist you finances, monitor your spending, and maintain tabs in your money again.

Cons:

If you happen to don’t store at Neo companions, you’ll be incomes a noncompetitive 0.5% base charge.The Neo card doesn’t include included insurance coverage.You’ll be able to solely use the cardboard for the amount of cash that you simply placed on the cardboard, so for these needing further credit score (with cash, not the educational form), a secured card isn’t for them.

Finest scholar bank card for leisure perks

Scotiabank SCENE Visa Card for college kids*

At a look: In case your secure place is a film theatre to get away from dorm drama or to get some headspace away from studying, contemplate this card. What you spend on the cinema can flip into some good perks. 

Annual payment: $0Earn charge: 2 Scene+ Factors per $1 spent on groceries at shops owned by Sobeys, 2 factors per $1 spent at Cineplex theatres or cineplex.com; 1 level per $1 spent on all the things else;Rate of interest: 19.99% on purchases, 22.99% on money advances, 22.99% on stability transfersWelcome bonus: You’ll be able to earn 5,000 bonus Scene+ factors inside your first 12 months. Should apply by October 31, 2023.

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Scene+ is a fairly versatile factors program. For instance, you may guide flights with any airline with out having to depend on a selected journey company or portal. Plus, you may redeem for different journey gadgets, resembling Airbnbs. It’s among the finest factors applications obtainable to Canadians.One other bonus, the rewards are nice for issues outdoors of a typical scholar finances. Deal with your self for managing the stresses of college through the use of the rewards on issues like motion pictures, takeout, reward playing cards from retailers, flights, lodges and extra.It can save you 25% off base charges for automobile leases at taking part Avis and Price range rental places in Canada and the U.S.

Cons: 

There aren’t any bonus factors for different frequent spending classes, like fuel or eating, which means fewer methods to maximise your returns. So, you would need to go to the flicks recurrently to essentially benefit from the bonus earn charge.Not as versatile as a money again program, however redeeming is easy for journey gadgets.

Steadily requested questions

Can a highschool scholar apply for a bank card?

Bank cards have an age restriction and, typically, revenue necessities that prime faculty college students could not have the ability to meet. Nonetheless, that doesn’t put all bank cards totally out of attain. If a highschool scholar is the age of majority (18 or 19 years outdated, relying on their province or territory) there are some choices. 

Bank card candidates in highschool ought to search for playing cards that don’t require a credit score historical past and have low or no revenue necessities. They’ll contemplate beginning with a secured card, the place they apply a deposit that they will spend, as these assist construct a credit score historical past. A stable possibility is the Neo Secured Mastercard or one other secured bank card.

What does a highschool scholar want to use for a bank card? Generally, candidates will want a chunk of presidency ID, a social insurance coverage quantity, mailing handle, employment standing, and revenue data to use for a bank card. 

I used to be declined for a scholar bank card—what can I do?

If you happen to had been declined for a card, it could must do along with your credit score historical past or your revenue. Think about a secured card or a bank card that’s geared toward individuals with adverse credit, as their necessities can be extra modest. Whilst you gained’t get the perks and advantages hooked up to different playing cards, accountable use might help you construct up your credit score rating so you may entry higher merchandise sooner or later.

Bank card suggestions for college kids

You understand it is advisable to be accountable in how you utilize your bank card—however what, precisely, does that imply? Learn on for recommendations on utilizing your bank card to enhance your credit score rating and avoiding any issues. 

Verify your cost due datesYou in all probability know that bank card payments arrive each month, however that doesn’t imply the due date to your cost is on the primary day. The date that begins your billing cycle is determined by when you’re authorised for the account, and it could possibly be any day of the month. Make word of the due date and ensure you pay on time. Why not add these dates to your faculty calendar, too.Repay your stability in fullIf you’re going to be accountable along with your bank card, you gained’t use it to spend cash you don’t have. Don’t go into debt. It’s finest follow to repay your invoice in full, on time, each month. Not solely will this increase your credit score rating, however it is going to additionally provide help to keep away from pricey curiosity costs.Heed the minimal balanceIf you do overspend, you’ll nonetheless have to repay a few of your stability. Your invoice will present a complete stability and a minimal cost. You should pay not less than the minimal cost, on time and each month, it doesn’t matter what. Lacking funds is among the worst issues you are able to do to your credit score rating. Paying solely the minimal implies that you’re accumulating curiosity on the unpaid stability. At a mean of round 20%, this will add up shortly. Don’t overspendIn case it’s not clear: Don’t overspend! Credit score is borrowed cash, and a bank card isn’t a debit card. All the cash you cost to your card have to be paid again. If you happen to don’t or can’t, you’ll end up racking up curiosity costs along with wrecking your credit standing. Don’t max out your credit score cardYour bank card could have a credit score restrict; that’s the amount of cash you may technically borrow on it. However spending all the best way as much as your restrict—that’s, maxing out your card—is reckless. It is going to be tougher to repay your stability. Use your card selectively for smaller purchases, not less than initially, and think about using debit for nearly all the things else.

Extra of Canada’s finest bank cards: