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MoneySense is an award-winning journal, serving to Canadians navigate cash issues since 1999. Our editorial staff of educated journalists works intently with main private finance specialists in Canada. That can assist you discover one of the best monetary merchandise, we evaluate the choices from over 12 main establishments, together with banks, credit score unions and card issuers. Be taught extra about our promoting and trusted companions.
The most effective scholar bank cards by class
Offered by Embark Pupil Corp.
The fitting scholar bank card can get you nice 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 massive gig, paying off your scholar bank card each month may assist you to finally purchase a house or automobile extra simply. 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 card by class | Why we adore it |
|---|---|
| Finest money again bank card for college students BMO CashBack Mastercard Annual payment: $0 |
3% again on groceries and the power to redeem rewards at any time |
| Finest journey bank card for college students CIBC Aeroplan Visa Card for College students Annual payment: $0 |
Good return on spending, plus a number of journey advantages and student-friendly perks |
| Finest no-fee low-interest bank card Flexi Visa Annual payment: $0 |
10.90% buy rate of interest and no annual payment |
| Finest secured bank card Residence Belief Secured Visa Annual payment: $0 |
Assured approval no matter your credit score rating, with the choice to pay no annual payment or obtain a low APR of 14.90% if you happen to choose to pay an annual payment |
| Finest retailer bank card for college students PC Monetary Mastercard Annual payment: $0 |
Highest return on spending on the largest grocery and drug retailer community in Canada, with low eligibility necessities |
| Finest scholar bank card for leisure Scotiabank Scene+ Visa Card for college students Annual payment: $0 |
Tailor-made to movie-going college students, with good earn charges in a number of classes and versatile redemptions |
Finest money again bank card for college students
At a look: The BMO CashBack Mastercard is a best choice for college students in search of simple money again earnings. Combining no annual payment with a powerful 3% money again charge on grocery purchases, this card gives college students an opportunity to earn money rewards in a high-spend class. With versatile redemptions, you may redeem your rewards at your comfort, making this card a powerful decide for college students and people with variable incomes.
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BMO CashBack Mastercard for College students
- Annual payment: $0
- Earn charges: 3% money again on groceries (on the primary $500 per thirty days), 1% on recurring payments and 0.5% on every little thing else
- Welcome supply: You may earn 5% money again in your first 3 months. Circumstances apply.
- Annual revenue requirement: None
Professionals
- You’ll obtain the best money again charge for groceries amongst no-fee bank cards in Canada, incomes 3% money again.
- You may redeem your money (beginning with as little as $1) while you want, and have it utilized as an announcement credit score, added to your BMO InvestorLine account or deposited into your BMO chequing or financial savings account.
- Take pleasure in reductions on choose rental automobiles and Cirque du Soleil exhibits.
Cons
- Groceries and recurring payments are boosted spending classes, however they every have a low month-to-month cap of $500 (although that cap could also be sufficiently excessive for a scholar).
- When you attain the month-to-month max in a class, you’ll solely earn the 0.5% base charge. Some no-fee money again playing cards accessible to college students supply a base earn charge greater than 0.5% for purchases in non-boosted classes.
- You’ll be charged a 2% payment if you happen to make the most of the stability switch bonus.
- Comfort shops, bakeries and different specialty meals outlets are excluded from the grocery class.
Honourable point out
At a look: The Tangerine Cash-Again Credit score Card stands out as a rewarding choice for college students seeking to stretch their price range. With no annual payment, cardholders can get pleasure from as much as 2% money again in as much as three personalised classes (if in case you have a Tangerine financial savings account). There’s additionally a beautiful stability switch supply for college students seeking to get debt below management.
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Tangerine Cash-Again Credit score Card
- Annual payment: $0
- Earn charges: 2% in as much as 3 classes of your selection (together with groceries, fuel and eating) and 0.5% money again on every little thing else
- Welcome bonus: You may earn an additional 10% again on as much as $1,000 in on a regular basis purchases throughout the first 2 months. Should apply by April 30, 2024.
- Annual revenue requirement: Private or family revenue of $12,000
Professionals
- Decide two 2% bonus classes from a choice of 10 classes. Get a 3rd 2% bonus class by depositing your earnings in a Tangerine financial savings account.
- In contrast to quite a lot of no-fee playing cards, Tangerine’s card gives limitless money again earnings.
- Join free playing cards for added customers.
- Swap your bonus classes inside an eligible time span so you may earn extra throughout journeys or when doing a reno, if you happen to plan forward.
- Cardholders can make the most of a low rate of interest of 1.95% on stability transfers for the primary six months, so long as you do the switch throughout the first 30 days of getting the cardboard.
- The cardboard is cell pockets appropriate, so you may conveniently use Apple Pay, Google Pay and Samsung Pay.
Cons
- Whereas it’s nice that your a reimbursement earnings are paid month-to-month, as an alternative of yearly, some playing cards supply better flexibility by letting you redeem your rewards everytime you need.
- The annual revenue requirement of $12,000 per 12 months makes this card accessible, however many scholar playing cards haven’t any revenue requirement.
Finest journey bank card for college students
At a look: The CIBC Aeroplan Visa Card is tailor-made to the wants of scholars, particularly those that can make the most of journey rewards. This student-friendly card has no annual payment, and it offers a free SPC+ membership that permits you to get pleasure from financial savings of as much as 30% throughout 450-plus manufacturers.
CIBC Aeroplan Visa Card for College students
- Annual payment: $0
- Earn charges: 1 level per $1 spent on fuel and EV charging, groceries and Air Canada purchases, and 1 level per $1.50 on every little thing else
- Welcome supply: Earn 10,000 Aeroplan factors while you make your first buy ($200 worth).
- Rates of interest: 20.99% on purchases and 22.99% on money advances (21.99% in Quebec)
- Annual revenue requirement: None
Professionals
- Earn Aeroplan factors in your on a regular basis purchases and luxuriate in versatile redemption choices, together with flights and merchandise.
- The earn charge could seem low in comparison with different playing cards, however Aeroplan factors are sometimes price extra so long as you redeem them for journey.
- Redeem your factors for any Air Canada seat with out worrying about blackout dates. Plus, you may pay for flights with a mixture of factors and money.
- The cardboard comes with some journey insurance coverage, like collision and loss harm insurance coverage for automobile leases and customary service insurance coverage. You additionally get buy safety and prolonged safety insurance coverage.
- Take pleasure in a free SPC+ membership that might prevent cash at choose retailers.
Cons
- In contrast to with different Aeroplan playing cards, you gained’t earn Standing Qualifying Miles in your on a regular basis purchases.
- In case you don’t journey incessantly by way of Air Canada or one in every of its companion airways, this card would have restricted worth.
Honourable point out
At a look: The TD Rewards Visa is price contemplating as a common journey rewards card, if you happen to’re a scholar who likes to journey however doesn’t wish to be restricted to Air Canada and Aeroplan companions for flights. This no-fee card has a strong earn charge of 4 TD Reward factors per $1 spent on journey when booked by Expedia for TD.
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TD Rewards Visa Card
- Annual payment: $0
- Earn charges: 4 TD Rewards factors per $1 spent on journey purchases made by Expedia for TD, 3 factors per $1 on groceries and at eating places, 2 factors per $1 on recurring invoice funds, and 1 level on all different purchases
- Welcome supply: You may earn a worth of $50 in TD Rewards Factors to make use of on eligible Amazon.ca purchases, plus no annual payment. Circumstances apply. Account have to be accepted by June 3, 2024.
Professionals
- Earn 4 TD Rewards factors per $1 spent on journey while you e book by Expedia for TD, and there’s no annual restrict to the quantity of factors you may earn on journey.
- You’ll additionally earn 3 TD Rewards factors per $1 spent on groceries and at eating places, 2 factors per $1 on recurring invoice funds, and 1 level per $1 on different purchases
- Redemptions are versatile, permitting you to spend your factors on every little thing from flights and motels to Amazon purchases, or you may select reward playing cards, merchandise or assertion credit.
- This card comes with student-friendly perks at companions together with Starbucks, Amazon and Uber.
- The TD Rewards Visa is without doubt one of the few no-fee playing cards that provides as much as $1,000 insurance coverage for cell units.
- Buy safety and prolonged guarantee safety include the cardboard.
Cons
- Though customers profit from the flexibleness of TD Rewards, factors are price much less in comparison with different loyalty applications. One level is valued at $0.05.
- Whereas the earn charge is excessive for bookings on Expedia for TD, these made on different websites solely earn you the bottom charge of 1 level per $1.
- There are caps on what number of factors you may earn within the grocery, eating places and recurring invoice funds classes. When you spend $5,000 in a 12 months in any of the classes, you’ll earn only one level per $1 in each class.
- This card doesn’t include journey insurance coverage, so that you’ll should pay further for protection while you journey.
Finest no-fee low-interest bank card
At a look: Whilst you gained’t earn rewards with this card, the Flexi Visa from Desjardins credit score union stands out as a low-interest, no-fee bank card for college students seeking to decrease bank card debt. It additionally options advantages like restricted journey insurance coverage, rental automobile reductions, a month-to-month installment cost plan and cell system insurance coverage.
Flexi Visa
- Annual payment: $0
- Earn charges: None
- Welcome supply: None
- Annual revenue requirement: None
Professionals
- This card has the bottom common buy rate of interest in Canada for a no-fee card (the exception could also be playing cards with a variable rate of interest that fluctuates with adjustments within the prime charge).
- Comes with $5 million in emergency medical protection for journeys as much as three days, plus journey cancellation and baggage protection—greater than appropriate for a weekend getaway along with your friends.
- You may pay for purchases of $200 or extra in installments with collaborating retailers.
Cons
- The rates of interest are low, however you may get a card with decrease charges (such because the MBNA True Line Gold Mastercard) if you happen to’re keen to pay an annual payment.
- In case you favor in-person assist, observe that Desjardins solely has bodily branches in Ontario and Quebec.
- In contrast to many different scholar Visas, the Flexi Visa doesn’t supply a rewards program.
Finest secured bank card
At a look: The Residence Belief Secured Visa is an efficient software for Canadians aiming to determine or rebuild their credit score historical past. You set your personal spending restrict, which might vary from $500 to $10,000. In case you do often have bother paying off your stability, you may make the most of deciding on between two rates of interest: 19.99% with no annual payment or 14.90% with a $59 annual payment. We like that this card enables you to select, however we advocate the low-rate choice.
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Residence Belief Secured Visa
- Annual payment: $0
- Earn charges: None
- Welcome supply: This card doesn’t have a welcome bonus presently.
- Annual revenue requirement: None
Professionals
- This card offers you the choice to decide on a better or decrease rate of interest. With no annual payment, the acquisition APR is nineteen.99%. With a $59 annual payment, you’ll get a decrease buy APR of 14.90%.
- Once you use your card, Residence Belief will report funds to each of Canada’s credit score bureaus, TransUnion and Equifax, which helps you construct your credit standing. In distinction, the Neo Secured Card, for instance, solely reviews to TransUnion, which implies that your credit score historical past won’t present up correctly for lenders that solely depend on Equifax scores.
- Appropriate with digital wallets like Apple Pay, Google Pay and Samsung Pay.
Cons
- In contrast to with the Neo Secured Card, you gained’t earn rewards in your spending. Nonetheless, that is typical for secured playing cards, which prioritize low curiosity.
- The minimal deposit for the Residence Belief is $500, whereas some playing cards require solely $50. Nonetheless, it is a negligible downside, as most cardholders will seemingly want entry to at the very least a number of hundred {dollars} on their card.
- This card shouldn’t be obtainable to residents of Quebec.
Honourable point out
At a look: The Neo Secured Credit score offers entry to advantages like limitless money again and boosted rewards. Plus, with opt-in perks and bundles, you may tailor the cardboard to your wants.
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Neo Secured Credit score
- Annual payment: $0
- Earn charges: A minimal of 0.5% money again and a median of 5% money again on purchases at companions
- Welcome supply: You may earn $25 money again.
- Annual revenue requirement: Private or family revenue of $50,000
Professionals
- You need to use a Neo card even if in case you have no credit score historical past, with only a $50 minimal deposit—which is nice for college students who’re simply beginning out.
- You’ll get a bodily card within the mail, however it’s also possible to use the Neo app to make purchases utilizing your cellphone.
- You should purchase elective perks and bundles on a subscription foundation to speed up your earn charges and entry advantages as wanted. 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, and—that is good—you may sit back within the airport lounge.
- The Neo app has a great deal of instruments that can assist you price range, monitor your spending and preserve tabs in your money again.
Cons
- In case you don’t store at Neo companions, you’ll earn a non-competitive base charge of simply 0.5%.
- The Neo card doesn’t include insurance coverage.
- As with different secured playing cards, you may solely use the Neo Secured Credit score for the amount of cash that you just placed on it. Secured playing cards aren’t for these needing further credit score (with cash, not the educational sort).
Finest retailer bank card for college students
At a look: Drugstores and grocery shops are the place many college students are inclined to spend probably the most. That makes the PC Monetary Mastercard a powerful decide for many who store incessantly at collaborating shops. With earn charges starting from 10 to 30 factors per $1, relying on the shop, you may accumulate rewards shortly.
PC Monetary Mastercard
- Annual payment: $0
- Earn charges: 25 factors per $1 spent at Buyers Drug Mart; at the very least 30 factors per $1 at Esso and Mobil fuel stations; 20 factors per $1 at PC Journey; and 10 factors per $1 on every little thing else
- Welcome supply: You may earn 20,000 PC Optimum factors
- Annual revenue requirement: None
Professionals
- Earn 25 factors for each $1 spent at Buyers Drug Mart and 30 factors per litre of fuel at Esso and Mobil, translating to a return of two.5% and three%, respectively. These returns are beneficiant for a scholar card.
- Redemption is simple. You could have the flexibleness to make use of your PC Optimum factors at varied Loblaw-affiliated shops, which may considerably decreasing your day-to-day bills. The intensive redemption community covers Canada’s largest pharmacy and grocery chain, together with Joe Contemporary, spanning over 4,500 places nationwide.
- There’s no cap on what number of PC Optimum factors you may earn.
Cons
- Not as versatile as money again rewards, as redemptions are restricted to particular retailers.
- You have to redeem a minimal of $10 at a time.
- A comparatively excessive commonplace buy rate of interest of 21.99%.
Finest scholar bank card for leisure
At a look: In case you go to film theatres to get away from dorm drama or to take a break from finding out, contemplate this card. What you spend on the cinema can flip into some good perks.
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Scotiabank Scene+ Visa for college students
- Annual payment: $0
- Earn charges: 2 Scene+ Factors per $1 spent on groceries at Sobeys-affiliated shops, 2 factors per $1 at Cineplex theatres or cineplex.com, and 1 level per $1 on every little thing else
- Welcome supply: You may earn as much as 7500 bonus Scene+ factors inside your first 3 months. Should apply by July 1, 2024.
- Annual revenue requirement: Private revenue of $12,000
Professionals
- Scene+ is a reasonably versatile factors program. For instance, you may e book flights with any airline with out having to depend on a particular journey company or portal. Plus, you may redeem for different journey objects, reminiscent of Airbnbs. It’s probably the greatest factors applications obtainable to Canadians.
- The rewards are nice for issues exterior of a typical scholar price range. Deal with your self for managing the stresses of college by utilizing the rewards on issues like films, takeout, retailer reward playing cards, flights, motels and extra.
- It can save you 25% off base charges for automobile leases at collaborating Avis and Funds rental places in Canada and the U.S.
Cons
- There aren’t any bonus factors for different widespread spending classes, like fuel or eating, that means fewer methods to maximise your returns. So, you would need to go to the films commonly to actually make the most of the bonus earn charge.
- Not as versatile as a money again program, however redeeming is easy for journey objects.
How we decide one of the best scholar bank cards
Our editors apply their bank card experience and information of Canadians’ monetary objectives to provide you with choice standards that matches the wants of the supposed cardholder. For college students, one of the best playing cards ought to usually haven’t any annual payment, and low revenue and credit score rating necessities—as a result of constructing a credit score historical past is a standard objective for individuals who use these playing cards. Past that, we contemplate the return on spending (for rewards playing cards), the acquisition APR (for low-interest playing cards) and different components, based mostly on the class. The addition of hyperlinks from affiliate companions has no bearing on the outcomes. Learn extra about our choice course of and how MoneySense makes cash.
Incessantly requested questions
In contrast to making use of for a summer time job, making use of for a scholar bank card is fairly simple, though there are a number of eligibility necessities to remember.
- You’ll should be the age of majority in your province. That’s both 18 (in Alberta, Manitoba, Ontario, Prince Edward Island, Quebec and Saskatchewan) or 19 (in British Columbia, New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut and Yukon).
- In case you don’t earn an revenue, chances are you’ll want to supply proof that you just obtain some type of monetary assist, reminiscent of allowances from your loved ones or a scholarship.
As a brand new bank card holder, it’s a wise concept to evaluation your choices earlier than you apply. Take a look at what totally different banks are providing and select a card that greatest matches your way of life and spending habits. Every utility does have an effect on your credit score rating, so that you’ll wish to keep away from making use of for a number of bank cards needlessly. Stick to one card as you be taught the ropes and begin constructing your credit score historical past.
Sure, they’ll. Banks, bank card firms and monetary establishments acknowledge the ability of your online business, so that they’ve created “newbie” bank cards for younger adults and college students in Canada. These are usually stripped-down variations of bank cards loaded with perks. However, as you may see above, there are nonetheless rewards available with secured and unsecured bank cards for college students. Really, having a bank card is the way you construct a credit score historical past, which is a part of how a credit score rating is calculated. Right here’s how:
- Credit score historical past: An extended historical past exhibits lenders you’ll be able to repay debt, and finance specialists advocate to apply for a card as a younger grownup, and use it responsibly.
- Debt load: That is the overall amount of cash you owe collectors—together with bank cards, loans and mortgages. However mortgages usually are not typically a problem for college students, so your low debt load can work in your favour.
- Cost historical past: That is about the way you effectively you pay your payments, that means in full and on time, in addition to if you happen to’ve missed any funds and for a way lengthy you’ve carried any debt. At this level in your life, preserve your payments low and pay them off on time.
- Varieties of credit score you carry: The extra collectors you owe cash to, the upper danger you possibly can pose to lenders. Stick to one bank card to keep away from trying dangerous to lenders.
Can a highschool scholar apply for a bank card?
Bank cards have an age restriction and, typically, revenue necessities that prime college college students might not be capable of meet. Nonetheless, that doesn’t put all bank cards completely 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 a low or no revenue requirement. They’ll contemplate beginning with a secured card, the place they apply a deposit that they’ll spend, as these assist construct a credit score historical past. A strong choice is a secured bank card.
What does a highschool scholar want to use for a bank card?
Usually, candidates will want a chunk of presidency ID, a social insurance coverage quantity, a mailing handle, an employment standing, and revenue info to use for a bank card.
I used to be declined for a scholar bank card—what can I do?
In case you have been declined for a card, it might should do along with your credit score historical past or your revenue. Contemplate a secured card or a bank card that’s aimed toward individuals with adverse credit, as their necessities might be extra modest. Whilst you gained’t get the perks and advantages hooked up to different playing cards, accountable use may also help you construct up your credit score rating so you may entry higher merchandise sooner or later.
Bank card suggestions for college students
You already know you want to be accountable in how you employ 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 keep away from any issues.
- Test your cost due dates
You 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 if you end up accepted for the account, and it may very well be any day of the month. Make observe of the due date and ensure you pay on time. Contemplate including these dates to your college calendar, too. - Repay your stability in full
In case 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 greatest follow to repay your invoice in full, on time, each month. Not solely will this enhance your credit score rating, however it can additionally assist you to keep away from expensive curiosity prices. - Heed the minimal stability
In case you do overspend, you’ll nonetheless must repay a few of your stability. Your invoice will present a complete stability and a minimal cost. You have to pay at the very least the minimal cost, on time and each month, it doesn’t matter what. Lacking funds is without doubt one of 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 median of round 20%, this could add up shortly. - Don’t overspend
In 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. In case you don’t or can’t, you’ll end up racking up curiosity prices along with wrecking your credit standing. - Don’t max out your bank card
Your 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. Will probably be tougher to repay your stability. Use your card selectively for smaller purchases, at the very least initially, and think about using debit for nearly every little thing else.
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