For students or even new immigrants in Canada, building credit early can help set the stage for future financial success. A credit card tailored to your needs can help you establish credit while also offering perks that cater to students. However, with a wide range of options available, it can be difficult to know where to start. Here’s a breakdown of some of the top student credit cards in Canada that offer valuable features and benefits.
1. BMO CashBack® Mastercard® for Students
The BMO CashBack® Mastercard® is an excellent option for students looking for cash rewards. With no annual fee, it allows cardholders to earn cashback on every purchase, which is a great way to save as you spend. This card offers a 3% cashback rate on groceries and a 1% rate on all other purchases. It’s also a great choice if you want a simple, straightforward card that doesn’t require you to track complicated reward systems.
2. Scotiabank SCENE® Visa
The Scotiabank SCENE® Visa card is perfect for students who love to go to the movies. This card lets you earn SCENE points on every purchase, which can be redeemed for movie tickets, dining, and entertainment. With no annual fee and a rewarding points system, it’s an ideal option for students who want to make the most out of their entertainment spending.
3. RBC Avion Visa for Students
The RBC Avion Visa for Students is a solid pick for those who are planning on travelling soon. This card offers travel rewards through RBC’s Avion program, allowing you to earn points on every purchase, which can be redeemed for flights, hotel stays, and more. With no annual fee for the first year and low interest rates, it's a great option for students who want to rack up travel rewards while still keeping their expenses low.
4. Tangerine Money-Back Credit Card
For students who are interested in cashback rewards, the Tangerine Money-Back Credit Card is a competitive option. It offers 2% cashback in up to three categories of your choice, such as groceries, restaurants, or gas. The ability to choose your reward categories makes it a flexible choice for students, and it comes with no annual fee. Plus, it offers a simple, no-fuss way to earn cash back on everyday purchases.
5. CIBC Dividend® Visa for Students
The CIBC Dividend® Visa for Students card offers a great cashback rate, especially on gas and groceries, making it an ideal choice for students who spend a lot in these categories. With a 1% cashback rate on all other purchases and no annual fee, it’s an easy way for students to earn rewards on their regular spending habits.
6. Capital One® Guaranteed MasterCard®
For students looking to establish or rebuild their credit, the Capital One® Guaranteed MasterCard® is a reliable option. This secured card offers a low credit limit and requires a security deposit. While it doesn’t offer rewards, it is a great tool for students who are starting to build or improve their credit scores. As long as you make your payments on time, you’ll be on track to establishing a positive credit history.
Key Features to Look for in a Student Credit Card
When choosing a student credit card, it's important to keep several factors in mind to ensure you’re selecting the best option for your needs:
Annual Fee: Most student cards offer no annual fee, which can help students avoid unnecessary expenses.
Cashback and Rewards: Look for cards that offer cashback or rewards in categories that align with your spending habits. Whether it’s groceries, entertainment, or gas, many cards allow you to earn rewards for everyday purchases.
Credit Building: If you're new to credit, consider cards that help you build your credit history, like secured cards or cards with no annual fee.
Interest Rates: It's also essential to compare interest rates on purchases and cash advances. Try to pay off your balance in full each month to avoid paying interest.
Conclusion
Choosing the right student credit card is a personal decision, but with careful research, you can find a card that meets your financial needs and helps you build a solid credit history. Whether you’re looking for cashback, travel rewards, or a simple credit-building tool, there’s a card out there for you. Always remember to use your credit card responsibly, make payments on time, and keep track of your spending to avoid any surprises down the road.