Choosing the right student credit card is an important step for Canadian post-secondary students looking to build credit and manage expenses. With the right card, you can not only establish good financial habits but also earn rewards such as cash back and discounts that support your student lifestyle. Here’s how to find the best student credit card based on your needs, habits and eligibility.
Look for low or no annual fees
Students often have limited income, so it makes sense to choose a credit card with low or no annual fees. Many cards charge both monthly interest and an annual fee, which can range from a few dollars to several hundred depending on the card. Student-friendly options typically waive these fees or keep them minimal to help you save.
Consider the interest rate
Interest is a key factor when choosing a credit card. If you don’t pay off your balance in full each month, the remaining amount is subject to interest based on the card’s Annual Percentage Rate (APR). In Canada, this typically ranges from 19.99% to 29.99%. Even a small unpaid balance can accrue significant interest over time. For example, a card with a 19.99% APR charges about 0.000548% per day. While that may seem small, the cost adds up quickly and can spiral over a semester if left unchecked.
Evaluate cash back and rewards programs
Many student credit cards offer incentives like cash back or rewards. Cash back cards typically offer 1% to 5% back on qualifying purchases, helping you save on essentials. Rewards cards may offer points toward travel or entertainment. For example, Scotiabank’s Scene+ Visa card lets you earn points toward movies and dining. While rewards programs are more structured, cash back offers more flexibility for paying off purchases or bills.
Look for student-specific perks
Some cards come with additional perks designed for students, such as discounts at popular stores, rewards for academic performance, access to budgeting tools or extended warranties. Your campus’s student centre may also highlight exclusive deals, so check in locally for offers that could stack with your card’s benefits.
Choose a reasonable credit limit
A lower credit limit can help prevent overspending, but going over that limit can hurt your credit score and lead to fees. Anticipate your biggest purchases and make sure your credit limit covers them. If you plan to book a $1,000 flight home from school, factor that into your desired limit.
Watch for fees and penalties
Unexpected charges are a common issue for first-time cardholders. The most important thing to watch out for are late payment fees, over-limit charges and foreign transaction fees. Paying interest doesn’t necessarily mean you’ve misused your card, but it’s crucial to factor those costs into your monthly budget and build financial literacy.
Build your credit score
A strong credit score can make a major difference when applying for housing, loans or even jobs. In Canada, scores range from 300 to 850 and are classified as poor, fair, good, very good or excellent. Most banks report to credit bureaus such as Equifax or TransUnion. If you’re considering a card from a lesser-known provider, confirm it reports to one of these agencies so your positive credit activity counts.
Check customer service and support options
When problems arise, you want quick access to help. Choose a card issuer that offers multiple customer service channels, including online chat, mobile apps, email and phone. Having flexible support options is especially useful in emergencies like fraud or disputes.
Why you should get a student credit card
A student credit card can help you build credit history, manage everyday expenses and earn rewards or cash back. Used responsibly, it sets the foundation for financial success after graduation. However, it also requires discipline. Making regular payments, staying within your limit and keeping track of charges are essential to avoid long-term financial damage.
How to apply for a student credit card
- Research your options based on fees, rewards, eligibility and reviews.
- Ensure you meet eligibility criteria, usually including age of majority, Canadian residency, student status, and no recent bankruptcies.
- Prepare documents like proof of enrollment or income.
- Submit an application, either online or in person, which typically takes less than 15 minutes.
- Wait for approval, which usually takes three to five days before your card is mailed.
Can you get a student credit card without a job?
Yes. While some providers ask for proof of income, you can often use alternative sources such as student loans, scholarships or parental support. As long as you can demonstrate the ability to pay back expenses, you may still qualify.
Can international students get credit cards?
Yes. Major Canadian banks such as BMO, Scotiabank, CIBC, RBC and HSBC offer unsecured credit cards to international students with limits up to $1,000. TD offers secured cards to newcomers, requiring a deposit as collateral.
Easiest student credit cards to get in Canada
Some of the easiest student credit cards to qualify for include the Scotiabank Scene+ Visa, the Tangerine Money-Back Credit Card and the BMO CashBack Mastercard for students. These cards have no annual fee and accessible approval criteria.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
