Once you move past high school, aging above 18, you become an adult. It will be the time that you handle your finances more cautiously. You have to start building a credit profile, save money, avoid debt, and plan for a stress-free future. It is also the time to get your first credit card. If you want to get a credit card before going to college or university, we have made a list of student credit cards in Canada! Let’s have a look.
Read: Tips On Credit Score Check In Canada? Will It Lower It?
How Student Credit Cards in Canada Function?
Student credit cards in Canada are made especially for use in post-secondary education and for students who are 18 years old or at the brink of maturity in their province. Your income might not be sky-high in college or school, and a credit card helps you to go through your expenses and build good credit when you move on to the next phase of life.
While these cards can be easily acquired by students, the money that you use from them is not free in any way. You have to be cautious about how you spend the money and clear the balance each month if you want to profit off the great benefits of a good credit profile.
Read: Top 10 Ways To Pay Off Credit Card Debt In Canada
Credit Profile
Below are the different ranges for credit profile or commonly known as credit score.
300 – 574 = Poor
575 – 659 = Below Average
660 – 689 = Average or Fair
690 – 740 = Good
741 – 900 = Excellent
Read: What Does Your Credit Score Range Really Mean?
The better the credit score, the better benefits you can receive in terms of deals on credit cards, better interest rates, cash backs, and more debts in the future. While, a poor credit score limits the way you can finance your needs.
Depending on factors such as below, your credit score gets impacted.
- Your Total Debt
- Your Payment History
- The Types of Credits You Have
- Any New Credit You Have Recently Acquired
- Your Overall Credit History
Credit cards not only help you with the credit building process but also provide rewards, cash back, and travel points. First-time credit card users can use it as a starting point. Here is a list of the best student credit cards in Canada.
Read: What is the Average Credit Score in Canada?
Top Student Credit Cards in Canada in 2022
The following list brings the best cards with low or no fees, daily rewards, and minimum income requirements.
1. BMO CashBack Mastercard
BMO cashback MasterCard imposes zero annual fees which give good rewards to the students. The benefits are:
- 25% discount on any car rentals.
- You get an extension for purchase protection and warranty.
- No annual fee.
- When you buy groceries, you get 3% cashback, 1% cashback on repeated bill payments, and 0.5% on others. The 1% and 3% have the limit of a minimum spend of $500.
- For 9 months, you get a 1.99% transfer rate.
Read: How To Pay Off Credit Card Debt When You Have No Idea Where to Start!
2. Tangerine Money-back credit card
Tangerine 2% credit card provides the best benefits to students. Let’s see what those are:
- You pay no annual fee.
- The transfer rate is only 1.95% for 6 months.
- 2% cashback on transportation, groceries, and entertainment, etc.
- 0.5% cashback on all other purchases.
- Free purchase assurance and extended warranty.
You have the option to choose the way of getting the cashback, you can do it as a credit card payment amount and transfer it to a Tangerine savings account. The latter option will increase the cashback categories.
New cardholders also get added 15% cashback on $1,000 in the first 2 months for an amount of $150.
Read: Maxing Out Your Credit Card? Here Is What You Can Do!
3. BMO Air Mile Mastercard
BMO Air Miles Mastercard is best suited for travel care rewards:
- You pay a $0 annual fee.
- 25% discount on the car rentals.
- No income requirement.
- Every $20 you spend gets you a reward mile.
- More miles for shopping at the participating retailers.
- Purchase protection and extended warranty.
- For 9 months you get a 1.99% transfer rate.
You can redeem these Miles points merchandise and travel.
Read: Leading Bank Accounts for Students in Canada (2022)
4. Scotiabank SCENE Visa Card
This is a good starter credit card for students and you get free movies too!
- No annual fee is imposed.
- Get 25% off while renting a car at AVIS or budget locations.
- You will get 5 SCENE points on each dollar that you spend at the Cineplex.
- The minimum income requirement is $12,000.
- Get 1 SCENE point for each $1 that you purchase.
- Get 1250 bonus SCENE points when you make your first purchase which is equal to one 3D movie ticket.
You can further redeem these points for movies free of cost and restaurants like East Mario’s and Swiss Chalet at $1,000 and get a $10 discount on foods and drinks.
Read: 20 Amazing Ways To Save Money On A House In Canada
5. PC Financial Mastercard
This credit card is good for students and for providing free grocery card rewards, this is meant for you if you shop regularly at the Real Canadian Superstore and Shoppers Drug Mart
- You pay a $0 annual fee.
- Transfer the balance at low rates.
- When you spend $1, you get 10 points from the superstore and 20 points for $1 on PC travel.
- You can 25 points at $1 spent on the Shoppers Drug Mart.
- Earn 10 points for $1 that you spend anywhere else.
- Extended warranty and purchase protection also.
You can trade 10,000 PC points for over $10 for rewards in-store.
Read: A Comprehensive List Of Best Online Banks In Canada
Conclusion on Student Credit Cards in Canada
These student credit cards in Canada are easy to get and there is usually no fee and they also give free rewards. You should at least be 18 years of age in Ontario, Manitoba, Quebec, Alberta, Saskatchewan, and PEI. While 19 years in Nova Scotia, British Columbia, New Brunswick, Labrador, and Yukon.
If you want easy payments for online and offline stores and how to earn the cash you spend, you should go for the KOHO prepaid Visa at 0.50% and get 1.20% on the balance of the direct deposit.
You should be cautious while paying within the 21 day grace period and avoid credit card advances. An excellent credit score will be great for the future when you make good financial moves and then buy a home in Canada. Responsible handling of credit cards will make you think for yourself in the future for the best rates possible. With benefits comes great responsibility.
So, be responsible for using your credit card, pay back the debt on time, do not spend more than you can afford, and enjoy your college days. Hope you like this article, let us know in the comment!
Leave a Reply