Top 5 Best Credit Cards For Students Canada: Reviews & Picks
Reviewed by Kristina Knight, Journalist , BA
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Being a student comes with unique demands, especially on your finances. From paying rent to buying textbooks and groceries, your financial situation can suddenly change, even if you’re conservative with your spending. Getting a card is associated with a strong credit history, but for students with no prior job history, it will be challenging to establish a good credit history. That is where student credit cards become a crucial lifeline. Student cards work like regular cards. However, they are customized to the needs of students. Before getting a student card, it would help to consider several things such as annual fees, signup bonus, lifestyle, etc.
Top 5 Best Credit Cards For Students In Canada 2023
- Student BMO Cashback Mastercard: Best Overall Student Credit Card
- TD Rewards Visa Card: Best Rewards Program Credit Card for Students
- RBC Cash Back Mastercard: Best Cash Back Student Credit Card
- CIBC Classic Visa Card for Students: Best Student Travel Credit Card
- Scotia Momentum® No-Fee Visa* card: Best Auto Rentals Discount Card
What Is A Student Credit Card?
A student credit card is a card designed specifically for college students and people who don’t have a credit history to qualify for a regular credit card. Most student credit cards offer rewards and redeem cash on eligible purchases like other credit cards. The student card is the most accessible form of credit for a college student since credit bureaus are not as strict on the approval process.
Since most people applying for a student credit card don’t have an existing credit history, they can build their credit while taking care of everyday purchases, provided they use their student credit card responsibly. To apply for a student credit card, you may need proof of studentship by providing your student ID and transcript. In addition, if you are not a student applying for a student card, you need to meet the specific guidelines of the credit card provider.
How Do Student Credit Cards Work?
Student credit cards work the same way a regular credit card works. They are targeted toward college students and recent graduates who don’t have a good credit rating. You can make purchases, withdraw money, get advances, and earn rewards. However, they have lower credit limits since students are unlikely to have a provable credit history. Also, the interest may be higher than on a standard credit card. You can get your own student credit card without having a job, even as an international student. But you must meet the specific provider’s requirements, prove your student status, and show proof of a stable income.
Read more: Top 10 Best Credit Cards In Canada For 2023
Top 5 Best Credit Cards For Students In Canada June 2023
Student BMO CashBack Mastercard
The Student BMO CashBack is an excellent card for students working towards strong creditworthiness. The key selling point of this card is zero annual fees, which helps with savings. Discounts and cashback also help put cash in the student’s pockets. It is one of Canada’s best low fees and high-cash-back rate student cards.
- No annual fee
- Discount on auto rentals
- Extended warranty
- Great cashback bonus
- High-interest rates
It is one of the top cards for students in Canada. It offers up to 3% cash back on grocery purchases, 1% cashback on regularly recurring bill payments, and 0.5% on eligible purchases. Upon signup, you get a bonus of 5% cashback for a maximum of $2500 in the first three months.
This means you get up to $125 in student cash rewards. In addition, the card has zero annual fees, unlike other cards; you can build a decent credit score and earn cash back with no yearly fees attached. This means you can save a lot while using the card. Your cashback rewards can be deposited into your BMO savings, Chequing account, or InvestorLine account and used as a monthly statement credit. Renting a car is easy and cheaper with the BMO Mastercard; it gives you up to 25% off car rentals from participating partners.
In addition, you also get extended warranty protection on purchases. Extended protection provides a warranty for an item beyond what the manufacturer initially offered. However, it would help if you read the fine print to confirm eligible items in this category. The interest rates on this card are a bit on the high side; 20.995% for purchases and 22.99% on cash advances, including transfer of balance, discounted to 21.99% for Quebec residents.
TD Rewards Visa Card
The main feature of this card is that you earn TD rewards points, which can be redeemed at various stores and don’t expire as long as your account is in good shape. It also gives you mobile device insurance. If you are looking for a card with an excellent rewards program, you can consider it.
- Excellent TD rewards points offering and redemption options
- Mobile device insurance
- Zero annual fee
- You need a high credit score
TD Rewards Visa Card is a $0 annual fee card that offers reward points on eligible purchases and a low-interest rate. Booking your travels via Expedia can help boost your TD rewards points.
Reward points can be redeemed at various establishments and don’t expire. TD Rewards Visa Card has low fees; a cash advance fee of 1% (a minimum of $3.5, a maximum of $10 in Canada, and $5 outside Canada). In addition, you pay a 2.5% fee for foreign transactions. TD charges an interest of 19.99% on purchases, which is reasonable compared to other card companies.
The rate on cash advances is 22.99%. There is a promotional offer of 9.99% interest on six-month purchases for new users who apply by the 28th of May, 2023. In addition, you earn 15152 TD points, which is worth about $50 if your account is in good standing for 90 days. In addition, TD threw in a mobile device coverage of up to $1000 as well as savings on car rentals from Avis. To get the TD Rewards Visa Card, you must have good creditworthiness.
RBC Cash Back Mastercard
A particular feature that stands out is the unlimited cash back, which means you keep earning cash on your transactions as a student. In addition, it comes with an extended one-year protection period and protection on purchases of up to 90 days. The RBC Cash Back Mastercard is suitable for students who want to keep earning cash on purchases.
- No annual fee
- No limit on cashback
- Extended protection insurance
- High cashback rate on groceries
- Rewards on gas and grocery purchases
- No welcome bonus
- Percentage drops in cashback rewards.
The RBC Cash Back Mastercard is a $0 annual fee card designed for students in Canada. It features unlimited cashback of up to 2% on eligible grocery store purchases and 1% on other purchases. The interest rate on purchases is 19.99%, and 22.99% on cash advances and balance transfers. The card has purchased and extended warranty protection on goods. If you link your card to Petro-Canada, you can save up to 3¢/L on fuel and earn reward points. Linking with Rexall also helps you earn Be Well points, which can be redeemed for discounts on purchases. In addition, you get free deliveries on orders $15 and above if you add your eligible RBC credit card to your DoorDash account.
The RBC Cash Back Mastercard is also one of the most secure credit cards for students because it has a credit card lock, which can be used to deactivate your card temporarily, and Zero Liability protection in case of theft or fraud. You need decent creditworthiness to get this card.
CIBC Classic Visa Card for Students
This card is excellent for student travel protection due to its robust travel coverage. You might want to consider the card if you travel often. It has one of the best student credit card insurance.
- Travel accident insurance
- No annual fee
- Purchase protection
- Discounts on gas purchases
- No signup bonus
- No cash back reward
The CIBC Classic Visa Card is a no-annual-fee card with two insurance covers; travel accident and extended protection. Travel insurance provides coverage up to $100,000, extended warranties for up to a year, and purchase coverage for 90 days. However, the interest rates on the card are a bit steep at 20.99% on purchase and 22.99% on cash advance( 21.99% for Quebec residents).
You can save up to 10 cents per liter for gas when you link your Journie Rewards card. There are no transaction fees for international transactions when you use the CIBC Global Money Transfer. There’s a $1000 minimum limit on the credit card account. Interest isn’t charged if you don’t default on your credit card balance.
The card qualifies you for an SPC+ membership, which helps you save up to 30% on specific top brands. In addition, Visa’s Zero Liability feature saves you from incurring loss in the event of card loss or fraud. If you want a better travel card, you should consider getting one from participating air miles partners, for example – BMO AIR MILES Mastercard.
Scotia Momentum® No-Fee Visa* card
The Scotia Momentum card has an excellent earning rewards program, which helps balance your credit card statement. It also has a great discount on car rentals, so it’ll help you save a great deal if you rent cars often.
- 0% balance transfer rate for six months
- Discount on rentals
- No insurance cover
The Scotia Momentum No-Fee Visa Card offers you 1% cash back on eligible gas, groceries, drug store, and recurring payments, and 0.5% on other purchases at a $0 annual fee. No interest is charged on your transfer of balance for the first six months, which reverts to 22.99% after the six months.
If you spend $2000 every month for the first three months, you can earn up to 5% cashback. You can also build your credit score when you complete the minimum payment every month. The Scotia Momentum visa card allows you to save up to 25% on rentals, which can be added to your statement credits. It has no insurance coverage. Although, you can opt for one at an added cost. The interest on purchase is 19.99% and 22.99% for cash advances and balance transfers, and it is one of the cards that qualify to get rewards from the Shoppers Drug Mart.
When Do You Need A Student Credit Card?
Getting a student card is an excellent place to start if you are looking to build a good credit score as a young adult. It helps you develop good financial habits with features that help prevent you from getting too deep into debt.
People without good credit ratings may also be eligible for a student credit card in Canada. Student life has an abundance of financial demands, so if you are a student or plan to enroll at the college, you can opt for a student card. It will help you deal with financial issues.
Benefits of Get A Student Credit Card
Credit Building
One of the most important benefits of a student credit card is building a solid credit history. If you have good spending habits and make financially responsible credit card payments, you will have a reasonable credit score when you finish school.
Monitor Spending
By getting your credit card, you can develop good financial habits. You learn how to budget and track your spending on everyday credit card purchases like groceries. In addition, some cards have dedicated features to help with budgeting and keeping your spending within safe zones.
Credit Card Rewards
The best student credit cards in Canada often have rewards to help lighten the financial burden on students. Use your card with a cashback or rewards program often in eligible grocery stores.
Secure Line of Credit for Emergencies.
Your card will be helpful in unpredictable emergencies like medical bills or a road trip where you get flats and need to pay for repairs.
Things to Consider When Choosing Student Credit Cards
Rewards and Benefits
Most cards offer reward programs for students, like their counterparts. Everyone likes free money, so keep an eye out for credit cards that’ll let you earn cash on your everyday purchases. In addition, you can search for credit card providers that offer travel rewards on your travels and vacations during your student years.
Security Features
The best student credit cards come with security features like overdraft protection on your recurring bill payments and in cases of theft. However, cards can get missing, and the last thing you want is for yours to get into the wrong hands and raise many credit card bills, which is why you should consider a secured credit card.
Fees
As a student, you should keep an eye out for no-fee credit cards; this would help you lower your credit card debt. In addition, many student credit cards are low maintenance and have low fees. Therefore, it is advisable to get a no-fee student card.
Low Promotional Interest Rate
In addition to getting a card with no annual fee, a student card that offers you a low OR ZERO APR welcome bonus is often preferable. This is because cards for students usually have a higher interest rate than standard cards, and it will be nice to enjoy the card before you start paying interest on your purchases.
Purchase Security
Many card providers offer extended warranty insurance, which extends the warranty period on goods you purchase beyond the warranty period provided by the product manufacturer. You need to verify if the specific product qualifies for the protection.
You can calculate your student loans with this tool:
Simple Student Loan Calculator
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Final Thoughts
A student card makes it easy for a student to obtain a line of credit without the burden of creditworthiness, making their financial lives more manageable. Overall, it makes it easier to build creditworthiness. To avoid paying high-interest rates or fines, you should pay your credit card bill on the due date. If you find it challenging to obtain a card because of poor credit ratings or don’t meet other qualifications, you can opt for a prepaid credit card.
Frequently Asked Questions (FAQs)
Various card providers offer international students cards as long as they meet requirements.
According to our review, the best card is the Student BMO CashBack.
Credit limits are often set based on income, so if your income has changed, you can reach out to a customer care representative and try to increase it.
CIBC Classic Visa Card for Students. However, if it doesn’t meet your needs, you can opt for a more expensive card like the American Express Green Card.
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