Best Student Credit Cards In Canada For May 2024

When determining a rating for individual credit cards, the Forbes Advisor Canada editorial team factors in an exhaustive list of data points. With student credit cards, the scoring model used takes into account factors such as, but not limited to, annual reward earnings, fees, redemption flexibility and other perks and features. Keep in mind, what may be best for some people might not be right for you. Conduct informed research before deciding which cards will best help you achieve your financial goals.

Student BMO CashBack Mastercard

If you want to earn cash back on your essentials, like groceries.

Rewards: 3% cash back on groceries, 1% on recurring bills and 0.5% on everything else.

Welcome Offer: 5% cash back on your first $2,500 purchases for the first three months (up to $125 maximum in cash back). Must apply by May 31, 2024.

Annual Fee: $0

Other Benefits and Drawbacks: This card offers the potential to earn a ton of cash back, and it’s flexible. You can redeem at any time for any amount. However, the 2% grocery earnings and 1% recurring bill earnings are both capped at $500 per month, at which point you’ll be earning the low base rate of 0.5%.

———————————————————————————-

RBC Cash Back Mastercard

You can earn up to $358.39 in annual cash back with only average spending habits.

Rewards: 2% cash back on groceries and 1% on everything else.

Welcome Offer: None

Annual Fee: $0

Other Benefits and Drawbacks: Because it offers a solid 2% earn rate in the grocery category and a base rate of 1%, cardholders can earn a lot with minimal planning. However, there is a cap on the 2% earnings ($6,000 annually) and your cash back earnings are only redeemable on your January statement.

———————————————————————————-

CIBC Aeroplan Visa Card for Students

Earn Aeroplan points on gas, groceries, Air Canada purchases and everything else.

Rewards: 1 Aeroplan point per $1 spent on gas, groceries and at Air Canada directly. 1 Aeroplan point per $1.50 spent on everything else.

Welcome Offer: 10,000 Aeroplan points when you make your first purchase (up to $200 in travel value).

Annual Fee: $0

Other Benefits and Drawbacks: This card offers the potential to earn Aeroplan points, which can be valuable, especially if you’re studying far from home. However, they’re not as flexible as cash back.

———————————————————————————-

CIBC Dividend Visa Card for Students

Earn more cash back on groceries, gas, transportation, dining and recurring bills.

Rewards: 2% cash back on groceries. 1% back on gas, transportation, dining and recurring bill payments. 0.5% back on all other purchases.

Welcome Offer: $60 in cash back when you make your first purchase within the first three months.

Annual Fee: $0

Other Benefits and Drawbacks: This card offers the potential to earn lots of cash back in key spending categories. However, it’s capped at $80,000 in spending per year.

———————————————————————————-

TD Cash Back Visa

Earn more cash back on groceries and gas, as well as more Starbucks Stars.

Rewards: Earn 1% cash back on gas, groceries and recurring bill payments and earn 0.5% back everywhere else.

Welcome Offer: None

Annual Fee: $0

Other Benefits and Drawbacks: While this card offers solid earnings, plus perks like purchase security, there’s a cap of $5,000 per year on the groceries and gas earn rate.

———————————————————————————-

Scene+ Visa Card for Students

Earn Scene+ points on all your spending and more if you’re a regular movie-goer.

Rewards: 1 Scene+ point for every $1 you spend on everyday credit card purchases, 2X the points for every $1 you spend at Cineplex theatres or Cineplex.com and on eligible purchases at Scene+ grocery partners, such as Sobeys, IGA, Safeway, Foodland and FreshCo.

Welcome Offer: 1,250 Scene+ points when you make your first purchase.

Annual Fee: $0

Other Benefits and Drawbacks: While Scene+ points can now be redeemed for a variety of things (like movie tickets, merchandise, and travel purchases), they’re still not as flexible as cash back.

———————————————————————————-

PC Mastercard

Earn PC Optimum points when you shop everywhere, but even more points at partner stores.

Rewards: 10 PC Optimum points per $1 spent at Loblaws-owned grocery stores, 25 points per $1 spent at Shoppers Drug Mart, 30 points per litre at Esso/Mobil gas stations and 10 points per $1 everywhere else.

Welcome Offer: 75,000 PC Optimum Points ($75 value) after making your first purchase at a PC Points eligible store within the first six months.

Annual Fee: $0

Other Benefits and Drawbacks: While the PC Optimum points are valuable, you’re limited as to where you can earn the most points and what you can redeem them for—especially if you prefer to shop around.

———————————————————————————-

TD Rewards Visa* Card

Earn TD Rewards Points on all your spending, and more points at Starbucks, too.

Rewards: Earn 4 TD Rewards Points for every dollar you spend when you book travel through Expedia^® For TD, 3 TD Rewards Points for every dollar you spend on groceries and restaurants, 2 TD Rewards Points for every dollar you spend on regularly recurring bill payments set up on your account and 1 TD Rewards Points For every dollar you spend on other purchases made using your card.

Welcome Offer: Earn a value of $50 in TD Rewards Points to use on eligible Amazon.ca purchases. The credit card account must be approved by June 3, 2024. This offer is not available to residents of Quebec.† Terms and conditions apply.

Annual Fee: $0

Other Benefits and Drawbacks: This card comes with a decent earn rate on TD Rewards Points and some valuable perks, like common carrier insurance. Whole TD Rewards Points aren’t as flexible as cash, but they can be redeemed for statement credit on your card.

———————————————————————————-

JA Money Card

This card is aimed at youth and functions like a prepaid card, all while earning cash back at restaurants and other retailers. Plus, you’ll also generate donations for Junior Achievement of Canada with each purchase, at no cost to you.

Rewards: Earn an average of 5% cash back at select restaurants and through delivery platforms like Uber Eats. Earn 2% cash back at select clothing stores, including Dynamite, JD Sports and Simons. Earn 2% cash back shopping at bookstores like Chapters or Indigo, or buying books online through Kobo. Earn 2% cash back shopping for gaming items and accessories through companies such as Nintendo, Playstation and Steam. Earn 2% cash back on purchases made at fitness locations like GoodLife Fitness or YMCA.

Welcome Offer: None

Annual Fee: $0

Other Benefits and Drawbacks: They haven’t outlined all the retailers that earn the high cash-back rates and they don’t guarantee a base cash-back rate either.

———————————————————————————-

BMO Air Miles Mastercard for students

Earn Air Miles on all your regular spending.

Rewards: 3 Miles for every $25 you spend at Air Miles partners. 2 Miles for every $25 spent at eligible grocery stores. 1 Mile per $25 spent everywhere else.

Welcome Offer: 800 Air Miles Bonus Miles when you spend $1,000 in the first three months. (Must apply before May 31, 2024.)

Annual Fee: $0

Other Benefits and Drawbacks: While Air Miles have a variety of uses, it’s not as flexible as cash and isn’t the most straightforward rewards program

Data research and analysis by Jack Choros, Deb Toews and Tia Duncombe.

Student cards have no annual fee, a low income requirement (or none at all) and are available to people with little to no credit history. They also can have features that support people living on a budget: like a low interest rate and rewards like cash back on purchases. Some cards also offer partnerships with student affiliated brands (like SPC+) to sweeten the deal. Note: Just because a card doesn’t have “student” in the brand name, doesn’t mean it can’t meet the needs of students.

Student credit cards typically work similarly to a regular credit card: you’re offered a line of credit that can be used to pay for purchases, pay bills and making cash advances. You receive a credit card statement each month informing you as to what you owe and you will need to make the minimum payment. In order to qualify for a student credit card, you typically need to prove you are enrolled in a post-secondary institution. Many student credit cards offer no annual fee and sometimes even rewards, low interest rates and lower income requirements.

As student credit cards are geared for students who may have little or no credit history, low income and few assets, the qualification requirements and benefits differ from a regular credit card. Specifically:

• You must be a post-secondary student to qualify for a student credit card.
• It can be easier to qualify for a student credit card than a regular credit card with a lower (or no) credit score requirement.
• Student credit cards typically do not have an annual fee.
• Your student credit may have a lower credit limit and/or higher interest rate.
• Rewards, such as cash back, are geared toward student shopping preferences, such as groceries, rideshares, digital gaming and streaming.
• Income minimums are lower (or nonexistent) with student credit cards.

Just like conventional credit cards, student credit cards come in a variety of types. Here are a selection of the popular types:

Cash back student credit cards

Cash back student credits allow students to earn cash back in a number of spending categories or at a flat rate on their purchases.

Low-interest student credit cards

Low-interest student credit cards typically have a lower purchase interest rate than other cards, typically well below the average rate, which is 19.99%.

No-fee student credit cards

No-fee student credit cards do not carry an annual fee.

Student travel credit cards

Student travel credit cards may earn travel points and/or allow you to redeem points for travel bookings. They may also include travel perks like lounge access or travel insurance coverage.

Student reward credit cards

Student rewards credit cards typically earn points on everyday purchases. Depending on the type of points, these can be redeemed for travel, merchandise, gift cards, movie tickets, statement credits and more.

Related: Top Credit Cards in Canada

There are a number of reasons why you might want a student credit card. Here are the top three:

Build a Credit History

The main reason to get a student credit card is because you don’t need a credit history to get one, but once you start spending and then paying off your balance, all of this gets reported to the credit bureaus and you can start building your credit. Establishing a credit history is important if you ever want a non-student or unsecured credit card, if you want to buy a car, take out a loan or apply for a mortgage to buy a home.

Practice Good Financial Planning

As a student, you’ll have a lot of expenses from textbooks to tuition payments and there will be times when you’ll need to extend your dollar to acquire things you need now before paying for them later. This is what a credit card is perfect for. Having credit can help bridge gaps in your income, but credit should not be treated as free money to be used without consequence.

Get Rewarded for Student Expenses

Some student credit cards do come with rewards. On some cards, you will receive cash back on certain purchases that you can use to pay down your balance, put into a savings account provided by your credit card’s issuing bank or invest in a diversified investment portfolio. Other student cards allow you to collect points toward free flights or merchandise. Even if you’re not getting rewarded for the things you’re buying anyway with points or cash back, Student credit cards often come with no annual fee and a lower interest rate.

Canadian students can’t apply for a student credit card until they are the age of majority in their province or territory (18 or 19), are a Canadian citizen or are an international student with a valid study permit. All students (international or not) also need a valid social insurance number (SIN), which they can apply for through Service Canada. A credit history isn’t usually required to get a student credit card, but students should have a comprehensive understanding of how consumer credit works before they apply. They will likely also need to provide proof that they’re enrolled in a post-secondary institution and that they have some source of income.

The fastest and easiest way to get a student credit card is online. There you can review the details and the terms of the card you’re interested in and apply directly on the website.

Alternatively, you can apply by phone or in person, if your card is with a bricks-and-mortar institution.

• Eligibility requirements. Check the eligibility requirements and make sure you meet the criteria.
• Annual fee. Look for a card with either no annual fee or a low annual fee you can afford.
• Rewards. A card that earns cash back is a surefire way to get useful rewards. If you’re interested in a points card, make sure the points fit your lifestyle and you will use them.
• Additional benefits. Credit cards often come with valuable perks like travel insurance, mobile device insurance, extended warranty and purchase protection.
• Where you bank. If you’d prefer to keep your finances in one place, consider the credit cards your specific bank offers.

Before you apply for a student credit card, know that you will need to meet the certain criteria, including:

Age

In Alberta, Manitoba, Ontario, Quebec and PEI, you must be at least 18 year old to qualify for a credit card. In all other provinces and territories, you must be 19. Students under 18 may be able to get a supplementary card on their parent or guardian’s account or may qualify for a prepaid/reloadable credit card.

Credit score

Student credit cards typically have lower credit score requirements than other cards, since they take into account the lack of credit history of most students. That said, approval is not guaranteed.

Income

In order to qualify for a student credit card, you’ll have to provide proof of income to show you can make the minimum payments each month.

Residency/student status

Generally speaking, you need to show that you are a Canadian resident or citizen and a student to qualify for a student specific card. If you’re an international student, many financial institutions in Canada have banking services tailored to international students that include credit cards. You also will usually need to show that you are enrolled in a Canadian post-secondary institution.

Who Should Apply for a Student Credit Card?

Only students who know they will be responsible enough to make the minimum payment should apply for a student credit card.

The steps to apply for a student credit card are fairly straightforward:

• Review the terms and conditions of the card you’d like, including the welcome offer, interest rate and benefits.
• Complete the application online, over the phone or in-person. Be sure your have proof of age, income and enrollment in an eligible post-secondary institution.
• Wait for your credit card issuer’s decision, which may be instant (if applying online). There also may be a request for additional information or verification.
• Once approved, you should receive a physical card within 14 days.
• When you get your card, you’ll need to activate it, by calling the number on the card or online.

Pros:

It’s a great credit-building tool
If you go to get a mortgage or a car loan one day, have no credit at all may be the same in the eyes of your lender as having bad credit. Getting a credit card and showing that you can be responsible for making payments on time can give you good credit history to build upon in the future.

Keep an eye on your spending
Some credit cards offer tools to help you track where your monthly spending money is going.

Collect points or cash back
The points and cash back on student credit cards can add up quickly, and be especially useful to students on a budget. Some cards even let you redeem your cash back or points at any time, so you can use them when you need them most.

Useful for emergencies
A credit card can be a great back up to keep handy as you venture into adulthood. If your car breaks down, you find yourself in need of a cab home or your laptop needs an emergency repair, it can help you out of a bind.

Cons:

High interest rates
Credit card interest rates are high, typically upwards of 19.99% and even more for cash advances

Credit card debt
If you’re not familiar with keeping a budget or managing your money, using a credit card can be an easy way to rack up high-interest debt.

Once you’ve received your student credit card, it’s important to not get carried away with a spending spree. This is a tool to help you build your credit history, so you want to prove that you are responsible with your debt.

The following tips will help ensure you make the most of your student credit card:

• Don’t spend more than you can pay off each month: It’s always better to pay off your credit card balance in full each month, both for your credit score and to avoid interest. If you can’t pay off the balance, try to pay off more than the minimum to keep interest from accumulating.
• Understand minimum payment requirements: Read your card’s terms and conditions carefully to understand how you’ll receive your statement and when the minimum payment is due.
• Know your card’s missed payment policies: If you miss payments, it may be well within the credit card’s terms and conditions to increase your interest rate. Make sure you understand what that interest rate will be and when it will take effect before you sign up for your credit card.
• Take advantage of your card’s perks and benefits: Use your card strategically to make the most of any welcome offers or cash back benefits. Also, if your card offers any discounts or savings on gas, for example, make sure you use your card at those vendors.
• Keep your card secure: Never lend your card to anyone else, especially if your card is set up for contactless payment. And if you use a PIN for security, make sure it’s not a code that can be easily guessed.
• Read your statement each month: Your statement will show you where you spend your money, how much and how frequently. This can be a powerful tool to track your spending and help keep unnecessary expenses down.

To avoid adding yours to the $591.4 billion in non-mortgage debt in Canada, you should always read the agreement that comes with your credit card, including the fine print, to understand your obligations and role as a cardholder. It’s also important to be aware of your payment deadline each month and avoid spending money you don’t have and will likely struggle to pay back.

Be aware of your annual interest rate and understand that if you do carry a balance, interest will incur and you will have to pay that on top of the principal balance. Make sure that if your credit card balance gets too out of control, you reach out to educational and credit counseling resources that may be able to offer strategies and resources to help you get your debt back under control.

If your application for a student credit card was denied, there are a number of reasons why this could happen, including:

• Your income is not high enough
• You have too many other loans, such as a car loan or student loans
• You’ve applied for too many cards at once
• You don’t meet the minimum age requirements
• You don’t meet the residency requirements
• You’re not currently a student

However, it’s important to know that every credit card’s requirements differ and you still have options available.

If you can’t get a student credit card, consider these alternatives:

• Get a supplementary card on your parent or guardian’s account
• Have your parent of guardian cosign on a credit card
• Use a prepaid credit card
• See if you qualify for a secured credit card
• Use a Visa/Mastercard debit card

You don’t necessarily have to get a student credit card to accomplish all or some of the goals that a credit card can help you fulfill. There are several ways to get credit or create another spending apparatus for yourself. Here are some alternatives to a student credit card.

A Secured Credit Card

With a secured card you can build or rebuild a credit history, but your credit line is made up of a deposit you pay in advance. This deposit provides an insurance policy to the issuing bank so that if you end up defaulting on your balance and you fail to pay it down by the monthly deadline, the bank can pay your card off immediately using the deposit. One drawback of secured credit cards is that they usually don’t come with any rewards, but they’re chiefly meant to help build or rebuild credit and not to help you rack up points or cash back.

A Prepaid Credit Card

Similar to a secured credit card, a prepaid card relies on money paid in advance to make up its credit line. With a prepaid card though, you load the card with a certain amount of money and every time you use it, your available funds deplete until there are no funds left on the card and it is time to reload it. Prepaid cards are great if you have certain big ticket purchases in mind. Once the purchase is made, the card goes back to zero and must be reloaded.

A Student Line of Credit

A student line of credit can be supplied by your bank and paid through your local bank branch or your bank’s online banking features. You can cover expenses with it by performing a balance transfer from an existing credit card or by using a debit card provided by your bank. An advantage of a student line of credit is your annual interest rate is often even lower than the rate typically available, even on a student credit card.

Our partners are not responsible for anything reported by Forbes Advisor. To the best of our knowledge, everything is accurate at the time of publishing as of the date posted. For full information and details, please visit the advertiser’s website.