For a society like that of Canada, student credit cards are utility assets and getting any of the Canadian credit cards for students is a plus. This means that even if this is your first week as a foreign student in Canada or this is your sixth month of higher education as a resident, the benefits are huge.
The reason why getting educated on the perks and eventual drawbacks of Canadian credit cards for students is that many credit card companies are predatory in nature and students can sometimes be very naive about things like this.
As with everything, a proper understanding of the minimum requirements, the limitations and the offerings is key to using these cards well. Pair that with moderation and you’ve got this cat by the tail.
This article discusses Canadian credit cards for students and provides a list of these cards and the benefits of each one. Follow up!
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Why credit cards?
There are plenty of reasons why a student should get a credit card and not just for the safety of it and the ability to avoid fraud, but the rewards that credit cards offer could be a significant edge for many Canadian students.
Some may ask why not debit cards, the answer is that debit cards pose their own risks as well. The card issuer incurs losses when your credit card is used illegally, but when your debit card is misused, money is taken from your bank account.
If the scam is reported quickly away, you should eventually receive your money back. Before everything is resolved, it can take some time. Checks may bounce, automatic payments may be declined owing to inadequate money, and you may struggle to pay your expenses during that period.
What are the benefits of Canadian credit cards for students?
There are many benefits of Canadian credit cards for students and while some may be apparent if you’ve read up to this point, the others may not be. Here we present a little list containing the benefits.
1 – Credit cards provide ready rewards
The purpose of credit card incentives is to entice you to use your credit card as a student, and they are highly effective at doing so. You may receive 1.5% or even 3% of every dollar you spend with a straightforward flat-rate card that pays the same amount on every transaction, either as cash back or as points or miles that can be redeemed for travel or other items.
If you spend $1,000 every month, you may passively make $180 to $240 a year. Getting these rewards is an incentive that the providers of Canadian credit cards for students ensure that they get.
However, note this: Don’t go overboard in your spending merely to get more advantages. That extra $100 spent at the grocery shop or that extra $250 spent on clothing won’t be covered by a little cash back.
2 – Using a credit card facilitates budgeting
Regardless of how you spend your money, maintaining control over your budget can be difficult for a student who has a lot on their mind. But it may be more challenging to track down where the money went.
When you lose a receipt, you frequently have no other way to keep track of how much you spent and where. If you wrote checks and you don’t record a check in your checkbook, you won’t be able to monitor it until the recipient cashes it.
With credit cards, everything appears very instantly on your account online. Additionally, a lot of issuers of Canadian credit cards for students classify transactions automatically based on what you bought and where.
3 – Credit cards aid credit development
The greatest strategy to raise your credit ratings is to responsibly utilize credit cards because having high credit has several advantages. Whether a prospective landlord checks your credit before handing you the keys or you’re asking for a mortgage to buy a home, it makes it simpler to locate accommodation.
Your credit history may also be used by insurance brokers and cell phone companies to assess your eligibility and even your pricing. As many firms examine candidates’ credit, it could even increase your chances of getting hired.
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Best Canadian credit cards for students
As far as credit cards go, this list contains the best Canadian credit cards for students as well as how to get one so far as you’re in Canada.
Any credit score can be used to apply for and get approved for this secured card. You won’t have a rigorous credit check done on you by Neo Financial.
We believe it to be a top professional consideration among Canadian credit cards for students. To obtain the Neo Secured card, you must be a resident of Canada and the age of majority in your jurisdiction.
You may receive a 0.5% cash back guarantee, an average of 5% unlimited cash back at thousands of Neo partners, and up to 15% cash back on your first purchase at participating partners with the Neo Secured Credit, which is at the top of our list of Canadian credit cards for students.
A $50 minimum security fund deposit is required by the card, with a $10,000 maximum security fund deposit, and the card has no annual fee for the Standard rewards plan. Visit member.neofinancial.com and register there to apply. Choose “Credit”, then “Hudson’s Bay Mastercard” “Neo Credit,” and finally “Secured Card” as the kind of credit you’re after.
Tangerine Credit Cards are the ideal choice for customers, especially students, who prefer to receive rewards based on their transaction totals rather than their purchase locations.
Tangerine is an excellent alternative for students and low-income workers who still want to be rewarded for their purchases because it does not punish low-income individuals.
Generous cash-back benefits are provided by Tangerine Credit Cards in up to three categories, including grocery, entertainment, petrol, and this cashback by Tangerine Money-Back credit card is 2%.
This is particularly liberal since most credit cards only offer specific merchants within specific categories, as it gives customers the freedom to choose where they want to be rewarded. Additionally, cardholders always receive .5% back on all other transactions.
KOHO has disassociated itself from the huge levies that the so-called “Big Banks” in Canada levy on their customers. When you use Koho, you may receive up to 5% additional cash back when you buy at partner stores.
Additionally, you will receive 0.5% cash back on all purchases, which will be applied right away to your KOHO Savings account.
KOHO, like some other Canadian credit cards for students, allows you to pay no transaction fees, in contrast to many chequing accounts that charge you for any transaction that exceeds a certain minimum each month.
Additionally, KOHO and Mastercard have a partnership that gives you access to the Mastercard ATM network and cash withdrawals using your card that comes in any of four colours.
Visit the Koho website to sign up for an account. You will need to supply some basic personal and financial information. According to KOHO, this process takes “minutes” for the majority of consumers.
To obtain a KOHO card, you are not subject to a credit check and the program is available in both English and a fully translated French language.
Aspire Cash Platinum Mastercard offers one of the best Canadian credit cards for students, as they give a 1% cashback on all purchases, up to $1.
Since financial awards don’t have a shelf life, there is no cap on the total amount you may receive. You may earn an unlimited amount of cash rewards with the Aspire Cash Platinum MasterCard for every transaction you make.
1% cashback on all purchases, up to $1. No yearly charge and there are no restrictions on the amount of money you can make. Rewards in cash have no time limit, so you can withdraw your money after 3 months or after 3 years.
Adding an extra verified user to your card increases your earnings without any additional cost. This is useful for students with spouses or dependents who may need access to a card for some transactions.
With the American Express Green Card as a student in Canada, you may make transactions without paying any fees and accumulate points. Every $1 you spend on purchases entitles you to one American Express Membership Point.
When you charge $1,000 in purchases to your Card in the first three months of Cardmembership, you will get a Welcome Bonus of 10,000 Membership Rewards points.
The American Express Green Card offers a straightforward rewards program with a faster earn rate on hotel and rental car reservations, and it’s simple to transfer your points to other loyalty programs for the best possible redemption value.
CIBC Aventura Visa Infinite cardholders will receive 1-2 Aventura points for every $1 of eligible purchases made on their credit card: 1.5 points for every $1 spent at eligible gas stations, EV charging stations, grocery stores, and drug stores, and 2 points for every $1 spent on travel through the CIBC Rewards Centre.
Only the first $80,000 in net annual card purchases on your account (all card purchases made by all cardholders, at any type of merchant), including on supplementary cards, are eligible for this special earn rate in these categories. Thereafter, cardholders will earn 1 point for every $1 spent in these categories until the annual limit resets each December.
Whether you’re a newcomer or it is where you call home, there are Canadian credit cards for students that would serve you well. Whichever credit card on this list that you choose, the key things to remember are to use the card with moderation, stay out of debt and maintain a healthy credit score.