Canada’s best student credit cards for 2022

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If you’re a student and are looking to build a credit history—or simply want some rewards that will ensure instant ramen noodles aren’t your only dinner option—a credit card that offers a great combination of generous rewards and low annual fees is exactly what you need. The key is to be responsible with your credit card spending and pay off the balance every month so that buying a first car or home in the future will be within your grasp.

The best student credit cards in Canada 2022

• Best for cash back — BMO CashBack Mastercard, CIBC Dividend Visa for Students
• Best for grocery shopping — PC Financial Mastercard
• Best for money management — Koho Visa
• Best for flights — BMO Air Miles Mastercard
• Best for instant approval — SimplyCash Card from American Express
• Best for bad credit — Plastk Secured Visa Credit Card
• Best for entertainment perks — Scotiabank Scene Visa Card for students
• Our methodology — For greater insight into our rankings

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Best student credit card for cash back

BMO CashBack Mastercard*

This no-fee card offers rewards wherever you spend. You’ll earn 0.5% cash back on all your purchases, but 3% on up to $500 in groceries per month and 1% on recurring bills. Plus, the minimum redemption requirement is only $1, so you can redeem your cash back when you truly need it.

• Annual fee: $0
• Welcome bonus: Get up to 5% cash back for the first 3 months; introductory 1.99% interest rate on balance transfers for 9 months with 1% transfer fee; plus apply now to get a $50 cash back bonus when you spend over $6,000 in the first year (up to $175 cash back).
• Rewards: 3% cash back on groceries (up to $500 per month), 1% on recurring bills (up to $500 per month) and 0.5% cash back on everything else.
• Perks: Redeem for cash back at any time in increments of just $1. Items you purchase using the card receive double the manufacturer’s original warranty protection, up to one year; get up to 25% off base rates at eligible National Car Rental and Alamo Rent A Car locations.
• Get more details about the BMO CashBack Mastercard*

Also consider:

CIBC Dividend Visa for Students

You’ll earn 1% on gas, transportation, dining and any recurring bill payments. You’ll also get 2% back on groceries and 0.5% back on everything else. You’ll get access to SPC+, as a perk, too.

• Annual fee: $0
• Welcome bonus: Earn $60 cash back when you make your first purchase within your first four months of having the card.
• Rewards: Get 2% cash back on grocery purchases; 1% on gas, transportation, dining and recurring payments; and 0.5% cash back on all other purchases.
• Perks: Get extra protection on new purchases, by doubling the manufacturer warranty up to one year on most purchases. Cardholders eligible for an SPC membership get free access to SPC+, which offers bigger discounts and special experiences.

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Best student credit card for Air Miles

BMO Air Miles Mastercard*

• With no annual fee and a solid way to rack up Air Miles, this card is the perfect way for students who are away studying to earn free flights home.
• Annual fee: $0
• Welcome bonus: 800 Air Miles Bonus Miles when you spend at least $1,000 on the card within the first 3 months.
• Rewards: Earn 1 mile per $25 spent and three times the miles at participating Air Miles partner stores (including Metro, Sobeys, Foodland, Staples and more). Plus, earn miles twice when shopping at Air Miles partners.
• Perks: Either redeem miles for travel rewards or online e-gift cards and in-store discounts at Air Miles partners in increments of 95 miles for $10. The airmilesshops.ca online e-store offers discounts and bonus miles from hundreds of retailers. Items you purchase using the card receive double the manufacturer’s original warranty protection, up to one year; get up to 25% off base rates at eligible National and Alamo rental locations.
• Get more details about the BMO Air Miles Mastercard*
  

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Best student credit card for grocery shopping

PC Financial Mastercard*

If you’re loving cooking for yourself, this is the card for you. Earn points on every purchase, and even more when you grocery shop at Loblaws banner grocery stores (including Loblaws, No Frills, Real Canadian Superstore, Fortinos and Valu-mart) Shoppers Drug Mart, Joe Fresh or when you fuel up at Esso or Mobil stations. 

• Annual fee: $0
• Welcome bonus: Get 20,000 PC Optimum points (a $20 value).
• Rewards: Get 10 Optimum points for every $1 spent with your card at any store and earn 25 Optimum points per $1 spent at Shoppers Drug Mart. Get 20 points per $1 when booking through PC Travel, and get at least 30 points per litre when you gas up at Esso or Mobil. Plus, earn bonus points when shopping at Loblaw banner stores. There’s no limit to the number of PC Optimum points you can earn.
• Perks: You can redeem PC Optimum points at Loblaw-affiliated stores, which means you can put a major dent in your everyday bills. Redeem your PC Optimum points at check-out, with redemptions starting at 10,000 points for $10 back.
• Get more details about the PC Financial Mastercard*

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Best student credit card for money management

Koho Visa*

This pre-paid Visa makes it easy to stay on track with budgeting along with the convenience of a credit card. You can load a predetermined amount of spending money onto your Visa each month, plus get 1.2% interest on the spending and savings accounts. It also offers a RoundUp feature, which tallies up purchases to the closest amount of your choosing ($1, $2, $5 or $10) and sets that money into your savings. Plus, there are no hidden fees—like including account fees, interest charges or non-sufficient funds (NSF) fees.

• Annual fee: $0
• Welcome bonus: None
• Rewards: Earn 0.5% cash back with the Koho account, or 2% cash back on transportation, groceries and restaurants with the Koho Premium account. When you shop at partner stores, you’ll get up to 5% cash back on purchases (plus an additional 2% back for Koho Premium account holders). 
• Perks: Early payroll gets you to access to $100 of your next paycheque up to 3 days before its deposited. If you need to build up your credit rating, you can enroll with Koho, and for $7 per month it will report your spending habits to the credit bureau. And it features spending insights to help you keep track of your finances. And, for those who need a bit more hands-on help, Koho offers financial coaching.
• Get more details about the Koho Visa*

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Best student credit card for instant approval

SimplyCash Card from American Express*

With the SimplyCash Card from American Express you’ll earn 4% cash back for the first six months, then 1.5% back on all purchases regardless of the category with no limit on your earnings. This means no need to keep track of your spending categories. Plus, you can boost your rewards by referring your friends or family, receiving $100 for each approval, up to $1,500 annually. 

• Annual fee: $0

• Welcome offer: Get 4% cash back in the first 6 months (up to $200 cash back). 
• Rewards: Earn 1.25% cash back on all purchases regardless of purchase category (after the welcome bonus ends). Plus, no limit on the amount of cash back you can earn; get $100 cash back for each approved referral up to a maximum annual referral bonus of $1,500. 
• Perks: Access to virtual events and special offers with American Express Experiences. 
•  
  Get more details about SimplyCash from American Express*

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Best student credit card for bad credit

Plastk Secured Visa Credit Card*

A secured credit card works just like a regular credit card, but with the condition that you secure it with collateral (usually a refundable deposit), that can be claimed by the lender if you default on your payments. While these cards are great for building your credit score from scratch or re-establishing a not-so-good one, they usually don’t come with perks. This one, however, offers rewards on everyday purchases and a pretty good welcome bonus. Regardless of your credit rating, you should be mindful of spending within your means and aim to pay off your balance in full each month. Don’t overspend to earn more points.

• Annual fee: $48 (plus $6 monthly fee)
• Welcome bonus: 0% interest rate for the first 3 months and 5,000 rewards points (a $20 value)
• Perks: Earn 1 point per $1 spent
• Minimum deposit: $300

Get more details about the Plastk Visa Credit Card*

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Best student credit card for entertainment perks

Scotiabank SCENE Visa Card for students

If you’re a movie fan, this is the student card for you. You’ll earn 5 Scene points on every $1 spent at Cineplex theatres (or via its website or app), and 1 Scene point for every $1 spent everywhere else. These points can be redeemed for all kinds of “extras” you might not have room in your student budget for, like movies, takeout, gift cards from retailers, flights, hotels and more.

• Annual fee: $0
• Welcome bonus: You’ll earn 1,250 bonus Scene points with your first purchase
• Rewards: Earn 5 Scene points for every $1 spent at Cineplex theatres or cineplex.com. Earn 1 Scene point for every $1 you spend on regular credit card purchases.
• Perks: Redeem 1,250 points for a General Admission or 3D movie ticket or 2,000 points for an Enhanced movie ticket (UltraAVX, IMAX, Prime seats, D-Box). You can also use your points toward travel, dining, shopping and entertainment with the program’s extensive list of partners. Plus, save 25% off base rates for car rentals at participating Avis and Budget rental locations in Canada and the U.S.

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How to apply for a student credit card

Applying for a student credit card is pretty straightforward, although there are a few eligibility requirements to keep in mind.

• You’ll need to be the age of majority in your province. That’s either 18 (in Alberta, Manitoba, Ontario, Prince Edward Island, Quebec and Saskatchewan) or 19 (in British Columbia, New Brunswick, Newfoundland, Northwest Territories, Nova Scotia, Nunavut and Yukon).
• If you don’t earn an income, you may need to provide proof that you receive some form of financial support, such as allowances from your family or a scholarship.

As a new credit card holder, it’s a smart idea to review your options before you apply. Check out what different banks are offering, and choose a card that best matches your lifestyle and spending habits. Each application does affect your credit score, so you’ll want to avoid applying for multiple credit cards needlessly. Stick with one card as you learn the ropes and start building your credit history. 

Is opening a student credit card a good idea?

The short answer is yes, provided you use your credit card responsibly. Your credit card use is one of the things that determines your credit score. Your credit score is like a report card for your finances—the higher your score, the better—and it can affect your ability to get a loan or a mortgage, or even to rent an apartment. You’ll want to start building your credit rating as early as possible. Being a secondary cardholder on your parents’ card doesn’t count toward it, which is one reason you might want to get your own student credit card. Responsible credit card use is one of the most efficient ways to establish your credit history, build your credit score and prove you can be trusted to manage borrowed money. Beware of overspending, though. Late or unpaid bills can devastate your rating. 

Credit card tips for students

You know you need to be responsible in how you use your credit card—but what, exactly, does that mean? Read on for tips on using your credit card to beef up your credit score, and avoiding any problems. 

1. Check your payment due dates
   You probably know that credit card bills arrive every month, but that doesn’t mean the due date for your payment is on the first day. The date that begins your billing cycle depends on when you are approved for the account, and it could be any day of the month. Make note of the due date and make sure you pay on time.
2. Pay off your balance in full
   If you’re going to be responsible with your credit card, you won’t use it to spend money you don’t have. Do not go into debt. It’s best practice to pay off your bill in full, on time, every month. Not only will this boost your credit score, but it will also help you avoid costly interest charges.
3. Heed the minimum balance
   If you do overspend, you will still need to pay off some of your balance. Your bill will show a total balance and a minimum payment. You must pay at least the minimum payment, on time and every month, no matter what. Missing payments is one of the worst things you can do for your credit score. Paying only the minimum means that you’re accumulating interest on the unpaid balance. At an average of around 20%, this can add up quickly. 
4. Don’t overspend
   In case it’s note clear: Don’t overspend! Credit is borrowed money, and a credit card isn’t a debit card. All the money you charge to your card must be paid back. If you don’t or can’t, you’ll find yourself racking up interest charges in addition to wrecking your credit rating. 
5. Don’t max out your credit card
   Your credit card will have a credit limit; that’s the amount of money you can technically borrow on it. But spending all the way up to your limit—that is, maxing out your card—is reckless. It will be harder to pay off your balance. Use your card selectively for smaller purchases, at least initially, and consider using debit for almost everything else.

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In-Depth: THE BEST CREDIT CARDS BY CATEGORY

• • Overall Best Credit Cards in Canada
  • Best Rewards Credit Cards
  • Best Travel Credit Cards
  • Best Cash Back Credit Cards
  • Best No Fee Credit Cards
  • Best Low Interest Credit Cards
  • Best Balance Transfer Credit Cards

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Our methodology

For the Best Student Credit Cards ranking, we ran the numbers based on $1,000 in monthly spending using Ratehub.ca’s‡ credit card tool while also factoring in sign-up bonuses, income qualification requirements and student-oriented rewards. We made the following assumptions on monthly expenditures: grocery spend of $250, gas of $100, restaurants of $100, bill payments of $62.50, travel of $87.50, entertainment of $112.50, pharmacy purchases of $37.50 and other purchases of $250.

‡MoneySense.ca and Ratehub.ca are both owned by parent company Ratehub Inc. We may be partnered with some financial institutions, but this does not influence the “Canada’s Best Credit Card” rankings. You can read more about this in our Editorial Code of Conduct.

The post Canada’s best student credit cards for 2022 appeared first on MoneySense.

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