9 Best Student Credit Cards in Canada for November 2024
Nov 1, 2024The best student credit cards in Canada have low fees and interest rates while still providing some perks and strengthening your credit profile.
Finding a student credit card with the right combination of features for your lifestyle can be daunting, especially if it’s your first time choosing a card. But spending a few minutes with the information below — consider it a mini cram session — should have you ready to compare the best student credit cards and confident that you can make a decision about which one is right for your needs.
Compare the best student credit cards in Canada
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BACK TO TOPNerdWallet Canada selects the best credit cards based on unique attributes, overall consumer value and suitability for specific kinds of consumers. Factors in our evaluation methodologies may include annual fees, rewards rates, interest rates and other noteworthy features specific to the card type. To learn more about how we evaluate and select financial products, you can review our credit card methodology.
Beginner’s guide to student credit cards in Canada
How do student credit cards work?
Student credit cards aren’t much different from regular credit cards. You charge purchases to your card and you don’t have to pay for them until your statement due date. Generally speaking, student credit cards are easier to qualify for than premium credit cards. They’ll also help you build your credit score.
Although some financial institutions have official student-branded credit cards, most offer general entry-level cards that are suitable for students. In other words, even if a card isn’t called a student credit card, you may still have a chance at approval.
However, if you have negative marks in your credit history or no credit history at all, make sure to check the eligibility requirements. If a credit history is required, consider a secured credit card or a prepaid card instead.
Student credit cards vs. regular credit cards
The main difference between student credit cards and all other credit cards can be found in the qualification requirements.
With a regular credit card, a good credit score and verifiable income is a must, so students might be out of luck.
With a student credit card, income and credit score requirements are much more relaxed, or in some cases, non-existent.
And despite the name, very few student credit cards are limited to those who are enrolled in post-secondary education — the name simply acknowledges that the eligibility criteria, terms and conditions, and benefits are aimed at consumers of a certain financial profile.
Types of student credit cards
Cash-back student credit cards
A particularly attractive option for students who might want a “discount” on their credit card bill every now and then, cash-back credit cards reward your spending with points that can be redeemed for cash. These cash rewards are most often provided in the form of a statement credit, but in some cases, can also be transferred to a savings account.
Low-interest student credit cards
Most credit cards in Canada carry a purchase interest rate around 20%, and student credit cards are no exception. Credit card interest rates on balance transfers or cash advances may be even higher. However, certain credit cards offer low interest rates as a way to attract cardholders who may not be as experienced with revolving credit products.
No-fee student credit cards
Many Canadian credit cards charge an annual fee that must be paid regardless of how much you spend or how often you use the card — it’s just the cost of being a cardholder. Students who are working with a tight budget will be pleased to learn that there are exceptions to this rule, however.
No-fee credit cards waive the annual fee, allowing students to reap all the benefits of having a credit card — including bonuses and rewards — without an extra charge piled on top.
Student travel credit cards
Among the best options for students are travel credit cards, which allow cardholders to earn travel rewards — points or miles that can be redeemed for discounted fares, merchandise, gift cards, and other perks.
Student reward credit cards
Armed with a rewards credit card, students in Canada can earn valuable points by using their card to pay for everyday expenses, like gas, groceries and even furniture. Some student rewards credit cards even come with perks like purchase assurance or extended protection insurance on eligible purchases.
How to compare student credit cards
Before applying for one of Canada’s best student credit cards, you should compare everything available. Here’s what to keep an eye out for.
Eligibility requirements. Consider any requirements imposed, such as income, age, credit score or student status.
Annual fee. Many credit credits don’t have an annual fee, which is great for students on a fixed income. That said, credit cards with a yearly fee often come with better benefits.
Rewards. Cash back, travel, movie, grocery and store rewards are just some of the perks you can earn with your credit card.
Welcome bonus. Many credit cards come with introductory offers, so consider what type of bonuses work best for you. Are you hoping to use credit card rewards to travel? If so, consider a card offering a lump sum of reward points to new cardholders. Alternatively, consider a cash-back card with an accelerated rewards rate if you’d like to boost your earn rate in a specific spending category. Just make sure you can hit the spending requirements associated with the offer.
Additional benefits. Extra benefits, such as extended warranty, travel insurance, price protection and more, may come in handy.
Where you bank. You can apply for a credit card at any financial institution, but it can be easier to be approved if you go with an issuer you already bank with.
How to get a student credit card
Once you’ve compared your options and weighed the pros and cons, obtaining a student credit card is similar to relatively straightforward. There are generally three steps you’ll have to take:
Check eligibility requirements. Make sure you meet whatever eligibility criteria have been laid out by the card provider.
Submit your application. Provide the personal and financial information required by the credit card company you’d like to apply to. This can usually be done online or in person.
Activate. Once you’ve received your student credit card, you’ll need to activate it. You can generally do this online or by calling your credit card provider.
Student credit card eligibility requirements
Like other cards, student credit cards come with certain eligibility requirements you’ll be expected to meet.
Age
Many student credit cards are limited to those aged 18-24. You must also be the age of majority in the province where you live. The age of majority is 18 in Alberta, Manitoba, Ontario, Prince Edward Island, Quebec and Saskatchewan. It’s 19 everywhere else in Canada.
Credit score
Because student credit cards are designed for users who may not have a credit history, some do not have a minimum credit score requirement. If you’re applying for a card that does take your credit score into consideration, know that it may require a credit score of 660 or higher.
Income
Some cards come with specific income requirements, like the Tangerine Money-Back Credit Card which requires proof of $12,000 annual income. Those that don’t will still require proof that you have money coming in — via student loans, grants, scholarships, or family allowances — to ensure you’ll be able to pay off your balance every month.
Residency/student status
To be eligible for a student credit card in Canada, you’ll have to be a Canadian resident and/or provide evidence that you are enrolled in a post-secondary education program. There are certain exceptions to the residency rules for international students.
Can international students get a credit card in Canada?
Yes, international students can get credit cards in Canada. And with school being so expensive for international students, getting access to a little credit can go a long way. But getting a student credit card as an international student requires you to do a little extra work.
You’ll have to apply for a Social Insurance Number first, and you’ll only receive one if your study permit allows you to work while in the country studying. You may also have to provide government-issued identification, like a passport or a Canadian-issued driver’s license, as well as some form of proof that you’re actually enrolled at a post-secondary institution.
How to apply for a student credit card
Fill out an application. You can do this online or in person at your financial institution of choice. The application will ask for some basic information, such as your name, date of birth, address, social insurance number, employer and income.
Your information is checked. The credit card issuer will check your credit history and verify the information you provided.
A decision is made. If you apply online, instant approval (or disapproval) is possible, but there’s also a chance the credit card issuer will ask you to contact them to provide additional information.
Your card is mailed out and will typically arrive within 14 business days.
Activate your card. Once your card arrives, you’ll need to activate it by logging into your account or calling the number on your card. Once activated, you can use your card to make purchases.
Rejected? Why your student credit card application was denied
Even though credit card companies love to welcome new users, there’s no guarantee that your application for a student credit card will be approved. If you find yourself being denied by a credit card provider, it could be because:
You’re too young or too old to meet the age criteria.
You don’t reside in Canada.
You are unable to prove that you earn or receive some form of income.
The income you do earn is too low.
As an international student, you haven’t been given permission to work in Canada, which prevents you from obtaining a Social Insurance Number.
Your previous credit history has left you with a low credit score.
You failed to provide evidence of your enrollment status.
Is a student credit card a good idea?
Even if you already have a joint credit card with your parents, getting a student credit card may still be worth it. A credit card can be a vital part of managing your expense and, when used correctly, it’ll help you build your credit score.
Pros: When a student credit card may be worth it:
To build credit as a student
As you use your student credit card, you’ll build a strong credit history and that will impact your credit score. Your credit score is a number between 300 – 900. The higher your credit score, the more creditworthy you are to creditors. If you ever want to get a loan in the future, lenders will often look at your credit score first.
Your credit score doesn’t become excellent overnight. The credit bureaus want to see an established history of responsible credit use, which is why a credit card under your own name can help. Then, your credit history will grow as you make purchases and pay off your bills. Over time, you can expect your credit score to increase.
To earn rewards
Another benefit of having a student credit card is earning valuable rewards that can make life a little less expensive.
Not all student credit cards offer rewards, but those that do allow you to collect points or miles that can be put toward purchases, including flights and hotels, or redeemed in the form of cash-back rewards that help whittle down your credit card balance.
To track spending
If you’re living on your own for the first time, money management skills may not be something you’ve mastered yet. That’s okay. You have a lot on your plate.
While not a perfect substitute for a thorough and thoughtful budget, some student credit cards offer budget tracking services that keep a tally of your spending and notify you if you’re at risk of exceeding your monthly spending limits.
To gain financial flexibility
Dealing with an unexpected expense when you don’t have much cash can be extremely stressful
A student credit card can help fill in those gaps by giving you the financial flexibility to pay for necessities, like groceries and clothing, or sudden costs, such as car repairs or a flight home to tend to a family emergency, even if you don’t have all of the cash in your bank account.
Even though student credit cards provide flexibility, it’s important to use them responsibly. Interest rates don’t get any lower just because your card’s being used for essentials and emergencies.
Cons: When a student credit card might not be worth it:
If it has higher-than-usual interest rates
All credit cards come with specific interest rates, usually around 19.99%, charged on top of your balance assuming you don’t pay it off within the allotted grace period, usually about a month. It’s not hard to see how this can cause your debt to expand quickly if you don’t stay on top of payments.
Some cards offer much lower interest rates, which can be helpful if you’re not confident that you’ll be able to pay in full each month.
If the spending limit is too low for your needs
Student credit cards often come with lower spending limits than other credit cards. A low spending limit can prevent you from racking up a big credit card bill you can’t pay, but it can also leave you in the lurch if a major purchase becomes necessary and you’re already up against your maximum spending amount.
If you’ll end up in Credit card debt
A maxed-out credit card can take years to pay off if you’re only making minimum payments, and can damage your credit score in the process. Thinking more long-term, if a situation arises where you need to take out a loan, lenders aren’t likely to give you the best interest rates or friendliest terms if you have a lot of credit card debt in comparison to your income.
Alternatives: When to consider other options
If you’re not ready for your first credit card or think you may not qualify for a student credit card, there are other solutions available.
Secured credit cards
A secured credit card works like a regular credit card, but you must provide a security deposit that typically acts as your credit limit. That security deposit typically acts as your credit limit.
For example, if you deposited $500 onto your secured credit card, you’d have a $500 spending limit. You can’t use that deposit to pay your credit card bill, but you’d get it back if you ever closed your account in good standing.
The best secured credit cards allow you to build credit history. Once you have a good credit score, you can try applying for a student credit card.
Which makes sense for you? Secured vs. Unsecured Credit Cards: How to Choose
Prepaid cards
A prepaid card is also worth considering as they provide the flexibility of cashless payment, but because you’re not borrowing money, there’s no interest or credit card debt to worry about.
Some prepaid cards, like the Wealthsimple Card even earn interest. Some also claim to report to the credit bureaus so that you might be able to qualify for a student credit card in the future.
How to make the most of your first student credit card
Once you have your student credit card in hand, there are many things you can do with it. Use the following tips to ensure you’re making the most of your card.
Always pay your bills in full and on time, so you don’t incur any interest charges.
Use your card whenever you can to earn rewards and build a credit history.
Read your credit card statement and pay attention to your purchases, so you know where your money is going. Some credit cards suitable for students even have an app that analyzes your spending for you.
Take advantage of any perks that come with your card (like free extended warranty or rental car discounts), as they could save you some money.
Make sure you select a PIN that’s not easy to guess. The last thing you want is to be a victim of credit card fraud.
Understand minimum payment requirements
When you receive your monthly statement for your student credit card, you’ll see that there’s a minimum payment requirement. Your account will be in good standing as long as you pay that amount. If you pay less than the entire balance, know that you’ll pay even more in interest on the remainder, which will increase your debt.
It’s also worth mentioning that you can pay your bill whenever you want. Most people will wait for their bill to arrive and then pay it off all at once. Others will pay off their charges as they accumulate to help prevent overspending.
Watch out for missed payment policies
Besides accumulating debt and being charged interest, not much will happen if you miss a single payment. If you miss two or more payments in a row, your financial institution could increase your interest rate or consider your account delinquent. That would instantly have a negative effect on your credit score.
If missing one payment was an honest mistake, make your payment as soon as you can. It’s also worth calling your financial institution to ask if they can waive the interest charges. To avoid missing a payment again, set up account reminders or auto payments.
Can I pay tuition with my student credit card in Canada?
Not all colleges and universities in Canada will accept credit cards as a form of payment for tuition. Even if your school does accept credit cards, you may not be able to use your student credit card to cover the cost. Why? Because student credit cards tend to come with much lower spending limits than traditional credit cards.
Post-secondary institutions may also charge significant fees in exchange for the convenience of paying with a credit card, sometimes as much as 3% of the total transaction. If you needed to pay $5,000 in tuition, the fee would add an extra $150 to your bill. Before attempting to pay tuition with a student credit card, make sure you’re clear on what credit card fees you’ll be charged, and investigate alternative forms of payment, such as direct deposit or a cheque.
What to do with a student credit card after graduation
Many people hang onto their student credit card until they secure a full-time job. Once you have stable employment lined up, you could apply for a credit card with a higher minimum income requirement. Doing so could mean getting better perks, such as increased earn rates, travel insurance, no foreign transaction fees and more.
With that new card in hand, you could cancel your student credit card since you won’t need it anymore. However, there are other steps you should consider before cancelling your card.
Update your information with your credit card provider. If your income has increased, or housing has changed, or you have new contact information, share these changes with your provider. They may ask your permission to approve an increase to your credit limit.
Request a product change or credit card upgrade. You may be able to ask your provider to switch to a higher-tier credit card if you meet new eligibility requirements. If you have a secured credit card, you may be automatically approved for an upgrade to an unsecured card. If you have a student-branded credit card, your provider might switch you to the non-student version.
Overall, hanging onto the card is a good idea since having a credit account open for a long time is good for your credit score. It can also serve as a backup credit card in case your new credit card is not accepted by a merchant for some reason.
Frequently asked questions
Can I apply for student credit cards with a low credit score?
Can I apply for student credit cards with a low credit score?
Yes. Even if you have a low credit score, or have not yet had the chance to build a robust credit history in Canada, it may be possible for you to get approved for a student credit card. You will still need to meet the issuer’s minimum eligibility requirements, which may include proof of some type of income and the existence of a Canadian credit profile.
Can you get a student credit card with no income?
Can you get a student credit card with no income?
Some student credit cards don’t require that you have an annual income to be approved. Obviously, you would need some kind of income to pay your bills. However, already having a bank account with the financial institution where you’re applying for a credit card can improve your chances of getting approved because as they’ll be able to see your assets.
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