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Best Credit Cards for Newcomers to Canada 2024

Aug 1, 2024Newcomers to Canada with little to no credit history may be eligible for a credit card. Check out the best credit cards for newcomers to help narrow down your options.
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If you’re a newcomer to Canada, building your credit is likely top of mind, and credit cards can be an effective way to do this. The snag? You typically need a healthy credit history to get a credit card. This is where credit cards for newcomers come in.

Some lenders offer secured and unsecured credit cards to newcomers with little to no credit history, allowing them to get their foot on the credit ladder.

To help you better understand your options, NerdWallet looked at hundreds of credit cards to determine the best options for newcomers. Keep reading to see which cards made the cut.

Best credit cards for newcomers to Canada

Best for cash back
BMO CashBack® Mastercard®*
BMO CashBack® Mastercard®*
4.5
NerdWallet rating
APPLY NOW
on BMO's website
Annual fee$0
Regular APR
20.99% / 22.99%
Rewards rate
0.5%-3%
Sign-up bonus
Up to 5% cash back
Recommended credit score640-900

Best for AIR MILES
BMO AIR MILES®† Mastercard®*
APPLY NOW
on BMO's website
Annual fee$0
Regular APR
20.99% / 22.99%
Rewards rate
0.04x-0.12x Miles
Sign-up bonus
800 Miles
Recommended credit score640-900

Best for student newcomers
BMO CashBack® Mastercard®* for Students
APPLY NOW
on BMO's website
Annual fee$0
Regular APR
20.99% / 22.99%
Rewards rate
0.5%–3%
Sign-up bonus
Up to 5% cash back
Recommended credit score640-900

Best for Scene+ Points with no annual fee
Scotiabank® Scene+™ Visa* Card
APPLY NOW
on Scotiabank's website
Annual fee$0
Regular APR
20.99% / 22.99%
Rewards rate
1x-2x Points
Sign-up bonus
Up to 5,000 Points
Recommended credit scoreN/A

Best for Scene+ points
Annual fee$150
Regular APR
20.99% / 22.99%
Rewards rate
1x-3x Points
Sign-up bonus
Up to 35,000 Points
Recommended credit scoreN/A

Honourable mention for: Cash back with no annual fee
Scotia Momentum® No-Fee Visa* card
APPLY NOW
on Scotiabank's website
Annual fee$0
Regular APR
19.99% / 22.99%
Rewards rate
0.5%-1%
Sign-up bonus
Up to $100
Recommended credit scoreN/A

Best secured credit cards for newcomers to Canada

The following cards are some of the best secured cards on the market. Instead of relying on your credit history to determine eligibility, they require a cash deposit. The deposit is typically the credit limit for the card. So, if your deposit is $1,000, for example, your credit limit will likely be $1,000.

Best for cash-back rewards
Secured Neo Mastercard
Secured Neo Mastercard
4.7
NerdWallet rating
APPLY NOW
on Neo's website
Annual fee$5 / Month
Regular APR
19.99%-29.99% / 22.99%-31.99%
Rewards rate
0%-4%
Sign-up bonusN/A
Recommended credit score300-900

Best no annual fee secured card
Home Trust Secured Visa card (No Annual Fee)
APPLY NOW
on Home Trust's website
Annual fee
$0
Regular APR
19.99%
Rewards rateN/A
Sign-up bonusN/A
Recommended credit score300-900

Best low-interest secured card
Home Trust Secured Visa Card
Home Trust Secured Visa Card
4.0
NerdWallet rating
APPLY NOW
on Home Trust's website
Annual fee
$59
Regular APR
14.99% / 19.80%
Rewards rateN/A
Sign-up bonusN/A
Recommended credit score300-900

Best for travel insurance
Capital One Guaranteed Secured Mastercard
Capital One Guaranteed Secured Mastercard
3.9
NerdWallet rating
Annual fee$59
Regular APR
21.90% / 21.90%
Rewards rateN/A
Sign-up bonusN/A
Recommended credit scoreN/A

Best for small businesses
ScotiaLine® for business Visa Credit Card (Secured)
ScotiaLine® for business Visa Credit Card (Secured)
4.6
NerdWallet rating
Annual fee$0
Regular APR
Prime rate (6.70%) + 1%
Rewards rateN/A
Sign-up bonusN/A
Recommended credit scoreN/A

Methodology

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NerdWallet Canada selects the best credit cards based on overall consumer value and their suitability for specific kinds of consumers. Factors in our evaluation methodology include annual and other fees, rewards rates, the earning structure (for example, flat-rate rewards versus bonus categories), redemption options, bonus offers for new cardholders, introductory and ongoing APRs, and other noteworthy features such as airline or hotel perks or the ability to transfer points. Charge cards are not included on this list.

Summary of the best credit cards for newcomers

NerdWallet ratingAnnual feeRegular APRRewards rate
BMO CashBack® Mastercard®*
BMO CashBack® Mastercard®*
4.5/5
$0
20.99%/22.99%
0.5%-3%
APPLY NOW
on BMO's website
BMO AIR MILES®† Mastercard®*
BMO AIR MILES®† Mastercard®*
4.3/5
$0
20.99%/22.99%
0.04x-0.12x Miles
APPLY NOW
on BMO's website
BMO CashBack® Mastercard®* for Students
BMO CashBack® Mastercard®* for Students
4.3/5
$0
20.99%/22.99%
0.5%–3%
APPLY NOW
on BMO's website
Scotiabank® Scene+™ Visa* Card
Scotiabank® Scene+™ Visa* Card
4.2/5
$0
20.99%/22.99%
1x-2x Points
APPLY NOW
on Scotiabank's website
Scotiabank Passport® Visa Infinite* Card
Scotiabank Passport® Visa Infinite* Card
4.2/5
$150
20.99%/22.99%
1x-3x Points
APPLY NOW
on Scotiabank's website
Scotia Momentum® No-Fee Visa* card
Scotia Momentum® No-Fee Visa* card
3.8/5
$0
19.99%/22.99%
0.5%-1%
APPLY NOW
on Scotiabank's website

Summary of the best secured credit cards for newcomers

NerdWallet ratingAnnual feeRegular APRRewards rate
Secured Neo Mastercard
Secured Neo Mastercard
4.7/5
$5/Month
19.99%-29.99%/22.99%-31.99%
0%-4%
APPLY NOW
on Neo's website
Home Trust Secured Visa card (No Annual Fee)
Home Trust Secured Visa card (No Annual Fee)
4.4/5
$0
19.99%
N/A
APPLY NOW
on Home Trust's website
Home Trust Secured Visa Card
Home Trust Secured Visa Card
4.0/5
$59
14.99%/19.80%
N/A
APPLY NOW
on Home Trust's website
Capital One Guaranteed Secured Mastercard
Capital One Guaranteed Secured Mastercard
3.9/5
$59
21.90%/21.90%
N/A
ScotiaLine® for business Visa Credit Card (Secured)
ScotiaLine® for business Visa Credit Card (Secured)
4.6/5
$0
Prime rate (6.70%) + 1%
N/A

What to know about newcomer credit cards

Regardless of whether you had good or bad credit in your previous country, you can’t typically transfer your credit history to Canada. So, if you’re a newcomer, you’ll need to build up your credit from scratch. Getting a credit card for newcomers is one way to do this.

A good credit score in Canada can help you rent a property, secure a loan (e.g., a mortgage, get credit cards with top-tier perks and even gain employment.

How do credit cards for newcomers work?

Credit cards for newcomers are either directly marketed as newcomer cards or cards that don’t require credit checks, such as secured cards.

In many cases, you cannot apply for a credit card until you have moved to Canada and can provide a valid residential address.

Account requirements

You may be required to open a newcomers bank account with an issuer before you can apply for one of its credit cards. This is particularly true with unsecured credit cards that do not require a deposit.

Credit limit

Credit cards for newcomers typically have low credit limits, such as $5,000. But limits can go as high as $15,000 depending on the issuer. Secured credit card limits are based on the amount you put down as a deposit, but the issuer may set a maximum deposit, such as $10,000.

Newcomer eligibility

You typically have to prove that you are new to the country to qualify for a newcomer credit card. This may mean submitting documents that reflect a landed immigrant status within the last five years. Or, as a foreign worker, you may need to provide a work permit that’s valid for at least 12 months.

Additional eligibility factors

Issuers may use income, employment status, rental or mortgage information, age and other criteria to determine eligibility. You may need to provide a Social Insurance Number (SIN) to get a credit card, so if you don’t already have one, you can learn how to apply here.

Check that you meet all of the issuer’s requirements before you submit a credit card application. Knowing if you are eligible can help you avoid any unnecessary credit denials to your Canadian credit history.

How to build credit with a newcomers credit card

Here are a few quick tips for building your credit with a credit card:

  • Pay your credit card bill on time and in full. While you may only be required to pay the minimum balance due at the end of the month, any interest that accrues on the remaining balance can snowball quickly. By keeping your credit usage below 30%, lenders can see that you’re responsible with your finances and do not rely too heavily on credit. 

  • Don’t open too many credit card accounts at once. Multiple credit applications can give the impression that you are in desperate need of credit or living beyond your means. Consider starting out with just one card to cover your bills and ongoing expenses as you get settled in Canada. 

  • Take advantage of other newcomer products. Some banks require you to open a chequing account before you can apply for a credit card as a newcomer. You can use these accounts to demonstrate responsible spending. For example, some phone companies report your payment activity to credit bureaus. So, by paying your phone bill on time through your bank account, you can improve your credit.