A no-fee credit card that offers great rewards coupled with low annual fees is the best option for students who want to build some credit history. If you want it to be easier to buy a home or a car in the future, you need to be careful about how you use the credit card and repay the balance at the end of every month to avoid increased interest rates and other negative effects of defaulting on payments. Here is a rundown of the best credit cards for students in Canada.
BMO CashBack Mastercard - The Best Student Card for Cashback
The BMO CashBack Mastercard has two main advantages; there are no minimum income requirements to apply for the card and there are no annual fees to contend with. You also get 5% cash back on every purchase or expense you put on the card for the first three months. Do note that there is a limit of $2,000 for these purchases and expenses.
After the three months, you qualify for a 1% cashback on all purchases and expenses without limits on how much cashback you can claim.
There are other perks to using this card including:
Double the manufacturer’s warranty on every item you purchase using the credit card for up to a year
25% off the base rate of car rentals at qualifying ‘Alamo Rent A Car’ locations and the National Car Rental
Scene Visa Card - the Best Credit Card for Reward Points
The Scene Visa Card allows you to earn points to watch the next movie without incurring any fees. In addition, you also get 2500 bonus points if you spend $500 using the card in the first three months. These points are enough to watch two free movies.
If you use the Scene Visa Card at Cineplex theatres you get 5 additional points for every $1 spent.
You can get massive discounts using the points you earn at over half a dozen qualifying stores (Swiss Charlet, Bier Market and more) and restaurants. You can also redeem 1250 Scene points for a free movie. Finally, you can save up to 25% on car rentals at eligible Budget and Avis locations.
Tangerine Money-Back - the Best Credit Card for Students Who Have an Income
The Tangerine Money-back is not tailored specifically for students but remains one of the best credit cards for students due to how well it suits them. If you get this card, you will not have to pay any annual fees, and you’ll get 2% cashback on every $1 you spend in two categories that you choose when you sign up for the card. You also get a 0.5% cashback option for purchases made outside the two categories you choose.
If you also open a no-fee Tangerine savings account, you will be eligible for a 2% cashback in an additional category. The amount of rewards you can earn is unlimited.
CIBC Dividend Visa Card
With this credit card, there are no annual fees. You also enjoy a 2% cashback on all grocery purchases and 0.5% cashback on all other purchases. Do note that these rewards apply up to a maximum of $6000 for each category. Finally, you also get a 1% cashback on all purchases you make over the $6000 limit.
If you happen to be interested in air miles then see our guide to the best air miles credit cards.