17 Best Student Credit Cards in Canada for 2023

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.

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:

1. Check eligibility requirements. Make sure you meet whatever eligibility criteria have been laid out by the card provider.
2. 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.
3. 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

1. 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.
2. Your information is checked. The credit card issuer will check your credit history and verify the information you provided.
3. 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.
4. Your card is mailed out and will typically arrive within 14 business days.
5. 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.

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.

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 KOHO Standard Prepaid Visa and the KOHO Premium Reloadable Prepaid Visa 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.