Being a student in Canada has its set of financial challenges, from paying for tuition, to covering expenses for housing, food, and entertainment. As a millennial, managing your personal finances while pursuing education can be a vital aspect of your future financial success. One excellent way to practice smart money management and set yourself up for a brighter financial future is by choosing the right credit card. In this article, we explore the best credit cards for Canadian students, helping you weigh the pros and cons and make a smart choice that fits your unique needs.
Best Credit Cards For Canadian Students Table of Contents
Why Students Need a Credit Card
Before we dive into the best credit cards for Canadian students, let's quickly discuss why having a credit card is essential for students. Here are three compelling reasons:
- Build a Credit History: Having a good credit score is essential for securing loans, mortgages, and rental agreements in the future. Responsible credit card usage helps students build a strong credit history.
- Access to Emergency Funds: A credit card can act as a safety net during financial emergencies, allowing students to access funds when needed without resorting to high-interest loans or maxing out their savings accounts.
- Perks and Rewards: Many credit cards for students come with rewards programs, giving you the opportunity to earn points, cashback, or other benefits on your everyday purchases.
Top 5 Credit Cards for Canadian Students
After thorough research, we've narrowed down the five best credit cards for Canadian students. These credit cards have been chosen based on factors such as interest rates, reward programs, and ease of approval for students.
1. Tangerine Money-Back Credit Card
The Tangerine Money-Back Credit Card offers an exceptional cashback rewards program, making it an attractive option for students.
- Earn 2% cashback in up to three spending categories (e.g., groceries, gas, entertainment)
- Unlimited 0.5% cashback on all other purchases
- No annual fee or limit on the amount of cashback that can be earned
2. BMO CashBack Mastercard for Students
The BMO CashBack Mastercard for Students is another excellent option, with a simple cashback program and additional perks.
- Earn 3% cashback on groceries, 1% on recurring bill payments, and 0.5% on all other purchases
- Noannual fee, introductory promo with 5% cashback in the first three months
- Free SPC membership for exclusive discounts at participating retailers
3. Scotia SCENE Visa Card for Students
For students who love movies and entertainment, the Scotia SCENE Visa Card offers unique rewards and discounts.
- Earn 5 SCENE points per $1 spent at Cineplex theatres and 1 point per $1 on all other purchases
- Redeem points for free movies, concessions, or discounts at participating restaurants
- No annual fee, with 2,500 bonus points upon first purchase
4. PC Financial Mastercard for Students
This card is perfect for those who frequently shop at PC-affiliated stores like Loblaws, Real Canadian Superstore, and No Frills.
- Earn 10 PC Optimum points per $1 spent at PC-affiliated retailers and 25 points per $1 spent at Shoppers Drug Mart
- No annual fee and access to exclusive promotions and discounts
- Easily redeem points for groceries or merchandise at PC-affiliated stores
5. RBC Cash Back Mastercard
The RBC Cash Back Mastercard offers a straightforward cashback program without annual fees.
- Earn 2% cashback on groceries and 1% on all other purchases, with no limits on cashback earnings
- Access to RBC's Mydini app for exclusive offers and discounts
- Zero Liability protection from unauthorized transactions
Best Credit Cards For Canadian Students Example:
Suppose you're a student living off-campus who primarily spends on groceries, dining out, and entertainment. You could choose the Tangerine Money-Back Credit Card to earn 2% cashback on these three spending categories, maximizing your rewards while enjoying a no annual fee credit card.
Choosing the best credit card for your student life in Canada doesn't have to be complicated. Armed with this list of top credit cards for Canadian students, you can confidently select the right card for your needs, and start reaping the benefits of smarter money management and rewards. Don't forget to share this article with your fellow students, and explore more personal finance and investing tips on Flik Eco to continue mastering your financial future.
