Are you a student in Canada who's ready to step into the world of credit cards? Finding the perfect fit for you can be challenging, considering the dozens of options available. Fret not! This Flik Eco guide will help you navigate through the plethora of credit card choices, explaining the different types and their benefits, as well as presenting the best credit cards for students in Canada.
Best Credit Cards For Students Canada Table of Contents
Why Students Need a Credit Card
Why Students Need a Credit Card
It's essential for students to establish good credit early on, as it will help them in the long run when it comes to renting an apartment, qualifying for lower interest rates on loans, and even landing better job opportunities. A student credit card can be an excellent tool to achieve this, provided it's used responsibly.
Choosing the Right Credit Card for a Student
When it comes to selecting the perfect credit card for a student, there are several factors to consider:
1. Fees
- Annual Fees: Look for cards with no annual fees as these are ideal for students who are on a limited budget.
- Foreign Transaction Fees: Choose a card that offers low or no fees on foreign transactions if you plan on travelling or studying abroad.
2. Rewards
- Cash Back: Some cards offer cash back rewards, which means you'll receive a percentage of your purchases back in cash.
- Points: Other cards reward you with points that can be redeemed for travel, merchandise, or statement credits.
3. Interest Rate
Look for cards with low interest rates, as this will help minimize your interest expenses if you end up carrying a balance on your card.
Best Credit Cards for Students in Canada
Based on these factors, we've picked three of the best credit cards for students in Canada:
1. Tangerine Money-Back Credit Card
This card offers no annual fee, a low interest rate, and the ability to earn 2% cash back in up to three spending categories of your choice. Plus, you'll get 0.5% cash back on all other purchases. The Tangerine Money-Back Credit Card is an excellent choice for students who want a straightforward cash back rewards program.
2. BMO CashBack Mastercard
The BMO CashBack Mastercard is another no-annual-fee option. It provides 5% cash back on all purchases in the first three months (up to $100), and then 1% cash back on all purchases after that. You can redeem your cash back anytime, making this card incredibly flexible for students.
3. Scotiabank Scene Visa Card
For students who love movies and entertainment, the Scotiabank Scene Visa Card offers the perfect blend of rewards and flexibility. With no annual fee, this card earns you 5 Scene points for every dollar spent at Cineplex theaters or online movie purchases. On all your other purchases, you'll earn 1 point per dollar. Accumulate enough Scene points, and you can redeem them for free movie tickets or other entertainment rewards.
Best Credit Cards For Students Canada Example:
Imagine you're a student in Canada who loves going to the movies and is responsible for buying groceries and transportation. You might opt for the Scotiabank Scene Visa Card to earn free movie tickets while collecting points on your everyday purchases. At the same time, you could use the Tangerine Money-Back Credit Card to receive 2% cashback on groceries and transportation, saving some money to cover student expenses.
Choosing the right credit card as a student in Canada can set you up for long-term financial success and help you earn rewards in the process. Consider your preferences and spending habits, then pick the best credit card to suit your needs. Feel free to share this Flik Eco guide with fellow students and explore our website for more educational content to help you make informed personal finance decisions. Good luck on your financial journey!
