Are you a student in Canada looking for the perfect credit card? Look no further! Flik Eco is here to help you navigate the world of credit cards, specifically tailored for students like you. In this comprehensive guide, we will explore the various credit cards available for students in Canada and how you can make the most out of them. Get ready for a crash course on Credit Cards 101: The Ultimate Canadian Student Edition!
Credit Cards Canada For Students Table of Contents
Why students need credit cards
Every student should consider getting a credit card for several reasons:
- Build credit history: Establishing a good credit history early in life is crucial for future financial endeavours, such as getting approved for loans or renting an apartment.
- Learn budgeting: Having a credit card helps students learn how to manage money responsibly and create budgets.
- Emergency expenses: Credit cards provide a safety net for unexpected expenses, like car repairs or medical bills.
- Rewards: Many student credit cards offer rewards, such as cashback or travel points, for everyday purchases.
Choosing the right credit card for students
To choose the ideal credit card, students should consider the following factors:
- Annual fee: Look for a card with no annual fee, as students often have limited incomes and should prioritize saving.
- Interest rate: Select a card with a low-interest rate, in case of carrying a balance for one or more months.
- Rewards program: Opt for a card with a rewards program that suits individual preferences, such as travel, cashback, or shopping discounts.
- Perks and benefits: Some student credit cards offer additional benefits, like insurance coverage or complimentary access to student-focused services.
Top Credit Cards for Students in Canada
1. BMO CashBack Mastercard for Students
This credit card offers 3% cashback on eligible grocery purchases, 1% on recurring bill payments, and 0.5% on all other purchases. Some additional benefits include extended warranty coverage and purchase protection.
2. Tangerine Money-Back Credit Card
With Tangerine's Money-Back Credit Card, students can earn 2% cashback in up to three spending categories of their choice and 0.5% on all other expenses. The categories include groceries, gas, restaurants, entertainment, and more.
3. Scotia SCENE Visa Card
This card rewards students with 5 SCENE points per dollar spent on Cineplex Entertainment purchases and 1 SCENE point per dollar on all other transactions. SCENE points can be redeemed for movie tickets, dining out, or other entertainment options.
4. Desjardins Student Cash Back Visa
This card offers 1% cashback on all purchases and additional benefits, such as extended warranties, purchase protection, and unique Visa-exclusive perks.
Credit Cards Canada For Students Example:
Imagine you're a university student with a part-time job on weekends. You pay for your monthly phone bill of $70, spend approximately $200 on groceries, and around $50 on movies or dining out every month. Let's consider the BMO CashBack Mastercard for Students:
By charging your groceries and phone bill to this card, you would earn:
- $6 cashback from groceries (3% of $200)
- $0.70 cashback from your phone bill (1% of $70)
On top of these rewards, you'd also enjoy an extended warranty and purchase protection on all items charged to your card. Over the span of a year, the savings could make a significant difference in your budget.
And there you have it, a comprehensive guide to credit cards available to Canadian students, designed just for you! Credit cards offer more than just a financial safety net—they can be a powerful tool for establishing good financial habits and building your credit score. By comparing interest rates, rewards programs, and additional benefits, you'll find the perfect card to suit your needs and help you save money.
Don’t forget to explore other Flik Eco guides for more financial tips and tricks tailored for millennials. If you found this guide helpful, share it with your fellow students and make sure everyone gets the most out of their credit cards! The world of personal finance and investing just got more accessible, thanks to Flik Eco.