The Best Student Credit Cards in Canada for 2023

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Having one of the best student credit cards in Canada is essential since it’ll help you build your credit score and give you rewards and perks on your everyday purchases. That said, since students typically have limited income and don’t spend much, their goal should be to focus on good credit habits. That means paying your bills in full and on time every month.

While most students will naturally turn to their regular bank to get a credit card, it’s worth shopping around since there are different cards worth considering. Here are the best student credit cards in Canada and why you should consider them.

Credit cardBest for
BMO CashBack MastercardCash back
Scotiabank Scene Visa CardGeneral rewards
CIBC Aeroplan Visa CardAeroplan
PC Financial MastercardGroceries
American Express Cobalt CardDaily spending
MBNA True Line MastercardLow interest
Tangerine Money-Back CardThose with an income
Wealthsimple Cash CardNo foreign exchange fees
KOHO Prepaid MastercardPrepaid Card

Best cash back card for students

BMO CashBack® Mastercard®*

  • No annual fee
  • 5% cash back (up to $100) on all purchases made in the first 3 months
  • 3% cash back on grocery purchases
  • 1% cash back on recurring bill payments
  • 0.5% cash back on all other purchases
  • 0.99% interest rate on balance transfers for 9 months (2% fee applies)

The best student credit card in Canada for cash back is the BMO CashBack Mastercard. Cash back is relevant for students since it’s an easy reward to understand. The earning rate for this card is 3% cash back on groceries, 1% on recurring bill payments and 0.5% on everything else.

Your cash back is paid out if you’ve accumulated at least $50 in rewards. Another bonus with this card is that you get an extended warranty on your purchases. Although I list this as the best student credit card for cash back, the Tangerine Money-Back Card (featured below) gives it a serious run for its money.

Eligibility: No income requirement, but you must be a Canadian resident and the age of majority in the province or territory in which you reside.
Welcome bonus: Usually 5% cash back (up to $100 in cash back earned) on all purchases for the first three months.

Best general rewards card for students

Scotiabank SCENE®* Visa* Card

  • No annual fee
  • 5,000 Scene+ points when you spend $750 in the first 3 months
  • Earn 2 Scene+ points per $1 spent at Cineplex™ theatres, cineplex.com and Empire owned grocery stores
  • Earn 1 Scene+ point per $1 spent on all other purchases

Many students love movies, so the Scotiabank SCENE Visa Card is likely a good choice. The earning rate is 2 Scene+ points per $1 spent at  Cineplex™ theatres, cineplex.com, Home Hardware and Empire-owned grocery stores. All other purchases earn you 1 Scene+ point per dollar spent. This is a very good reward rate.

Scene+ is one of the more flexible loyalty programs since you can earn and redeem points at Empire-owned grocery stores, Cineplex, select restaurants and more. Of course, since you’ll be paying with your Scotiabank SCENE®* Visa* Card, you can actually double dip on the points. Just show your membership number first, and then pay with your card.

The Scotiabank SCENE®* Visa* Card is arguably the best student card in Canada since it was designed for those in school. Plus, there’s no fee, so getting this card just makes sense.

Eligibility: No income requirement, but you must be a Canadian resident and the age of majority in the province or territory in which you reside.
Welcome bonus: Usually 5,000 – 10,000 Scene+ points when spending $750 – $1,000 in the first three months.

Best Aeroplan card for students

CIBC Aeroplan Visa Card

  • No annual fee
  • 10,000 Aeroplan points when you make your first purchase
  • Earn 1 Aeorplan point per $1 spent on gas, groceries, and Air Canada
  • Earn 1 Aeroplan point per $1.50 spent on all other purchases

Any student that’s thinking about travelling in the future should consider the CIBC Aeroplan Visa Card. The earning rate is 1 Aeroplan point per $1 spent on gas, electric vehicle charging, groceries, and Air Canada purchases. All other purchases earn you 1 Aeroplan point for every $1.50 you spend.

In case you didn’t know, Aeroplan is the loyalty program of Air Canada, the number one carrier in the country. With Aeroplan, you can use your points on any available Air Canada seat with no blackout dates. Aeroplan points are easily worth 2 cents per point, your welcome offer can have a value of up to $200. That’s pretty impressive for a card that doesn’t have an annual fee.

What some people don’t realize is that there’s a student version of the CIBC Aeroplan Visa Card. It’s essentially the same as the regular card, but there’s no income requirement. Plus, you get a free SPC membership. As an SPC member, you get discounts on over 450 top brands. This includes entertainment, dining, and retail.

Eligibility: No income requirement or credit history required.
Welcome bonus: Typically 10,000 Aeroplan points after your first purchase.

Best groceries card for students

PC Financial Mastercard

  • No annual fee
  • Earn 25 PC Optimum Points per $1 dollar spent at Shoppers Drug Mart
  • Earn 20 PC Optimum Points per $1 spent at PC Travel
  • Earn 30 PC Optimum Points per litre at Esso/Mobil locations
  • Earn 10 PC Optimum Points per $1 spent on all other purchases

My list of the best student credit cards includes the PC Financial Mastercard which is the best card for groceries and/or makeup. With this card, you earn 25 PC Optimum Points per $1 dollar spent at Shoppers Drug Mart, 20 PC Optimum Points at PC Travel, and 10 PC Optimum Points per on all other purchases. That’s a decent amount of bonus rewards.

If you do a lot of shopping at Loblaws-owned grocery stores or at Shopper Drug Mart, you can earn even more points through in-store promotions and targeted offers. Additionally, Shoppers Drug Mart often has bonus redemption promotions where you can get even more value for your points. E.g. Instead of getting $100 off for 100,000 points, you’d get $140 off when redeeming 100,000 points. 

If you didn’t know, PC Optimum is Canada’s largest retail loyalty program, so these points are easy to use. This card has no annual fee.

Eligibility: No income requirement. Recommended credit score of 640 and your credit history bein good standing.
Welcome bonus: None.

Best daily spending card for students

American Express Cobalt Card

  • $12.99 Monthly fee ($155.88 yearly)
  • 2,500 monthly Membership Rewards points after charging $500 in purchases each month for a year (30,000 points total)
  • Earn 5 points per $1 spent on eats and drinks
  • Earn 3 points per $1 spent on streaming services
  • Earn 2 points per $1 spent on travel
  • Earn 1 point per $1 spent on all other purchases

The American Express Cobalt Card isn’t marketed as one of the best student credit cards in Canada, but it’s arguably the best overall card due to its earning rate. You’ll get 5 American Express Membership Rewards points per $1 spent on eats and drinks, 3 points on popular streaming services, 2 points on travel and transit, and 1 point on all other purchases. That’s a lot of bonus categories. 

When redeeming your points, American Express Membership Rewards is very flexible. Not only can you redeem 1,000 points for a $10 statement credit, but you can also transfer them to Aeroplan and Marriott Bonvoy. This is essentially a hybrid cash back and travel rewards credit card.

The catch is to be approved for this card; you do need a credit history, which not many students may have. Plus, there’s a monthly fee of $12.99

Eligibility: No income requirement, but a good credit history is required. A credit score of 700 is recommended.
Welcome bonus: 2,500 American Express Membership Rewards points each month when you spend $500 for 12 months (30,000 points total). Occasionally, there’s a promotion where you can earn 20,000 additional points, but it’s rare.

Best low interest card for students

MBNA True Line Mastercard

  • No annual fee
  • 0% balance transfer for 12 months – 3% balance transfer fee applies
  • 12.99% standard interest rate
  • Save with Avis Rent A Car and Budget Rent A Car

The MBNA True Line Mastercard is a good choice for students who think they’ll carry a balance on their credit card. While having debt is not ideal, it happens. With this card, the annual percentage rate (APR) is just 12.99%. For reference, most credit cards charge an interest rate of 20% to 24%, so there’s a significant distance. In addition, balance transfers are available with this card. You’ll get a 0% APR offer for 12 months, but a 3% fee does apply.

You don’t get any rewards with this card, but you do get discounts on car rentals at Avis and Budget Rent A Car.

Eligibility: No income requirement. Recommended credit score of 640.
Welcome bonus: Balance transfer option of 0% interest (intro APR) for 12 months. The balance transfer must be completed within 90 days of account opening.

Best card for students with an income

Tangerine Money-Back Credit Card

  • No annual fee
  • 10% cash back up to $1,000 in spending ($100 cash back) for the first 2 months
  • 2% cash back on up to 3 categories
  • 0.5% cash back on all other purchases

The Tangerine Money-Back Card is one of the best student credit cards in Canada since you can earn 2% cash back on up to three spending categories of your choice. You get two categories right away, such as gas stations, groceries, and entertainment purchases. A third category is given to you if you set your cash back to deposit automatically into your Tangerine savings account. All other categories earn you 0.5% cash back.

The ability to line up your student cash back with your spending habits is ideal since you can maximize your cash back. That said, you must have a no hidden fees Tangerine account to apply for this card. Plus, you must have an annual income of $12,000 to qualify for the card. Not many students earn that kind of money, but if you do, this is the card to get. There’s no annual fee if you’re approved for the card.

Eligibility: Tangerine account and a personal income of $12,000. Recommended credit score of 640.
Welcome bonus: 10% cash back up to $1,000 – $1,500 in spending for the first three months. This is one of the better credit card offers for students.

Best no FX card for students

Wealthsimple Cash Card

  • No annual fee
  • 1% back in cash, stocks, or crypto on all purchases
  • 4% interest on deposited funds
  • No foreign transaction fees on purchases
  • No foreign transaction fees on ATM Withdrawals
  • CDIC insurance protection

My list of the best student credit cards includes the PC Financial Mastercard which is the best card for groceries and/or makeup. With this card, you earn 25 PC Optimum Points per $1 dollar spent at Shoppers Drug Mart, 20 PC Optimum Points at PC Travel, and 10 PC Optimum Points per on all other purchases. That’s a decent amount of bonus rewards.

If you do a lot of shopping at Loblaws-owned grocery stores or at Shopper Drug Mart, you can earn even more points through in-store promotions and targeted offers. Additionally, Shoppers Drug Mart often has bonus redemption promotions where you can get even more value for your points. E.g. Instead of getting $100 off for 100,000 points, you’d get $140 off when redeeming 100,000 points. 

If you didn’t know, PC Optimum is Canada’s largest retail loyalty program, so these points are easy to use. This card has no annual fee.

Eligibility: No income requirement. Recommended credit score of 640 and your credit history bein good standing.
Welcome bonus: None.

Best prepaid card for students

KOHO

  • No annual fee
  • $20 for free when signing up with a referral link
  • Earn up to 5% cash-back
  • 1% cash back on groceries and transportation
  • 0.5% interest on your spending and savings accounts with direct deposit set up

KOHO is one of the best student credit cards and best prepaid cards in Canada. With KOHO, you’ll earn 0.5% cash back on all purchases. You also have the option to round up every purchase to the nearest $1, $5, or $10, which goes into a savings account for you.

Although you get a lower earning rate with this card compared to Wealthsimple, you can build your credit score with this prepaid card if you opt into KOHO premium. Of course, the premium plan does have a monthly charge. You do get $20 for free when you sign up with my referral link.

Eligibility: Must create a KOHO account. No personal income or credit score is required.
Welcome bonus: $20 when signing up with a referral link.

What is a student credit card?

Student credit cards aren’t any different from traditional credit cards. You still have a credit limit, and you’re still required to make regular payments. What sets them apart is that some credit card providers have cards designed for students. As in, they typically have no annual fee, no or low annual income requirement, and benefits that appeal to students.

While some credit cards are literally called student credit cards, students aren’t restricted to just those cards. Most financial institutions have multiple credit cards that would be suitable for students. If you apply for a credit card through your bank or credit union, there’s a greater chance of being approved since you’ll already have an established relationship with them.

If you have a student banking package, a credit card is usually something you can get with it.

How do student credit cards work

While the best student credit cards in Canada are useful tools to help you manage your money, you need to be responsible with them. Unfortunately, you won’t learn how to use a credit card in school. Nor will your financial institution go over things in detail.  It’s up to you to figure out how student credit cards work.

Interest-free period

Credit cards are essentially a loan. When making purchases, your credit card provider gives you access to funds to spend. You get an interest-free period of at least 21 days. As long as you pay your entire balance by the due date on your monthly statement, no interest will be paid. You’re essentially getting a free loan. That’s why credit cards are so appealing.

Interest rates

Every credit card charges interest. Interest only applies if you don’t pay off your entire balance by the due date. Generally speaking, the interest rate for most credit cards is as follows:

  • Purchases – 20% – 24%
  • Cash advances – 22% – 26%
  • Charge cards – 30%

As you can see, the interest rates are quite high. That’s why you want to ensure you always pay your bills on time.

Minimum payments

Every credit card statement lists a minimum payment. It’s typically 4% of your balance or a minimum amount. Whichever is higher (can differ by each card issuer). The minimum payment can be a bit deceiving. Technically speaking, that’s all you need to pay. However, you’d end up paying interest on the remaining balance. On a positive note, as long as you make that minimum payment, your account won’t be flagged for non-payment.

Other fees

When you get your credit card, be sure to read your cardholder agreement, as it’ll go over any additional fees that may apply. Things such as annual fees, balance protection, foreign transactions, and over-the-limit charges will likely come with an additional cost.

Rewards earned

Credit cards offer you rewards whenever you make purchases. Generally, the higher-tier card you have, the more rewards you’ll get. Since student credit cards are entry-level cards, the earn rate is usually quite low. The type of rewards you’ll earn depends on the card you have. The most popular rewards include:

  • Travel rewards
  • Cash back
  • General rewards
  • Store rewards

Additional benefits

Besides rewards, some of the best student credit cards in Canada come with additional benefits such as:

  • Travel insurance
  • Discounts at retailers
  • No foreign transaction fees
  • Balance transfer option

Types of student credit cards

Every financial institution will have multiple types of student credit cards available. Which one you choose is a personal preference. That said, you should choose one that aligns with your spending habits and the type of rewards you want to earn.

Travel rewards student credit cards

Travel rewards student credit cards are highly appealing to those who want to travel in the future. The concept is simple, you’ll earn points or miles that can be redeemed later for reduced free travel. The most popular travel rewards programs include:

There is an Aeroplan student credit card, but Marriott Bonvoy and WestJet Rewards do not offer one. If you want to travel later, earning travel points now is a good idea. When you graduate school and start making an income, you can apply for one of the best travel credit cards in Canada

Cash back student credit cards

Cash back student credit cards are easy to understand. Instead of earning points or miles, you’re getting money back on every purchase you make. Simply put, cash back credit cards are the easiest to understand. The amount of cash back you’ll earn depends on the card you get. When you’ll get paid also depends on the card, but it’ll usually happen in one of the following scenarios:

  • Monthly
  • Annually
  • When you’ve earned a minimum amount of cash back

General reward student credit cards

Every financial institution has its own general rewards program where you can use your points on things such as travel, gift cards, merchandise, and more. Some of the most popular programs include:

Although you can use your points for different things, travel redemptions often give you the best value. Learn how to calculate the value of your points now.

Store credit cards

Store credit cards, such as those available from Amazon, Walmart, and PC Financial, aren’t advertised as student credit cards, but many have a low or no minimum income requirement. If you happen to shop at a store that offers a credit card a lot, signing up could be worth your while since you’d earn extra rewards.

Low interest student credit cards

Low interest student credit cards don’t earn you any rewards. Instead, you get a low interest rate which is arguably better than rewards if you typically carry a balance. That’s because the interest rate for most credit cards is 20% – 24%. In contrast, a low interest student credit card can have a rate of just 12.99%. That’s a significant difference if you’re carrying a balance and paying interest.

Who should apply for a student credit card

While it may seem obvious that students should apply for a student credit card, it’s not that simple. There are a few different scenarios where getting a student credit card may make sense.

Students looking to establish credit 

Since you only start building a credit history when you have a credit product in your name, students should get a student credit card right away. Note that if you currently have a supplementary credit card with your parents, you’re now building credit even if your name is on the card. You need to be the primary cardholder to build your credit history.

International students and newcomers 

People new to Canada should also apply for student credit cards as they’re the easiest ones to be approved for. Once you’ve established a good credit score, you can upgrade to a better card. Every financial institution will have a banking package aimed at international students and newcomers with a credit card.

People with a lower income 

Student credit cards typically have a no or low-income requirement. This makes them a perfect choice for anyone who doesn’t meet the minimum income requirement of higher-tier cards. To be clear, you don’t necessarily have to be a student to get a credit card that’s aimed at students.

How to compare student credit cards

Even though there are a limited number of student credit cards you can choose from, each one differs from the others. This can be confusing for some people since they can’t decide which one is best for them. Ideally, you want to consider the following to help you narrow down your choices:

  • Annual fee – Most students are on a limited income, so getting a credit card with an annual fee isn’t worth it. That said, if you get more benefits than you pay in fees, go for it. 
  • Rewards earned – Generally speaking, credit card rewards fall into two categories: travel and cash back. Travel rewards can be very lucrative, but it may take some time before you can make a redemption. Cash back is easy to understand, but they’re usually worth less than travel rewards. Pick the type of reward that you prefer.
  • Welcome bonus – Some student credit cards give you an intro bonus for the first year when you apply for a new card. That said, it usually requires you to spend a set amount within 90 days of account opening.
  • Shopping habits – If you happen to shop at the same merchants or go to the movies a lot, it’s probably worth getting a co-branded credit card so you can earn more points with their loyalty program. This will allow you to make redemptions more frequently.
  • Interest rate – If you think you’ll carry a balance on your card, choose one with a lower interest rate to minimize the fees that you pay.

What are the eligibility requirements for student credit cards?

Since you’ll be formally applying for credit when getting one of the best student credit cards in Canada, you’ll need to pass some basic requirements to be approved. You’ll likely be approved if you meet the following criteria:

​Minimum age

The most basic requirement for getting a student credit card is your age. You must be the age of majority in the province or territory where you reside. That would be 18 for those that live in Alberta, Manitoba, Ontario, Prince Edward Island, Quebec and Saskatchewan. It’s 19 everywhere else. Also, note that most student credit cards have an age cut-off of around 24. Don’t worry if you’re a mature student and older than that, you’d just apply for a traditional card.

Residency/student status 

Residents of Canada, including Quebec residents, are eligible to apply for a Canadian credit card. Note that you don’t need to be a Canadian citizen or permanent resident to apply. That means international students can apply too. Generally speaking, you would just need to provide proof of address and that you’re enrolled in a post-secondary school.

Credit score

Most student credit cards don’t have a formal credit score requirement, but a check will still be done. If you have bad credit from a previous account, that could affect your chances of being approved. If you have no credit history at all, your financial institution may still approve you for a credit card based on your existing relationship. 

Household income

While many of the best student credit cards in Canada don’t have a formal income requirement, some do. Keep in mind that doesn’t necessarily mean you need a job. Grants, scholarships, and even family allowances would count as income. Some entry-level cards have an annual minimum income requirement of just $12,000. If you qualify for one of those, you’d likely get better benefits than a student credit card. 

How to get a student credit card

Now that you know about Canada’s best student credit cards, it’s time to apply for one. Here are the places where you can get your card:

At a branch 

The easiest way to get a student credit card is to apply for one in person at your financial institution. That’s because the customer service representatives can sometimes get you approved for cards that you may not traditionally due to your established relationship. 

Go online 

If you know you meet the eligibility requirements for the card you’re interested in, you can apply online. This is especially handy if you’re applying for a card that’s not associated with your bank. 

At school 

Quite often, banks and credit unions will set up a pop-up on campus where you can immediately sign up for a credit card. They may even tempt you to sign up by offering you a free t-shirt or gift card. While this is an effective strategy for the banks, you’re better off researching the cards available to you before applying.

Student credit card pros and cons

Getting one of the best student credit cards in Canada may seem obvious if you’re a student, but you should never rush into things. It’s always a good idea to consider the pros and cons before making a decision.

Student credit card pros

  • Build your credit score – Getting a student credit card will help you establish a credit history and build a good credit score as long as you use it responsibly.
  • Easy approval – If you have a relationship with a financial institution, getting approved for a student credit card can be easy even if you don’t have any income.
  • Learn to manage your money – Having access to credit is part of being an adult. A student credit card is a good way to introduce yourself to managing credit.
  • Earn rewards – Although you won’t earn many rewards with a student credit card, you’ll still get something back on all your purchases.

Student credit card cons

  • Must be responsible – This applies to all credit cards. If you use abuse your cards, you could quickly find yourself in debt with no way to get out of it.
  • Limited choices – Due to the minimum income requirement with premium credit cards, students will have very few cards that they’ll qualify for.
  • ​Low earn rate – Since student credit cards are entry-level cards, the earn rate you’ll get will be low.
  • Few additional benefits –  Some premium credit cards have enhanced benefits such as travel insurance, mobile device insurance, and rebated. You won’t get much with student credit cards.

FAQ

Do student credit cards affect your credit score?

Your credit score is a number between 300 to 900. As a student, you may not have an established credit score yet, so getting one of Canada’s best student credit cards is important. As you use your credit card, your history will be reported to the two credit bureaus: Equifax and TransUnion. Having a good credit score is vital since it shows how creditworthy you are. If you ever need a loan in the future, such as a mortgage, your credit score will be one thing lenders look at.

Here’s a quick overview of how your credit score is calculated.

  • Payment history – Your payment history is the most critical factor when determining your credit score. Be sure to pay your credit card bills on time and in full every month. At the very least, make the minimum payment, so your history shows no missed payments.
  • Amount owed – The amount of credit you’re using relative to what you have access to is known as your credit utilization ratio. Generally speaking, credit bureaus what your utilization ratio to be under 30%
  • Length of credit history – Since the length of your credit history helps determine your credit score, you should apply for a student credit card as soon as possible.
  • Types of credit – Generally speaking, credit bureaus like to see people using different types of credit. As a student, that would be things such as a credit card and a cellphone or internet account.
  • New credit – Every time you apply for new credit, your credit score drops by 5 to 10 points. As you can imagine, applying for multiple credit cards will drop your credit score rapidly, so avoid doing so.

What’s the difference between student credit cards and regular credit cards?

Some people wonder what the difference between student credit cards vs regular credit cards is. The reality is that there’s not much of a difference at all. Student credit cards typically have a no/low income requirement. The rewards and benefits you get would also be similar to regular credit cards, you’d just get fewer perks since you have an entry-level card.

That said, there are a few credit cards that are aimed directly at students. CIBC offers multiple student versions of their credit cards that include an SPC membership.

Student credit cards are a great way to start building your credit, but it’s a good idea to switch to a regular credit card as soon as possible since you get more benefits.

What’s the difference between charge cards and regular credit cards?

You’re assigned a credit limit from the start with a traditional credit card. For example, you might be given a $3,000 limit, to begin with. You can charge up to that amount until you pay down your balance. You don’t need to wait until your statement arrives. You can pay what you owe at any time, giving you access to more credit. If you want a higher credit limit, you’d have to call your credit card provider and request it.

Charge cards are a bit different. You get a credit limit assigned to you at the start. As you make regular payments, your limit will increase. Generally speaking, charge cards have very high limits for people that regularly pay off their balance on time. The one major difference with charge cards is that the full balance is expected to be paid when your statement is due. With regular credit cards, you only need to make the minimum payment. American Express has a few charge cards, but they also have traditional credit cards.

When should you stop using student credit cards?

Student credit cards are typically only valid while you are a university or college student studying in a post-secondary institution that qualifies. Once you leave your studies, the student credit card may only be valid for a short period of a couple of months. At this point in time, it’s time to apply for a regular credit card.

That being said, you don’t have to wait until you finish school to stop using your student credit card and apply for a more lucrative option. If you have been using your student credit card properly and are working, you may have built up your credit report enough to be able to qualify for something else that can earn you more points or cash back rewards. Just keep in mind that non-student cards with good rewards programs tend to come with fees.

Are there any student credit card alternatives?

Although the best credit cards for students in Canada have limited eligibility requirements, not everyone will be approved for one. While getting denied is not a good feeling, it’s not the end of the world. There are actually a few options available that will still give you access to credit card networks.

Prepaid credit cards

With prepaid credit cards, you’re preloading funds to spend. Which credit card network (Visa, American Express, Mastercard) you have access to depends on your prepaid card. Once you spend all your funds, you’ll need to reload your card to use it again. It almost acts as a debit card rather than a credit card as you are spending your own money rather than borrowing money.

Since you preload the cards with your own money, there are no checks required to get one as this type of card has zero risk for a bank or credit card issuers. However, these types of credit cards, while handy, are not meant to help you build credit which is a big drawback. There are a couple that offer credit building add-ons, such as KOHO, but it does come with an additional monthly fee.

Secured credit cards

Another option is a secured credit card, which is common choice among individuals have no or poor credit history. Similar to the prepaid cards, you will be required to put up some money upon receiving the card. However, this acts a security deposit and while it acts as your credit card limit, it doesn’t mean that you need to continually add money. You only need to put up the security deposit once and pay off your card properly. 

For example, say you get a secured credit card and put $500 on as your security deposit. This means your credit limit is $500. As long as you pay it off as per the contract, you can continue to spend money on the card. Then once, you are done with the secured credit card, you will get that $500 security deposit back.

With secured cards, your credit history is reported to the major credit bureaus which means that unlike prepaid credit cards, secured credit cards do help you build your credit history. Once your credit score increases, you can apply for a traditional credit card.

Student line of credit

A final option is to take out a student line of credit. These are supplied by your bank or financial institution of choice and can be applied for in person or via online banking or even the mobile app.  You’ll be given a limit and you can borrow up to that amount. Once you pay it off, you can borrow more up to your limit. Student lines of credit can be very handy and often have much lower interest rates that credit cards and student loans. Plus, as long as you pay it off properly, having a student line of credit can be helpful for your credit history.

About Barry Choi

Barry Choi is a Toronto-based personal finance and travel expert who frequently makes media appearances. His blog Money We Have is one of Canada’s most trusted sources when it comes to money and travel. You can find him on Twitter:@barrychoi

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  1. […] Scotiabank SCENE Visa is one of the best student credit cards in Canada. This assumes that you’re a student that enjoys movies and you’re looking for a no fee […]

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