The best student credit cards in Canada for 2023

• Best student credit card for cash back: BMO CashBack Mastercard
• Best student credit card for Air Miles: BMO Air Miles Mastercard
• Best student credit card for groceries: PC Financial Mastercard
• Best student credit card for travel: TD Rewards Visa
• Best student credit card for entertainment: Scotia Scene+ Visa for students

Ratehub.ca's take

The BMO CashBack Mastercard - Student is a no annual fee rewards credit card that offers particularly strong returns on everyday essentials from grocery stores and supermarkets. It earns 3% cash back on the first $500 you spend on groceries every month and 1% on recurring bills up to $500 every month (0.5% cash back after that). For all your other everyday purchases, you’ll net 0.5% cash back without limits.

While there are rewards caps on the card’s two bonus categories, they do reset with the start of every new 30-day billing cycle. And at $500 per month in each category, they’ll be hard to max out, especially on a student’s budget.

This credit card has the trio of features that most appeals to students: 1. no annual fees 2. the ability to earn straightforward rewards, and 3. no income requirement.

Since this is a cash back credit card, students won’t have to think about the complexities or limitations of loyalty points programs, and can instead get an injection of cash. This can be particularly valuable for students who want to focus on saving on their everyday purchases rather than racking up points for discounted flights. Accessing your cash back is also extremely easy, as you can redeem for as little as $1 at any time instead of having to wait a month or even a year to access your rewards. The card’s three-month welcome offer of 5% is also strong, particularly for a no fee card geared towards students.

This card offers purchase and extended warranty protection and discounts on rental cars from eligible National and Alamo agency locations.

Pros

• No annual fee
• 3% cash back on groceries makes it one of the best no fee cards to own for that spending category
• Great welcome bonus - earn 5% cash back in your first 3 months
• No income requirement - perfect for students on a fixed income
• Cash back system is more straightforward than points
• Redeem cash back for as little as $1 at a time

Cons

• 1% cash back rate on recurring bills and 0.5% on everything else isn’t particularly compelling
• Bonus categories each have a monthly cap of $500 (but reset monthly)

Ratehub.ca's take

If the aforementioned BMO CashBack Mastercard piqued your interest but you’re looking to invest in a points program and regularly shop at Air Miles partner stores (think Sobeys, Metro, Shell, Staples, among many others), the BMO Air Miles Mastercard may be more up your alley.

This card offers triple the miles for every $25 spent at Air Miles partner stores, double the miles for every $25 spent at any eligible grocery store, charges no annual fee, and there’s no income requirement to qualify. 

The miles earned on this card can be redeemed for either Dream Miles (which can be put towards free or discounted flights on select airlines) or Air Miles Cash (can be redeemed for e-gift cards or discounts at Air Miles partner stores in increments of 95 miles for $10).

The BMO Air Miles Mastercard offers multiple opportunities to double dip your rewards, especially if Air Miles stores are located near your home, dorm, or campus. Not only will it earn three times the miles at partner stores (roughly the equivalent of 1.26% – 1.5% in rewards per dollar spent, depending on what you redeem for), you can also earn miles twice when you show your Miles Collector Card in addition to your credit card.

We also appreciate the Air Miles online shopping portal, airmilesshop.ca. This website is filled with deals that either help you rack up bonus miles or discounts when shopping online from a huge range of retailers including Apple, Walmart, Amazon, Nike, H&M, and more.

This card offers the same side perks as the BMO CashBack Mastercard: purchase and extended warranty protection as well as discounts on rental cars from eligible National and Alamo agency locations.

Pros

• No annual fee
• Earn a whopping three miles for every $25 spent at Air Miles-partnered retailers and two miles for every $25 spent at any eligible grocery store
• Earn one mile for every $25 spent everywhere else
• Get twice the miles when used in conjunction with your Air Miles membership card
• Get amazing deals and rack up bonus miles by shopping online at airmilesshop.ca
• No income requirement - easy to be approved for
• Welcome bonus - earn 800 Air Miles Bonus Miles worth $80 towards purchases with Air Miles Cash

Cons

• Minimal insurance perks - other no-fee cards offer more in the way of coverage

Ratehub.ca's take

With the PC Financial Mastercard, students will earn 25 PC Optimum points per dollar at all Shoppers Drug Mart locations, at least 30 points per dollar when filling up their tank at Esso and Mobil gas stations, and 10 points per dollar at Loblaws-owned grocery stores and for all other purchases.

PC Optimum points can be redeemed at affiliate retailers (Shoppers Drug Mart and Loblaws banner grocery stores) in increments of 10,000 points for $10. So, 10 points is like the equivalent of 1% in cash back store credit, 20 points is the equivalent of 2%, and so on.

This card has no income requirement, no annual fee, and as a retail credit card, the application requirements are considerably more lenient even for students with no prior credit history. That said, it’s not a full-fledged student card and therefore may require you to earn some form of income.

With a minimum earn rate of 10 points per dollar (the equivalent of 1% in rewards), the PC Financial Mastercard manages to out-earn most entry-level cash back or points cards (which start offering rewards from 0.5%) on general everyday purchases.

PC Optimum points are also redeemable at over 2,500 stores associated with the PC Optimum program – from Shoppers Drug Mart and Joe Fresh to popular grocery stores such as Loblaws and No Frills – so it won’t be difficult to put your card’s points to good use.

Cardholders receive basic coverage in the form of free purchase assurance and free extended warranties (up to one year). PC Optimum does regularly run personalized offers and in-store promotions to help you rack up additional points when shopping at affiliated retailers like Joe Fresh and Loblaws banner grocery stores like No Frills and Real Canadian Superstore.

Pros

• Earn 25 PC Optimum points per dollar at Shoppers Drug Mart, 30 points per dollar at Esso/Mobil, and 10 points per dollar at all Loblaws-owned grocery stores and on everything else - one of the best values you can find for a cash back or points-based entry-level card
• Straightforward redemption system - 10,000 points is equal to $10
• Wide variety of retailers to redeem at, giving you plenty of options
• No annual fee or minimum income requirement, making it accessible to students

Cons

• Points cannot be redeemed outside of PC-branded retailers
• Higher-than-average purchase interest rate 
• Not a lot of benefits or perks included

Ratehub.ca's take

If you’re a student who travels regularly – whether it’s to fly back home during the holidays or satisfy your lust for exploring new places – the TD Rewards Visa Card could be your ideal match.

The card boasts an excellent welcome offer where you can earn a value of $65 in TD Rewards Points to use on eligible Amazon.ca purchases, plus no Annual Fee. Conditions apply. Account must be approved by January 3, 2024.

The no-fee, entry-level credit card earns TD Points which you can redeem for flights, hotel stays, car rentals, or virtually anything available on Expedia – one of the world’s largest travel search engines. Points are redeemable online from the ExpediaforTD website in flat increments of 100 points for $1 (or 1 point for 0.5 cents).

The card earns a solid 4 points per dollar on travel you book online from the Expedia for TD website, 3 points per dollar on groceries, restaurants and fast food, 2 points per dollar on regularly recurring bill payments and 1 point on everything else.

As far as travel rewards programs go, TD Rewards is one of the easiest and most straightforward, making it the perfect fit for credit card beginners. 1 TD point is always worth 0.5 cents when used online at Expedia for TD and can be used to book flights on virtually any airline of your choice. There are no complicated rewards charts, fluctuating points values, or high and low seasons.

The fact it earns triple the points on travel booked from Expedia for TD also means students who do travel once or twice a year can earn a significant boost in rewards.

This card offers purchase and extended warranty protection and discounts on rental cars from eligible Avis and Budget agency locations.

Pros

• No annual fee
• Welcome offer: earn a value of $65 in TD Rewards Points to use on eligible Amazon.ca purchases, plus no Annual Fee. Conditions apply. Account must be approved by January 3, 2024.
• Earn 4x the points when booking travel on ExpediaforTD.com, 3x the points on groceries, restaurants and fast food, 2x the points on recurring bill payments
• Can redeem points for virtually any travel-related expense on the Expedia for TD website - perfect for students who regularly travel home from school
• Easy points system: one point always equals 0.5 cents when used at Expedia for TD, and points can be redeemed in flat increments of 100 per dollar.

Cons

• Return rate of 1 TD point = 0.5 cents in travel rewards isn’t the best out there - plenty of higher-earning no fee alternatives
• No travel insurance - a substantial oversight for a travel-based card

Ratehub.ca's take

If you and your friends are the type to spend a Saturday night seeing a double-bill at your local cinema, the Scotiabank Scene+ Visa is worth checking out.

The card offers five Scene+ points for every dollar spent at Cineplex theatres or at cineplex.com, and one point per dollar on all other purchases. Plus, while you can spend your Scene+ points on future trips to the cinema, you certainly don't have to - the card's flexible redemption model allows you to redeem your rewards for dining, travel, banking and more. Plus, new users can earn 5,000 bonus Scene+ points within your first year. Must apply by October 31, 2023. 

The card's no annual fee means that you're not stuck paying for it every year even if your moviegoing habits take a backseat. Plus, you can add users to your account with their own cards at no additional cost. You'll also be able to save up to 25% off base rates at participating AVIS locations and at participating Budget locations in Canada and the U.S. when you pay with your SCENE+ Visa card.

Pros

• No annual fee - the card won’t cost you anything, even if your theatre visits slow down
• Five Scene+ points per dollar at Cineplex theatres or at cineplex.com
• Flexible redemption: users can spend their points on movies, but also dining, travel, banking and more
• No cost for additional users, letting you rack up points faster
• Save up to 25% off car rentals at participating AVIS and Budget locations

Cons

• Base rate of 1% for everything else isn’t very competitive - lots of other cards offer accelerated points for entertainment (including movies), plus better earn rates in other spending categories 

Guide to student credit cards

How to apply for a student credit card:

Thankfully, banks make the application process for a student credit card quite easy, but there are a couple of things to be aware of:

• Make sure you're currently the age of majority in the province or territory where you live. If you're a resident of Alberta, Manitoba, Ontario, Prince Edward Island, Quebec or Saskatchewan, you'll need to be at least 18. For those living anywhere else, 19 is the minimum age of majority.
• You'll usually need to prove some sort of income, even if it's a part-time job. If you're not currently working outside of school, proof of any other financial support (such as a regular allowance from your parents or a scholarship) will do.

Once you know you're able to apply for a credit card, don't make a hasty decision. There are a lot of options available, so do your research and choose wisely. Think about your lifestyle, needs and spending habits, then select a card that best fits those requirements. It's important to remember that with every credit card you apply for, a hard credit check is done by the provider. One of these won't hurt you too badly, but too many at once will have a negative effect on your credit score. Knowing this, avoid applying for multiple credit cards at one time.

Types of credit cards for students:

1. Student rewards credit cards: Everyone wants a credit card that gives them something in return, and that includes students who are just starting their credit journey. While most student and entry-level credit cards may not offer luxurious rewards like higher-tier cards, there are still options available, such as the Scotiabank Scene+ Visa as mentioned above, that allow the ability to earn rewards and save on future purchases. For students interested in earning points for travel, cards like the TD Rewards Visa offer the ability to use points for travel purchases like flights and hotel rooms.
2. Student cash back cards: While reward points are great, you may be looking for a card that puts money back into your pocket as you spend. If that's the case, a student cash back card, like the BMO CashBack Mastercard - Student, can earn you a percentage of your total spending in cash back. You can use this money to help pay off your monthly statement, put it into a savings account, or purchase merchandise and gift cards, depending on the card and provider.
3. No-fee student credit cards: Life as a student can be expensive so opting for a no-fee student credit card can be a wise choice for those on a fixed budget. While some banks charge an annual fee for their more advanced cards, many also offer no-fee alternatives. These cards waive the annual fee, allowing users to spend and build credit without the added stress of a yearly charge.
4. Low-interest student credit cards: Many students may not have much experience with credit when they activate their first credit card, and understanding interest rates can be unfamiliar territory. It is always recommended to pay off credit card bills in full, but if that's not possible, a low-interest student credit card can help you avoid accumulating compounding interest that can affect both your day-to-day life and your overall credit score. Fortunately, there are options available that offer interest rates below the standard 19-20% of most credit cards.

Tips for using student credit cards:

1. Do your research

If you're in college or university, you will come across many credit card providers eager to sign you up using incentives like welcome bonuses and free gifts. While these can be enticing, they are also temporary. That's why it's important to consider a card's standard features when shopping around. These features will tell you what the card actually offers once the promotional period ends. Here's a short list of things to look for in a good credit card for students:

• • • • • No annual fee - As a student, you likely have a fixed income. The last thing you want are extra fees and charges on top of your monthly bill. Look for student cards with no annual fee - there's plenty available.
        • Low interest - When you're learning how to use credit, you may not immediately develop the habit of paying off your bill in full every month. If that's the case, you don't want a card with high-interest rates. Seek out cards with lower interest rates that give you some flexibility if you happen to carry a balance.
        • Low credit limit - While a card with a high credit limit may seem tempting, it's not a good idea if you're new to using credit. Overspending can quickly lead to debt before you've even graduated. Start with a low-limit card that sets boundaries and prevents you from getting in over your head.
        • Rewards - Many student credit cards offer rewards, but it's important to consider how you plan to use the card and what purchases you'll make. For example, if you frequently eat out with friends, a card that offers high earning potential for take out and restaurants may be a good choice. If you intend to use the card for everyday purchases like gas and groceries, look for one that offers good points or cashback value in those areas. Matching a card's rewards with your own spending habits is the best way to maximize your savings.

2. Pay bills in full and on time

One of the biggest advantages to owning a credit card early in life is the head start it gives you on developing a healthy credit score. The best way to achieve this is by ensuring your monthly statements are paid on time and in full. Set spending limits within your means and use automatic reminders to keep track of bill due dates. This way, you'll never find yourself struggling to pay off a bill and you won't forget to pay your statement on time. 

3. Avoid overspending

Spending more than you can afford to pay off each month can quickly lead to compounded interest and debt, which can be difficult to overcome. Stick to a budget and maintain spending limits. This way, you can steadily build your credit without unnecessary stress. 

Student credit card pros and cons:

Pros:

1. Excellent tool for building credit: Establishing a strong credit history and score early on is crucial for major life events such as getting a mortgage or small business loan. Landlords and even some employers may also review your credit report. Developing good credit habits from the beginning is essential.  Credit card providers report your usage and payment history to credit bureaus, which determines your credit score (ranging from 300 to 900). Using your card responsibly and paying off your bills in full and on time boosts your score. Credit bureaus also consider your credit history, including the number and length of your credit card accounts. Getting a credit card early, using it, and maintaining a good standing greatly contributed to your credit development. 
2. Easy monitoring of spending: Owning a credit card as a student helps you track your monthly expenses and spending patterns. While you can review your transactions on your monthly statement, certain student-branded credit cards offer budget tracking features. These services keep you informed about your spending and send notifications when you approach your credit limit, promoting healthy financial habits.
3. Earning rewards (point collection or cash back): One huge benefit of using a credit card is the opportunity to earn rewards. While not all credit cards provide rewards, have a rewards card allows you to collect points or cash back on your purchases. Some cards offer a consistent earn rate for all purchases, while others offer higher rewards for specific spending categories such as gas, groceries, or travel. You can redeem these rewards for future purchases, including travel expenses and merchandise, or apply them towards your next statement balance, effectively saving you money.
4. Being prepared for emergencies: Life is unpredictable, and unexpected events can lead to unforeseen expenses that exceed your available cash. Thankfully, having a credit card gives you the ability to cover emergency expenses even if you don't have the immediate funds in your bank account. It is important to note that credit card interest and its corresponding debt will accrue regardless of the reason for using your card in an emergency. To avoid harming your credit score, make sure you have a repayment plan in place once your statement arrives. 

Cons:

1. Interest can pile up: One major drawback of owning a credit card is the potential for accruing interest. If you fail to pay your statement on time, an additional percentage is added to your principal balance. Most credit cards carry a purchase interest of around 19.99% (although certain cards offer lower rates). While this may not appear significant initially, it can quickly escalate if left unchecked. Allowing interest to compound over time is a common cause of debt, so it's crucial to remain vigilant and monitor closely.
2. Risk of overspending: Getting your first credit card is a significant milestone. The freedom and purchasing power it provides can be exhilarating, leading inexperienced users to overspend and treat the card as if it were free money. While that may be enjoyable in the moment, eventually, you will need to repay what you've spend. Credit cards inherently carry the risk of overspending, particularly for impulsive individuals. If this resonates with you, it may be a good idea to start with a secured credit card. Secured cards function like regular credit cards but require an initial cash deposit (usually equal to your credit limit) which can be used by the provider if your bill goes unpaid. 

Can you pay for your student tuition with a credit card?

While certain colleges and universities in Canada accept credit card payments for tuition, it is not a common practice. This is because schools incur merchant processing fees for each credit card transaction, which could amount to millions of dollars if all students opted to pay with credit. To cover these costs, schools that do accept credit cards often charge a processing fee to the student.

In some cases, you may be able to use a third-party payment site, such as Plastiq, to make a credit card payment on behalf of your school. However, using these services comes with additional fees. Typically, third-party sites charge a transaction fee of 2 to 3%. Although it may not seem significant at first, when applied to large tuition payments in the tens of thousands, these fees can add up. Additionally the processing time for these payments is usually around seven days, which can cause unnecessary stress at the beginning of each semester.

Instead of relying on credit cards to tuition payments, consider alternative options such as:

• Direct deposit (the most common method of online tuition payment in Canada)
• Cheque
• Cash
• Money order

If your school accepts credit card payments without charging fees, and you are confident in your ability to pay off the tuition within a few months, it might be worth considering. However, it is important to note that most Canadian colleges and universities do not accept credit cards as a form of payment, and if they do, they are likely to pass on the associated costs to the student. 

Also Read:

• Best no fee credit cards in Canada
• Best cash back credit cards in Canada
• The best credit cards for dining at restaurants in Canada