The BMO CashBack Mastercard is our pick of the best student credit card in Canada because it charges no annual fee and offers straight-forward cash back on everyday spending - with up to 3% on groceries. You also aren't required to earn an income or be employed to get approved for the card, though you'll need to provide proof you receive at least some form of financial support (e.g. a scholarship or allowance). Finally, redeeming your rewards is extremely easy and you can use your cash back to pay down your balance at any time of the year in increments of as little as $1.

Student credit cards are the best tool you can use to establish your credit history, which, in turn, will help prepare you for a number of responsibilities you’ll have later in life, such as renting an apartment, financing a vehicle and eventually buying a home. The bonus: Student credit cards typically come with no (or low) annual fees, as well as low credit limits, making it accessible for you to make purchases, establish your credit history and build good money managing habits.

The main purpose of a student credit card is to establish and build up your credit history, so it’s important to use the card responsibly. First, never spend more and go over your credit limit (which will typically be $500-$1,000 with most cards). Second, pay your bill on time each month by the payment due date shown on your statement – and, preferably, the pay down the entire balance, not just the minimum payment. Finally, if you think you’ll want to eventually switch to a better rewards credit card, slowly start paying for more and more of your everyday expenses (up to how much you can afford to repay each month). Once you feel comfortable, or if you’re experienced with budgeting and managing money, you could pay for all of your purchases with your credit card, but only if you know you can afford to pay the full balance.

Before you get a student credit card, you should make sure you’re ready to use your card responsibly. It’s all too easy to rack up credit card debt, or worse – miss a payment and damage your credit. If you’re prepared to be responsible with your credit card, you should also consider that student credit cards have high interest rates on outstanding balances and cash advances, and usually come with fewer rewards and benefits than standard credit cards. Before making the decision, you should read more about student credit cards on our website, including how you can use them to build a strong credit history.