As a student, managing finances can be a challenging endeavor, especially when juggling the costs of education, living expenses, and building a credit history. Fortunately, credit cards designed specifically for students can help bridge the financial gap while providing valuable perks and rewards. In this comprehensive guide, we will explore the best Canadian credit cards tailored for students. These credit cards offer benefits such as cashback, rewards, and low-interest rates, empowering students to build responsible credit habits and enjoy financial flexibility during their academic journey.
The Importance of Credit Cards for Students
Credit cards can be powerful tools for students when used responsibly. They offer a convenient and secure way to make purchases, both in-store and online. Moreover, using a credit card responsibly can help students build a positive credit history, a crucial factor when applying for loans, mortgages, or future credit cards after graduation. By using credit cards wisely and making timely payments, students can establish a solid credit score, which will be beneficial for their financial future.
Factors to Consider When Choosing a Student Credit Card
Before diving into the best Canadian credit cards for students, it’s essential to understand the key factors to consider when making a choice:
a) No Annual Fee: As students are usually on a tight budget, opting for credit cards with no annual fee can be a sensible choice.
b) Low-Interest Rates: Look for credit cards with competitive interest rates, especially if there’s a possibility of carrying a balance from month to month.
c) Rewards and Benefits: Some student credit cards offer rewards, cashback, or benefits such as discounts or exclusive offers, adding value to everyday purchases.
d) Credit-Building Opportunities: Consider credit cards that report to credit bureaus, allowing students to build a positive credit history responsibly.
e) Online and Mobile Banking: Access to online and mobile banking is essential for managing credit card transactions and payments conveniently.
f) Fraud Protection: Look for credit cards with robust fraud protection features to ensure peace of mind when making online purchases.
Best Canadian Credit Cards for Students
a) BMO CashBack® Mastercard® for Students
The BMO CashBack® Mastercard® for Students is an excellent option for students seeking cashback rewards without an annual fee. Cardholders earn 1% cashback on all purchases, with no limits on the cashback amount. This card also offers a competitive low-interest rate on purchases and balance transfers for the first nine months, making it suitable for students looking to carry a balance responsibly.
b) Scotia SCENE®* Visa* Card for Students
The Scotia SCENE®* Visa* Card for Students is tailored for movie lovers. With this card, students earn five SCENE points per dollar spent at Cineplex theaters and two points per dollar on eligible purchases at restaurants, bars, and entertainment venues. For all other purchases, cardholders earn one point per dollar spent. SCENE points can be redeemed for movie tickets, exclusive events, and more, making it a rewarding option for entertainment enthusiasts.
c) Tangerine Money-Back Credit Card
The Tangerine Money-Back Credit Card is a no-fee card that offers students the flexibility to choose their own cashback categories. Cardholders can select two or three categories in which they want to earn 2% cashback, and the rest of the purchases earn 0.5% cashback. This customizable approach allows students to earn rewards on the purchases that matter most to them.
d) CIBC Dividend® Visa* Card for Students
The CIBC Dividend® Visa* Card for Students is an excellent option for students seeking cashback rewards and credit-building opportunities. Cardholders can earn up to 2% cashback on eligible purchases, and the card reports to credit bureaus, enabling students to establish and improve their credit history responsibly.
e) MBNA Rewards Platinum Plus® Mastercard® for Students
The MBNA Rewards Platinum Plus® Mastercard® for Students is a versatile option for students seeking rewards on everyday purchases. Cardholders earn two points per dollar spent on gas, groceries, and restaurant purchases and one point per dollar on all other eligible purchases. Points can be redeemed for cashback, travel, merchandise, and more, offering students flexibility in using their rewards.
f) Desjardins Cash Back Visa® Card for Students
The Desjardins Cash Back Visa® Card for Students provides an attractive cashback offer for students. Cardholders earn 1% cashback on all eligible purchases and receive double the cashback during the first six months. This card also offers low-interest rates and no annual fee, making it an accessible option for students.
Tips for Responsible Credit Card Use for Students
While credit cards can offer financial advantages to students, they also come with responsibility. Here are some essential tips for responsible credit card use:
a) Pay on Time: Always make at least the minimum payment on time to avoid late fees and maintain a positive credit history.
b) Spend Wisely: Use your credit card for planned and necessary purchases, avoiding impulsive spending.
c) Monitor Your Balance: Keep track of your credit card balance to ensure you stay within your budget and avoid carrying a high balance.
d) Avoid Cash Advances: Cash advances often come with high-interest rates and additional fees, so it’s best to avoid using this feature.
e) Utilize Online Banking: Take advantage of online banking to monitor your transactions, set up alerts, and make payments conveniently.
f) Set a Budget: Create a monthly budget to manage your expenses effectively and avoid overspending.
g) Protect Your Card: Keep your credit card secure and never share your card information with others.
Choosing the right credit card as a student can lay the foundation for responsible financial habits and a positive credit history. The best Canadian credit cards for students offer a combination of rewards, cashback, low-interest rates, and credit-building opportunities. By selecting a credit card that aligns with their needs and financial goals, students can make the most of their credit card experience while staying on top of their finances.
As a final word of advice, students should use credit cards responsibly, make timely payments, and avoid carrying high balances. With the right credit card and responsible use, students can enjoy the benefits of financial flexibility and rewards while building a strong credit foundation for their future endeavors. Remember, financial freedom begins with smart credit card choices and mindful financial habits.