Can International Students Get Credit Card In Canada? The transition from high school to college is a major life transition for anyone, especially a student who plans to study at an international university. When you come to Canada to begin your higher education, you join half a million international students who make the same decision every year. Hopefully, it’s reassuring to know that you’re not the only international student, but before embarking on this exciting journey, check a few important checkboxes.
Have you thought about how you will pay for your international education? If you got scholarships, student loans, or funds to pay for your actual college, you’re on the right track. Have you also thought about how you will pay the daily costs? If so, you’ve probably thought about purchasing a credit card and wondered if Can International Students Get Credit Card In Canada.
We will answer this important question and help you find the right option so that you can start your life as a Canadian student the right way.
Can International Students Get Credit Card In Canada?
As a recent high school graduate, you probably don’t have a credit card in your hands yet. In general, you must be 17 or 18 years old before you can apply. College can be a great time to get your first credit card if, of course, you’re confident you can handle the financial responsibility that comes with it.
You will be happy to know that it is possible to get a credit card as an international student in Canada. With a little research and the right documentation, you can get a credit card and start an independent financial journey.
Why would you sign up for Credit Card in Canada?
There are many good reasons to get a credit card as an international student. On the one hand, a credit card is a convenient way to pay for everyday expenses. You probably can’t use your debit card or dollars at home to fund your lunch or a trip to the movies. Given that many branches are moving in a cashless direction, having Canadian dollars can’t help much either. With a credit card, you can tap and enjoy your sandwich or movie without the hassle. In addition, you can pay securely online with a credit card, which is necessary in an increasingly virtual world.
Another good reason to get a credit card as an international student is to get credit. If you’re even considering living in Canada after you graduate, having a significant credit history will help you build a life after college much more easily. A healthy credit score is essential to get any type of loan, for example for a car, you have to travel to work and sometimes it is even necessary to find a place to live.
Finally, with a credit card, you can often earn rewards such as cashback or points. Getting cash back could be the difference between being able to opt for that triple oat milk latte during finals week or not. Earning points can also help you pay for your flight home on vacation. If they are available to you, these kinds of rewards are not something you want to pass up.
How to get a credit card as an international student
Obtaining any type of credit card is generally difficult without a strong credit history, which, of course, can only be established with a credit card. This catch-22 has been resolved for students because most banks understand that students are just beginning their financial journey and often get their first credit card.
1. Make sure your documents are in order
To get a Canadian credit card and take advantage of the benefits as an international student, you can often go through the same channel as a resident student, but you will need to provide different documentation. You will need a valid ID, as well as your study permit or temporary visa, which will allow you to stay and study in the country. So if you haven’t already, get your study permit before trying to get a credit card. In addition, you will probably need to show your student ID or a letter of acceptance from your Canadian college or university.
2. Find the right sofa
Canada is no stranger to international students, so it’s only fair that your banks offer credit cards and banking services specifically tailored to you and your needs. The Big Five banks (RBC, BMO, CIBC, TD Canada Trust, and Scotiabank) offer a type of credit card to international students. Credit card type, terms and benefits differ from bank to bank, so it’s important to do your research before signing up for the most suitable place.
Before you can open a credit card, banks may require you to also open a checking or savings account, or both. While this requires an extra step, it’s not a bad thing. This means you have a place to transfer international funds to Canadian dollars and you can pay your credit card directly from your checking account at the same bank.
In addition to these major banks, you will also find options for international student credit cards at online financial institutions. For example, KOHO offers a card with competitive advantages such as instant cash back, as well as an easy-to-use budget app that helps you manage your money. With benefits like these, it’s no wonder that many young people prefer these alternative routes to traditional banking methods.
How To Choose The Right Card For You – Can International Students Get Credit Card In Canada?
Now that you know that as an international student you can get a credit card and how to do it, it’s time to find the perfect card for you. This is the fun part! While reading forward agreements may not seem all that appealing, it can be when those agreements list the many benefits you can gain from using the card. Read them carefully and compare your options to find a credit card that is not just a piece of plastic in your wallet, but a powerful tool that you can use to improve your lifestyle and establish your maturity.
1. Compare your options
As we briefly mentioned above, there are different types of credit cards, all with unique terms and benefits. So it’s important to compare your options to make sure you sign up for a card that best suits you and your needs. Many sites offer side-by-side comparisons of the cards available to students, which can be helpful when making a decision.
Most classic credit cards require a certain level of credit and income to qualify. In addition, every credit card you apply for generates a thorough examination of your creditworthiness, temporarily lowering your credit score. That is why it is important that you only order tickets for students like you. These cards may have low credit limits (how much you can spend on the card) and basic rewards and sometimes need to be secured with an initial deposit or another form of collateral, but they will be a strong and safe way to build credit.
A great way to prepare yourself for credit card success is to use prepaid credit. Like a debit card, which takes money directly from your checking account, a prepaid credit card draws money from pre-loaded funds. When using a prepaid card, you can only spend what you have deposited into the account, so there is no danger of spending more than you can afford. Plus, you can escape the most dangerous part of all credit cards: interest.
Another big advantage of the reloadable prepaid credit card is that you get 0.5% cash back on all your purchases and more with brand partners. Plus, you can take advantage of financial advice, which can be incredibly helpful as a newcomer to both Canada and the world of credit cards.
2. Get Informed
Knowing how a credit card works is an essential part of responsible credit card ownership. If you’re not ready to read the fine print on your credit card agreement, you’re probably not ready to deal with this mighty piece of plastic.
Treat a credit card as another important part of your education. Learn as much as you can about how interest rates work and how to pay off the debt in case you miss a payment or incur unexpected charges.
The 7 Best Credit Cards for International Students in Canada
1. CIBC Dividend
Students, including international students, can get a special version of the CIBC Dividend Visa Card just for them, with no annual fee and no annual income requirement. You get 2% cash back on groceries, 1% on various expenses including recurring bills, meals, gas and transportation, and everything else returns you 0.5%.
You also get a free SPC membership – that’s the Student Price Card, which allows you to get many more discounts from different brands.
2. BMO CashBack and Air Miles Student Credit Cards
BMO offers a special version of its CashBack Mastercard for students with several attractive features. There are no annual fees and you get cash back on all purchases: 0.5% on everything, up to 1% on recurring bill payments and 3% on groceries.
25% off multiple car rentals is another benefit, and you can also get 15% off Cirque du Soleil shows in Canada.
This card is not exclusive to international students, but they can apply for one by visiting a BMO branch once they are in Canada. You must have some annual income, but this does not have to be in paid employment.
If you often go home or travel to other parts of the world, you can also check out the BMO Air Miles Mastercard for students, which gives you points to travel and yet doesn’t charge an annual fee.
3. Scotiabank Scene And Learn Visa Student Credit Cards
The Scotiabank Scene Student Card has no annual fee and gives you 1 point per dollar on daily purchases. And moviegoers can rejoice with 5x points at Cineplex.
Like the BMO CashBack card, it also offers a 25% discount on car rentals. You can also choose to receive credit card protection, for example in the event of hospitalization or death.
Scotiabank also has the handy L’earn Visa card for students, which comes with a slightly different set of benefits. There are also no annual fees, and the main reward here is up to 1% cashback on most daily purchases.
4. Financial PC
The PC (President’s Choice) Financial Mastercard is not a student-specific card, but it’s worth considering as the point total can be useful.
You earn 10 of your PC Optimum points per dollar wherever you use your card, up to 25 per dollar at Shoppers Drug Mart and 30 points per litre at Esso Mobil. 10,000 points mean $10, which you can redeem for a variety of products, including groceries.
5. Signature RBC Rewards Visa, Rewards+ Visa or Cash Back Mastercard
Several RBC Royal Bank credit cards are open to students, including RBC Rewards Signature, RBC Rewards+ Visa, and RBC Cash Back Mastercard.
The Signature card usually costs $39 per year, but students can get it for free. You can claim 1 point per dollar on some purchases and bonus points from some retailers, and optional extras include travel insurance. The RBC Rewards+ visa does not have an annual fee for anyone, and the points system is different: you get 1 for a dollar for gas and groceries and at drug stores, and 1 for a dollar 2 everywhere else. Additional features are similar.
Other options are the RBC Cash Back Mastercard, as an alternative to collecting points. This card, again with no annual fee, gives you up to 2% cash back on groceries and 1% on select other purchases, and offers additional features.
6. Koho Prepaid Card
Well, this isn’t a credit card at all, but it’s worth mentioning as an example of another, but no less valid, way to manage your expenses.
Koho’s card is prepaid, so it’s more like a debit card: you can only spend money you’ve already loaded onto the card. Unlike a credit card, you don’t borrow money from a bank, so there is no risk of debt. While this isn’t great for building credit history, it’s a helpful way for students to make sure they spend within their means.
There are also advantages, such as a credit card. Koho offers 0.5% cash back on all purchases and 10% from its brand partners. And for a fee, there’s also a way you can use Koho to build your credit score.
7. American Express SimplyCash Card
One last option here is to remind you that Visa and Mastercard aren’t the only shows in town. American Express may be a bigger deal south of the border, but they also offer credit cards in Canada, and the SimplyCash card might be worth considering as an international student.
Again, there are no annual fees and the cashback can be up to 4% for 6 months with a welcome offer and 1.25% after that. One of the other benefits is travel coverage, so frequent flyers may be particularly interested.
As an international student, can I increase my credit limit over time?
With a secured credit card, you can increase your credit limit by depositing more money into your bank account linked to the credit card. In contrast, a regular credit card issued to international students in Canada generally cannot increase the credit limit over time unless the cardholder’s immigration status has changed from student to PR.
Why do I need to apply for a Canadian credit card?
If you plan to stay in Canada after graduation to find work or if you plan to settle in Canada. Having a good credit history is paramount because renting an apartment, getting a good job, getting a loan from the bank, etc. all depend on your credit history.
Your first credit card is critical to building a credit history, so it’s important to pay your bills on time and keep your account active to build your credit score.
Conclusion – Can International Students Get Credit Card In Canada
Having a credit card and using it responsibly is an essential bridge to cross on your path to adulthood. Use it well and you’ll be better equipped to manage your finances and face the real world in the future when you graduate. Use it wrong and you’ll wake up raw when you leave college with even more debt than you anticipated and a bleak credit score on which to build your life from then on.
