Best Credit Cards for Newcomers to Canada for November 2024
What You Should Know
- Getting a credit card as a newcomer in Canada is the first step to building your credit history, which you need to get other loans in the future.
- Most Canadian banks offer newcomer credit cards as a part of their newcomer banking packages.
- Newcomer credit cards usually don’t have an annual fee, but they also do not have valuable rewards. Some credit cards may require a deposit that defines the credit card limit.
- Immigrants who have lived in Canada for less than 5 years usually can qualify for newcomers credit cards.
About Newcomer Credit Cards
Newcomers to Canada do not have a credit history, so they may not be approved for the best credit cards, but the banks still offer the newcomers credit cards and banking packages that allow them to build their credit history. The newcomers also have an option to get a credit card for bad credit, which may provide better perks than credit cards for newcomers. International students can get a student credit card, which is usually just as good as regular credit cards.
Credit cards allow newcomers to Canada to start building their credit history as soon as they arrive to get better mortgage rates and loan terms in the future. These credit cards usually offer a limit of up to $15,000 and basic insurance benefits such as purchase protection and extended warranty.
Best Credit Cards for Newcomers
Best Cash Back Credit Card
$99.00
Purchase: 19.50%
Cash: 21.99%
Household: $100,000
Individual: $60,000
Fair
Cash Back
- 4% Cashback for each $1 spent on: gas and grocery.
- 2% Cashback for each $1 spent on: utility and drugstores.
- 1% Cashback for each $1 spent on: everything else.
Insurance Included
- Baggage Loss/Delay
- Car Rental
- Common Carrier
- Travel Emergency Medical
- Trip Delay/Cancellation
- Trip Interruption
- Extended Warranty
- Mobile Device
- Price Protection
- Purchase Assurance
Best No-Fee Credit Card
$0.00
Purchase: 19.99%
Cash: 22.99%
Household: $15,000
Fair
Cash Back
- 4% Cashback for each $1 spent on: restaurants.
- 1.5% Cashback for each $1 spent on: gas, grocery, drugstores and recurring bills.
- 0.5% Cashback for each $1 spent on: everything else.
Insurance Included
- Extended Warranty
- Purchase Assurance
Best Low-Interest Credit Card
$79.00
Purchase: 14.90%
Cash: 21.90%
Transfer: 14.90%
Income Requirement Is Not Specified.
No Minimum
Credit Score.
Insurance Included
- Baggage Loss/Delay
- Car Rental
- Common Carrier
- Extended Warranty
- Price Protection
- Purchase Assurance
Best Student Credit Card
- Receive 1250 AMEX points every month you spend at least $750.00 for the first 12 months.
$155.88
Purchase: 20.99%
Cash: 21.99%
Income Requirement Is Not Specified.
Fair
Rewards: AMEX Points
1 AMEX Point ≈ ¢1
- 5 AMEX Points for each $1 spent on: grocery, restaurants and food delivery.5 AMEX Points ≈ $0.05 in cash equivalent.
- 3 AMEX Points for each $1 spent on: streaming.3 AMEX Points ≈ $0.03 in cash equivalent.
- 2 AMEX Points for each $1 spent on: gas, travel and transit.2 AMEX Points ≈ $0.02 in cash equivalent.
- 1 AMEX Point for each $1 spent on: everything else.1 AMEX Point ≈ $0.01 in cash equivalent.
Insurance Included
- Baggage Loss/Delay
- Car Rental
- Flight Delay/Cancellation
- Hotel/Motel Burglary
- Travel Accident
- Travel Emergency Medical
- Extended Warranty
- Mobile Device
- Purchase Assurance
Best Secured Credit Card
$0.00
*$50 minimum deposit required.
Purchase: 29.99%
Cash: 31.99%
Income Requirement Is Not Specified.
No Minimum
Credit Score.
Cash Back
- 15% Cashback for each $1 spent on: select merchants.
- 6% Cashback for each $1 spent on: restaurants.
- 2% Cashback for each $1 spent on: gas and grocery.
Newcomer Banking Packages
All major banks in Canada offer banking packages that provide incentives for newcomers. The banking programs usually include bank accounts and credit cards. Banks usually also offer mortgages, car loans, personal loans, and other financial products for newcomers, depending on their financial and employment situation. Many banks offer cash incentives, free international transactions, and other perks to newcomers for opening an account with them.
Newcomer banking packages usually include a credit card with a credit limit of up to $15,000 without having a credit history in Canada and without having to pay a security deposit. Getting approved for a credit card with a newcomer banking package is also easier than getting approval for the same credit card on its own.
Which Bank Is Best For Newcomers in Canada?
The following list shows the best banking packages available for newcomers to Canada in each Canadian bank:
- BMO - NewStart Program (No-Fee for 1 Year + More Than $2,100 in Value)
- TD Bank - TD New to Canada Banking Package (No-Fee for 1 Year + Up To $1,845 in Value)
- RBC - The RBC Newcomer Advantage (No-Fee for 1 Year + $15,000 Credit Card Limit)
- Scotiabank - StartRight Program (No-Fee Package)
- CIBC - Smart Account for Newcomers (No Fee for 2 Years + $350 in Cash)
- National Bank - Newcomers Package (No Fee for 3 Years)
Newcomer Credit Card Considerations
A credit card can help a newcomer to Canada build their credit history and get some basic perks like cash back and purchase insurance. A good credit history translates into a good credit score that helps you qualify for other credit cards and get the best interest rates for other loans. The following considerations may help find the best credit card and bank.
- Banking Package: All large banks provide a banking package that usually includes a chequing account, a savings account, and a credit card. Banking packages can offer different perks that may value in thousands of dollars. Choosing a credit card with a banking package that benefits you the most may help you save on monthly fees and provide additional perks.
- Rewards: Most credit cards offer reward points or cash back. The value of reward points may vary depending on what you purchase. For example, Aeroplan reward points may be valued at 1 cent/point for merchandise and 2.8 cents/point for business class flights. Different rewards points allow you to maximize your rewards value depending on your lifestyle. Cashback is more straightforward than points because you have a clear return on purchases scheme. If your credit card offers 5% on a purchase in a category, you will receive 5 cents for every dollar spent on that category.
Rewards and cashback may differ for different spending categories. You should get a card that maximizes the value of the rewards based on your spending patterns. Credit cards for newcomers to Canada may have low rewards, but future credit cards may offer better opportunities to earn points and cashback. - Type of Card: The two common kinds of credit cards are secured and unsecured. Unsecured credit cards don’t require you to make a security deposit, while secured credit cards require a deposit equivalent to your credit limit. Newcomers may also consider getting a prepaid credit card with a credit-building option.
- Credit Card Fee: Most premium credit cards in Canada have an annual fee that may reach hundreds of dollars. Credit cards with annual fees may offer great rewards, insurance, and perks that make it worth for people who spend and travel a lot. On the other hand, many newcomers to Canada may be better off with a no-fee credit card. These credit cards do not have many perks, but they do not require a hefty annual fee, and they are often available to people with no credit history.
- Sign-Up Bonuses: Many credit cards offer bonus rewards, especially in the first year. These could be annual fee waivers, extra rewards, statement credits and more. Many people in Canada even use a credit card churning strategy to maximize the sign-up bonuses they get. Credit cards for newcomers in Canada may not have good sign-up bonuses, but some banking packages offer thousands of dollars of value in bonuses.
- Additional perks: Some credit cards available to newcomers come with additional perks, such as travel insurance, purchase protection, airport lounge access, discounts, and others. These perks can be very useful, especially if you travel frequently. Most basic credit cards usually have a purchase protection and extended warranty that may insure your purchases in case they get stolen, lost or broken.
- Minimum Income Requirements: Some credit cards, especially the premium ones, may require you to meet the minimum income criteria to get approved. Some credit cards may have a low requirement, such as a $15,000 annual household income, while some others may require you to have an annual income of $60,000 or more.
While credit cards usually require you to meet minimum credit score requirements, the credit cards for newcomers waive this requirement. Before applying for a credit card, you should confirm with your lender to ensure that the credit score requirement is waived for you.
Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
- Financial institutions and brokerages may compensate us for connecting customers to them through payments for advertisements, clicks, and leads.
- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.