Can International Students Get a Credit Card in Canada?

International students can get a credit card in Canada through one of the banks, like RBC or TD, or financial technology companies like Neo Financial.

Generally, because international students lack a credit history in Canada, it can be challenging to qualify for credit.

However, Canada’s big 5 banks have specific programs catering to international students, so they can access no-fee banking accounts and credit cards even with no prior credit history in Canada.

How International Students Can Get a Credit Card in Canada

Yes, you can get a credit card in Canada as a newcomer or international student. Your options include the following:

Student Credit Cards

These cards are specifically designed for students or those getting their first credit cards. You start off with a small credit limit, usually in the $1,000 to $5,000 range, and can graduate to a premium card after improving your credit score.

Examples include the RBC ION Visa and Scotiabank Scene+ Visa Card.

Secured Credit Cards

Some banks will only approve your application for a credit card if you provide a security deposit.

Unlike a regular or ‘secured’ credit card, a secured credit card is backed by your cash deposit, which is also your credit limit.

For example, if you provide a $1,000 security deposit, your secured card will have a $1,000 credit limit.

Banks may require this deposit to safeguard their interests since you are new to credit and are a temporary resident.

When you close your credit card account or graduate to an unsecured card, your deposit is refunded, assuming your account is in good standing.

Apart from your initial deposit, secured cards offer the same benefits as regular credit cards and can be used to improve your credit score.

An example of a secured credit card for international students is the Neo Secured Card.

Prepaid Credit Cards

You can apply for a prepaid credit card that is loaded with funds from your bank account.

They are useful for making payments online or at a point of sale. You also enjoy the Zero Liability protection offered by Visa and Mastercard against unauthorized transactions.

The best prepaid card in Canada for international students is the Neo Money Prepaid Mastercard.

Best Credit Cards for International Students

The easiest way to obtain a normal credit card as an international student is through one of the largest five banks.

Check out their international student banking programs and get a credit card along with a chequing and savings account.

Here is a summary of what they offer:

RBC International Student Credit Cards

International students can apply for an RBC credit card with no prior credit history.

Credit limit: Get approved for up to $2,000.

RBC student cards include:

• RBC ION Visa
• RBC ION+ Visa
• RBC Cash Back Mastercard

Scotiabank International Student Credit Cards

Scotiabank’s StartRight program gives new immigrants, and students access to a free chequing account with no monthly fees, international money transfers, and an unsecured credit card. No Canadian credit history is required.

Credit limit: Get approved for up to $5,000.

The Scotiabank Scene+ Visa Card offers Scene+ points on every purchase, and you can redeem them for free movies, groceries, travel, gift cards, etc.

TD International Student Credit Cards

Eligible international students can apply for the TD Rewards Visa* Card. If you do not qualify for an unsecured TD credit card, you can apply for a secured TD credit card.

TD’s international student banking package also includes a chequing and savings account.

CIBC International Student Credit Cards

CIBC’s newcomer offers extend to international students as well.

When meeting one of the reps at a CIBC branch to open a student chequing account, you can apply for the CIBC Dividend Visa Card for Students.

Here are some other CIBC student credit cards.

BMO International Student Credit Cards

You can apply for a BMO credit card by visiting one of their branches. Your options include:

• Student BMO Cash Back Mastercard
• Student BMO AIR MILES Mastercard

Secured Credit Card for International Students

The best secured credit card for international students is the Neo Secured Card.

This card offers guaranteed approval and has no monthly fees. Security deposits start at a low $50, and you earn up to 5% cash back on purchases.

Given the high purchase APR charged by this card, you should aim to pay off your balance within the 21-day grace period.

Other secured card options include the Home Trust Secured Visa.

Best Prepaid Card for International Students

The best prepaid credit card for international students is the Neo Money card. It offers cash back on purchases and pays interest on your balance.

How To Apply For a Credit Card as an International Student

You will need to present specific documentation at your meeting with a bank representative.

Typically, these include documents verifying your identity and status in Canada:

• Government-issued photo ID, such as a passport or Canadian driver’s license.
• Proof of enrollment at an accredited university or college. E.g. Student ID Card.
• Study permit.
• Quebec Acceptance Certificate (if studying in Quebec)

If you are a permanent resident, you can provide a copy of your Permanent Resident Card or Confirmation of Permanent Residence.

If applying for a credit card at an online bank or Fintech, you may need to upload these documents.

How To Choose an International Student Credit Card

The main benefit of getting a credit card while in school is to start building credit.

Your credit history is used to compute your credit score. Lenders use this metric when evaluating your applications for credit products, e.g. credit cards, car loans, personal loans, student loans, or mortgages.

In my experience, the easiest way to get a credit card when you have no credit history in Canada is to apply for one at the bank where you open your chequing account.

You may be asked to provide a security deposit if you don’t qualify for a traditional credit card.

There are various credit card types you can choose from, depending on your needs:

• Cash back credit cards: earn cash rewards when you make a payment. For instance, they could offer 1% cash back on all purchases, which means you get $10 per $1,000 spent.
• Travel credit cards: Earn travel-related rewards or points you can redeem for various purchases.

Others include balance transfer, prepaid, secured, and low-interest rate credit cards.

Watch out for annual fees. If paying a fee, ensure the rewards are worthwhile.

While a credit card can help your finances, there are downsides if used carelessly. Don’t miss payment deadlines, and limit your credit usage to 35% of your limit to avoid damaging your credit score.