As a temporary resident in Canada, you can apply for banks’ newcomer accounts, prepaid cards, and secured credit cards.
These credit cards are pretty easy to apply for, and they allow you to lower your everyday fees, earn rewards, and build your credit as you start your journey here.
This article lists the 10 best credit cards for temporary residents in Canada. So, keep reading to know which card is best suited for your financial needs.
Key Takeaways
- Some of the best credit cards for newcomers in Canada are the Neo Financial Mastercard, Tangerine Money-Back Credit Card, and BMO CashBack Mastercard.
- Prepaid cards are not exactly credit cards, but they may offer rewards, cash back, and insurance coverage similar to those of a credit card.
Can You Get a Temporary Credit Card in Canada?
Yes, you can get a temporary credit card in Canada as a temporary resident.
Many banks have programs that specifically cater to the financial needs of non-Canadian residents, and there are also prepaid and secured credit cards that you can immediately apply for in the country.
Just keep in mind that not all credit cards in Canada are eligible for those who aren’t permanent residents or citizens.
Credit Card Requirements in Canada
Although each credit card in Canada has a specific set of requirements, most of them require temporary residents to meet the following criteria:
- Be a Canadian resident
- Have a social insurance number
- Be part of the age of majority in your province or territory
For credit cards that are suited for newcomers and temporary residents in Canada, you won’t usually need to show your credit history. Keep in mind, though, that a security deposit may be required.
Best Credit Cards for Newcomers to Canada
1. Neo Financial Mastercard
The Neo Financial Mastercard, also known as Neo Credit, is one of the best instant approval credit cards in Canada. Once approved, you can immediately use this card virtually using digital wallets and manage your financials using the Neo Financial mobile app.
This free Neo Mastercard can let you earn an average of 5% unlimited cash back at over 10,000 retailers.
Neo Credit
Excellent credit card for cash back
Annual fee: $0
Rewards: Earn up to 15% cash back for first purchases at eligible partners, 5% average cash back at partner stores for subsequent purchases, and 0.5% cash back on average on all purchases.
Welcome offer: $25 bonus on approval.
Interest rates: 19.99% – 22.99% for purchases.
Minimum income requirement: None
Recommended credit score:
Fair
On Neo Financial’s website
2. Tangerine Money-Back Credit Card
Another excellent no-fee credit card for temporary residents in Canada is the Tangerine Money-Back Credit Card.
Unlike other cards that limit how much rewards you can receive, this credit card lets you choose up to three specific spending categories where you can earn an unlimited 2% cash back.
Rewards can be automatically deposited to a Tangerine Savings Account monthly, which is also completely free to apply for.
The Tangerine Money-Back Credit Card provides extended warranty and purchase protection for your purchases. Keep in mind, though, that just like the Neo Financial Mastercard, this card includes many standard fees for some transactions, such as cash advances, over-limit, and dishonoured payments.
Tangerine Money-Back Credit Card
Best no-fee cash back credit card
Annual fee: $0
Rewards: Earn up to 2% unlimited cash back in up to 3 spending categories and 0.50% on all other purchases.
Welcome offer: Get an extra 10% cash back on up to $1,000 in spending in the first 2 months ($100 value).
Interest rates: 19.95% for purchases, balance transfers, and cash advances.
Minimum income requirement: $12,000
Recommended credit score:
Fair to Good
On Tangerine’s website
3. Scotia Momentum No-Fee Visa Card
The Scotia Momentum No-Fee Visa Card is one of the best credit cards for newcomers in Canada. For no annual fee, this card lets you earn up to 1% cash back on your everyday purchases and up to 25% off car rental base rates at participating AVIS and Budget locations in North America.
Scotia offers optional insurance coverage for you and your family in instances where you can’t pay your credit payments due to unexpected life events. It’s worth noting, though, that this card doesn’t provide insurance coverage for your everyday purchases.
Scotiabank Momentum No-Fee Visa Card
Rewards: Earn 1% cashback on gas, groceries & drugstore purchases; 0.50% cashback on everything else.
Welcome offer: Earn 5% cashback in the first 3 months on up to $2,000 spent ($100 value); introductory 0% interest on balance transfers for the first 6 months.
Interest rates: 19.99% on purchases; 22.99% on cash advances.
Annual fee: $0
4. BMO CashBack Mastercard
The BMO CashBack Mastercard is one of the best credit cards for visitors in Canada who wants to redeem their rewards at any time. It offers up to 3% cash back, free extended warranty and purchase protection, and 25% off car rental rates at participating locations.
The income threshold for this card is relatively low, at $15,000 a year. Note, however, that this card doesn’t offer insurance coverage for you and your family.
BMO CashBack Mastercard
Rewards: Up to 3% cash back on groceries, 1% cash back on recurring bill payments, and 0.50% back on everything else (3% and 1% cash back rates have monthly spending limits).
Welcome offer: 0.99% introductory balance transfer rate for 9 months (1% fee applies).
Interest rates: 20.99% on purchases and 22.99% on cash advances.
Annual fee: $0
Best Prepaid Credit Cards in Canada
Although prepaid cards are not exactly credit cards, they’re just as good at providing you with the benefits you can enjoy from credit cards. So, here are three of the best prepaid cards you can apply for as a visitor in Canada.
5. KOHO Prepaid Mastercard
The KOHO Prepaid Mastercard is one of the most popular prepaid Mastercard in Canada.
The no-fee card offers up to 5% cash back on your purchases, interest on your balance, and a versatile mobile app that you can use to review your financials in just a glance.
Keep in mind, though, that since this is a prepaid card, how much your deposit is will also become your credit limit when using the KOHO Prepaid Mastercard.
KOHO Prepaid Mastercard
Best prepaid card in Canada
Annual fee: $0 for KOHO Easy Card
Rewards: Earn up to 5% cash back on debit purchases, and earn interest on your balance.
Welcome offer: $20 using our CASHBACK promo code.
Interest rates: 0%
Minimum income requirement: None
Recommended credit score:
None
On KOHO’s website
6. EQ Bank Card
Earn up to 2.50% interest on your card balance and an unlimited 0.50% cash back on your purchases by using the EQ Bank Card.
Unlike many debit and credit cards, this card completely waives the fee when you withdraw at ATMs from other Canadian banks and transact using foreign currencies. Moreover, it’s protected by Mastercard’s Zero Liability program, which protects you against unauthorized use and transactions.
Keep in mind, though, that the maximum card balance of the EQ Bank card is only $10,000, and you can only withdraw $500 daily.
EQ Bank Savings Plus Account
Monthly fee: $0
Free transactions: Unlimited debits, Interac e-Transfers, and bank-to-bank transfers.
Sign-up bonus: N/A
Interest earned on deposit: Up to 3.00%
On EQ Bank’s website
7. Neo Money Card
Another great credit card alternative from the fintech company Neo is the Neo Money Card.
By combining the high 2.25% interest of the Neo Money Savings Account and the up to 15% cash back offered by the Neo Money Card, you can easily maximize your earnings through this prepaid card.
The Neo Money Card doesn’t charge monthly or annual fees but take note that it doesn’t offer free ATM withdrawals like the EQ Bank Card does.
Neo Money Account
Monthly fee: $0
Free transactions: Unlimited debits, Interac e-Transfers, bill payments, and deposits.
Sign-up bonus: $20 welcome bonus (after $50 funding), up to 15% cash back on your first purchases at partner stores.
Interest earned on deposit: 2.25% for spending account and 4.00% for HISA.
On Neo Financial’s website
Best Secured Credit Cards for Visitors in Canada
8. Neo Secured Credit Card
If you need a credit card that doesn’t require hard credit checks, the Neo Secured Credit Card is going to be one of your best options.
For as little as a $50 security deposit, you can start using this card to start building your credit and earn an average of 5% cash back at thousands of retailers.
Keep in mind, though, that this card’s APRs are dependent on your credit, so you’ll most likely pay high-interest rates if you have poor credit.
Neo Secured Credit
Best secured credit card for bad credit
Annual fee: $0
Rewards: Earn up to 15% cashback on first purchases at eligible partners, 5% cash back at partner stores, and 0.5% unlimited cashback on everything else.
Welcome offer: $25 bonus
Interest rates: 19.99%-22.99% for purchases, 22.99%-28.99% for cash advances.
Minimum income requirement: None
Recommended credit score:
None
On Neo Financial’s website
9. Home Trust Visa Card
The Home Trust Visa Card is one of the best credit cards for temporary residents in Canada. It comes in both a free and paid version, with the latter costing $59 a year in exchange for a low 14.90% APR on purchases.
You can use this secured card to build or rebuild your credit score as Home Trust reports to the major credit bureaus monthly. Keep in mind, however, that unlike most cards on this list, this Visa Card doesn’t offer cash back rewards or insurance coverage.
Home Trust Secured Visa
Good credit card for bad credit
Annual fee: $0 or pay $59 for a lower interest rate
Rewards: None
Interest rates: 19.99% for purchases or 14.90% if you pay an annual fee.
Minimum income requirement: None
Recommended credit score:
None
On Home Trust’s website
10. Capital One Guaranteed Secured Mastercard
Get approved instantly when applying for the Capital One Guaranteed Secured Mastercard, a card that provides standard warranty and insurance coverage for your everyday transactions and travel-related expenses.
As Capital One reports to credit reporting agencies monthly, you can also use this secured card to build your credit score even as a temporary resident. However, keep in mind that this card has a $59 annual fee and no cash back rewards.
Capital One Guaranteed Secured Mastercard
Good secured credit card
Annual fee: $59
Welcome offer: N/A
Interest rates: 19.8% for purchases and balance transfers, 21.9% for cash advances
Minimum income requirement: None
Recommended credit score:
Any credit
On Capital One’s website
How to Apply for a Credit Card for Temporary Residents in Canada
The application process for credit cards in Canada is more or less the same for both temporary residents and those who are citizens or permanent residents. You can either do the application process online or apply by visiting the bank in person if possible.
To ensure a smooth credit card application process, though, it’s always best to refer to the exact steps recommended by your credit card provider. After all, every bank has different procedures, requirements, and guidelines.
Pros and Cons of Credit Cards for Temporary Residents in Canada
Pros
- You can have easy access to an emergency fund.
- You’ll enjoy cash back or rewards points for your eligible purchases.
- You will build your credit history in Canada, which is beneficial for future financial transactions.
Cons
- As a temporary resident, you may not be eligible for all the credit cards available for permanent residents and Canadian citizens.
- A credit card is both a privilege and a risk, as it may lead to overspending or put you at risk for identity theft.
How to Choose the Best Credit Card as a Temporary Resident
There’s no one-size-fits-all process for choosing the best credit card as a temporary resident. However, in general, you should consider factors such as the cost, benefits, and limitations of each card. Then, choose the card which offers the most value for your financial needs.
FAQs
Yes, you can get a credit card on a temporary visa in Canada. Just be prepared to show supporting documents when visiting a bank, and more often than not, they’ll have a credit card that suits your needs.
Yes, new immigrants can easily get a credit card in Canada. Almost every major bank offers credit cards for newcomers, which don’t require you to have a credit history in Canada.
Yes, Canada accepts Visa credit cards, so you’ll find them handy when staying in the country. Keep in mind, though, that not all businesses may accept credit cards, including Visa, so it’s always a good idea to carry some cash as a backup.
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