The Best Credit Cards for Young Adults in Canada 2025

When it comes to choosing the right credit card, there are a lot of things to consider. Some of these things include interest rates, annual fees, foreign transaction fees, foreign exchange fees on foreign currency purchases, and credit card limits. However, you should also consider which card can build your credit so you have access to other credit cards and credit products. 

Credit Cards For Those New To Credit

For those who are new to credit, there are some credit cards that are easier to get than others. Many of these cards allow you to save money, and you can use them through financial institutions, even if you don’t do your everyday banking there. Let’s take a look at some of these and what they include.

It’s important to keep in mind that if you don’t have a good credit score yet, you could end up with a lower credit limit. However, you still get the credit card rewards that the credit card issuer offers. As you make your credit card payments, you can increase your credit score and increase your credit card limit.

RBC Ion + Visa

The RBC Ion+ Visa credit card not only allows you to build your credit, but you can also earn rewards on your everyday purchases. Plus, if you apply for this rewards credit card by May 7, 2025, you can get 7,000 Avion points, which is equal to $50 in gift cards. Some other features included with this card are no annual fees, no fees for additional cards, 20.99% purchase interest, and a cash advance rate of 22.99%.

When it comes to earning points with this card, you can earn 1.5X the points for eligible purchases on transportation, groceries, and entertainment. You can also earn extra points with RBC Avion partners and use these points to pay off your balance. You can redeem points how you choose, including on travel.

Another good thing to consider when looking at a credit card is the insurance and protection they offer. This particular card offers purchase security and extended warranty protection. That said, you also have the ability to add on:

• BalanceProtector Max Insurance
• RBC Road Assist
• Credit and Identity Theft Protection
• Add-on Travel Insurance

Scotiabank Scene + Visa

The Scotiabank Scene+ Visa card is another one of many rewards credit cards that allows you to earn some great points. In fact, you can earn 2X the points on purchases at Safeway, Sobey’s, Foodland, Home Hardware and Cineplex. As a special offer, you can also earn up to 7,500 bonus points in the first 3 months that you have the card. 

Just like many other credit cards, this card has no annual fee, and there’s no cost for supplementary cards. There’s a minimum credit limit of $500, and the purchase interest rate is 20.99%. The rate on cash advances, balance transfers, and credit card cheques is 22.99%. 

If you’re looking for benefits, this credit card offers a discount on some Avis and Budget car rental locations throughout the US and Canada. This card allows you to save up to 25%. You can also get some insurance coverage, which includes optional basic protection or comprehensive protection. 

CIBC Dividend Visa

The CIBC Dividend Visa card offers the ability to earn points as well as get 10 cents off per litre with Journie rewards. The main requirement for this card is that your minimum annual income has to be at least $15,000. There’s no annual fee with this card; the purchase interest rate is 20.99%, and the cash advance rate is 22.99%. With rewards, you can earn 2% cash back on groceries, 1% back on transportation and dining purchases, and 0.5% back on everything else. 

Just like other credit cards, this card has some unique features that separate it from other cards. First, you can use this card to send money abroad for a $0 fee and enjoy an interest free grace period as long as the balance is paid by the due date. You can also save 30% with Avis pay now and 35% with Budget. There’s even purchase protection and extended warranty coverage on your purchases. 

CIBC Aeroplan Visa

In terms of travel credit cards for new credit card users, the CIBC Aeroplan Visa card is a great option. Not only does it have no annual fee, you can get up to 3 additional cards for $0. The purchase interest rate on this card is 20.99%, and cash advances are 22.99%. 

In terms of points, you can earn 1 point for every $1 spent on:

• Gas
• Electric vehicle charging
• Groceries
• Air Canada

You can also earn 1 point for every $1.50 on other purchases and earn points twice with 150 Aeroplan partners and the Aeroplan eStore. 

With this visa card, CIBC offers:

• Visa’s Zero Liability Policy
• Fraud Alerts
• Digital Disputes Platform
• Purchase Security Insurance
• Common Carrier Accident Insurance
• Auto Rental Collision and Loss Damage Insurance
• Optional CIBC Payment Protector Insurance

Tangerine Money-Back Credit Card

Another competitive credit card for new credit card users is the Tangerine Money-Back Credit Card. This card has no annual fee, 20.95% purchase interest and 22,95% cash advance interest. There’s no annual fee, and you can get an unlimited 2% back in two categories of your choice. You can also get 0.5% cash back on everything else. If you decide to have your cash back directly deposited into your Tangerine savings account, then you can add a third 2% category of your choice. The categories you can choose from include:

• Grocery
• Furniture
• Restaurants
• Hotel-Motel
• Gas
• Recurring Bill Payments
• Drug Stores
• Home Improvement
• Entertainment
• Public Transportation
• Parking

One unique feature this card offers is reduced balance transfers. In your first 30 days, you can transfer up to your total card limit at an interest rate of only 1.95%. This rate will last 6 months, and a transfer fee of 1% will also apply. On top of this, this card also offers Purchase Assurance and Extended Warranty Protection. 

PC Mastercard

If you spend a lot of money at Loblaws stores, then another good option for a new credit card is the PC Mastercard. With this card, you can earn PC Optimum points by linking it with your PC Optimum card. Plus, as a special offer, you can get 20,000 welcome points. 

Along with the ability to earn points on your groceries and everyday purchases, there are also some great insurance and perks included with this card. These are:

• Mastercard Global Service
• Purchase Assurance
• Extended Warranty Coverage

The interest rate on this card is 21.99% and has a 22.99% cash advance rate. 

NEO Secured Credit Card

For some, it can be difficult to get a traditional credit card when they have little to no credit. In a case like this, a secured credit card is a good option, and the NEO Secured Credit Card is considered to be one of the best-secured credit cards in Canada. 

Not only does NEO have a guaranteed approval and require no hard credit check, you can also earn cash back on purchases. Starting to use this credit card is simple as well. You can set your credit limit with a security deposit (this can be as small as $50), then you can use the card and pay it on your payment schedule. These on-time payments will start to build your credit score. 

KOHO Mastercard

Another great secured credit credit is the KOHO Mastercard. The nice thing about the KOHO Mastercard is that its structure is different from that of a traditional secured credit card. Instead of having a security deposit, it’s essentially a prepaid MasterCard that allows you to build your credit. It can be used as a savings account, or you can use it anywhere they accept credit cards. 

With this account, there are three different account options that include different perks, and you can purchase credit building on top of this. These three plans are Essential, Extra, and Everything. Each of these accounts is billed annually but has rates of $4, $12, and $14.75 per month. 

MBNA True Line Mastercard

While the MBNA True Line Mastercard is traditionally used as a balance transfer credit card, it’s also a great option for those just starting out in credit. There’s no annual fee, and the purchase interest rate is only 12.99%, which makes it a low-interest credit card. The cash advance interest rate is 24.99%. Plus, you only have to be of the age of majority in your province in order to be eligible. If you use it as a balance transfer credit card, you can get 0% interest on balance transfers for 12 months with a small balance transfer fee.

With this card, you can also get a minimum of 10% off of both Avis and Budget car rentals. You also get Mastercard Zero Liability and the ability to use your card on Apple Pay and other contactless methods. 

Best Student Credit Cards

For young adults, if you’re in some sort of post-secondary education, another great option for a credit card is a student credit card. Many student credit cards allow you to earn rewards just like traditional credit cards. Student credit cards work just like regular credit cards; however, the main difference is lower rates and higher limits. They also have no or low annual fees. 

Student BMO Cashback Mastercard

The Student BMO Cashback Mastercard is just one of BMOs exclusive credit cards. As a welcome offer, you can currently get this credit card with up to 5% cashback in your first 3 months. When it comes to everyday rewards, you can get 3% cash back on grocery purchases, 1% on recurring bill payments and 0.5% on all other purchases. You can then cash back any amount of these rewards you want and have them deposited directly into your bank account. 

Just like many other credit cards, there’s no annual fee. The purchase interest rate is 21.99%, and the cash advance rate is 23.99%. You can also get extended warranty and purchase protection, Mastercard Zero Liability, Mastercard Identity Check, and BMO Alerts. The benefits included with this card are:

• 20% on National Car Rental
• 20% off Alamo Rent-A-Car
• 5% off Enterprise Rent A Car
• 20% off Cirque Du Soleil Canada tours
• 15% off Cirque Du Soleil Las Vegas Residency
• 7% off Booking.com rentals

Student BMO Airmiles Mastercard

For Students who collect airmiles, a good credit card option is the Student BMO Airmiles Mastercard. For those who apply, you could also qualify for the welcome offer of 80,000 Airmiles. There’s no annual fee and the purchase interest rate is 21.99%. The cash advance interest rate is 23.99%. 

Just like with other BMO credit cards, there are some awesome perks, including rental car discounts, you can get just for holding this card. These include:

• Up to 7% off Booking.com
• 20% off Cirque Du Soleil shows in Canada
• 15% off Cirque Du Soleil shows at Las Vegas residency
• Up to 20% off National and Alamo car rentals
• Up to 5% off Enterprise rent a car

With this card, you can also enjoy an extended warranty and purchase protection. When it comes to optional insurance, you could get BMO Credit Balance Protection and BMO Roadside Assistance. 

Scotiabank Value Visa Card for Students

While Scotiabank offers a wide range of student credit cards, the most commonly used student credit card is the Scotiabank Value Visa Card for Students. With this card, the purchase interest rate is 13.99% and 13.99% on cash advances. The annual fee for this card is only $29. The minimum credit limit that you can get is $500. Currently, there is a balance transfer promotion for 0% interest for the first 9 months and no annual fee for the first year. 

If you’re looking for credit card benefits, this card offers up to 25% off of base rates at certain Avis and Budget car rental locations throughout the US and Canada, but rental car insurance is separate. Plus, when it comes to insurance, you can choose between basic and comprehensive coverage. 

CIBC Aventura Visa Card for Students

Another great travel credit card for students is the CIBC Aventura Visa for Students. If you sign up now, you could get a welcome bonus of up to 10,000 Aventura points. Plus, as a Canadian student, you could qualify for a credit limit of up to $5,000. 

With this card there’s no annual fee and no fee on up to 3 additional cards. This purchase interest rate is 20.99% and the cash interest rate is 22.99%. There’s also no minimum income requirements in order to qualify for this card. 

When it comes to insurance, this card offers purchase security and extended protection insurance, $100,000 common carrier accident insurance, and auto rental collision and loss damage insurance. They also offer optional CIBC Payment Protector Insurance. 

Scotiabank American Express Card for Students

Another great credit card that Scotiabank offers is the Scotiabank American Express Card for Students. For those who sign up now, you could get a welcome offer of 5,000 bonus scene points within your first 3 months. You can earn 3X the points at select grocery stores, 2X on restaurants and fast food, entertainment, transportation and streaming services. Since it’s an American Express card, you can also use the fixed points travel program.

For this card, the annual fee is $0, and there are no fees for any supplementary card. The purchase interest rate is 19.99%, and cash advances are 22,99%. The minimum credit limit that you can get on this card is $1,000. Plus, like with most other credit cards, you have optional credit card protection as well as other insurance. The included insurances are New Mobile Device Insurance and Purchase Security and Extended Warranty Protection. 

Scotia Momentum Visa Card for Students

For students looking to earn points and build credit, the Scotia Momentum Visa Card is a popular option. There are actually two different Momentum cards for students, one is the No-fee card and one isn’t. 

When it comes to the no-fee card, you can earn 5% cash back on all purchases for the first 3 months. You can also get a 0% introductory interest rate on all balance transfers for the first 6 months. The annual fee is $0, the purchase interest rate is 19.99%, and the cash advance rate is 22.99%. 

With the Scotiabank Momentum card, which has fees, the annual fee is $39. The purchase interest rate is 19.99%, and the cash advance rate is 22.99%. The minimum credit limit for these cards is $500, and you can purchase credit card protection to go with any of your cards. 

CIBC Aeroplan Visa Card for Students

With this student credit card, there’s no annual income limit and the maximum credit limit you can get as a Canadian student is $5,000. There’s no annual fee, no fee for supplementary cards, and your purchase interest rate is only 20.99%. Your cash interest rate is 22.99%. 

This is a great card for those who like to travel because you earn Aeroplan points. With the CIBC Aeroplan Visa card, you can earn 1 point for every $1 spent on Gas, Electric Vehicle Charging, Groceries and Air Canada. You can earn 1 point for every $1.50 spent on all other eligible everyday purchases. Purchases with the Aeroplan eStore or Aeroplan partners can earn you double the points. As a student and a CIBC card holder, you can also get a free SPC membership. 

Just like many other credit cards, this CIBC card has benefits and insurance included with it. These are:

• Purchase Security Insurance
• Common Carrier Accident Insurance
• Auto Rental Collision and Loss Damage Insurance
• Optional CIBC Payment Protector Insurance

CIBC Dividend Visa Card for Students

Another CIBC student credit card with no annual income requirement is the CIBC Dividend Visa. This card has no annual fee, a purchase interest rate of 20.99%, and a cash advance rate of 22.99%. When it comes to cash back, you can earn 2% back on groceries, 1% back on:

• Gas
• Electric Vehicle Charging
• Transportation
• Dining
• Recurring Payments

You can get 0.5% cash back on all other purchases, and there is no maximum cashback limit on cash rewards. You can also choose how to redeem cashback, one of the options being a statement credit. 

In addition to the points you can earn, another great feature of this card is that there are no transfer fees on money sent abroad with it; if you make the payment by your card's due date, you won’t pay any interest on the transaction either. 

When it comes to insurance, this card includes $100,000 Common Carrier Accident Insurance Purchase Security and Extended Warranty Protection. You can also choose to purchase CIBC Payment Protector Insurance. 

Best First Credit Card for Young Adults

While there are plenty of secured and unsecured credit cards out there for young adults, one of the best out there as a first is the Neo Secured Credit Card. The great thing about this card is that it doesn’t have a lot of fees, and the funds you use are based on who you put down as a security deposit on the card. This means your limit can be whatever you choose it to be. Plus, after just a short time of using this card, you can qualify for unsecured credit cards and premium credit cards. 

Best Credit Cards for 18-Year-Olds in Canada

When it comes to the best credit cards for 18-year-olds in Canada, many of the credit cards we’ve already discussed are great for those new to credit. However, out of the many different credit cards that we’ve discussed, some of the best for 18-year-olds are:

• Tangerine Money-Back Credit Card
• Scotiabank Scene+ Visa Card
• RBC ION+ Visa
• Scotia Momentum No-Fee Visa Card

That said, while these credit cards can be simpler to get you will still have to apply and meet the requirements. For this, you will likely need to pass a credit check (meet the credit score requirements) and have a residential address in Canada. You’ll also likely need an income of some kind and it’s not uncommon for credit card companies to require a minimum income of at least $12,000. 

Best Credit Card for a $25,000 Salary

Many different credit cards in Canada have income requirements, and some of them are higher than others. As a student or new adult, your income is likely to be lower than someone who’s been working for a long period of time. Due to this, the best option for a credit card is a card with a minimum income requirement of $25,000 or less. Some of these credit cards include:

• Tangerine Money-Back Credit Card
• PC Mastercard
• Scotiabank Momentum Infinite Card
• MBNA Mastercard
• Neo Secured Mastercard
• KOHO Mastercard

Where in Canada, You Can Get A Credit Card at 18

When it comes to getting a credit card in Canada, some provinces and territories have a majority age of 18, while in other places, it’s 19. Let’s take a look at which is which. Keep in mind that this is the age you need to reach in order to qualify for a credit card. 

Differences Between Secured and Unsecured Credit Cards

As you may have noticed, there are two different types of credit cards that you can get in Canada that will affect your credit score. These are secured credit cards and unsecured credit cards. The difference between the two is that one requires a security deposit while the other doesn’t. 

Secured credit cards are also a lot easier to get in Canada. This is because a deposit is required to use the card. It’s less risky for lenders and functions just like a regular credit card. Every month, the payments are reported to the credit bureaus, and all positive payments will slowly increase your credit score. 

How To Properly Use A Credit Card

In Canada, using a credit card correctly can greatly improve your credit score. In fact, it’s possible to use your credit card and not pay interest charges on any of your purchases. You can do this by paying your full credit card bill to the credit card company before your credit card statement's due date. Credit card interest is only paid on most credit cards after the 21-day grace period. 

If you do have to leave a credit card balance, keeping that balance under 30% of your total credit limit can have the greatest benefit on your credit score. If you can’t do that, though, making your monthly credit card payment on time is very important. Missing a payment can reduce your credit score and show up as bad prior credit history to potential lenders. 

Final Thoughts

In Canada, a credit card is often the first piece of credit that you get when you reach the age of majority and are able to start building your credit score. The reason that credit cards are often the first piece of credit is that they can be the simplest to get, and everyday spending can impact your score quickly. 

While credit cards are a common form of debt, it can also be easy to use them incorrectly. Using too much of your overall limit, having a high credit card balance, and not making your minimum payments can easily tank your credit score. However, using a credit card correctly can become a powerful tool you can utilize to help create a positive credit history.