When choosing the right credit card, there are many factors 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 new to credit, some credit cards 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 earn the credit card rewards offered by the issuer. 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, you can get 7,000 Avion points, which is equal to $50 in gift cards. Some other features of this card include no annual fees, no fees for additional cards, a purchase interest rate of 20.99%, 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 however 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 can 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 rewards credit card that lets you earn 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 10,000 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. The minimum credit limit is $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 insurance coverage, including optional basic or comprehensive protection.
CIBC Dividend Visa
The CIBC Dividend Visa card lets you earn points and 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 unique features that set it apart. 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
For new credit card users, the CIBC Aeroplan Visa card is a great option. Not only does it have no annual fee, but you can get up to 3 additional cards for $0. The purchase interest rate on this card is 20.99%, and the cash advance rate is 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 earn unlimited 2% back in 2 categories of your choice. You can also get 0.5% cash back on everything else. If you decide to have your cash back deposited directly into your Tangerine savings account, 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 apply for 6 months, and a 1% transfer fee 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 50,000 welcome points.
Along with the ability to earn points on your groceries and everyday purchases, this card also includes great insurance and perks. These are:
- Mastercard Global Service
- Purchase Assurance
- Extended Warranty Coverage
The interest rate on this card is 21.99%, and the cash advance rate is 22.99%.
NEO Secured Credit Card
For some, it can be difficult to get a traditional credit card with little to no credit. In a case like this, a secured credit card is a good option, and the NEO Secured Credit Card is among the best in Canada.
Not only does NEO offer guaranteed approval and requires no hard credit check, but you can also earn cash back on purchases. Starting to use this credit card is just as simple. You can set your credit limit with a security deposit (as small as $50), then 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 card 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 anywhere that accepts credit cards.
With this account, there are three options with 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, with 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 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 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 on 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 BMO’s 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 an 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 20,000 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, that 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 is the Scotiabank Value Visa Card for Students. With this card, the purchase interest rate is 13.99%, and the cash advance interest rate is 13.99%. 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 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 are also no minimum income requirements 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 offered by Scotiabank is the Scotiabank American Express Card for Students. For those who sign up now, you could get a welcome offer of 10,000 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 cards. The purchase interest rate is 19.99%, and the cash advance interest rate is 22.99%. The minimum credit limit for this card is $1,000. Plus, like most other credit cards, you have optional credit card protection and other insurance. The included insurances are New Mobile Device Insurance,d 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 the other 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 for 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 travellers because it earns 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 cardholder, you can also get a free SPC membership.
Just like many other credit cards, this CIBC card includes benefits and insurance. 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, with no maximum cashback limit. You can also choose how to redeem cashback, including a statement credit.
In addition to the points you can earn, another great feature of this card is that there are no transfer fees for sending money abroad; 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 for young adults, one of the best first choices is the Neo Secured Credit Card. The great thing about this card is that it doesn’t have many fees, and the funds you use are based on who you list as a security deposit on the card. This means your limit can be whatever you choose. 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 credit cards in Canada have income requirements, and some are higher than others. As a student or new adult, your income is likely to be lower than that of someone who’s been working for a long period of time. Given this, the best option for a credit card is one 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
In Canada, You Can Get A Credit Card at 18
When it comes to getting a credit card in Canada, some provinces and territories set the age of majority at 18, while others set it at 19. Let’s take a look at which is which. Keep in mind that this is the age you need to reach to qualify for a credit card.
| Province/Territory | Age of Majority |
| Alberta | 18 |
| Manitoba | 18 |
| Ontario | 18 |
| Quebec | 18 |
| PEI | 18 |
| British Columbia | 19 |
| Saskatchewan | 19 |
| Nova Scotia | 19 |
| New Brunswick | 19 |
| Newfoundland and Labrador | 19 |
| Northwest Territories | 19 |
| Yukon | 19 |
| Nunavut | 19 |
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. Most credit cards charge interest only 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 appear as negative prior credit history to potential lenders.
Best New Student Credit Cards Launched in 2026
While there aren’t really any new student credit cards in 2026, some of the ones we listed above are considered the best. These include:
- CIBC Aventura Visa Card for Students
- Student BMO CashBack Mastercard
- Scotiabank Scene+ Visa Card
How Credit Card Minimum Income Requirements Changed
Since last year, credit card minimum income requirements haven’t changed that much. However, the minimum income requirement is based on the bank and the type of credit card that you choose.
High-limit, high-reward credit cards that allow you to earn more points on your credit card purchases often have higher income requirements. The standard is $60,000 for your personal income and $100,000 for your household income. Many premium credit cards require $150,000 in personal income and $200,000 in household income.
Are No-Fee Young Adult Cards Still Competitive in 2026?
Yes, in fact, these types of credit cards are still extremely competitive. Since digital banks and credit card companies have made the market more competitive, many of these credit cards have some awesome incentives, including:
- Discounts on car rental bookings
- Points and discounts on food delivery, points on gas purchases
- Points on coffee shop purchases
- Travel or statement credits
- Comprehensive travel insurance coverage
- Points on eligible streaming subscriptions
- Points at eligible grocery stores
Best Welcome Bonuses for First-Time Cardholders in 2026
For first-time cardholders, there are some great welcome bonuses you can get. Let’s take a look at some of the best options out there.
| Credit Cards | Welcome Offers |
| CIBC Dividend Visa Card for Students | Earn up to $125 cash back; get $25 cash back when you make your first purchase within the first 4 months; earn 10% cash back of up to $100 in the first 4 months |
| BMO CashBack Mastercard for Students | Get 5% cash back in your first 3 months, up to a maximum of $125. |
| TD CashBack Visa Card | Earn up to $100 in cash back with $20 on your first purchase and an additional $80 when you spend $1,500 in the first 3 months. |
| Tangerine Money-Back Credit Card | Earn 10% cash back for 2 months up to $100. |
| Scotiabank Passport Visa Infinite Card | Get up to $1,500 in value in the first 3 months. Up to 40,000 points by making at least $2,000 in everyday eligible purchases in the first 3 months. Up to 10,000 points by making at least $10,000 in purchases in the first 6 months. Earn an annual bonus of 10,000 points with a minimum of $40,000 in eligible annual purchases. |
How Young Adults Can Build Credit Faster in 2026
One of the toughest things to do is build your credit, especially when you’re a young adult. However, there are a few things you can do to help you get started and build your credit faster.
- Become an authorized user on your parent’s or family member’s credit card
- Leverage starter cards like student cards and secured credit cards
- Report rent and utilities on your credit report
- Keep your credit utilization under 30%
- Set up pre-authorized payments
- Check your credit score monthly using free credit monitoring tools
Buy-Now-Pay-Later for Gen-Z Spending Habits
Buy-Now-Pay-Later options have become very popular with Gen Zs, as you can split your purchases into installments that are often interest-free, without using a credit card. However, many are relying on them for most of their spending due to rising everyday living costs.
Best Credit Cards for Gen-Z Spending Habits
When it comes to finding the best credit cards for Gen Z spending habits, those that earn points at ticket agency stores, no-fee cash back cards, and those that are best for food delivery are quite popular. Some of these popular options include the Simplii Financial Cash Back Visa and the American Express Colbalt Card.
Simplii Financial Cash Back Visa
With the Simplii Financial Cash Back Visa, you can earn up to $100 cash back in your first 3 months when you spend $500 on eligible gas, grocery, and drugstore purchases, as well as pre-authorized payments.
Some features included with this no-fee cash back card include:
- No annual fee
- 21.99% purchase interest
- 22.99% cash advance rate
- Purchase security and extended protection insurance.
- Optional CIBC travel medical insurance
American Express Colbalt Card
The American Express Colbalt Card is one of the best airline credit cards available. Plus, it’s also one of the top Canadian credit cards for those looking to earn points. The fee equals to $191.88 annually ($15.99/month), and the interest rate is 21.99% for both purchases and cash advances.
Perks included with this card are:
- 5x the points on food delivery and eligible restaurant purchases
- 3x on eligible streaming subscriptions
- 2x the points on gas, transit and ride share purchases
- 1x the points on all other purchases
- Front of the Line presale and reserved tickets
- Access to the hotel collection
- Up to $60 in statement credits with Instacart
- $1,000 mobile device insurance
- Out-of-province/country emergency medical insurance
- Flight delay insurance
- Baggage delay insurnace
- Hotel burglary insurnace
- Lost or stolen baggage insurance
- $250,000 travel accident insurance
- Car rental theft and damage insurance
- Buyers assurance protection plan
- Purchase protection plan
While this isn’t considered one of the best balance transfer cards, it is one of the best insurance credit cards. That said, it is good for everyday purchases, household utility purchases, and other credit card purchases.
Credit Card Alternatives for Young Adults with No Income
If you have no income but need a credit card, some alternatives could be a good fit. These include:
- Secured credit cards: These cards work the same as traditional cards, but they require a security deposit. Usually, the security deposit is equal to your credit limit and is returned to you once your credit card is paid off and cancelled.
- Prepaid and debit cards: These work the same as credit cards but have no interest rate because they’re just debit cards with a limit of whatever’s in your account. Some even have credit-building capabilities that you can add.
- Authorized User: If you become an authorized user on someone else’s credit card, you can start earning credit from that card.
- Student credit cards: Even if you don’t work, you can still get a credit card if you’re a student. Some proof may be required.
One great option is the EQ Bank personal account. When you open your account, your card also doubles as a prepaid Mastercard. You can earn 0.5% cash back on all purchases, including Loblaws and other eligible grocery stores. Since it’s on everything, you don’t have to wait for a few new categories to appear before the year ends. You can earn wherever you spend.
Newcomer Student Credit Card Options in 2026
As a newcomer and a student in Canada, you can get any of the student credit card offers available in Canada. To get approved, you need:
- Your study permit
- Proof of enrollment
- A Canadian address
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 can 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, they can also be easy to use incorrectly. Exceeding your overall limit, carrying a high credit card balance, and missing minimum payments can easily tank your credit score. However, using a credit card correctly can be a powerful tool for building a positive credit history.
