The best credit cards for newcomers to Canada
February 20, 2024 | Fact checked by: Natasha Macmillan, Business Unit Director - Everyday Banking
Getting your first credit card in Canada is an essential step to getting established, and it can also be invaluable for securing your financial future. Learn the benefits and find the best credit card available to new immigrants.
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Canada's best credit card for newcomers at a glance
Featured
Neo Secured Credit Card
Guaranteed approval with no credit check. Starting with as little as $50 and you can raise your credit limit at any time.
Featured
Home Trust Secured Visa Card
Guaranteed approval and reports your payments to the credit bureaus, helping you establish a credit history in Canada.
- Gift Card offer
Scotiabank Passport Visa Infinite Card
One of the best credit cards in Canada. Can be eligible for a credit limit up to $15,000 with no credit history if you are a new permanent resident.
Our methodology: how we choose the best credit cards
Ratehub.ca evaluates the best credit card rewards credit cards by considering overall consumer value and suitability for various types of consumers. Our evaluation methodology incorporates factors such as the card’s annual fee, rewards earning rates, ease-of-use, welcome or promotional offers, approval rates, eligibility criteria, and redemption choices. We have also considered the pros and cons of each card to help you determine which case best suits your financial needs and spending habits.
Frequently asked questions
What is a typical credit score required for a credit card in Canada?
You may qualify for a credit card with a credit score as low as 620, but many premium credit cards require a score of 680 or higher. If you have bad credit or no credit, you may be able to get a secured credit card by paying a security deposit equal to the credit limit.
What is a secured credit card?
A secured credit card is a way to get a credit card even with bad credit or no credit history in Canada. With a secured credit card, you pay a security deposit equal to the credit limit. For example, with security funds of $500, you can get a credit card with a $500 spending limit. A secured credit card will contribute to your credit score, so be sure to make the minimum payment on time each month.
How does a credit card help build a credit score?
A credit card can help build a credit score by providing a consistent record of your borrowing and repayment behaviour. When you use a credit card responsibly by making on-time payments and keeping your balances low relative to your credit limit, it demonstrates to credit bureaus that you are a responsible borrower. Over time, this positive credit history can boost your credit score, making it easier to qualify for loans and a mortgage in the future.
The best credit cards for newcomers who don't have permanent resident or foreign worker status
Minimum security deposit
- Pay $8.33/mo in interest
Based on a credit balance of $500
- Annual fee
$0
Perks
- Ratehub.ca’s 2023 Award Winner – Best Credit Card For Building Credit
- Get $25 cashback1 when you sign up, plus up to 15% cashback
- 2 on first-time purchases at 10,000+ partners
- Safely build your credit history
- Free credit reporting
- No credit score needed to apply
- Instant, unlimited cashback at over 10,000 partners
- Get up to 15% cashback3 on first-time purchases
- Enjoy an average 5% cashback3
- Guaranteed 0.5% cashback
- Flexible credit limit
- Get started with as little as $50
- Increase your credit limit any time
- Sign up in 3 minutes and use your virtual card right away
- Optional monthly subscriptions available to boost your rewards for travel, gas & grocery, dining, and more
Ratehub’s take
The Neo Secured Credit offers you the opportunity to earn cash back rewards – a feature that is hard to come by for a secured card. The card also comes with noteworthy budgeting features through Neo Insights and the ability to adjust your credit limit anytime.
Pros
- Cashback rewards: Cashback rewards apply to gas and grocery purchases, as well as purchases with Neo partners
- Low minimum deposit requirement: The $50 minimum deposit requirement makes this card accessible for most – many other cards require at least $500
- Customize rewards: For a low monthly fee, you can subscribe to Perks which allow you to earn rewards from your spending and benefits like airport lounge access for specific categories, such as travel or wellness
Cons
- Higher interest rate: The card’s 19.99% interest rate is quite a bit higher than some low interest cards and other secured cards
- Cash back rewards are limited: You can earn rewards on a maximum of $300 in spending per cashback category, which is quite limited, and bonus earn rates may have maximums, too
Eligibility requirements
Minimum income: $50/yr
Interest rates
Purchase interest: 19.99%
Cash advance: 24.99%
Balance transfer: N/A
If you don’t qualify for the banks’ newcomers programs, you can still get a great credit card by providing a security deposit equal to the credit limit. The NEO Secured Credit Card is one such option, allowing you to get a credit card and start building credit history in Canada.
The NEO Secured Credit Card offers guaranteed approval. You can start with as little as $50 and raise or lower your credit limit at any time. As with any other card, you will need to make regular payments on time each month and interest charges will apply if you don’t pay your balance in full by the deadline.
This card rewards you with a minimum of 0.5% cash back on purchases, plus 5% cash back at select retailers. And because it has the Mastercard badge, you can use it just about anywhere.
Pros
- Guaranteed approval with no credit check
- Start with as little as $50 security funds
- Earn up to 5% cash back at select retailers
- No annual fee
- Build credit history in Canada
Cons
- Security deposit equal to credit limit required
- High purchase interest rate of up to 29.99%
- No additional credit card perks
Minimum security deposit
- Pay $8.33/mo in interest
Based on a credit balance of $500
- Annual fee
$0
Perks
Not available to residents of Quebec.
- The Home Trust Secured Visa Card is a credit card that requires a security deposit for eligibility. Your credit limit is then set at the amount of the deposit. You can put down as little as $500, or as much as $10,000.
- Make purchases over the phone or online
- Plan and book a vacation
- Access cash anytime, anywhere from over 1 million ATMs around the world displaying the Visa or Plus logo
- Shop at over 24 million locations worldwide
- Applicants who have been discharged from Bankruptcy are eligible to apply at any time (Discharge Certificate may be requested)
- Applicants who are in a Consumer Proposal can apply at any time
Ratehub’s take
The Home Trust Secured Visa card is a strong choice if you want to rebuild your credit while controlling your spending. Plus, if you pay the annual fee you’ll get a lower interest rate. There are other cards out there with lower regular interest rates, though.
Pros
- Automatic credit building: When you pay your bills on time, it will be reported to the credit bureaus and help improve your credit score
- No interest charged unless you carry a balance
- Low minimum deposit: The $500 minimum deposit is low compared to other secured cards
Cons
- Interest rate is fairly high: The regular interest rate of 19.99% is fairly high and you only get the lower rate (14.99%) when you pay an annual fee – and this is still higher than comparable cards
- Few perks: Like most low interest cards, this offers few perks and no insurance coverage
Eligibility requirements
Minimum credit score: 300
Minimum income: N/A
Interest rates
Purchase interest: 19.99%
Cash advance: 19.99%
Balance transfer: N/A
Another good secured credit card option is the Home Trust Secured Visa card. This card offers guaranteed approval and reports your payments to the credit bureaus, helping you establish a credit history in Canada.
This card has a higher minimum balance (and minimum security deposit) of $500, and you can raise your credit limit as high as $10,000 by providing additional security funds.
The Home Trust Secured Visa card has no annual fee, and a regular purchase interest rate of 19.99%. If you want to carry a balance and prefer a lower rate, you can elect to pay an annual fee of $59 to reduce your interest rate to 14.90%.
Pros
- Guaranteed approval with no credit check
- No annual fee
- Low interest rate option available
- Build credit history in Canada
Cons
- Security deposit equal to credit limit required
- Minimum security deposit of $500
- No rewards or additional credit card perks
The best credit cards for newcomers who have permanent resident or foreign worker status
The best credit cards for newcomers have valuable rewards programs, excellent travel insurance, and other benefits that cater to your unique needs as you settle into your new home. A few of the best credit cards for new immigrants to Canada include:
Best for Travel perks
based on spending $2,200/mo after $150 annual fee
- Earn rewards
1pt – 3pts / dollar earn rate
- Welcome bonus
30,000 bonus points (a $300 value)
- Annual fee
$150 $0 first year waived
Perks
- Ratehub.ca’s 2024 Credit Card Award Winner
- Earn up to $1,300* in value in the first 12 months, including up to 40,000 bonus Scene+ points and first year annual fee waived¹
- Earn 3x Scene+ points¹ on every $1 you spend at Sobeys, Safeway, IGA, Foodland and participating
Co-ops and more - Earn 2x Scene+ points¹ for every $1 you spend on other eligible grocery stores, dining, eligble entertainment puchases and eligible daily trasit options(including rideshares, buses, subways taxis and more)
- Plus earn 1 Scene+ point for every $1 spent on all other eligible everyday purchases
- No Foreign Transaction Fee
- 6 Complimentary Airport Lounge Access
- Comprehensive Travel Insurance coverage
- Visa Infinite* Concierge Services
- Visa Infinite* Hotel Collection
- Visa Infinite* Dining and Wine Country program
-
Rates, fees and other information are effective as of Jan.4, 2024. Subject to change
Features
Ratehub’s take
The Scotiabank Passport Visa Infinite card makes a great vacation companion, designed for Canadians who travel abroad and explore the world. It is one of the few cards that covers foreign transaction fees, and also includes valuable travel benefits like airport lounge access.
Pros
- No foreign transaction fee: Save 2.5% on all non-Canadian currency purchases
- Scene+ points: Earn three Scene+ points per $1 spent at participating grocery stores (e.g., Sobey’s, IGA, and FreshCo) and two Scene+ points per $1 spent on eligible grocery, dining, entertainment, and daily transit purchases
- Flexible redemption: Enjoy flexible point redemption options including for travel, groceries, statement credits, gift cards, and movie tickets
- Airport lounge access: Access airport lounges with six free visits per year to over 1,200 lounges worldwide
- Visa Infinite benefits: Benefit from the Visa Infinite Luxury Hotel Collection, Visa Infinite Dining series, and complimentary Avis Preferred Plus membership
- Comprehensive travel insurance: Enjoy coverage for emergency medical, trip cancellation/interruption, flight delays, and more
Cons
- Annual fee: The annual fee of $150 is higher than some comparable cards
- Low point return: The earn rate for certain spending categories like dining and entertainment is lower compared to other cards
- Consistent point values: Travel points are always worth one cent per point and you can’t transfer your points to other airline rewards programs like you can with some Amex cards
Eligibility requirements
Minimum credit score: 725
Minimum income: $60,000/yr
Interest rates
Purchase interest: 20.99%
Cash advance: 22.99%
Balance transfer: 22.99%
The Scotiabank Passport Visa Infinite Card is one of the best credit cards in Canada, and you can get a credit limit of up to $15,000 with no credit history if you’re a new permanent resident or foreign worker.
This card lets you earn Scene+ points, which can be redeemed for a wide variety of merchandise and travel. You’ll earn 3 points per dollar spent on groceries, 2 points per dollar spent on restaurants, entertainment and daily transit, and 1 point per dollar spent on everything else. If you meet certain spending requirements, you can earn up to $1,300 in value in the first 12 months, including up to 40,000 bonus Scene+ points and first year annual fee waived. Offer ends July 1, 2024.
In addition to great rewards, this card comes with perks that will make your next trip home a lot more comfortable. Benefits include 6 complimentary airport lounge passes per year, discounts on hotels and car rentals, and comprehensive travel insurance benefits. And as an added bonus, you’ll pay no foreign transaction fees when you use your card outside of Canada.
Pros
- Earn up to 3 Scene+ points per dollar spent
- Welcome bonus: earn up to $1,300 in value in the first 12 months, including up to 40,000 bonus Scene+ points and first year annual fee waived. Offer ends July 1, 2024.
- No foreign transaction fees
- 6 complimentary airport lounge passes per year
- Discount on car rentals and hotels
Cons
- $150 annual fee
- $60,000 minimum income requirement
- High 20.99% interest rate on purchases
Best for Gas and groceries
based on spending $2,200/mo after the annual fee
- Earn rewards
1% – 3% earn rate
- Welcome bonus
$250
- Annual fee
see Details
Perks
Welcome Offer: Get a first-year annual fee rebate and earn 10% cash back welcome bonus of up to $250 (first 4 statements)!†
- After that, get 3% cash back on eligible gas, EV charging and grocery purchases.†
- 2% cash back on eligible transportation, dining purchases and recurring payments†
- 1% cash back on all other purchases†
- Get cash back on demand – redeem your cash back at any time when you have a minimum of $25 through CIBC Online and Mobile Banking®†
- Save on gas with CIBC and Journie Rewards
- Link and use your CIBC Dividend Platinum Visa Card with Journie Rewards to save up to 10 cents per litre† at participating Pioneer, Fas Gas, Ultramar and Chevron gas stations.†
- This is a digital-exclusive offer.† To be eligible for this offer: 1) this offer must have been directly communicated to you from CIBC or from a partner/affiliate; and 2) you must apply for the eligible card through the link provided in the CIBC or partner/affiliate communication to you.† This offer is reserved for you. Please do not forward it to anyone else.
- CIBC may approve your application, but you are not eligible to receive this Offer if you have opened, transferred or cancelled another Dividend card within the last 12 months.†
- This offer is not available for the residents of Quebec.
- †Terms and Conditions Apply
Ratehub’s take
The CIBC Dividend Platinum Visa lets you earn up to 3% cash back on purchases, with no limit on the 1% base rate.
Pros
- Flexible cash back redemption: Users can redeem rewards at any time as a statement credit starting in increments of $25
- Exclusive discounts: Save up to 10¢ per litre on gas by linking your Journie Rewards account at participating Pioneer, Chevron and Ultramar stations, and save up to 25% at participating Avis and Budget locations
- Newcomer to Canada offer: Available to new Canadian residents with a credit score greater or equal to 720 with a first year annual fee rebate
Cons
- Limited insurance coverage: Insurance coverage isn’t as comprehensive as other rewards cards (if insurance is a priority for you, consider the cards featured on our list of best credit cards for travel insurance)
- Bonus cash back rewards are limited: The 2% and 3% cash back rates only apply to the first $80,000 in annual purchases, then you’ll earn at the standard 1% rate
Eligibility requirements
Minimum credit score: 725
Minimum income: $15,000/yr
Interest rates
Purchase interest: 20.99%
Cash advance: 22.99%
Balance transfer: 22.99%
Annual fee
$99
The CIBC Dividend Platinum Visa Card is available to new Canadians with no credit history, and CIBC has sweetened the deal by offering to refund the annual fee for you and up to three authorized users for two years.
With this card, you’ll earn cash back rewards on every purchase. You’ll earn 3% cash back on groceries, gas and electric vehicle charging, 2% cash back on transportation, restaurants and bills, and 1% cash back on everything else. You can also save up to 10¢ per litre on gas by linking your Journie Rewards account, and save up to 25% on car rentals.
As a newcomer to Canada, you can use this card to send money back home with no fees via a CIBC Global Money Transfer. But be aware that you’ll pay the cash interest rate of 20.99% with no grace period.
Pros
- Annual fee rebate for 2 years for new Canadians
- Earn up to 3% cash back on purchases
- Save up to 10¢ per litre on gas at participating Pioneer, Chevron and Ultramar stations
- Save 25% at participating Avis and Budget locations
- Send money overseas with no fees
- Qualify with household income as low as $15,000
Cons
- High 20.99% interest rate on purchases
- Foreign exchange fees apply
- Limited travel insurance coverage
based on spending $2,200/mo after $150 annual fee
- Earn rewards
1pt – 5pts / dollar earn rate
- Annual fee
$150
Perks
- Earn up to 5 points per dollar in eligible grocery and restaurant purchases*
- 2 points per dollar in eligible gas and electric vehicle charging purchases, recurring bill payments and À la carte travel (TM) purchases*
- 1 point per 1 dollar in other purchases
- Up to $150 each year in refund for travel expenses on airport parking fees, seat selection fees, baggage fees, airline ticket upgrades and access to airport lounges worldwide
- Free and unlimited access along with one (1) guest per cardholder to the National Bank Lounge at Montréal-Trudeau airport.
- Reassuring protection. Travel with peace of mind thanks to our comprehensive insurance coverage up to 60 days
- Out-of-province-of-residence medical/hospital insurance
- Departure flight delay insurance
- Baggage insurance in case of delay
- Baggages insurance in case of theft or loss
- Vehicle rental insurance
- Mobile devices insurance against theft or damages for a period of up to 2 years
- Medical, general and legal assistance
- Purchase protection in case of theft or damage*
- Extended Warranty*
- With the À la carte Rewards Plan® (the “À la carte Plan”), you earn points for every dollar on eligible purchases. These points may be exchanged for rewards such as merchandise, a travel package, a gift card, a travel discount, a donation, a financial product, repayment with rewards points or any other reward offered under the À la carte Plan
Features
Ratehub’s take
The National Bank World Elite Mastercard offers fantastic travel insurance coverage and features for seniors, making it a strong contender among travel credit cards. The trip insurance offers will save you money on your next vacation, plus, the strong points earnings you’ll get from the card could help you cover part or all of the cost of your next trip.
Pros
- Extensive travel insurance: Strong travel insurance, including extended emergency medical insurance coverage for seniors that will cover you for 15 days of travel plus trip cancellation or disruption and flight delay insurance, and more
- Travel expense refunds: Receive up to $150 each year in refunds for airport parking, seat selection, check-in fees, airline ticket upgrades and access to airport lounges worldwide
- Flexible redemption options: Combined with high, unlimited earn rates on essentials like groceries, gas and dining, this card also provides flexible redemption options on everything from travel through their A La Carte portal or redeeming for travel booked through any provider
Cons
- Annual fee: The $150 annual fee is slightly higher than average for this type of card
- Lounge access limitations: The complimentary lounge access only applies to Montreal airport
- Income requirement: The annual income requirement of $80,000 may be a barrier for some users
- Points values are fixed: Point values remain the same regardless of your destination, so it may take longer to accumulate points for longer flights. Plus, your points are worth less for anything other than booking travel through the A La Carte platform
Eligibility requirements
Minimum credit score: 760
Minimum income: $80,000/yr
Interest rates
Purchase interest: 20.99%
Cash advance: 22.49%
Balance transfer: 22.49%
National Bank is Canada’s sixth-largest bank and has one of the country’s most competitive offers for new immigrants. This card is available to newcomers with no credit history and offers great travel exclusives for when you head home.
The National Bank World Elite Mastercard rewards you with five points per $1 spent on groceries and restaurants, two points per $1 spent on bills, travel and fuel, and one point per $1 spent on everything else. Points are worth up to 1¢ each when redeemed for travel.
Other perks include comprehensive travel insurance, unlimited access to National Bank Lounge at Montreal-Trudeau Airport, and a $150 annual travel allowance.
Pros
- Earn up to five rewards points per 1$ spent
- Excellent travel insurance coverage
- Access to National Bank Lounge at Montreal-Trudeau Airport
- Reimbursement of up to $150 on common travel expenses
- Mobile device insurance
Cons
- $150 annual fee
- $80,000 minimum income requirement
- High 20.99% interest rate on purchases
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Why do you need a credit card?
There are many benefits to getting a credit card when you first move to Canada. Not only is it a convenient way to pay for purchases, it’s one of the easiest ways to build credit for your future borrowing needs.
Also read: The best secured credit cards in 2023
1. Establish your credit history
To borrow money in Canada, you need to have a good history of managing debt responsibly. Whether you need a mortgage to buy a home, a loan to get a new car, or a line of credit, the lender will want to see a long history of payments made on time.
One of the easiest ways to establish a credit history in Canada is by getting a credit card. Each time you make a payment, it will be recorded on your credit report. As you continue making your payments on time, your credit score will go up, enabling you to access more and better borrowing products.
Also read: Financial tips for newcomers
2. Get one while you can
When you first move to Canada, you may be eligible for special programs that allow you to get a first credit card without any credit history – but only within the first few years.
Once these programs have expired, your options for establishing credit will be limited. Most likely, you’ll have to start with a secured credit card that requires a security deposit and has a restrictively low credit limit.
3. Make payments easily
Digital payments are quickly becoming the preferred payment method in Canada. Cheques are almost never accepted, and some businesses have even stopped accepting cash. But you can use a credit card just about anywhere. You can even tap your credit card to pay for public transit in many Canadian cities.
4. Earn credit card rewards
Many of the best credit cards in Canada offer rewards and cash back as an incentive for using your card. As you spend, you’ll earn points you can redeem for travel or merchandise, or get a percentage of your purchases back in cash.
5. Borrow when money’s tight
When you first move to Canada, you might come up against unexpected expenses and other setbacks. Having a credit card can provide a valuable cushion for when you don’t quite have enough to pay the bills.
Credit cards have very high interest rates, however, so look for alternatives if you need to borrow money on an ongoing basis.
What to look for in a credit card for newcomers?
Credit cards in Canada are like snowflakes – no two are alike. But there are a few particular features you should keep an eye on when selecting one, especially as a newcomer to Canada.
- Approval with no credit history: Most credit cards require a minimum credit score to be approved, however many lenders have special exceptions for newcomers to Canada who have received permanent resident or landed immigrant status within the last five years. Look for cards that offer approval for newcomers with no credit history before going to alternatives.
- Annual fee: Credit cards in Canada have an annual fee ranging from $0 to $150 and up. The fee is typically commensurate with the rewards and features offered, but not always. If you pay your balance in full each month, you can often earn more in rewards than you’ll spend on the annual fee. Many cards waive this fee in the first year, and some offer extended no-fee benefits for newcomers.
- Rewards earned: The Canadian credit card landscape is filled with different rewards programs, each offering a slightly different experience. It can be difficult navigating the different rewards categories, earning rates, and redemption values, so compare credit cards online to find the card that will be most rewarding for you.
- Income requirements: While you don’t necessarily need a credit history in Canada to get a credit card, you will need to meet other qualifying requirements like a minimum income. Some cards require individual income of up to $80,000 per year, while others have no income requirement. You may be able to qualify for a card without meeting the income requirements if you can prove you have high net worth.
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