Moving to Canada comes with a laundry list of to-do’s, and perhaps one of the most important things to take care of is your finances. In addition to opening a bank account, new immigrants to Canada might also want to look into applying for a credit card.
Having a credit card is great for making convenient purchases, but more importantly, it’s an excellent tool to help you build good credit.
Banks and lenders use your credit score to measure your financial responsibility. With a good credit score, you’ll have a better chance of getting approved for various financial products, including a mortgage to buy a house. And having a credit card — and using it responsibly — is a great way to start building solid credit.
Credit cards also allow cardholders to accumulate points that can be redeemed for free goods and services. And in an emergency situation, having a credit card can provide access to emergency funds needed to cover an urgent expense.
Certain credit cards are better suited for newcomers than others, especially when it comes to annual fees and approval requirements. Read on to find out some of the best credit cards for immigrants to Canada.
What Should You Look For In A Credit Card As A Newcomer?
Before you set out to get yourself a credit card after immigrating to Canada, consider the following features of a financial product:
- Annual fee. As a newcomer to Canada, you’re most likely looking to keep all your expenses to a minimum, and one way to do that is to look for a credit card that comes with a $0 annual fee, or at least a very low fee. If the card comes with a yearly fee, assess the rewards that it offers and make sure they’re worth the fee you have to pay each year.
- Rewards. Many credit cards offer some type of rewards system that allows you to earn points with every expenditure you make. Look for a card that offers high cashback rewards for the types of purchases you spend the most on.
- Perks. Some credit cards offer other perks besides rewards points, including travel insurance, VIP airport lounge access, and purchase protection.
- Eligibility requirements. Find out what you need to qualify for the credit card you’re interested in and make sure you meet these criteria before applying.
Best Newcomer Credit Cards In Canada
The following are the top-rated credit cards for newcomers to Canada.
Neo Secured Credit
Neo Secured Credit is a secured credit card offered by Neo Financial; a fintech company in Canada that aims to change the way Canadians spend, save and build credit. While Neo Secured Credit is a secured credit card, it comes with many perks of a traditional credit card, including cashback rewards and the ability to build credit.
Users can earn an average cashback rate of 5%1 with participating retailers and earn up to 15%1 cashback on their first purchase with Neo partners. The card also has no annual fees and low requirements for approval. There are no credit checks and the minimum deposit is $50. Users can also take advantage of Neo’s real-time notifications to help budget and track expenses.
- Annual fee: None
- Interest rate:
- 19.99% – 26.99%
- QC: 19.99% – 24.99%
- Cash advance rate:
- 22.99% – 28.99%
- QC: 22.99% – 25.99%
- Credit limit: $50 – $10,000
- Rewards: Get an average cashback rate of 5%1 with participating retailers and earn up to 15%1 cashback on your first purchase with Neo partners
$25 Welcome Bonus
Neo is offering new customers a $25 welcome bonus, sign up by clicking the button below and receive your $25.
Neo Credit Perks
Neo Credit holders can customize their cards by adding perks. Neo perks are stackable and reward you for spending by boosting cashback offers for different categories. Neo perks are flexible and come with no commitment. You can easily add a perk to your card via the Neo app and cancel it at any time.
Everyday Essential Perks
Valued at over $170 a year, Everyday Essentials perks can be added to your Neo Credit card for a low fee of $8.99 a month. With it, users can earn 1.5x more cash back when they shop at participating grocery stores and gas stations.
- 1.5x more cashback at grocery and wholesale stores like Costco and Walmart
- 1.5x more cashback at specialty food and liquor store partners
- 1.5x more cashback at gas station partners
- Access to exclusive offers from grocery stores and gas stations
- Have your card balance covered with life insurance protection
Travel Perks
Neo Travel perks cost $4.99 a month and have a value of over $360 a year. Users who travel regularly will benefit from the added perks.
- 1.5x cashback boost at all airline, hotel, and car rental travel partners
- 2% cashback on all foreign transactions
- Comprehensive travel insurance
- Priority Pass airport lounge access
Premium Access Perks
Premium Access perks is a great option for all Neo Credit holders, as the price tag is so affordable at $0.99 a month with a value of over $100 a year.
- Up to 20% cashback on first-time purchases
- Exclusive monthly cashback bonus offers
- Priority phone line with customer support
- Purchase protection with extended warranty
Scotia Momentum No-Fee Visa Card
One of the best cashback credit cards available is the Scotia Momentum No-Fee Visa Card. As the name suggests, there’s no annual fee to pay, which is a huge perk for those looking to keep costs to a minimum.
You’ll earn 5% cashback on all purchases up to $2,000 for the first 3 months. Then, you’ll earn 1% cashback on all eligible gas, grocery, and pharmacy purchases, as well as recurring payments.
There’s also a super-low introductory rate of 1.99% on balance transfers, so if you’re currently carrying a high-rate balance on another card, you can transfer it over to the Scotia Momentum No-Fee Visa Card and pay it down faster with a near-zero rate.
- Annual fee: $0
- Purchase interest rate: 19.99%
- Cash advance interest rate: 22.99%
- Welcome offer: Earn 5% cashback on all purchases for the first 3 months; 1.99% introductory rate
- Rewards: Earn 1% cashback on all eligible gas, grocery, and pharmacy purchases, and recurring payments
Tangerine Money-Back Credit Card
Another great no-free credit card that offers cashback rewards is the Tangerine Money-Back Credit Card. This card allows you to earn unlimited Money-Back Rewards on purchases.
You’ll earn 2% cashback on everyday purchases in 2 different categories of your choice, and 0.50% cashback on all other eligible purchases. And if you open a Tangerine Savings Account, you can get a 3rd category added.
For the first 30 days, you can take advantage of a 1.95% transfer balance rate for the first 6 months.
Special Offer
Apply for a Tangerine Money-Back Credit Card by July 5, 2023. If you’re approved, you’ll earn an extra 10% back on up to $1,000 in everyday purchases made within your first 2 months.*
- Annual fee: $0
- Interest rate: 19.95%
- Welcome offer: Earn up to 10% cashback on purchases over the first 2 months; 1.95% introductory rate
- Rewards: Earn up to 2% cashback in 2 categories, including groceries, pharmacies, home improvement stores, and more.
BMO CashBack MasterCard
The BMO CashBack MasterCard comes with no annual fee and allows you to earn cashback on everyday purchases. For the first 3 months, you can earn as much as 5% cashback rewards, then between 0.5% to 3% afterwards, depending on the purchase category.
You can also take advantage of an introductory interest rate of 1.99% on transfer balances for 9 months, which gives you plenty of time to pay down any high-rate balances you might currently be carrying on other credit cards.
- Annual fee: $0
- Purchase interest rate: 19.99%
- Cash advance interest rate: 22.99%
- Welcome offer: Earn 5% cashback in the first 3 months; 1.99% introductory rate
- Rewards: Earn 3% cashback on groceries, 1% cashback on regular bill payments, and 0.5% cashback on all other purchases
Additional Reading
Home Trust Secured Visa
Another secured credit card option is the Home Trust Secured Visa, which also requires that you make an initial deposit before you can start spending. The great thing is that securing these types of cards is pretty much guaranteed as long as you make the required minimum deposit. After that, you can spend up to your deposit limit before you need to top up your account again.
The card comes with no annual fee and 19.99% in interest, though you have the option to reduce your interest rate to 14.90% by paying a $59 annual fee.
The card also comes with insurance on eligible items against damage or theft for 90 days from the date of purchase.
- Interest rate options: 14.90% interest and $59 annually, or 19.99% interest and $0 annually
- Perks: Purchase insurance
Best Newcomer Credit Cards Canada Overview
The following chart provides a brief overview of the best newcomer credit cards in Canada:
| Card | Annual Fee | Interest Rate | Rewards |
| Neo Secured Credit | $0 | – Purchase rate: 19.99% – 26.99% (QC: 19.99% – 24.99% ) – Cash advance rate: 22.99% – 28.99% (QC: 22.99% – 25.99%) | – Get an average cashback rate of 5%1 with participating retailers – Earn up to 15%1 cashback on your first purchase with Neo partners |
| Scotia Momentum No-Fee Visa Card | $0 | – Purchase rate: 19.99% – Cash advance rate: 22.99% | – Earn 5% cashback on all purchases for the first 3 months – After, earn 1% cashback on eligible purchases |
| Tangerine Money-Back Credit Card | $0 | 19.95% | – Earn up to 10% cashback on purchases over the first 2 months – After, earn up to 2% cashback on eligible purchases |
| BMO CashBack MasterCard | $0 | – Purchase rate: 19.99% – Cash advance rate: 22.99% | – Earn 5% cashback in the first 3 months – After, earn 3% cashback on eligible purchases |
| Home Trust Secured Visa | – $0 with rate of 19.99% – $59 with rate of 14.90% | – 19.99% interest and $0 annually – 14.90% interest and $59 annually | N/A |
How To Qualify For A Credit Card As A Newcomer
In order to qualify for a credit card as an immigrant to Canada, you’ll first need to open a bank account. All big banks in Canada offer products specifically for newcomers and can help streamline the process of opening an account. At the same time, you may also be able to open a credit card account with the same financial institution, which might be the easier route to take.
If you’re unable to get approved for an unsecured credit card, there are a few things you can do:
Apply For A Secured Credit Card
An unsecured credit card is a lot more difficult to get approved for and typically requires more stringent approval criteria. In this case, you might want to consider applying for a secured credit card, which is much easier to get access to. And by using the card regularly and responsibly, you can build good credit to the point where you may eventually get approved for an unsecured card.
Apply For A Prepaid Card
Another option available is a prepaid card. These types of financial products let you load money onto them and then use them for making purchases. Keep in mind, however, that a prepaid credit card will not help you build credit.
Get In Touch With Your Bank
If you have a bank account and other financial products with a bank in your home country, give them a call and ask if they offer credit cards in Canada.
What You Need To Apply For A Credit Card In Canada
As a newcomer to Canada, you’ll need the following to apply for a credit card:
- Residency status. You’ll need to provide information related to your residency status, including your visa details.
- Home address. You’ll probably require a residential address in Canada to secure a credit card.
- Employment. Having a stable income and job is a requirement for credit card approval.
- Financial information. Different financial requirements may exist for newcomers to Canada compared to Canadian citizens. As such, you might need a certain amount of savings in your Canadian bank account for credit card approval.
FAQs About Credit Cards For Newcomers to Canada
What should I do if I can’t qualify for a credit card as a new immigrant?
Do I need a SIN card to apply for a credit card?
Do I need a bank account to get a credit card?
Final Thoughts
There are so many loose ends to tie up when immigrating to Canada, and dealing with your finances is a big one. Having a credit card in your wallet can afford you many perks, but some are better suited for newcomers than others. Look into each of the cards mentioned here and choose one that best suits your needs.
Card issued by ATB Financial pursuant to license by Mastercard International Inc.
1Average based on current offers at select partners. Cashback varies per plan, offer and partner.
