Best Newcomer Credit Cards In Canada

Best Newcomer Credit Cards In Canada

Written by Lisa Rennie
Fact-checked by Caitlin Wood
Last Updated June 23, 2022

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 Card

neo financial credit card

The Neo Secured Card 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 the Neo Secured Card 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 1%2 cashback on all other purchases. 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% – 24.99%
  • Cash advance rate: 21.99% – 26.99%
  • Credit limit: $50 – $10,000
  • Rewards: Get an average cashback rate of 5%1  with participating retailers and 1%2 cashback on all other purchases

$25 Welcome Bonus

Neo is offering new customers a $25 welcome bonus, sign up by clicking the button below and receive your $25.

Refresh Financial Secured Card

Refresh Financial Secured Visa

Designed specifically with credit building in mind, the Refresh Financial Secured Card works a little differently than a typical unsecured credit card. Since this particular card is secured, you’ll need to front the money before you can spend it. As such, you’re not actually spending on credit, but are rather spending your own money that you’ve already deposited into the account. 

With every purchase you make using your Refresh Financial Secured Card, you gradually build up your credit. Eventually, you’ll be able to get approved for a conventional credit card to continue building good credit. 

  • Annual fee: $12.95
  • Maintenance fee: $3/month
  • Interest rate: 17.99%
  • Credit limit: $200 – $10,000

Scotia Momentum No-Fee Visa Card

Scotia Momentum Visa Infinite 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

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. 

  • 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

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

Home Trust Secured Visa

Home Trust Secured No-Fee 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:

CardAnnual FeeInterest RateRewards
Neo Secured Card$0– Purchase rate: 19.99% – 24.99%
– Cash advance rate: 21.99% – 26.99%
– Get an average cashback rate of 5%1 with participating retailers
– 1%2 cashback on all other purchases
Refresh Financial Secured Card$12.9517.99%N/A
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$019.95%– Earn up to 10% cashback on purchases over the first 2 months
– Afterward, 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?

If you can’t get approved for a traditional unsecured credit card, consider applying for a secured one. These cards are much easier to get approved for and can still be used much like a regular credit card, including to build credit.

Do I need a SIN card to apply for a credit card?

Most credit card issuers will require a SIN when you apply for a card. This will allow them to check your credit to help them determine whether or not you’re eligible to get approved. Having said that, some banks offer products that are geared specifically toward immigrants, which often do not require a SIN.

Do I need a bank account to get a credit card? 

Not necessarily. Having a bank account is often not a requirement. However, a bank account might make it easier to get approved for 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.

2Top-up is limited to $5,000 of spending/month at non-partners.


Rating of 5/5 based on 2 votes.

Lisa has been working as a writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same. She's used a variety of financial tools over the years and is currently growing her money with Wealthsimple, while stashing some capital in a liquid high-interest savings account so that she always has a financial cushion to fall back on. She's also been avidly using her Aeroplan TD credit card to collect as many Aeroplan points as possible to put towards her travels!

Click on the star to rate it!

How useful was this post?

Research & Compare

Canada's Loan Comparison Platform

Largest Lender Network In Canada

Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.

Make Smarter Borrowing Decisions

Whether you have good credit or poor credit, building financial awareness is the best way to save. Find tips, guides and tools to make better financial decisions.

Save With Loans Canada

Special Offers

50 Free Trades Offer

50 Free Trades Offer
Ends August 31st, 2022

Almost $500 in commission-free trades. Code “50TRADESFREE”. Conditions apply.

View Offer
Earn 5% Cash Back With Neo

Earn 5% Cash Back With Neo
No annual fee!

Earn an average 5%¹ cash back at thousands of partners and at least 1%² cashback guaranteed.

View Offer
Build Credit With Refresh

Build Credit With Refresh
Popular

Build credit while spending money with the Refresh Financial VISA card.

View Offer
Build Credit For $7/Month

Build Credit For $7/Month
Popular

With KOHO’s prepaid card you can build a better credit score for just $7/month.

View Offer
Industry Spotlight

What's happening with Canada's credit industry?

addy ⎯ Making Real Estate Accessible To All Canadians

addy ⎯ Making Real Estate Accessible To All Canadians

Check out our interview with addy; a platform that allows Canadians to invest in different properties across Canada with as little as $1.

Read Post
Locator
Find The Best Rate
In Your Region
OR
Best Personal Loan Provider by Greedy Rates
Icon

Confidential & risk-free

All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan. Loans Canada is not a mortgage broker and does not arrange mortgage loans or any other type of financial service.

When you apply for a Loans Canada service, our website simply refers your request to qualified third party providers who can assist you with your search. Loans Canada may receive compensation from the offers shown on its website.

Only provide your information to trusted sources and be aware of online phishing scams and the risks associated with them, including identity theft and financial loss. Nothing on this website constitutes professional and/or financial advice.

Your data is protected and your connection is encrypted.

Loans Canada Services Are 100% Free. Disclaimer

Keep Track Of Your Credit Score

Subscribe with Credit Verify to monitor your credit rating and get your free credit score.