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.
Before you set out to get yourself a credit card after immigrating to Canada, consider the following features of a financial product:
The following are the top-rated credit cards for newcomers to Canada.
The Neo Card (Secured) 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 Card (Secured) 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.
Neo is offering new customers a $25 welcome bonus, sign up by clicking the button below and receive your $25.
Neo CardTM 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.
Valued at over $170 a year, Everyday Essentials perks can be added to your Neo 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.
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.
Premium Access perks is a great option for all Neo Card holders, as the price tag is so affordable at $0.99 a month with a value of over $100 a year.
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.
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
When you apply for a Tangerine Money-Back Credit Card by May 2, 2023, you’ll earn an extra 10% back (up to $100) when you spend up to $1000 in everyday purchases within your first 2 months.
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.
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.
The following chart provides a brief overview of the best newcomer credit cards in Canada:
| Card | Annual Fee | Interest Rate | Rewards |
| Neo Card (Secured) | $0 | – Purchase rate: 19.99% – 26.99% – Cash advance rate: 22.99% – 28.99% | – 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 |
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:
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.
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.
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.
As a newcomer to Canada, you’ll need the following to apply for a credit card:
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.
Rating of 5/5 based on 2 votes.
Lisa has been working as a personal finance 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.
Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
Don’t pay until March with this offer from our partner, Fairstone.* Ends January 31st.
New Offer! Get up to $2,000 cashback + a $50 bonus on signing up. Conditions apply.
Earn an average 5%¹ cash back at thousands of partners and at least 0.5%² cashback guaranteed.
With KOHO’s prepaid card you can build a better credit score for just $10/month.
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.
