Best credit cards for newcomers in Canada 2024
Updated: May 01, 2024
For newcomers in Canada, it’s important to start building healthy credit as soon as you land. Credit shows banks how well you can handle money. With a good credit score, banks are more likely to lend you money for purchasing a car or a house. Getting a credit card and paying off the balance each month is a simple way to boost your credit score.
Credit cards also let you shop online, access emergency funds and earn rewards. While it's tough for newcomers without credit history to get a credit card, Canada offers special opportunities to make it easier. Here are the best credit cards for newcomers in Canada.
The best credit cards for new immigrants in Canada
| Card name | Card details | Get started |
|---|---|---|
| Scotia Momentum No-Fee Visa Card |
◦ $0 annual fee
◦ 1% cash back at gas stations, grocery stores, drugs stores, and on recurring payments. ◦ 0.5% cash back on all other eligible purchases. |
Apply Now |
| Scotiabank American Express |
◦ No annual fee
◦ 3x Scene+ points at Sobeys, Safeway, Freshco and more ◦ 2x Scene+ points¹ on dining; eligible entertainment purchases; eligible gas and daily transit; eligible select streaming services ◦ 1x Scene+ point on all other eligible everyday purchases. |
Apply Now |
| Scotiabank® Scene+™ Visa* |
◦ $0 annual fee
◦ 2x Scene+ points at Sobeys, Safeway, Foodland & Participating Co-ops, FreshCo and more; home hardware; Cineplex. ◦ 1x on all other eligible everyday purchases |
Apply Now |
| BMO CashBack® MasterCard®* review |
◦ No annual fee
◦ 3% cash back on groceries (up to a monthly max of $500) ◦ 1% on any recurring bill payments* (up to $500 per month) ◦ 0.5% on all other eligible purchases* |
Apply Now |
| RBC Cash Back Mastercard |
◦ $0 annual fee
◦ 2% unlimited cash back on groceries ◦ 1% unlimited cash back on everything else |
Apply Now |
| Home Trust Secured Visa |
◦ No annual fee
◦ No required annual income |
Apply Now |
| KOHO Prepaid Mastercard |
◦ No annual fee
◦ No required annual income ◦ 1% cash back on groceries and transportation ◦ 3% interest earned on your account balance ◦ Free ATM withdrawals and e-transfers |
Apply Now |
How can newcomers get a credit card with no Canadian credit history?
You can easily get a credit card as a newcomer in Canada as banks have special offers for all newcomers. Banks offer two main types of credit cards: secured cards, which require an initial deposit to cover any unpaid balance, and unsecured cards, which can be obtained without any deposit requirements. Canada’s top banks offer special programs specifically designed for the needs of immigrants, including providing them with access to unsecured credit cards. Access to unsecured credit cards is a privilege that other Canadians without credit history typically do not have.
If a new immigrant is only interested in obtaining a credit card and does not wish to join a bank’s complete banking program for new immigrants, they can obtain a secured card instead.
Unsecured credit cards via special Canadian bank programs for newcomers
Becoming familiar with the Canadian banking system, choosing the right credit products, and setting up a solid financial plan can be intimidating tasks for a new immigrant. Thankfully, Canada’s top banks offer special bank programs specifically designed for the needs of immigrants, including providing them with unsecured credit cards.
Scotiabank's best credit cards for newcomers
Scotia Momentum No-Fee Visa Card
1% Cash back at gas stations, grocery stores, drugs stores, and on recurring payments.
0.5% Cash back on all other eligible purchases.
25% Off base rates at Avid and Budget locations in North America.
$0 Annual Fee $0 for each additional card
19.99% Purchase APR
22.99% Cash Advance APR
22.99% Balance Transfer Rate
2.50% Foreign Transaction Fee
Fair Recommended Credit Score
Welcome Offer Ends Oct 31, 2024
Earn 5% cash back on all purchases for the first 3 months (up to $2,000 in total purchases); Plus, get a 0% introductory interest rate on balance transfers for the first 6 months (22.99% after that; annual fee $0)
Learn moreAs its name would suggest, the Scotia Momentum® No-Fee Visa* Card is inexpensive because it does not come with an annual fee. It’s unsecured, meaning you won’t need to give the bank a cash deposit in exchange for a credit limit. The card also comes with a welcome bonus. With this card, you can earn points on essentials like gas, groceries, drugstore purchases, and recurring bills
Earn a solid 1% cash back rate on these categories, catering to your routine shopping needs. Plus, enjoy a welcome bonus offering 5% cash back on up to $2,000 in purchases within the first three months. And for those looking to manage existing debt, take advantage of the promotional balance transfer offer of 0% on transfers made within the first six months, albeit with a 2% transfer fee. This offer is valid from November 1, 2023, to October 31, 2024.
However, the Scotia Momentum® No-Fee Visa* Card has its limitations. Non-essential spending rewards are lower at 0.5%, and the redemption process is somewhat inflexible, allowing redemption only once a year in November. Additionally, the card lacks comprehensive insurance coverage, although optional insurance can be purchased, and a 2.5% foreign transaction fee may not be ideal for travelers or those making purchases in foreign currencies.
Who should consider this card? If you appreciate maximizing your dollar's value and seek a practical credit card that aligns with your budget, the Scotia Momentum No-Fee Visa Card could be the right choice. It's especially beneficial if your regular expenses primarily consist of groceries, gas, and recurring bills. This card is also suitable for newcomers to credit cards, offering a simple way to build credit and earn rewards, as well as students looking for a cash-back card without an annual fee and with a low introductory rate on balance transfers.
Scotiabank American Express
3x Scene+ points on every $1 you spend at Sobeys, Safeway, Freshco and more
2x Scene+ points¹ for every $1 you spend on restaurants, fast food, drinking establishments and other eligible grocery stores. Includes popular food delivery and food subscriptions.
2x Scene+ points¹ for every $1 you spend on eligible entertainment purchases. Includes movies, theatre and ticket agencies stores.
2x Scene+ points¹ for every $1 you spend on eligible gas and daily transit. Includes ride shares, buses, subway, taxis and more
2x Scene+ points¹ for every $1 you spend on eligible select streaming services
1x Scene+ point for every $1 spent on all other eligible everyday purchases.
$0 Annual Fee Additional cards are $0
19.99% Purchase APR
22.99% Cash Advance APR
22.99% Balance Transfer Rate
2.50% Foreign Transaction Fee
Good Recommended Credit Score
Looking for a rewarding credit card option as a new immigrant in Canada? Consider the Scotiabank American Express Card, tailored for those who want to earn Scene+ rewards without dealing with annual fees. Despite being fee-free, this card boasts an impressive rewards structure that rivals pricier options. Earn three points for every dollar spent at select grocery stores like Foodland, Sobeys, and FreshCo, and two points for every dollar spent on dining, entertainment, gas, ridesharing, and streaming services. This card also offers mobile device insurance, typically reserved for premium cards, along with car rental discounts and a welcome bonus of 7,000 Scene+ points.
Who's this card for? It's ideal for newcomers to the credit card world, especially young adults who've been building credit with basic offerings from their banks. If you're keen on exploring credit card rewards without committing to an annual fee, this card is for you. While its welcome bonus might not be the highest, the focus here is on starting your rewards journey affordably.
Key benefits:
◦ Up to three points per dollar spent.
◦ Mobile device insurance.
◦ Extended warranty protection and purchase security.
Insurance coverage:
In addition to mobile device insurance, enjoy purchase security, and extended warranty protection. Optional insurance packages are available for additional coverage.
If you're seeking a no-fee card with solid rewards and essential insurance coverage, this card offers a practical option. However, if you prioritize premium features like travel insurance and lounge access, you might consider other options.
¹ Conditions Apply. Visit here for the Scotiabank American Express® Card to learn more.
Scotiabank® Scene+™ Visa*
2x Scene+ points on every $1 you spend at Sobeys, Safeway, Foodland & Participating Co-ops, FreshCo and more.
2x Scene+ points4 for every $1 you spend at Home Hardware, Home Building Centre, Home Hardware Building Centre, Home Furniture locations in Canada and online at homehardware.ca.
2x Scene+ points for every $1 you spend at Cineplex◊ theatres or at cineplex.com.
1x Scene+ point for every $1 spent on all other eligible everyday purchases
25% Save up to 25% off base rates at participating Avis locations and participating Budget locations in North America.
$0 Annual Fee $0 for each additional card
20.99% Purchase APR
22.99% Cash Advance APR
22.99% Balance Transfer Rate
2.50% Foreign Transaction Fee
Good Recommended Credit Score
New immigrants interested in these cards should contact Scotiabank about joining their Scotiabank StartRight® program. It is created for Canadian Permanent residents from 0–3 years in Canada, International Students and Foreign Workers.
¹ Conditions Apply. Visit here for the Scotiabank® Scene+™ Visa* Card to learn more.
BMO's best credit card for new immigrants
BMO CashBack® MasterCard®*
3% Cardholders earn 3% (up to a monthly max of $500) cash back on groceries
1% Cardholders can earn 1% (up to $500 per month) on any recurring bill payments*
0.5% Cardholders can earn 0.5% (no monthly max) on all other eligible purchases*
$0 Annual Fee
20.99% Purchase APR
22.99% Cash Advance APR 21.99% for Quebec residents
Good Recommended Credit Score
$15,000 Required Annual Personal Income
New immigrants interested in the BMO CashBack® MasterCard®* should contact BMO about its Newcomers to Canada program, which is designed for foreign workers, new immigrants and international students residing in Canada. People who plan on moving to Canada soon can also create bank accounts and execute wire transfers in advance of their arrival. This BMO newcomer credit card is worth checking out!
BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information
*Terms and conditions apply
†Based on a comparison of the non-promotional grocery rewards earn rate on cash back credit cards with no annual fee as of January 4, 2023.
RBC's best credit card for newcomers
RBC offers new immigrants both a cash back and rewards card.
RBC Cash Back Mastercard
2% Up to 2% unlimited cash back on groceries
1% Up to 1% unlimited cash back on everything else
$0.03 Link your card and instantly save 3¢/L on fuel and 20% more Petro-Points at Petro Canada
50 Get 50 Be Well points for every $1 spent on eligible products at Rexall
$0 Annual Fee No annual fee
20.99% Purchase APR
22.99% Cash Advance APR $3.50 fee
22.99% Balance Transfer Rate
3.50% Balance Transfer Fee
Good Recommended Credit Score
The above card may be available to Permanent or Temporary Residents, international students, refugees and those who plan on moving to Canada soon via the RBC Newcomer Advantage Plan.
Refer to RBC Page for up to date offer terms and conditions.
KOHO's best prepaid card for newcomers
KOHO Mastercard
1% cash back on groceries and transportation
3% interest earned on your account balance
$0 Annual Fee Option to add credit building (price available in app)
0.00% Purchase APR
0.00% Cash Advance APR
Poor Recommended Credit Score
$0 Required Annual Personal Income
$0 Required Annual Household Income
Prepaid credit cards are simple to use: you load your own money onto the card before spending. With no debt incurred and no interest charges, it's a hassle-free way to shop. Plus, you earn points and can build credit history while enjoying unique card benefits.
The KOHO Prepaid Mastercard® allows you to earn cash back rewards and interest while you shop, which are rare perks for a prepaid card. You can earn 1% cash back on groceries and transportation and 3% interest on your total account balance. This reloadable card also comes with an integrated app that gives real-time insights into your daily spending.
Secured credit cards for new immigrants
If you’re not interested in signing up for a complete immigrant banking program, but still wish to improve your credit score, we recommend getting a secured credit card. A secured credit card is an easy way to get access to credit without a credit history, or with bad credit. Banks simply ask applicants to match their desired credit limit (the maximum amount of money you can spend with the credit card) with a cash deposit beforehand.
Secured cards are great for improving your credit score, because their card issuers frequently report repayment performance to Equifax and TransUnion, the two Canadian credit bureaus that track Canadians’ credit histories. However, secured credit cards do have some drawbacks: they rarely offer the same level of rewards or cash back as unsecured cards, and they don’t have high credit limits unless you have a lot of spare cash to offer as the deposit. Some of the best secured credit cards in Canada are listed below:
Home Trust Secured Visa
$0 Annual Fee Opt for $59 annual fee and pay 14.90% APR interest
19.99% Purchase APR
21.99% Cash Advance APR
Good Recommended Credit Score
$0 Required Annual Personal Income
$0 Required Annual Household Income
$500 Min Security Deposit
Home Trust offers multiple versions of their secured card with differing fee and rate options depending on your budget and spending habits. We recommend the Home Trust Secured Visa with an annual fee of $0 and a Purchase APR of 19.99%. A higher interest rate isn’t detrimental as long as applicants are serious about paying off their card balances in full each month.
Welcome to Canada!
Canada is one of the most friendly and welcoming places in the world, and this characteristic extends to its treatment of new immigrants. Any of the above credit cards and banking programs will help you establish a healthy financial future in this country.
Interested in additional personal finance tips for new immigrants? We’ve set up a page that provides an overview of all the major financial concerns for new immigrants. Check it out and let us know if you have any other questions that we didn’t cover.
BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information.
FAQs about credit cards for new immigrants in Canada
Lubna Umar has worked in the field of personal finance for over 5 years. She has produced a wide variety of content including personal finance guides and insurance reports for brands like RATESDOTCA and the Financial Post. In her free time, she can be found writing fiction or exploring the café culture in Toronto or any other major city.
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