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Best credit cards for recent grad students

Best credit cards for recent grad students in Canada

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Author: Tyler Wade

By Tyler Wade

🗓️

Updated: May 08, 2024

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Congratulations, today is your day. You're off to great places. You're off and away. Dr. Seuss had a way with words, and in 2020, his estate earned $33 million before taxes1, so maybe he was good with money, too. 

For new graduates, recent graduates or even if you're heading to post-grad, 51% of Canadian students with Bachelor's degrees, according to Statistics Canada, are in debt. Of those surveyed, 48% of students owe over $25,000, with the average debt at graduation being $30,600 from government and non-government sources2 (like credit cards).

Fortunately, 46% of graduates had non-government debt paid off at the time of the interview (I assume for their first job after graduation). 

But how?

One effective strategy to manage high interest debt is to consider a balance transfer credit card. This type of card allows you to transfer your existing debt to it, often at a low interest rate, sometimes even 0% for 6-12 months, depending on the card you choose. This can help you save on interest and pay off your debt faster.

Then, there are those of you who aren't in debt, have landed a prestigious job, are looking to climb the ladder of financial stability and enjoy the perks that come with it.

You are no longer beholden to your University credit card, which may not be rewarding your new-grad level of creditworthiness.

For that, we've assembled a list of the best credit cards for grad students and new grads.

Best for Cash back

Best credit card for new grads: Cash back

CIBC Dividend® Visa Infinite

Apply now

4

10% back

Good

Get a first-year annual fee rebate and earn 10% cash back welcome bonus of up to $250!†

Apply now

Earn 4% cash back on gas, EV charging, and groceries.

4%

Earn 2% cash back on dining, transportation, recurring payments or bills.

2%

Earn 1% cash back on all other purchases with no limit.

1%

Save 10 cents per litre with CIBC and Journie Rewards (Ultramar, Chevron, Pioneer, Fas Gas)

10 cents

Purchase APR

20.99%

Balance Transfer Rate

22.99%

Cash Advance APR

22.99%

Annual Fee

$120

Recommended Credit Score

Good

Required Annual Personal Income

$60,000

Required Annual Household Income

$100,000

Pros

  • Very high cash back rates on eligible groceries and gas and electric vehicle charging

  • Lucrative welcome offer

  • Flexible cash back redemption policy

  • Premium Visa Infinite benefits†

  • No limit on the total cash back you can earn†

Cons

  • Maximum annual spending limits in accelerated cash back

  • High-ish annual fee

  • Mid-level income requirement

If you were using Money.ca’s pick for best student credit card, the BMO Cash Back for students, you may get automatically updated to the non-student version, essentially the same credit card. Unfortunately, you can’t capitalize on its promotional balance transfer offer, nor can you simply transfer the balance to the “adult” version of the card. 

So, switching to the best cash back credit card in Canada, the CIBC Dividend Visa Infinite has a $120 annual fee. 

To qualify, you’ll need to make at least $60,000 and have a “good” credit score of at least 660. 

Read more: Best credit cards for good credit scores

With the CIBC Dividend Visa Infinite, the cap on your grocery spending is $20,000, meaning you’ll continue to earn cash back far more than BMO’s limit of $500 per statement cycle period. 

Like BMO, you can redeem your cash back any time, so long as you have a minimum of $25 available. BMO allows you to deposit money into your BMO InvestorLine account or your BMO Chequing and Savings account, whereas CIBC issues a statement credit. With CIBC, you can also request cashback be paid out only once a year (as an adult with two kids, I’ll say post-Christmas may be ideal, but you do you).

Is it worth the $120 annual fee? Let’s do some cash back credit card math.

Dollar values (for estimation purposes only) BMO Student Cash Back Mastercard CIBC Dividend Visa Infinite
Annual fee $0 $120
Annual grocery spend: $6,000 At 3%: $180 At 4%: $240
Recurring bills, streaming services, subscriptions and utilities: $1,200 At 1%: $12 At 2%: $24
Gas or EV charging spend: $2,400 At 0.5%: $12 At 3%: $48
Transportation (e.g. rideshare, transit): $1,000 At 0.5%: $5 At 2%: $20
Dining (eats & drinks): $1,800 At 0.5%: $9 At 2%: $36
All other purchases: $12,000 At 0.5%: $60 At 1%: $120
Total cash back earned $278 $488
Less annual fee $0 $120
Is it worth it? $278 $368

Other cash back credit cards for recent grads we love

BMO CashBack® World Elite® Mastercard

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4.0

Read Review
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$120 Annual Fee

Excellent Recommended Credit Score

$80,000 Required Annual Personal Income

SimplyCash® Card from American Express

Apply Now

3.5

Read Review
Apply now

$0 Annual Fee

Good Recommended Credit Score

$0 Required Annual Personal Income

TD Cash Back Visa Infinite* Card

Apply Now

4.0

Read Review
Apply now

$139 Annual Fee

Excellent Recommended Credit Score

$60,000 Required Annual Personal Income

Best for Travel

Best credit card for new grads: Travel

American Express Cobalt® Card

Apply now

5

15,000 pts

Fair

Earn up to 15,000 Membership Rewards points

Apply now

Earn 5 times he points on eligible eats and drinks in Canada, including groceries and food delivery. Spend cap applies.

5x

Earn 3 times the points on eligible streaming subscriptions in Canada.

3x

Get 2 times the points on eligible ride shares, transit & gas in Canada.

2x

Earn 1 additional point on eligible hotel and car rental bookings via American Express Travel Online

1x

Earn 1 point for every $1 in Card purchases everywhere else

1x

Get up to $100 USD hotel credit to use on amenities when charged to the room for a stay of 2 or more consecutive nights through The Hotel Collection from American Express Travel.

$100 USD

Purchase APR

21.99%

Cash Advance APR

21.99%

Annual Fee

$155.88

Foreign Transaction Fee

2.50%

Recommended Credit Score

Fair

Required Annual Personal Income

$0

Required Annual Household Income

$0

Pros

  • High earn rates (up to 5% return on spending!)

  • Flexible month-by-month fee structure

  • Free supplementary cards

  • 1:1 points transfer with selected hotels, airlines and frequent flyer programs

Cons

  • Accelerated earn rates only apply to purchases in Canada (not to purchases made abroad)

  • Amex has a more limited merchant acceptance rate than Visa and Mastercard

  • Slightly higher than average annual fee

The tricky thing with the Cobalt is that people assume Amex isn’t accepted everywhere. However, that narrative changed after Amex launched its “Shop small” campaign to support small businesses. 

Read more: Where is Amex accepted in Canada

Beyond being the winner of the best credit card in Canada for 2024, the Cobalt is loved for its high earning rate on food and drinks in Canada, including groceries and food delivery. You’ll also earn better than average rates on subscriptions (e.g., Netflix, Spotify), rideshares, transit and gas. It’s sure to fit your new grad lifestyle. 

And all those reward points can be redeemed for great rewards. 

American Express Membership Rewards points transfer 1:1 with Aeroplan, British Airways, and Hilton. You can also transfer them to Marriott Bonvoy, Asia Miles and Air France. As well, you can book directly with Amex travel online. 

A colleague at work uses her points to redeem for statement credits whenever she wants a coffee but doesn’t feel right about spending the money that day. 

While its annual fee is higher, it is divided into monthly payments, making it much more digestible. If you love this card but don’t have the income qualifications, don’t worry—with Amex, there are no income requirements. 

Best for 22-year-olds

Best credit card for 22-year-olds

Scotia Momentum® Visa* Card

3.7

Fair

about new welcome offers by email

Read review

cash back for every $1 you spend on all eligible gas stations, grocery store, drug store purchases and recurring bill payments.

2%

cash back on all other eligible purchases.

1%

savings off base rates at participating AVIS locations and at participating Budget locations in North America.

25%

days of purchase security on most items purchased with your card.

90

extra year on top of manufacturer's warranty.

1

Purchase APR

19.99%

Balance Transfer Rate

22.99%

Cash Advance APR

22.99%

Annual Fee

$39

Recommended Credit Score

Fair

A cash-back card that gives you a decent rewards rate on everyday purchases like gas, groceries, drugstores and recurring bills, a low annual fee of $39, and a low personal income requirement of $12,000 is a sweet credit card now that you’ve graduated. 

The bonus is they also have a balance transfer offer of 2.99% for six months, with a transfer fee of 0%. 

Best for budget-savvy

Best credit card for grad students who want to be smarter about money

EQ Bank Card

Apply now

3

Fair

about new welcome offers by email

Apply now

cash back on purchases

0.5%

interest on your balance

2.5%

Purchase APR

0.00%

Annual Fee

$0

Foreign Transaction Fee

0.00%

Recommended Credit Score

Fair

Required Annual Personal Income

$0

Required Annual Household Income

$0

If you're looking for the best credit card post-graduation but still don't have the income qualifier most premium credit cards want to see, we figure the smart choice is the EQ Bank card. 

It's a prepaid Mastercard, so you're not building credit, but the card has no fees and earns 0.5% cash back on all purchases. They'll reimburse you for any ATM withdrawals you make with the card. 

While you must switch banks, EQ Bank is incredible for its customer service and high interest rates. You'll earn 2.5% cash back on your balance and an additional 1.5% if you direct deposit your pay. 

While you should start investing your money in the stock market, a 4% return on your money ain't too shabby. It would help if you still began to contribute a few bucks with a robo-advisor to get you started. 

Read more: Best robo advisors in Canada

Best for debt

Best credit card for grad students who want to pay off their student credit card debt

MBNA True Line Mastercard

Apply now

4

0% intro rate

Good

Get a 0% promotional annual interest rate (“AIR”)† for 12 months on balance transfers✪ completed within 90 days of account opening.

Expires

Jan 1, 2025

Apply now

New cardholders can enjoy a 0% promotional annual interest rate† (a 3% transfer fee applies) for 12 months on any balance transfer✪ completed within 90 days of opening the account

0%

Purchase APR

12.99%

Balance Transfer Rate

12.99%

Cash Advance APR

24.99%

Annual Fee

$0

Recommended Credit Score

Good

Pros

  • Solid welcome offer: 12 months of 0% APR† on balance transfers✪ made within the first 90 days (3% transfer fee applies)

  • No annual fee or minimum income requirement

  • Low standard interest rate of 12.99% for all new purchases charged to the card

  • Some extra perks like fraud protection and a discount on car rentals

Cons

  • 3% balance transfer fee is comparatively high

  • Very high cash advance interest rate of 24.99%

  • No insurance benefits

  • Can’t transfer a balance owed to either MBNA or TD

You can’t beat this balance transfer offer: 0% interest for the first 12 months, with no annual fee. 

While you’ll have to pay a 3% balance transfer fee, it’s small relative to the amount you’ll save if you can’t seem to get ahead of your student debt. 

Let’s say you owe $4,000. You’ll pay $120 to transfer your existing balance to MBNA and then pay $333.33 per month for the next 12 months, and your balance will be gone. Say hello to being debt-free (at least for your credit card). This no-interest card for 12 months is a breath of fresh air for anyone struggling with debt.

Scotiabank Value Visa

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4.0

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$29 Annual Fee

Fair Recommended Credit Score

$0 Required Annual Personal Income

BMO AIR MILES®† MasterCard®*

Apply Now
Apply now

$0 Annual Fee

Good Recommended Credit Score

$15,000 Required Annual Personal Income

BMO Preferred Rate Mastercard®*

Apply Now

3.6

Read Review
Apply now

$29 Annual Fee

Good Recommended Credit Score

$0 Required Annual Personal Income

Best for no credit

Best credit card for recent college graduates with no credit

Neo Secured Credit Card

Apply now

4

$25 on signup

Poor

$25 customer sign up bonus welcome offer

Apply now

Up to 15% on first new purchases with Neo partners

15%

With Neo Partners

5%

on gas and groceries

1%-3%

Streaming, ridesharing, and food delivery services

3%-4%

With retail partners

2%-3%

On everything else

0.5%

Variable APR

19.99% - 26.99%

Cash Advance APR

24.99% - 28.99%

Annual Fee

$0

Recommended Credit Score

Poor

Required Annual Personal Income

$0

Required Annual Household Income

$0

Pros

  • No annual fee

  • Low minimum security deposit

  • Cash back rewards on purchases

  • Instant approval regardless of credit score

Cons

  • Only reports to TransUnion

  • High APR range

A secured card helps you build credit. The Neo Secured card has no annual fee and earns cash back on gas and groceries, streaming ridesharing, and food delivery services. In their app, they educate you about money and help you manage your money, too—all for no annual fee.  

Conclusion

Conclusion

It’s time to dump your university credit card and step up into the rewards game. Make your friends jealous, whether you’re jet-setting around the world, earning points at restaurants, or paying off your student debt faster. 

FAQs

FAQs

  • How many credit cards should I have in my 20s?

    +

    Having one or two credit cards in your 20s is ideal. These cards help you build a credit history while keeping spending manageable. Using them responsibly, such as paying off the monthly balance, demonstrates good financial habits and avoids debt.

  • How do I pay off $20,000 in credit card debt?

    +

    To tackle $20,000 in credit card debt, create a budget and cut unnecessary expenses. Consider using the "avalanche" method, paying off the highest-interest card first, or the "snowball" method, focusing on the smallest balance. You could also consolidate the debt onto a balance transfer credit card or negotiate with creditors for lower interest rates or payment plans.

  • Sources:

    +

    1. https://www.foxbusiness.com/lifestyle/what-is-dr-seuss-net-worth

    2. https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3710003601&pickMembers%5B0%5D=1.1&pickMembers%5B1%5D=3.3&cubeTimeFrame.startYear=2000&cubeTimeFrame.endYear=2020&referencePeriods=20000101%2C20200101

Tyler Wade Content strategist & writer

Tyler Wade has worked in personal finance for over 5 years writing for brands like Ratehub, Forbes, KOHO, and now Money.ca.

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