For most new Canadians, obtaining a credit card took time and effort to secure options. However, this is no longer the case in 2023, and new Canadian immigrants now have more credit card options than ever. To find the best credit card for newcomers in Canada, we have considered factors such as rewards, an introductory offer, education and cost.
Not all of these features are available on all cards, so before settling on a credit card associated with your new country of residence. Canadian newcomers are not only finding it easier to obtain a credit card but also learning about how these statements can help them manage their finances better. A Canadian credit score higher than the average new Canadian can expect to receive is a great benefit of obtaining a Canadian credit card.
What is a credit card?
Credit cards enable people to make purchases with a set amount of money. On top of this, they earn rewards on every purchase. Using credit cards can provide individuals with an efficient and economical means of purchasing. Credit cards have become a popular form of payment because rather than taking out cash from an ATM, you can use your credit card without even having to approach the cashier or line up in front of the bank teller. Also, most credit cards offer you other benefits such as travel insurance or extended warranty. Here we listed some Credit card for newcomers in canada.
What are some best Credit cards for newcomers in canada?
Tangerine Money-Back Credit Card:
The Tangerine money-back credit card is one of the most suitable options for Credit card for newcomers in canada. This credit card was issued by Tangerine Bank and was voted the best credit card in Canada by RateSupermarket.ca readers. It provides a special introductory offer of 1% cash back on everything you buy for up to 3 months. The cashback can be put towards paying down your balance, or you can withdraw the cash at any time by requesting a prepaid debit card or electronic transfers to your bank account. This introductory offer has no caps or other limits, so whether it’s groceries, gas or any other purchase, you’ll earn a 1% rebate on every purchase.
Scotiabank Gold American Express Card:
The Scotiabank Gold American Express Card is the only Credit card for newcomers in canada that more than 2 million merchants accept. One of the features of this card is an introductory offer of up to 3% cash back on your everyday purchases for 6 months. There are also no limits on how many rebates you can obtain over 6 months, so you can always take advantage of the cashback brilliantly. A benefit that helps meet your goals is that this card neither charges an annual fee nor purchase fees, and it also offers a significant reward on every purchase compared to other cards available in Canada.
Refresh Financial Secured Card:
The Refresh Financial Secured Card is especially well-suited for new immigrants because it issues credit limits that are well-matched to the amount of money one has put up as a security deposit. This Canadian-secured card comes with an interest rate of 19.5%, much lower than the average unsecured credit card. If a Credit card for newcomers in Canada has yet to be turned down by other institutions, you should consider applying for this Canadian-secured card. The best part about this credit card is that it’s designed to help new immigrants master their finances.
Home Trust Secured Visa:
The Home Trust Secured Visa is a great choice for those who have received permanent residence and are starting to establish their credit. According to the Canada Revenue Agency’s definition, this card offers secured credit if someone puts up a security deposit of 1 – 10% of the purchase amount. Unlike other cards, the card also has no annual fees or interest charges. It’s no wonder why Home Trust was voted the best-secured card for Credit card for newcomers in canada.
BMO CashBack Mastercard:
The BMO CashBack Mastercard is a very easy-to-use credit card, which may explain why it has already been voted the best Credit card for newcomers in canada. This card will provide its users with cash-back rewards at stores and online. It also has no annual fees or ongoing charges, making it a great choice for newcomers who’ve just crossed the border and are still trying to establish their credit. The BMO CashBack Mastercard is ideal if you’re looking for a secured credit card.
How to choose a Credit card for newcomers in canada?
Rate of Interest:
The Interest rate is the interest charged to customers for using their Credit card for newcomers in canada. The lower the interest rate, the better off you are, as you’ll be able to save a lot of money on interest charges. A lower interest rate will also allow you to pay down your balance more easily, saving you a lot of money in finance charges and penalties.
Annual Fee:
Every year you use your credit card, you risk being charged an annual fee ranging from $0 to $100 per year or more. More and more cards are charging annual fees, sometimes as high as $240, for cash rewards cards. Before applying for a Credit card for newcomers in canada, you should carefully consider how much of an annual fee you could be charged.
Reward Programs:
To entice customers to use their credit cards, nearly all Credit card for newcomers in canada companies offer reward programs ranging from 1% cash back on every purchase up to 20% cash back on specific purchases. Rewards vary according to the type of merchandise purchased, supermarket purchases, clothing, and gas purchases. The higher the rewards are on a particular type of merchandise, the lower the chance you’ll be approved for that card.
No Foreign Transaction Fee:
A foreign transaction fee is a charge that credit card companies impose to reimburse themselves for the extra costs they incur when providing a credit card for travel outside of Canada. Unfortunately, most Credit card for newcomers in canada charge a 3% foreign transaction fee, meaning that if you’re spending $1,000 on your credit card while abroad, you’ll be responsible for paying an extra $30 in fees. As such, it’s important to check whether or not your potential card has a foreign transaction fee.
Why apply for a secured credit card for newcomers?
A secured credit card is designed to help people new to Canada establish their credit and build a good credit history. This type of credit card doesn’t have an interest rate, annual fee or foreign transaction fee. To be approved for a secured Credit card for newcomers in canada, you must put up an amount of money as a security deposit. Usually, the security deposit is equal to 1-10% of your total outstanding balance. This money is used to cover the mortgage payment for the period you use your credit card, so it’s important to make sure that you can afford the required amount of money to get approved for this type of Visa.
Final Verdict:
Try to apply for a secured credit card first, but you can only be allowed a regular credit card if you have recently crossed the border. Check your credit before applying for a credit card, perhaps by getting a free copy of your credit report. In case your finances are in bad shape, and you need help being approved for a Credit card for newcomers in canada. We recommend you use your debit card more often or get an ATM / Debit Card that provides cash-back rewards.
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