Best Credit Cards For Newcomers To Canada For January 2025

When determining a rating for individual credit cards, the Forbes Advisor Canada editorial team factors in an exhaustive list of data points. With newcomer credit cards, the scoring model used takes into account factors such as, but not limited to, cash-back rates and categories, fees, welcome bonuses, and other rewards and features. Keep in mind, what may be best for some people might not be right for you. Conduct informed research before deciding which cards will best help you achieve your financial goals.

Home Trust Secured Visa Credit Card

An accessible entry-level credit card that gives you a flexible credit limit equivalent to the amount of security deposit you provide.

Rewards: None

Welcome Offer: None

Annual Fee: You choose if you want to pay an annual fee of $59 or not. The APR is lower if you do.

Other Benefits and Drawbacks: The security deposit can range from $500 to $10,000 and you can charge up to the amount you have on deposit. You can also take a cash advance up to the same amount.

———————————————————————————-

BMO Air Miles Mastercard

This newcomer credit card earns rewards and is well-suited toward those who travel.

Rewards: Earn 3 Miles for every $25 spent at participating Air Miles Reward Partners and 2 Miles for every $12 spent at eligible grocery stores and 1 Mile for every $25 spent on other purchases.

Welcome Offer:Earn 1,500 AIR MILES after spending $1,000 in the first three months, that’s enough for $80 towards purchases with AIR MILES Cash*.

Annual Fee: $0

Other Benefits and Drawbacks: No security deposit is required, but the APR is one of the higher interest rates on this list. The 25% discount at National Car Rental and Alamo Rent A Car locations may be especially attractive if you travel. Extended warranty on purchases is included which doubles the original warranty period (to a maximum of one year).

———————————————————————————-

ATB Alberta Mastercard Secured

A secured credit card for Albertans that offers balance protection for a fee.

Rewards: None

Welcome Offer: None

Annual Fee: $49

Other Benefits and Drawbacks: Balance protection for life’s unforeseen circumstances and 25% off at Avis and Budget car rental locations could be well worth the $49 annual fee.

———————————————————————————-

Neo Secured Mastercard®

One of the few cash-back cards on the market at this entry point.

Rewards: Earn up to 4% cashback on gas and grocery and up to 1% everywhere else

Welcome Offer: Up to 15% cashback on first-time purchases

Annual Fee: $5 per month

Other Benefits and Drawbacks: An attainable credit card with a low security deposit of $50. It has an included Insights dashboard that helps track spending and links to their other financial products, which could be especially helpful for those just getting started on their financial journey.

———————————————————————————-

MBNA True Line® Mastercard®

A no frills credit card with a relatively low APR and a 0% promotional annual interest rate (“AIR”)† for 12 months on balance transfers✪ made within 90 days, with a 3% transfer fee.

Rewards: None

Welcome Offer: None

Annual Fee: $0

Other Benefits and Drawbacks: A strong contender if you anticipate making large purchases that need to be paid over time. Not only is the APR one of the lower ones on our list, they also offer payment plans for eligible purchases. That you can add up to nine authorized users at no additional cost and get 10% off at Budget and Avis car rental locations sweetens the deal even more for this card.

†, ✪, Terms and Conditions apply. This offer is not available to residents of Quebec.

———————————————————————————-

Capital One Guaranteed Mastercard®

Significant purchase protections that allow you to shop with peace of mind.

Rewards: None

Welcome Offer: None

Annual Fee: $59

Other Benefits and Drawbacks: Once approved, enjoy free credit score tracking and purchase protections that include purchase assurance, extended warranties and price protection.

———————————————————————————-

Capital One Guaranteed Secured Mastercard®

The same as the Capital One Guaranteed Mastercard, but with a security deposit.

Rewards: None

Welcome Offer: None

Annual Fee: $0

Other Benefits and Drawbacks: With this card, you can easily see if you’re pre-approved for this card without a hard credit check. Other than a needed security deposit of $75 or $300, this card has the same benefits and drawbacks as the one above.

———————————————————————————

MBNA True Line® Gold Mastercard®

This card has the lowest APR on our list but is also one of the harder ones to qualify for.

Rewards: None

Welcome Offer: None

Annual Fee: $39

Other Benefits and Drawbacks: Although not everyone may qualify for this card, it could be worth a try for anyone who anticipates they will be carrying a balance. This card offers a low APR, purchase assurance and extended warranties. Note, however, that this card is not eligible for the payment plan that is offered with the no-annual-fee MBNA True Line Mastercard.

Terms and conditions apply. This offer is not available to residents of Quebec.

———————————————————————————-

TD Low Rate Visa* Card

Good for those who can qualify for their lower fixed interest rate or for those who anticipate needing low interest cash advances.

Rewards: None

Welcome Offer: None

Annual Fee: $25

Other Benefits and Drawbacks: This card has the lowest annual fee on our list along with a low interest rate for purchases and cash advances. However, it doesn’t earn rewards and has no welcome bonus.

A credit card for newcomers works the same way as a regular credit card: your card will have a credit limit, and an interest rate and you’ll need to make a minimum payment each month to keep your account in good standing. (Optimally, your credit balance is paid off in full each month to prevent paying any interest.)

The difference is that these cards may have lower credit score requirements, lower income thresholds, or may be secured cards.

If you’re a newcomer to Canada, you’ll need a few things to get a credit card. Namely, you’ll need to be the age of majority in your province or territory (typically 18 or 19 years of age) and to be a permanent resident or citizen of Canada. There are some cards that cater to international students and temporary foreign workers, however, they are usually secured or prepaid cards. 

Credit score requirements

For higher-end credit cards, you’ll typically need a good credit score or above. However, many cards catered to newcomers, including the cards on this list, are available to those with a low credit score or minimal credit history.

Annual fee

While there are many cards with no annual fee available in Canada, some do carry an annual fee. Typically, $150 is the standard annual fee.

Rewards and cash back

Many Canadian credit cards offer rewards on your annual spending, in the form of points or miles. Some cards offer cash back, giving you a percentage of your spending back.

Secured or unsecured

A secured credit card requires a security deposit that corresponds to your limit (for example, a $1000 limit would require a $1000 deposit). An unsecured credit card requires no deposit and the limit is based on what you qualify for. Most people prefer to use an unsecured credit card, since there are more options available and it frees up your deposit money. If you only qualify for a secured card, it can help you build your credit score so long as it reports to the credit bureaus. Over time, you can build your credit score so that you can apply for an unsecured credit card.

To apply for a credit card in Canada as a newcomer, you may need any of the following:

• Identification: You must have either a foreign passport or a Canadian ID, like a driver’s license.
• Status confirmation: You must show proof of your valid and legal status in Canada, such as a Confirmation of Permanent Residence (CoPR) or PR card, or a work permit or study permit.
• Social Insurance Number (SIN): If you have a SIN number, this is required. However, some institutions will allow newcomers to provide this at a later date.
• Proof of address: You must present a document proving your address, either on your license or on a document, like a bill or lease.

They may also ask you for other documentation like information about your other credit cards or employment status.

One of the simplest ways to establish a credit history as a newcomer is to start using a credit card responsibly. Paying your bills on time and paying off other debts or lines of credit are other ways to establish credit.

When you’re looking for a secured credit card, you want one that you will be qualified for, has a security deposit you can afford, and reports to the credit bureaus, to establish credit history. Aside from that, you may look into a secured credit card that earns rewards, like points or cash back.

How to choose a secured credit card

When you’re looking to choose a secured credit card, there are a few questions to ask yourself, including:

• Does the card require a credit check?
• What is the required security deposit?
• Does the card report to both credit bureaus?

Our partners are not responsible for anything reported by Forbes Advisor. To the best of our knowledge, everything is accurate at the time of publishing as of the date posted. For full information and details, please visit the advertiser’s website.