The best credit cards for newcomers to Canada
November 5, 2024 | Fact checked by: Natasha Macmillan, Business Unit Director - Everyday Banking
Getting your first credit card in Canada is an essential step to getting established in Canada and securing your financial future. Learn more about why you need a credit card, and compare the best credit cards for new immigrants to Canada.
Canada’s best credit card for newcomers at a glance
Featured
Secured Neo Mastercard
Guaranteed approval with no credit check. Starting with as little as $50 and you can raise your credit limit at any time.
Featured
Home Trust Secured Visa Card
Guaranteed approval and reports your payments to the credit bureaus, helping you establish a credit history in Canada.
Featured
Scotiabank Passport Visa Infinite Card
One of the best credit cards in Canada. Can be eligible for a credit limit up to $15,000 with no credit history if you are a new permanent resident.
Our methodology: how we choose the best credit cards
Ratehub.ca evaluates the best credit card rewards credit cards by considering overall consumer value and suitability for various types of consumers. Our evaluation methodology incorporates factors such as the card’s annual fee, rewards earning rates, ease-of-use, welcome or promotional offers, approval rates, eligibility criteria, and redemption choices. We have also considered the pros and cons of each card to help you determine which case best suits your financial needs and spending habits.
Frequently asked questions
What is a typical credit score required for a credit card in Canada?
You may qualify for a credit card with a credit score as low as 620, but many premium credit cards require a score of 680 or higher. If you have bad credit or no credit, you may be able to get a secured credit card by paying a security deposit equal to the credit limit.
What is a secured credit card?
A secured credit card is a way to get a credit card even with bad credit or no credit history in Canada. With a secured credit card, you pay a security deposit equal to the credit limit. For example, with security funds of $500, you can get a credit card with a $500 spending limit. A secured credit card will contribute to your credit score, so be sure to make the minimum payment on time each month.
How does a credit card help build a credit score?
A credit card can help build a credit score by providing a consistent record of your borrowing and repayment behaviour. When you use a credit card responsibly by making on-time payments and keeping your balances low relative to your credit limit, it demonstrates to credit bureaus that you are a responsible borrower. Over time, this positive credit history can boost your credit score, making it easier to qualify for loans and a mortgage in the future.
The best credit cards for newcomers who don’t have permanent resident or foreign worker status
Minimum security deposit
- Pay $8.33/mo in interest
Based on a credit balance of $500
- Annual fee
$60
Perks of the Secured Neo Mastercard®
| Perks | Details | |
|---|---|---|
| Lounge access | Not included | You’ll gain complimentary passes to airport lounges. The number of passes and lounges you have access to will vary. |
| Waived foreign transaction fees | Not included | A surcharge that credit card holders pay for purchases made in a foreign currency (typically 2.5%). |
| Travel accident insurance | Not included | If you suffer a loss as a result of an accidental bodily injury sustained while occupying a common carrier, you are eligible for this coverage. |
| Travel emergency medical | Not included | If you require urgent medical care while on a trip outside of your home province, you will be covered for any eligible medical expenses incurred. |
| Car rental insurance | Not included | Credit card rental car insurance usually covers theft, loss and damage to your rental car in the case of an accidental collision. |
| Trip cancellation | Not included | If you have to cancel your trip before it’s even started, your prepaid travel costs will be covered up to a maximum amount if the cause of cancellation is eligible for the insurance. |
| Trip interruption | Not included | If your trip has to be cut short or is delayed after the scheduled departure date, you will be covered up to a maximum amount for an eligible cause of interruption or delay. |
| Flight delay insurance | Not included | If your flight departure is delayed by a certain number of hours, you’ll be reimbursed a certain amount for necessary and reasonable expenses. |
| Baggage loss insurance | Not included | If your checked bag cannot be located by a common carrier, you’ll be reimbursed for a portion of the replacement cost of lost personal property. |
| Baggage delay insurance | Not included | If your checked bag is not delivered within a specified time upon your arrival, you’ll be reimbursed for the cost to replace essential items. |
| Hotel/motel burglary | Not included | Provides protection, while you’re checked in, for your personal belongings when left unattended in your room up to a certain dollar amount. |
| Mobile insurance | Not included | Reimburses a portion of your cell phone in the event it’s damaged or lost. Device coverage is limited to a certain period of time after purchasing with your credit card. |
| Purchase assurance | Not included | Automatically protects new purchases by insuring them for 90 days from the date of purchase in the event of loss, theft or damage. |
| Extended warranty | Not included | Either doubles the length of the item’s manufacturer’s warranty coverage or extends it by 1 year, whichever is less. |
| Price protection | Not included | If, within a certain amount of time of purchasing an item, its price drops or you find an identical item offered for a lower retail price than what you paid, you will be reimbursed for the difference. |
Other perks
- Limited-time offer: Get $25 when you sign up
- Earn instant cashback at over 10,000 partners and get up to 15% cashback on first-time purchases
- Up to 4% cashback on gas and grocery and up to 1% everywhere else1
- Earn up to $680 in annual cashback²
- No annual fees
- Get up to $10,000 credit limit, instantly
- Sign up in 3 minutes and start using your virtual card right away
- Upgrade your card by adding flexible monthly subscriptions for travel*, gas, grocery, dining, and more
Ratehub’s take
The Secured Neo Mastercard offers you the opportunity to earn cash back rewards – a feature that is hard to come by for a secured card. The card also comes with noteworthy budgeting features through Neo AI and the ability to adjust your credit limit anytime.
Pros
- Cash back rewards: Cash back rewards apply to gas and grocery purchases, as well as purchases with Neo partners
- Low minimum deposit requirement: The $50 minimum deposit requirement makes this card accessible for most – many other cards require at least $500
- Customize rewards: For a low monthly fee, you can subscribe to Perks which allow you to earn rewards from your spending and benefits like airport lounge access for specific categories, such as travel or wellness
Cons
- Higher interest rate: The card’s 19.99% interest rate is quite a bit higher than some low interest cards and other secured cards
- Cash back rewards are limited: You can earn a maximum of $680 in cash back per year, which is quite limited
Eligibility requirements
Minimum income: $50/yr
Interest rates
Purchase interest: 19.99%
Cash advance: 22.99%
Balance transfer: N/A
If you don’t qualify for the banks’ newcomer programs, you can still get a great credit card by providing a security deposit equal to the credit limit. Secured Neo Mastercard is one such option, allowing you to get a credit card and start building credit history in Canada.
The Secured Neo Mastercard offers guaranteed approval. You can start with as little as $50 and raise or lower your credit limit at any time. As with any other card, you will need to make regular payments on time each month and interest charges will apply if you don’t pay your balance in full by the deadline. This card also rewards you with a maximum of 1% cash back on gas and grocery purchases.
If you're willing to provide a larger security deposit and don't mind paying an annual fee, the Secured Neo World Elite Mastercard offers higher cash back rates of up to 5% on purchases.
based on spending $2,200/mo after $48 annual fee
- Earn rewards
1% / dollar spent
- Annual fee
$48
Perks of the KOHO Essential
| Perks | Details | |
|---|---|---|
| Lounge access | Not included | You’ll gain complimentary passes to airport lounges. The number of passes and lounges you have access to will vary. |
| Waived foreign transaction fees | Not included | A surcharge that credit card holders pay for purchases made in a foreign currency (typically 2.5%). |
| Travel accident insurance | Not included | If you suffer a loss as a result of an accidental bodily injury sustained while occupying a common carrier, you are eligible for this coverage. |
| Travel emergency medical | Not included | If you require urgent medical care while on a trip outside of your home province, you will be covered for any eligible medical expenses incurred. |
| Car rental insurance | Not included | Credit card rental car insurance usually covers theft, loss and damage to your rental car in the case of an accidental collision. |
| Trip cancellation | Not included | If you have to cancel your trip before it’s even started, your prepaid travel costs will be covered up to a maximum amount if the cause of cancellation is eligible for the insurance. |
| Trip interruption | Not included | If your trip has to be cut short or is delayed after the scheduled departure date, you will be covered up to a maximum amount for an eligible cause of interruption or delay. |
| Flight delay insurance | Not included | If your flight departure is delayed by a certain number of hours, you’ll be reimbursed a certain amount for necessary and reasonable expenses. |
| Baggage loss insurance | Not included | If your checked bag cannot be located by a common carrier, you’ll be reimbursed for a portion of the replacement cost of lost personal property. |
| Baggage delay insurance | Not included | If your checked bag is not delivered within a specified time upon your arrival, you’ll be reimbursed for the cost to replace essential items. |
| Hotel/motel burglary | Not included | Provides protection, while you’re checked in, for your personal belongings when left unattended in your room up to a certain dollar amount. |
| Mobile insurance | Not included | Reimburses a portion of your cell phone in the event it’s damaged or lost. Device coverage is limited to a certain period of time after purchasing with your credit card. |
| Purchase assurance | Not included | Automatically protects new purchases by insuring them for 90 days from the date of purchase in the event of loss, theft or damage. |
| Extended warranty | Not included | Either doubles the length of the item’s manufacturer’s warranty coverage or extends it by 1 year, whichever is less. |
| Price protection | Not included | If, within a certain amount of time of purchasing an item, its price drops or you find an identical item offered for a lower retail price than what you paid, you will be reimbursed for the difference. |
Other perks
- Earn 1% cash back on on groceries, eating & drinking, and transportation Plus, up to 50% extra cashback from select merchants.
- Earn 3.5% interest on both your spending and savings account. Your funds will also be eligible for CDIC insurance.
- Get access to a cash advance of up to $250 at 0% interest with Cover
- Grow your credit up to 22 points in 3 months with Credit Building for $10 / month.
- Earn a $20 cash bonus when you sign up for a KOHO account and make your first $20 purchase within 30 days of registration
- All KOHO plans come with a free 30 day trial so you can see if it suits you.
- Get this plan for $0 when you set up a recurring Direct Deposit.
- Choose from one of the exciting card colours we offer and Receive both a physical and virtual card.
- Add your KOHO card to Apple, Samsung or Google Pay.
- Automate your savings with Goals and RoundUps. Rounding up every purchase lets you stash away some savings, while Goals make it easier to save for whatever it is that makes you happy.
- Lock in savings with Vault that keeps the funds you don’t want to spend separate from your spendable balance and create custom budgets and track your spending habits.
- Only the users who successfully register a new KOHO account and make their first $20 purchase using their KOHO card within 30 days of registration are eligible for the offer and may claim the one-time $20 bonus in their KOHO account. This offer is non-transferable and may only be used once per person. Offer is not applicable in conjunction with other KOHO offers or promotions. KOHO may, at its sole discretion, suspend, terminate or change the terms and requirements of the offer.
- Refer a friend to KOHO and we’ll give you both $20 each! You can refer up to 50 friends, which means you can earn up to $1000 from our referral program.
Ratehub’s take
The KOHO Essential card is a reloadable prepaid Mastercard that offers cash back on the most common types of everyday spending, as well as the added benefit of an interest-earning account.
Pros
- No limit on cash back earnings: There is no cap on how much you can earn from your spending in any of the cash back categories
- Low fees: The low $4 monthly fee can be reduced to $0 with a recurring direct deposit or monthly contribution of $1,000
- Flexible cash back redemptions: You can redeem cash back directly to your KOHO account with a few taps, and there’s no minimum or maximum redemption amount
Cons
- No cash back outside select categories: For all purchases that aren’t categorized under groceries, transportation, or dining, you won’t earn any cash back
- Limited travel insurance and perks: No travel medical insurance or any substantial side perks
Eligibility requirements
Minimum credit score: 300
Minimum income: N/A
Interest rates
Purchase interest: N/A
Cash advance: N/A
Balance transfer: N/A
The Koho Essential card is a prepaid card which allows you to set your spending limit yourself - a great option if you don’t yet have a steady income or are building your credit score. You can use the plan with no monthly fee if you set up a direct deposit or keep at least $1,000 in your account at all times. You can also pay for an optional credit building service to help you build your credit score in Canada for $10 a month. You’ll also earn interest on your balance to help you grow your money further. With the higher-tier plans like Koho Extra or Koho Everything, you won’t pay foreign transaction fees which is great if you’re visiting home. You’ll also get higher rates of cash back on your purchases with those plans - but you’ll have to pay a monthly fee.
To be eligible for a Koho card, you just need a valid photo ID which may be your Canadian or foreign passport, your driver’s license or provincial photo ID card, your Permanent Resident card or a provincial health card with a photo from Quebec or British Columbia.
The best credit cards for newcomers who have permanent resident or foreign worker status
The best credit cards for newcomers have valuable rewards programs, excellent travel insurance, and other benefits that cater to your unique needs as you settle into your new home. A few of the best credit cards for new immigrants to Canada include:
Best for Travel perks
based on spending $2,200/mo after $150 annual fee
- Earn rewards
1pt – 3pts / dollar spent
- Welcome bonus
25,000 points (a $250 value)
- Annual fee
$150
Perks of the Scotiabank Passport™ Visa Infinite* Card
| Perks | Details | |
|---|---|---|
| Lounge access | Includes 6 visits per year | You’ll gain complimentary passes to airport lounges. The number of passes and lounges you have access to will vary. |
| Waived foreign transaction fees | Included | A surcharge that credit card holders pay for purchases made in a foreign currency (typically 2.5%). |
| Travel accident insurance | $500,000 per person ($1 million total) | If you suffer a loss as a result of an accidental bodily injury sustained while occupying a common carrier, you are eligible for this coverage. |
| Travel emergency medical | $2,000,000 for 25 days (under 65) | If you require urgent medical care while on a trip outside of your home province, you will be covered for any eligible medical expenses incurred. |
| Car rental insurance | MSRP of up to $65,000, for 48 days | Credit card rental car insurance usually covers theft, loss and damage to your rental car in the case of an accidental collision. |
| Trip cancellation | Up to $1,500 per person | If you have to cancel your trip before it’s even started, your prepaid travel costs will be covered up to a maximum amount if the cause of cancellation is eligible for the insurance. |
| Trip interruption | Up to $2,500 per person | If your trip has to be cut short or is delayed after the scheduled departure date, you will be covered up to a maximum amount for an eligible cause of interruption or delay. |
| Flight delay insurance | Up to $500 coverage per person | If your flight departure is delayed by a certain number of hours, you’ll be reimbursed a certain amount for necessary and reasonable expenses. |
| Baggage loss insurance | Combined maximum $1,000 | If your checked bag cannot be located by a common carrier, you’ll be reimbursed for a portion of the replacement cost of lost personal property. |
| Baggage delay insurance | Up to $1,000; delays over 4 hours | If your checked bag is not delivered within a specified time upon your arrival, you’ll be reimbursed for the cost to replace essential items. |
| Hotel/motel burglary | Included | Provides protection, while you’re checked in, for your personal belongings when left unattended in your room up to a certain dollar amount. |
| Mobile insurance | Not included | Reimburses a portion of your cell phone in the event it’s damaged or lost. Device coverage is limited to a certain period of time after purchasing with your credit card. |
| Purchase assurance | $60,000 lifetime limit | Automatically protects new purchases by insuring them for 90 days from the date of purchase in the event of loss, theft or damage. |
| Extended warranty | Up to one additional year | Either doubles the length of the item’s manufacturer’s warranty coverage or extends it by 1 year, whichever is less. |
| Price protection | Included | If, within a certain amount of time of purchasing an item, its price drops or you find an identical item offered for a lower retail price than what you paid, you will be reimbursed for the difference. |
Other perks
Ratehub.ca’s 2024 Credit Card Award Winner
- Earn up to $1,100* in value in the first 12 months, including up to 35,000 bonus Scene+ points
- Earn 3x Scene+ points¹ on every $1 you spend at Sobeys, Safeway, IGA, Foodland and participating
Co-ops and more - Earn 2x Scene+ points¹ for every $1 you spend on other eligible grocery stores, dining, eligible entertainment purchases and eligible daily transit options (including rideshares, buses, subways taxis and more)
- Plus earn 1 Scene+ point for every $1 spent on all other eligible everyday purchases
- No Foreign Transaction Fee
- 6 Complimentary Airport Lounge Access
- Comprehensive Travel Insurance coverage
- Visa Infinite* Concierge Services
- Visa Infinite* Hotel Collection
- Visa Infinite* Dining and Wine Country program
- Rates, fees and other information are effective as of July 02, 2024. Subject to change.
Ratehub’s take
The Scotiabank Passport Visa Infinite card makes a great vacation companion, designed for Canadians who travel abroad and explore the world. It is one of the few cards that covers foreign transaction fees, and also includes valuable travel benefits like airport lounge access.
Pros
- No foreign transaction fee: Save 2.5% on all non-Canadian currency purchases
- Scene+ points: Earn three Scene+ points per $1 spent at participating grocery stores (e.g., Sobey’s, IGA, and FreshCo) and two Scene+ points per $1 spent on eligible grocery, dining, entertainment, and daily transit purchases
- Flexible redemption: Enjoy flexible point redemption options including for travel, groceries, statement credits, gift cards, and movie tickets
- Airport lounge access: Access airport lounges with six free visits per year to over 1,200 lounges worldwide
- Visa Infinite benefits: Benefit from the Visa Infinite Luxury Hotel Collection, Visa Infinite Dining series, and complimentary Avis Preferred Plus membership
- Comprehensive travel insurance: Enjoy coverage for emergency medical, trip cancellation/interruption, flight delays, and more
Cons
- Annual fee: The annual fee of $150 is higher than some comparable cards
- Low point return: The earn rate for certain spending categories like dining and entertainment is lower compared to other cards
- Consistent point values: Travel points are always worth one cent per point and you can’t transfer your points to other airline rewards programs like you can with some Amex cards
Eligibility requirements
Minimum credit score: 725
Minimum income: $60,000/yr
Interest rates
Purchase interest: 20.99%
Cash advance: 22.99%
Balance transfer: 22.99%
The Scotiabank Passport Visa Infinite Card is one of the best credit cards in Canada, and you can get a credit limit of up to $15,000 with no credit history if you’re a new permanent resident or foreign worker. Plus, you won't pay the annual fee for the first year.
This card lets you earn Scene+ points, which can be redeemed for a wide variety of merchandise and travel. You’ll earn 3 points per dollar spent on eligible groceries, 2 points per dollar spent on restaurants, entertainment and daily transit, and 1 point per dollar spent on everything else. If you meet certain spending requirements, you can earn up to $1,100 in value in the first 12 months, including up to 35,000 bonus Scene+ points. To qualify, apply by December 31, 2024.
In addition to great rewards, this card comes with perks that will make your next trip home a lot more comfortable. Benefits include 6 complimentary airport lounge passes per year, discounts on hotels and car rentals, and comprehensive travel insurance benefits. And as an added bonus, you’ll pay no foreign transaction fees when you use your card outside of Canada. The purchase interest rate is higher than secured or low-interest credit cards, though, so keep up with your payments to benefit from the value of rewards points, otherwise you’ll pay more in interest on your unpaid balance than you’d earn with rewards. Learn more about other newcomer banking offers through Scotiabank’s Startright Program.
Minimum security deposit
- Pay $8.33/mo in interest
Based on a credit balance of $500
- Annual fee
$0
Perks
Not available to residents of Quebec.
- The Home Trust Secured Visa Card is a credit card that requires a security deposit for eligibility. Your credit limit is then set at the amount of the deposit. You can put down as little as $500, or as much as $10,000.
- Make purchases over the phone or online
- Plan and book a vacation
- Access cash anytime, anywhere from over 1 million ATMs around the world displaying the Visa or Plus logo
- Shop at over 24 million locations worldwide
- Applicants who have been discharged from Bankruptcy are eligible to apply at any time (Discharge Certificate may be requested)
- Applicants who are in a Consumer Proposal can apply at any time
Ratehub’s take
The Home Trust Secured Visa card is a strong choice if you want to rebuild your credit while controlling your spending. Plus, if you pay the annual fee you’ll get a lower interest rate. There are other cards out there with lower regular interest rates, though.
Pros
- Automatic credit building: When you pay your bills on time, it will be reported to the credit bureaus and help improve your credit score
- No interest charged unless you carry a balance
- Low minimum deposit: The $500 minimum deposit is low compared to other secured cards
Cons
- Interest rate is fairly high: The regular interest rate of 19.99% is fairly high and you only get the lower rate (14.99%) when you pay an annual fee – and this is still higher than comparable cards
- Few perks: Like most low interest cards, this offers few perks and no insurance coverage
Eligibility requirements
Minimum credit score: 300
Minimum income: N/A
Interest rates
Purchase interest: 19.99%
Cash advance: 19.99%
Balance transfer: N/A
Another good secured credit card option is the Home Trust Secured Visa card. This card offers guaranteed approval and reports your payments to the credit bureaus, helping you establish a credit history in Canada.
This card has a higher minimum balance (and minimum security deposit) of $500, and you can raise your credit limit as high as $10,000 by providing additional security funds.
The Home Trust Secured Visa card has no annual fee, and a regular purchase interest rate of 19.99%. If you want to carry a balance and prefer a lower rate, you can elect to pay an annual fee of $59 to reduce your interest rate to 14.90%.
CIBC Dividend Platinum Visa
The CIBC Dividend Platinum Visa Card is available to new Canadians with no credit history as part of their New to Canada Banking offer. CIBC has sweetened the deal by offering to refund the annual fee for you and up to three authorized users for two years. You have to apply for the CIBC Smart chequing account as well - which currently offers a generous welcome bonus at Costco.
With this card, you’ll earn cash back rewards on every purchase. You’ll earn 3% cash back on groceries, gas and electric vehicle charging, 2% cash back on transportation, restaurants and bills, and 1% cash back on everything else. You can also save up to 10¢ per litre on gas by linking your Journie Rewards account, and save up to 25% on car rentals. Remember that while this card offers great cash back rates, the purchase interest rate is fairly high so you'll have to keep up with your payments.
As a newcomer to Canada, you can use this card to send money back home with no foreign transaction fees via a CIBC Global Money Transfer. Transfers will be subject to foreign exchange rates, though.
based on spending $2,200/mo after $150 annual fee
- Earn rewards
1pt – 5pts / dollar spent
- Welcome bonus
40,000 points (a $320 value)
- Annual fee
$150
Perks of the National Bank World Elite® Mastercard®
| Perks | Details | |
|---|---|---|
| Lounge access | Not included | You’ll gain complimentary passes to airport lounges. The number of passes and lounges you have access to will vary. |
| Waived foreign transaction fees | Not included | A surcharge that credit card holders pay for purchases made in a foreign currency (typically 2.5%). |
| Travel accident insurance | Not included | If you suffer a loss as a result of an accidental bodily injury sustained while occupying a common carrier, you are eligible for this coverage. |
| Travel emergency medical | Included | If you require urgent medical care while on a trip outside of your home province, you will be covered for any eligible medical expenses incurred. |
| Car rental insurance | Included | Credit card rental car insurance usually covers theft, loss and damage to your rental car in the case of an accidental collision. |
| Trip cancellation | Included | If you have to cancel your trip before it’s even started, your prepaid travel costs will be covered up to a maximum amount if the cause of cancellation is eligible for the insurance. |
| Trip interruption | Included | If your trip has to be cut short or is delayed after the scheduled departure date, you will be covered up to a maximum amount for an eligible cause of interruption or delay. |
| Flight delay insurance | Included | If your flight departure is delayed by a certain number of hours, you’ll be reimbursed a certain amount for necessary and reasonable expenses. |
| Baggage loss insurance | Included | If your checked bag cannot be located by a common carrier, you’ll be reimbursed for a portion of the replacement cost of lost personal property. |
| Baggage delay insurance | Included | If your checked bag is not delivered within a specified time upon your arrival, you’ll be reimbursed for the cost to replace essential items. |
| Hotel/motel burglary | Not included | Provides protection, while you’re checked in, for your personal belongings when left unattended in your room up to a certain dollar amount. |
| Mobile insurance | Included | Reimburses a portion of your cell phone in the event it’s damaged or lost. Device coverage is limited to a certain period of time after purchasing with your credit card. |
| Purchase assurance | Included | Automatically protects new purchases by insuring them for 90 days from the date of purchase in the event of loss, theft or damage. |
| Extended warranty | Included | Either doubles the length of the item’s manufacturer’s warranty coverage or extends it by 1 year, whichever is less. |
| Price protection | Included | If, within a certain amount of time of purchasing an item, its price drops or you find an identical item offered for a lower retail price than what you paid, you will be reimbursed for the difference. |
Other perks
- Earn up to 5 points per dollar in eligible grocery and restaurant purchases*
- 2 points per dollar in eligible gas and electric vehicle charging purchases, recurring bill payments and À la carte (TM) travel purchases*
- 1 point per 1 dollar in other purchases
- Up to $150 each year in refund for travel expenses on airport parking fees, seat selection fees, baggage fees, airline ticket upgrades and access to airport lounges worldwide
- Free and unlimited access along with one (1) guest per cardholder to the National Bank Lounge at Montréal-Trudeau airport.
- Reassuring protection. Travel with peace of mind thanks to our comprehensive insurance coverage up to 60 days
- Out-of-province-of-residence medical/hospital insurance, Departure flight delay insurance, Baggage insurance in case of delay, Baggage insurance in case of theft or loss, Vehicle rental insurance
- Mobile devices insurance against theft or damages for a period of up to 2 years
- Medical, general and legal assistance
- Purchase protection in case of theft or damage*
- Extended Warranty*
- With the À la carte Rewards Plan® (the “À la carte Plan”), you earn points for every dollar on eligible purchases. These points may be exchanged for rewards such as merchandise, a travel package, a gift card, a travel discount, a donation, a financial product, repayment with rewards points or any other reward offered under the À la carte Plan.
Ratehub’s take
The National Bank World Elite Mastercard offers fantastic travel insurance coverage and features for seniors, making it a strong contender among travel credit cards. The trip insurance offers will save you money on your next vacation, plus, the strong points earnings you’ll get from the card could help you cover part or all of the cost of your next trip.
Pros
- Extensive travel insurance: Strong travel insurance, including extended emergency medical insurance coverage for seniors that will cover you for 15 days of travel plus trip cancellation or disruption and flight delay insurance, and more
- Travel expense refunds: Receive up to $150 each year in refunds for airport parking, seat selection, check-in fees, airline ticket upgrades and access to airport lounges worldwide
- Flexible redemption options: Combined with high earn rates on essentials like groceries, gas and dining, this card also provides flexible redemption options on everything from travel through their A La Carte portal or redeeming for travel booked through any provider
Cons
- Annual fee: The $150 annual fee is slightly higher than average for this type of card
- Lounge access limitations: The complimentary lounge access only applies to Montreal airport
- Income requirement: The annual income requirement of $80,000 may be a barrier for some users
- Points values are fixed: Point values remain the same regardless of your destination, so it may take longer to accumulate points for longer flights. Plus, your points are worth less for anything other than booking travel through the A La Carte platform
Eligibility requirements
Minimum credit score: 660
Minimum income: $80,000/yr
Interest rates
Purchase interest: 20.99%
Cash advance: 22.49%
Balance transfer: 22.49%
National Bank is Canada’s sixth-largest bank and has one of the country’s most competitive offers for new immigrants. This card is available to newcomers with no credit history and offers great travel exclusives for when you head home.
The National Bank World Elite Mastercard rewards you with five points per $1 spent on groceries and restaurants, two points per $1 spent on bills, travel and fuel, and one point per $1 spent on everything else. Points are worth up to 1¢ each when redeemed for travel.
Other perks include comprehensive travel insurance, unlimited access to National Bank Lounge at Montreal-Trudeau Airport, and a $150 annual travel allowance. Keep in mind that with these perks, though, comes a higher (although standard) interest rate on purchases, so just be sure you can keep up with paying off your balance in full.
based on spending $2,200/mo after $0 annual fee
- Earn rewards
1% – 2% / dollar spent
- Annual fee
$0
Perks of the RBC Cash Back Mastercard®
| Perks | Details | |
|---|---|---|
| Lounge access | Not included | You’ll gain complimentary passes to airport lounges. The number of passes and lounges you have access to will vary. |
| Waived foreign transaction fees | Not included | A surcharge that credit card holders pay for purchases made in a foreign currency (typically 2.5%). |
| Travel accident insurance | Not included | If you suffer a loss as a result of an accidental bodily injury sustained while occupying a common carrier, you are eligible for this coverage. |
| Travel emergency medical | Not included | If you require urgent medical care while on a trip outside of your home province, you will be covered for any eligible medical expenses incurred. |
| Car rental insurance | Not included | Credit card rental car insurance usually covers theft, loss and damage to your rental car in the case of an accidental collision. |
| Trip cancellation | Not included | If you have to cancel your trip before it’s even started, your prepaid travel costs will be covered up to a maximum amount if the cause of cancellation is eligible for the insurance. |
| Trip interruption | Not included | If your trip has to be cut short or is delayed after the scheduled departure date, you will be covered up to a maximum amount for an eligible cause of interruption or delay. |
| Flight delay insurance | Not included | If your flight departure is delayed by a certain number of hours, you’ll be reimbursed a certain amount for necessary and reasonable expenses. |
| Baggage loss insurance | Not included | If your checked bag cannot be located by a common carrier, you’ll be reimbursed for a portion of the replacement cost of lost personal property. |
| Baggage delay insurance | Not included | If your checked bag is not delivered within a specified time upon your arrival, you’ll be reimbursed for the cost to replace essential items. |
| Hotel/motel burglary | Not included | Provides protection, while you’re checked in, for your personal belongings when left unattended in your room up to a certain dollar amount. |
| Mobile insurance | Not included | Reimburses a portion of your cell phone in the event it’s damaged or lost. Device coverage is limited to a certain period of time after purchasing with your credit card. |
| Purchase assurance | Not included | Automatically protects new purchases by insuring them for 90 days from the date of purchase in the event of loss, theft or damage. |
| Extended warranty | Included | Either doubles the length of the item’s manufacturer’s warranty coverage or extends it by 1 year, whichever is less. |
| Price protection | Included | If, within a certain amount of time of purchasing an item, its price drops or you find an identical item offered for a lower retail price than what you paid, you will be reimbursed for the difference. |
Other perks
- Earn up to 2% cash back on grocery store purchases²
- Earn up to 1% cash back on all other purchases including pre-authorized payments²
- Protect your eligible purchases for up to 90 days against loss, theft or damage*
- Cash back rewards accumulate automatically
- Purchase on your card and automatically double the manufacturer’s warranty up to one year*
- Instantly save 3₵ per litre on fuel▲ & earn 20% more Petro-Points§ when you link your Petro-Points card to any RBC card online.
Eligibility requirements
Minimum income: N/A
Interest rates
Purchase interest: 20.99%
Cash advance: 22.99%
Balance transfer: 22.99%
The RBC Cash Back Mastercard is a great no-fee cash back credit card for newcomers to Canada. The regular cash back rate is pretty good, too, for a no-fee card. You’ll get 2% cash back on groceries but only on the first $6,000 spent annually, then you’ll earn 1%. On all other purchases, you’ll get an unlimited 0.5% on the first $6,000 spent annually, which isn’t the most competitive rate. But after that, you’ll get 1% cash back which is fairly standard. Note that to be eligible for the card as a permanent resident, foreign worker or international student, you need to apply through the RBC Newcomers to Canada program.
Why do you need a credit card?
There are many benefits to getting a credit card when you first move to Canada. Not only is it a convenient way to pay for purchases, it’s one of the easiest ways to build credit for your future borrowing needs.
Also read: The best secured credit cards in 2023
1. Establish your credit history
To borrow money in Canada, you need to have a good history of managing debt responsibly. Whether you need a mortgage to buy a home, a loan to get a new car, or a line of credit, the lender will want to see a long history of payments made on time.
One of the easiest ways to establish a credit history in Canada is by getting a credit card. Each time you make a payment, it will be recorded on your credit report. As you continue making your payments on time, your credit score will go up, enabling you to access more and better borrowing products.
Also read: Financial tips for newcomers
2. Make payments easily
Digital payments are quickly becoming the preferred payment method in Canada. Cheques are almost never accepted, and some businesses have even stopped accepting cash. But you can use a credit card just about anywhere. You can even tap your credit card to pay for public transit in many Canadian cities.
3. Earn credit card rewards
Many of the best credit cards in Canada offer rewards and cash back as an incentive for using your card. As you spend, you’ll earn points you can redeem for travel or merchandise, or get a percentage of your purchases back in cash.
What to look for in a credit card for newcomers?
There are a few particular features you should keep an eye on when selecting a credit card, especially as a newcomer to Canada.
- Offer period: When you first move to Canada, you may be eligible for special programs that allow you to get a first credit card without any credit history – but generally only within the first five years since you arrived, so try to get a credit card ASAP.
- Approval with no credit history: Most credit cards require a minimum credit score to be approved, however many lenders have special exceptions for newcomers to Canada who have received permanent resident or landed immigrant status within the last five years. Look for cards that offer approval for newcomers with no credit history before going to alternatives.
- Annual fee: Credit cards in Canada have an annual fee ranging from $0 to $150 and up. The fee is typically commensurate with the rewards and features offered, but not always. If you pay your balance in full each month, you can often earn more in rewards than you’ll spend on the annual fee. Many cards waive this fee in the first year, and some offer extended no-fee benefits for newcomers.
- Rewards earned: The Canadian credit card landscape is filled with different rewards programs, each offering a slightly different experience. It can be difficult navigating the different rewards categories, earning rates, and redemption values, so compare credit cards online to find the card that will be most rewarding for you.
- Income requirements: While you don’t necessarily need a credit history in Canada to get a credit card, you will need to meet other qualifying requirements like a minimum income. Some cards require individual income of up to $80,000 per year, while others have no income requirement. You may be able to qualify for a card without meeting the income requirements if you can prove you have high net worth.
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Credit Card Basics
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Insurance Products
- Credit Card Rental Car Insurance
- Trip Cancellation/Interruption Insurance
- Travel Medical Insurance
- Travel Accident Insurance
- Delayed Baggage Insurance
- Lost Luggage Insurance
- Flight Delay Insurance
- Hotel/Motel Burglary Insurance
- Purchase Security Insurance
- Price Protection Insurance
- Extended Warranty Insurance