Student Credit Cards are extremely convenient for students attending college or university. A student credit card is a great way to start building a credit history. We can help you apply for the best student credit card for your daily expenses. You will find a list of all student credit cards available in Canada below. Compare and apply for the best student card that suits your requirement.
What are student credit cards?
Below are some of the key features of a student credit card:
- you don’t need to have a minimum income
- you don’t need a credit history
- you don’t need to pay an annual fee
- you don’t need the co-signature of a parent or guardian
Besides student credit cards are the founding stone for your credit history. Having a good credit history goes a long way for future valuable investments, such as renting an apartment, get a student loan for higher education, buying a car or a house.
Moreover, student credit cards will not burden your financial responsibilities with high annual fees. They simply make it easy for you to purchase the things you need regularly, and learn how to wisely manage your money and spending habits.
One of the other great things about student credit cards is that they are available to any person enrolled at academic institutions. This means it won’t be hard to get your approval for a student credit card.
A student credit card will be there for you when you need to pay your bills, cover transportation costs, and even pay for rent. Student credit cards are a helpful payment method for students who want to focus more on learning and less on money.
Benefits of Student credit cards
- Easy to use payment method
Student credit cards give you the freedom to pay your bills easy and fast, and cover your daily expenses. They are a modern and easy to use payment method that will make your life easier, especially if you want to make online payments.
- The starting point for your credit history
Student credit cards are the foundation for a credit history and the best way to build a good credit score from an early age. As you probably know, a good credit score will define a great life, making it easier for you to buy a car or a house. They can also facilitate the way to get a new and better credit card that can bring you extra advantages and benefits.
- Helpful tool to monitor your spending behavior
Student credit cards are also a great tool to manage and get to know your spending habits. With access to online banking, you can analyze your expenses and plan to get rid of unnecessary expenditure.
Why do I need a student credit card?
A student credit card’s main purpose is to help you build a credit history and cover the absolute necessary living costs, such as rent, transportation, pay utility bills etc. Student credit cards are not to be used for things you could easily go without, such as shopping sprees.
Student credit cards always come with a credit limit, usually between $500 and $1000, and you should ensure not to spend over the limit. It is important to pay your balance monthly and not just the minimum amount specified to avoid any high interest charges.
Once you will get the hang of using your student credit card wisely, and get better at managing your finances, you can even decide to switch to a rewards credit card, which will earn you more benefits. However, a rewards card could tempt you to use the card for more expenses to earn higher rewards. This could work against you, if you are not careful or have the necessary resources to always pay the full monthly balance.
Compare best student credit cards in Canada
By doing research and comparing the benefits and requirements attached to each student credit card available you will be able to choose the best student credit card for you. CompareMyRates.ca is here to help you with this. Here is what you need to take into consideration:
Always choose a student credit card that has no annual fee. This way, you can easily save a decent amount of money each year.
Possible rewards or cash back
There are student credit cards that offer students more than just a regular credit card, but also reward points, or even cash back for every dollar spent. Check out the student credit card’s policy and see if you benefit from points or cash back when you spend your money.
The importance of rewards
Before you get excited with the rewards your student credit card offers, make sure they really matter for you. For example, if the rewards you receive can only be used to purchase luxury services, they will probably won’t do much good to a student such as yourself.
Student Credit Card 101
You should apply for a student credit card only when you are sure that you are going to use it responsibly and have the financial resources to pay your balance monthly. It’s easy to get a student credit card, but paying back the monthly balance may be harder.
While there are no fees with student credit cards, the interest rates on outstanding balances are significant (usually over 20%) and, if you fail to pay your balance monthly, you can end up with a considerable debt. Moreover, you can ruin your credit score, which will affect your future.
Student credit cards also come with cash advance fees, so it is best for you to avoid withdrawing money from ATMs. Cash withdrawals will only add to your interest rate and you certainly wouldn’t want this.
Always apply for a student credit card only after you have done a thorough research, compare all student credit card available and assess to find the card that works for you.
Best Student Credit Cards
Credit card companies offer students - college students primarily - credit cards which can assist them to pay for anything that needs to be purchased immediately while they're in school particularly school related expenses. Students can also use their credit cards as an opportunity to start building their credit by managing their usage responsibly, a good investment in establishing a strong credit foundation early on in the game right before graduation.
Some student credit cards entice members by offering 0% APR for the first 5-7 months on purchases and most of them have zero annual fees. To get approved for the student credit card, some banks require a co-signer.
Students interested in having this convenient tool to aid them through their school activities must choose the ones that have a simple system of payment and helpful tools to notify them of their transactions - card usage and balance - so they can manage their credit better.
Student Credit Cards Canada
Credit cards are maybe the most convenient options for availing instant loans. People who are currently employed can easily get these cards against their bank accounts. There is also a special type of credit cards designed solely for the students and offered by different Canadian banks and credit unions. These Student Credit Cards are associated with the existing student accounts. They provide much flexibility for the students and they are optional.
To be eligible for this credit card, a student needs to submit necessary proofs to establish that they are currently studying in Canada. These cards are easy to set up and usually, it comes up with a personalized mobile wallet. Students can also avail the statement service with no additional fees. Some offers include monthly statements and online banking by default.
The special features of these credit cards are almost similar to the benefits of student accounts with some additional rewards. For example, most of the offers reward 1% money back on the purchases made by the credit cards. There are no annual fees applied on these accounts. There is a minimum credit limit though. On an average, it's $500 for a single card. The grace period is at least 21 days in most cases and interest-free. In other cases, the minimum interest rate is applied. The instant cash advances are available at the ABMs around the world. This card is also eligible for the standard balance transfer charges. There is also an option to transfer funds from the regular cards that charge higher interest rates.
Students can use these cards for many useful purposes. The regular activities like tuitions, travels, purchasing of books and learning instruments, etc. are highly dependent on instant money flows. These cards are the best to fulfill this requirement. Different packages also offer occasional benefits for convenience. Many of the card types include discounts and awards on travels like credit points or miles. These points are counted by the usage every month. Students should use their credit cards wisely because they cannot afford too much of backups for the interests charged by the cards.
They should use the grace period properly to limit the application of interests. Card providers usually encourage the students to use the credit cards more and more so that they gain all the stunning benefits offered by different banks and credit unions. However, student credit cards are great ways for the students to perform tension free transactions.