The best Canadian student credit cards in 2016

The only reason I was able to build my credit as a young punk was because I signed up for a student credit card as soon as I turned 18. I didn’t know how building credit worked. I just knew somehow that I needed a credit card. I also wanted to look cool when I went out with my friends. I believe that credit cards can be the best financial tool for you in your 20s – if you use them responsibly.

If you’re just getting started, here’s what to know about some of the best Canadian student credit cards.

Before you apply for a student credit card

Don’t just rush out there and sign up for a credit card. You need to have a clear plan. Here are two things to figure out before you apply for one of the several Canadian student credit cards available to you:

• How will you pay off your balance? Do you have a job? Do you have any savings? You don’t want to be confused when your bill shows up in your inbox. A credit card is a loan, and you need to pay it off.

• How will you use the credit card? I use my credit card to make purchases online and to automate my bills. I didn’t get it for emergencies because I knew that there would be an emergency every Friday night. Be realistic about a plan for your credit card, and stick to it.

Let’s take a look at the top student credit cards that I was able to find for Canadian students in 2016:

1. StudentAwards MBNA Rewards MasterCard® credit card

There’s no limit to your points, and there’s no annual fee. This card helps you get the most value for your spending. You only need fair credit get accepted. Just remember that the interest rate is 19.99%. This means that you should strive to never carry a balance. The good news is that you’ll likely get accepted.

2.  BMO SPC® CashBack® Student MasterCard®

This student credit card has no annual fee and offers you 1% cashback on all card purchases. The interest rate is 19.99% so you’re not going to want to carry a balance.

The main benefit of this card is the cashback opportunity. If you spend $500 per month on your credit card, you’ll get $60 back every year. That doesn’t sound like much, but if you’re using your card for your automated bills (insurance, rent, groceries, cell phone, dating profile, and more) then you’re going to get free money. Any free money is good money, and $60 can be a night out.

3. CIBC Classic Visa Card for Students

This credit card comes with no annual fee and is a common piece of plastic for most Canadian students looking to get started with building their credit. The interest rate is also at 19.99%, so please watch your spending. I had to mention this card because many of my peers had this when I was in school. Most students get accepted and it’s a great place to start building credit history. When you’re ready you can upgrade your credit card. 

Remember that you shouldn’t apply for a credit card if you don’t have any income or savings, and if you don’t have any understanding of how the process works. Don’t graduate from college with credit card debt on top of your student loans. I also don’t want you to sign up for the first credit card that you see on campus. Browse around and find the card that’s right for you.