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Credit Cards for Newcomers and Students

UPDATE- Check out our list of Top Student Credit Cards.

Whether you are a newcomer to Canada, a student just getting out of school with no income or whatever you situation is that prevents you from applying for a credit card to take advantage of benefits, below are some of the top options available to you.

Capital One does have some credit cards that are guaranteed approval options:

But they either have an outrageous annual fee or virtually no benefits.

An alternative to the Capital One cards is a hidden gem, the RBC Cash Back MasterCard. The credit card advertises as follows: “Settle In Faster With A Credit Card, No Credit History Required”, but anyone can apply for the credit card. The earning ratios work as follows:

  • Earn 2% cash back on grocery store purchases
  • Earn 0.5% cash back on your first $6,000 (annually) worth of purchases that are not groceries
  • Earn 1% cash back on any purchases in excess of $6,000
  • You can cash out as soon as you reach $25 in cash back value, otherwise the $25 will automatically be credited to your account on your January statement

This is definitely a top choice credit card for anyone who is looking for their first credit card and have little to no credit history, unless you are a student that is.

The hands down top student credit card out there is the BMO SPC Cashback MasterCard. There is currently a $10 sign up bonus that ends on October 31st, 2013. Otherwise, the earning ratios are as follows:

  • Earn 0.5% cash back on all purchases
  • Earn 10% – 15% discount at the stores listed on the SPC website.

Use this credit card in combination with your SPC card (the double dipping opportunities may vary). There is no credit card out there that gives a 10% return, much less a 15% return. So if you can take advantage of making purchases at the stores listed on the SPC website, then this is your best bet as a student.

I would like to give honourable mention to the BMO  SPC Air Miles MasterCard which has the following benefits:

  • Earn 1 Air Miles for every $20 spent on all purchases
  • Earn 10% – 15% discount at the stores listed on the SPC website.

This credit card would be good for Air Miles collectors, but the cash back one is less hassle. Here was a recent analysis on Air Miles.

If you see better credit cards out there for people who would have difficulty qualifying for one, please let us know in the comment section below.

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