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Best credit cards for recent grad students

Best credit cards for recent grad students in Canada

Tyler Wade

By Tyler Wade

🗓️

Updated: December 13, 2024

Partners on this page provide us earnings.

Congratulations, today is your day. You're off to great places. You're off and away. Dr. Seuss had a way with words, and in 2020, his estate earned $33 million before taxes1, so maybe he was good with money, too. 

Finding a great student card doesn't have to be tricky. Check out some of or top picks for best student credit card (and once you graduate, check out our Best Credit Cards Canada list).

  • Why you can trust Money.ca's best recent graduate credit cards in Canada list

    +

    Money.ca rates all credit cards on a numeric scale of 1 to 5 stars, with 1 being the lowest and 5 the highest rating, respectively. Money.ca’s proprietary scoring formulas break down the confusing language, complex points, rewards and earn rates to give you the real data that caters to your needs first, not ours.

    Our partnerships have no impact on our ratings, which are solely determined by the merits of each card. To learn more about how we researched and ranked these cards, read our full credit card review methodology.

Why recent grads should consider a new credit card

For new graduates, recent graduates or even if you're heading to post-grad, 51% of Canadian students with Bachelor's degrees, according to Statistics Canada, are in debt. Of those surveyed, 48% of students owe over $25,000, with the average debt at graduation being $30,600 from government and non-government sources2 (like credit cards).

Fortunately, 46% of graduates had non-government debt paid off at the time of the interview (I assume for their first job after graduation). 

But how?

One effective strategy to manage high interest debt is to consider a balance transfer credit card. This type of card allows you to transfer your existing debt to it, often at a low interest rate, sometimes even 0% for 6-12 months, depending on the card you choose. This can help you save on interest and pay off your debt faster.

Then, there are those of you who aren't in debt, have landed a prestigious job, are looking to climb the ladder of financial stability and enjoy the perks that come with it.

You are no longer beholden to your University credit card, which may not be rewarding your new-grad level of creditworthiness.

For that, we've assembled a list of the best credit cards for grad students and new grads.

Best for Cash back

Best credit card for new grads: Cash back

CIBC Dividend® Visa Infinite* Card

Apply now

4.2

10% back†

Welcome offer

Good

Suggested credit score

Get a first-year annual fee rebate for you and up to three Authorized Users† and earn 10% cash back for the first 4 statements on net purchases of up to $3,000†.

Apply now

Pros

  • First-year annual fee rebate

  • 10% cash back welcome bonus up to $3,000 spend

  • 4% cash back on gas, electric vehicle charging and grocery stores

  • 2% cash back on transportation, dining and recurring payments

  • High annual spending cap on benefits ($20,000 in bonus categories or $80,000 total)

Cons

  • High income requirement

  • Sparse travel insurance offering

Eligibility

Recommended Credit Score

Good

Required Annual Personal Income

$60,000†

Required Annual Household Income

$100,000†

Pros

  • First-year annual fee rebate

  • 10% cash back welcome bonus up to $3,000 spend

  • 4% cash back on gas, electric vehicle charging and grocery stores

  • 2% cash back on transportation, dining and recurring payments

  • High annual spending cap on benefits ($20,000 in bonus categories or $80,000 total)

Cons

  • High income requirement

  • Sparse travel insurance offering

Eligibility

Recommended Credit Score

Good

Required Annual Personal Income

$60,000†

Required Annual Household Income

$100,000†

cash back on eligible gas, EV charging, and grocery purchases.†

4%

cash back on eligible transportation, dining purchases and recurring payments†

2%

cash back on all other purchases†

1%

save up to 10 cents per litre† at participating Pioneer, Fas Gas, Ultramar and Chevron gas stations.†

10 cents

Purchase APR

20.99%†

Balance Transfer Rate

22.99%†

Cash Advance APR

22.99%†

Annual Fee

$120

If you were using Money.ca’s pick for best student credit card, the BMO Cash Back for students, you may get automatically updated to the non-student version, essentially the same credit card. Unfortunately, you can’t capitalize on its promotional balance transfer offer, nor can you simply transfer the balance to the “adult” version of the card. 

So, switching to the best cash back credit card in Canada, the CIBC Dividend Visa Infinite has a $120 annual fee. 

To qualify, you’ll need to make at least $60,000 and have a “Good” credit score of at least 660. 

Read more: Best credit cards for good credit scores

With the CIBC Dividend Visa Infinite, the cap on your grocery spending is $20,000, meaning you’ll continue to earn cash back far more than BMO’s limit per statement cycle period. 

Like BMO, you can redeem your cash back any time, so long as you have a minimum of $25 available. BMO allows you to deposit money into your BMO InvestorLine account or your BMO Chequing and Savings account, whereas CIBC issues a statement credit. With CIBC, you can also request cashback be paid out only once a year (as an adult with two kids, I’ll say post-Christmas may be ideal, but you do you).

Is it worth the $120 annual fee? Let’s do some cash back credit card math.

Dollar values (for estimation purposes only) BMO Student Cash Back Mastercard CIBC Dividend Visa Infinite
Annual fee $0 $120
Annual grocery spend: $6,000 At 3%: $180 At 4%: $240
Recurring bills, streaming services, subscriptions and utilities: $1,200 At 1%: $12 At 2%: $24
Gas or EV charging spend: $2,400 At 0.5%: $12 At Earn 4% cash back on eligible gas, EV charging, and grocery purchases†%: $48
Transportation (e.g. rideshare, transit): $1,000 At 0.5%: $5 At 2%: $20
Dining (eats & drinks): $1,800 At 0.5%: $9 At 2%: $36
All other purchases: $12,000 At 0.5%: $60 At 1%: $120
Total cash back earned $278 $488
Less annual fee $0 $120
Is it worth it? $278 $368
  • †Terms and Conditions Apply. This offer is not available for the residents of Quebec.
  • The information for the CIBC Dividend® Visa Infinite* Card has been collected independently by Money.ca. The card details on this page have not been reviewed or provided by the card issuer.

Other cash back credit cards for recent grads we love

BMO CashBack® World Elite®* Mastercard®*

Apply Now

4.9

Read Review
Apply now

$120 Annual Fee

Excellent Recommended Credit Score

$80,000 Required Annual Personal Income

Scotiabank Momentum® Visa Infinite*

Apply Now

4.2

Read Review
Apply now

$120 Annual Fee

Excellent Recommended Credit Score

$60,000 Required Annual Personal Income

CIBC Dividend® Visa Infinite* Card

Apply Now

4.2

Read Review
Apply now

$120 Annual Fee

Good Recommended Credit Score

$60,000 Required Annual Personal Income

Best for Travel

Best credit card for new grads: Travel

American Express Cobalt® Card

Apply now

4.9

up to 15k pts

Welcome offer

Fair

Suggested credit score

Earn up to 15,000 Welcome Bonus Membership Rewards® points* – that’s up to $150 in value.

Apply now

Pros

  • High earn rates (up to 5% return on spending!)

  • Flexible month-by-month fee structure

  • Free supplementary cards

  • 1:1 points transfer with selected hotels, airlines and frequent flyer programs

Cons

  • Accelerated earn rates only apply to purchases in Canada (not to purchases made abroad)

  • Amex has a more limited merchant acceptance rate than Visa and Mastercard

  • Slightly higher than average annual fee

Eligibility

Recommended Credit Score

Fair

Required Annual Personal Income

$0

Required Annual Household Income

$0

Pros

  • High earn rates (up to 5% return on spending!)

  • Flexible month-by-month fee structure

  • Free supplementary cards

  • 1:1 points transfer with selected hotels, airlines and frequent flyer programs

Cons

  • Accelerated earn rates only apply to purchases in Canada (not to purchases made abroad)

  • Amex has a more limited merchant acceptance rate than Visa and Mastercard

  • Slightly higher than average annual fee

Eligibility

Recommended Credit Score

Fair

Required Annual Personal Income

$0

Required Annual Household Income

$0

the points on eligible eats & drinks purchases in Canada

5x

the points on eligible streaming subscriptions in Canada

3x

the points on eligible gas, transit & ride share in Canada

2x

the points on everything else

1x

additional Membership Rewards point for every $1 you charge on eligible hotel or car rental bookings made with American Express Travel

1

Get up to $100 USD hotel credit to use on amenities like dining, spa or other leisure facilities when charged to the room

$100 USD

Variable APR

21.99% - 30%

Cash Advance APR

21.99% - 1%

Annual Fee

$155.88

Foreign Transaction Fee

2.5%

The tricky thing with the Cobalt is that people assume Amex isn’t accepted everywhere. However, that narrative changed after Amex launched its “Shop small” campaign to support small businesses. 

Read more: Where is Amex accepted in Canada

Beyond being the winner of the best credit card in Canada for 2024, the Cobalt is loved for its high earning rate on food and drinks in Canada, including groceries and food delivery. You’ll also earn better than average rates on subscriptions (e.g., Netflix, Spotify), rideshares, transit and gas. It’s sure to fit your new grad lifestyle. 

And all those reward points can be redeemed for great rewards. 

American Express Membership Rewards points transfer 1:1 with Aeroplan, British Airways, and Hilton. You can also transfer them to Marriott Bonvoy, Asia Miles and Air France. As well, you can book directly with Amex travel online. 

A colleague at work uses her points to redeem for statement credits whenever she wants a coffee but doesn’t feel right about spending the money that day. 

While its annual fee is higher, it is divided into monthly payments, making it much more digestible. If you love this card but don’t have the income qualifications, don’t worry—with Amex, there are no income requirements. 

  • Contact American Express for the most up-to-date referral bonus figures.

    American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information, click the Apply Now link. If you apply and get approved for an American Express Card, (I/we) may receive compensation from American Express, which can be in the form of monetary payment.

Best for 22-year-olds

Best credit card for 22-year-olds

Scotia Momentum® Visa* Card

3.8

Fair

Suggested credit score

to receive the latest news, tips and offers by email

Read review

Pros

  • Cash back rewards: Earn 2% cash back on gas, groceries, drug stores, and recurring bill payments, and 1% on all other eligible purchases.

  • Annual cap benefits: The 2% cash back applies up to $25,000 spent annually in key categories, allowing for substantial rewards accumulation.

  • Purchase security and extended warranty: Offers protection for new purchases against theft, loss, or damage and extends the manufacturer's warranty.

  • Supplementary cards available: Although there's a fee, additional cards can be useful for shared expenses.

Cons

  • Annual fee: The card has an annual fee of $39.

  • High interest rate: The card has a high interest rate of 19.99% on purchases and 22.99% on cash advances.

  • Limited rewards categories: The card’s rewards categories are limited to groceries, gas, and recurring bill payments.

  • Rewards paid out annually: Cash back rewards are paid out annually as a statement credit.

  • $25,000 annual cap for 2% cash back: The 2% cash back rate applies up to the first $25,000 spent annually on gas station, grocery store and drugstore purchases, and on recurring payments.

Eligibility

Recommended Credit Score

Fair

Pros

  • Cash back rewards: Earn 2% cash back on gas, groceries, drug stores, and recurring bill payments, and 1% on all other eligible purchases.

  • Annual cap benefits: The 2% cash back applies up to $25,000 spent annually in key categories, allowing for substantial rewards accumulation.

  • Purchase security and extended warranty: Offers protection for new purchases against theft, loss, or damage and extends the manufacturer's warranty.

  • Supplementary cards available: Although there's a fee, additional cards can be useful for shared expenses.

Cons

  • Annual fee: The card has an annual fee of $39.

  • High interest rate: The card has a high interest rate of 19.99% on purchases and 22.99% on cash advances.

  • Limited rewards categories: The card’s rewards categories are limited to groceries, gas, and recurring bill payments.

  • Rewards paid out annually: Cash back rewards are paid out annually as a statement credit.

  • $25,000 annual cap for 2% cash back: The 2% cash back rate applies up to the first $25,000 spent annually on gas station, grocery store and drugstore purchases, and on recurring payments.

Eligibility

Recommended Credit Score

Fair

cash back for every $1 you spend on all eligible gas stations, grocery store, drug store purchases and recurring bill payments.

2%

cash back on all other eligible purchases.

1%

savings off base rates at participating AVIS locations and at participating Budget locations in North America.

25%

days of purchase security on most items purchased with your card.

90

extra year on top of manufacturer's warranty.

1

Purchase APR

19.99%

Balance Transfer Rate

22.99%

Cash Advance APR

22.99%

Annual Fee

$39

Foreign Transaction Fee

2.5%

A cash-back card that gives you a decent rewards rate on everyday purchases like gas, groceries, drugstores and recurring bills and a low annual fee of $39 is a sweet credit card now that you’ve graduated. The bonus is they also have a balance transfer offer, which is another nice perk: Introductory interest rate on balance transfers for the first 6 months (22.99% after that; annual fee $39).

  •  Conditions Apply. Visit here for the Scotia Momentum® Visa* Card to learn more. *See Card Provider's website and Card Application for complete card details, terms and current offers. Reasonable efforts are made to maintain accuracy of information. 
Best for budget-savvy

Best credit card for grad students who want to be smarter about money

EQ Bank Card

Apply now

2.9

Fair

Suggested credit score

to receive the latest news, tips and offers by email

Apply now

Pros

  • No FX fees (up to 2.5%)

  • Earn 0.5% cash back on every purchase

  • Free ATM withdrawals in Canada (EQ will reimburse you)

Cons

  • ATM fees charged abroad (EQ will not reimburse)

Eligibility

Recommended Credit Score

Fair

Required Annual Personal Income

$0

Required Annual Household Income

$0

Pros

  • No FX fees (up to 2.5%)

  • Earn 0.5% cash back on every purchase

  • Free ATM withdrawals in Canada (EQ will reimburse you)

Cons

  • ATM fees charged abroad (EQ will not reimburse)

Eligibility

Recommended Credit Score

Fair

Required Annual Personal Income

$0

Required Annual Household Income

$0

Cash back on purchases

0.5%

Interest on your balance

2.00%

Annual Fee

$0

Foreign Transaction Fee

0%

If you're looking for the best credit card post-graduation but still don't have the income qualifier most premium credit cards want to see, we figure the smart choice is the EQ Bank card. 

It's a prepaid Mastercard, so you're not building credit, but the card has no fees and earns 0.5% cash back on all purchases. They'll reimburse you for any ATM withdrawals you make with the card. 

While you must switch banks, EQ Bank is incredible for its customer service and high interest rates. You'll earn 2.5% cash back on your balance and an additional 1.5% if you direct deposit your pay. 

Read more: Best robo advisors in Canada

Best for debt

Best credit card for grad students who want to pay off their student credit card debt

MBNA True Line® Mastercard®

Apply now

2.9

0% intro rate

Welcome offer

Good

Suggested credit score

Get a 0% promotional annual interest rate (“AIR”)† for 12 months on balance transfers✪ completed within 90 days of account opening, with a 3% transfer fee.

Apply now

Pros

  • Solid welcome offer: 12 months of 0% APR† on balance transfers✪ made within the first 90 days (3% transfer fee applies)

  • No annual fee or minimum income requirement

  • Low standard interest rate of 12.99% for all new purchases charged to the card

  • Some extra perks like fraud protection and a discount on car rentals

Cons

  • 3% balance transfer fee is comparatively high

  • Very high cash advance interest rate of 24.99%

  • No insurance benefits

  • Can’t transfer a balance owed to either MBNA or TD

Eligibility

Recommended Credit Score

Good

Pros

  • Solid welcome offer: 12 months of 0% APR† on balance transfers✪ made within the first 90 days (3% transfer fee applies)

  • No annual fee or minimum income requirement

  • Low standard interest rate of 12.99% for all new purchases charged to the card

  • Some extra perks like fraud protection and a discount on car rentals

Cons

  • 3% balance transfer fee is comparatively high

  • Very high cash advance interest rate of 24.99%

  • No insurance benefits

  • Can’t transfer a balance owed to either MBNA or TD

Eligibility

Recommended Credit Score

Good

Promotional annual interest rate† (a 3% transfer fee applies) for 12 months on any balance transfer✪ completed within 90 days of opening the account.

0%

This card is made from 100% recycled plastic

100%

Purchase APR

12.99%

Balance Transfer Rate

17.99%

Cash Advance APR

24.99%

Annual Fee

$0

Foreign Transaction Fee

2.5%

Get a 0% promotional annual interest rate (“AIR”)† for 12 months on balance transfers✪ completed within 90 days of account opening, with a 3% transfer fee. You can’t beat that balance transfer offer and especially not with a card with a $0 annual fee. While you’ll have to pay a balance transfer fee of 3% of the balance transferred, it’s small relative to the amount you’ll save if you can’t seem to get ahead of your student debt. 

Let’s say you owe $4,000. You’ll pay $120 to transfer your existing balance to MBNA and then pay $333.33 per month for the next 12 months, and your balance will be gone. Say hello to being debt-free (at least for your credit card). 

  • †, ✪, Terms and Conditions apply.

    This offer is not available for residents of Quebec. For residents of Quebec, please click here.

    Sponsored advertising. MBNA is a division of The Toronto-Dominion Bank (TD) and TD is not responsible for the contents of this site including any editorials or reviews that may appear on this site. For complete information on this MBNA credit card, please click on the “Apply Now” button.

    The Toronto-Dominion Bank is the issuer of this credit card. MBNA is a division of The Toronto-Dominion Bank. ®MBNA and other-trademarks are the property of The Toronto-Dominion Bank.

Scotiabank Value® Visa* Card

Apply Now

3.0

Read Review
Apply now

$29 Annual Fee

Fair Recommended Credit Score

$12,000 Required Annual Personal Income

CIBC Select Visa* Card

Apply Now

2.7

Read Review
Apply now

$29 Annual Fee

Good Recommended Credit Score

MBNA True Line® Mastercard®

Apply Now

2.9

Read Review
Apply now

$0 Annual Fee

Good Recommended Credit Score

Best for no credit

Best credit card for recent college graduates with no credit

Neo Secured Mastercard

Apply now

2.6

Poor

Suggested credit score

to receive the latest news, tips and offers by email

Apply now

Pros

  • Low minimum security deposit

  • Cash back rewards on purchases

  • No hard credit check

Cons

  • High APR range

  • $5 monthly fee

  • Best cash back offer requires high balance

Eligibility

Recommended Credit Score

Poor

Required Annual Personal Income

$0

Required Annual Household Income

$0

Pros

  • Low minimum security deposit

  • Cash back rewards on purchases

  • No hard credit check

Cons

  • High APR range

  • $5 monthly fee

  • Best cash back offer requires high balance

Eligibility

Recommended Credit Score

Poor

Required Annual Personal Income

$0

Required Annual Household Income

$0

Earn up to 4% on gas and groceries

Up to 4%

Earn up to 1% on everything else

up to 1%

Earn up to $680 in annual cashback

$680

Variable APR

19.99% - 29.99%

Cash Advance APR

22.99% - 31.99%

Annual Fee

$59

A secured card helps you build credit. The Secured Neo Mastercard earns cash back on gas and groceries, streaming ridesharing and food delivery services. In its app, Neo educates you about money and help you manage your money, too.  

Neo Secured credit card is issued by Neo Financial™ pursuant to license by Mastercard International Incorporated.

Conclusion

Conclusion

It’s time to dump your university credit card and step up into the rewards game. Make your friends jealous, whether you’re jet-setting around the world, earning points at restaurants, or paying off your student debt faster. 

FAQs

FAQs

  • How many credit cards should I have in my 20s?

    +

    Having one or two credit cards in your 20s is ideal. These cards help you build a credit history while keeping spending manageable. Using them responsibly, such as paying off the monthly balance, demonstrates good financial habits and avoids debt.

  • How do I pay off $20,000 in credit card debt?

    +

    To tackle $20,000 in credit card debt, create a budget and cut unnecessary expenses. Consider using the "avalanche" method, paying off the highest-interest card first, or the "snowball" method, focusing on the smallest balance. You could also consolidate the debt onto a balance transfer credit card or negotiate with creditors for lower interest rates or payment plans.

  • Sources:

    +

    1. https://www.foxbusiness.com/lifestyle/what-is-dr-seuss-net-worth

    2. https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3710003601&pickMembers%5B0%5D=1.1&pickMembers%5B1%5D=3.3&cubeTimeFrame.startYear=2000&cubeTimeFrame.endYear=2020&referencePeriods=20000101%2C20200101

Tyler Wade Content strategist & writer

Tyler Wade has worked in personal finance for over 5 years writing for brands like Ratehub, Forbes, KOHO, and now Money.ca.

Disclaimer

The content provided on Money.ca is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.

†Terms and Conditions apply.