The Best Credit Cards For Young Adults in Canada (2024)

So you’re in your 20s and looking forward to having your own credit card as a young adult. And you are cautious because the credit card landscape is a vast space that can be very difficult to understand.

In this article, we will examine the 15 best credit cards for young adults in Canada.

Best First Credit Cards For Young Adults

When it comes to choosing your first credit card, it’s important to consider cards that are beginner-friendly and offer features tailored to young adults.

On the lists below are the best credit cards to build credit on for college students and 18-year-olds with no credit history.

1. Tangerine Money-Back Credit Card

The Tangerine Money-Back Credit Card is a handy no-annual-fee credit card that enables young adults to earn cash back on daily spending. Its other features include:

• 2% cash back on three categories of your choice (groceries, gas, and recurring bills)
• 0.5% cash back on all other purchases
• Access to purchase protection and extended warranty insurance coverage
• Easy to apply for and get approved

Related: Tangerine Money-Back Credit Card guide.

2. Neo Card

Neo offers a digital-first credit card experience with no annual fee, competitive interest rates, and features like automated savings tools and spending insights. Other benefits include:

• 5% cash back on all purchases at 10,000+ affiliated partners
• Keep tabs on your spending habits via Neo Insights
• Easy approval via Neo Secure Credit
• Chosen as one of the best credit cards to build credit by Forbes magazine

3. Scotiabank Scene+ Visa Card for Students

Designed for students, this card offers rewards in the form of Scene points, which can be redeemed for movie tickets, discounts, and exclusive experiences. Other features include:

• No annual fee
• 2x Scene points per dollar spent on grocery and movie purchases from eligible merchants
• 1 Scene point per dollar for anything else
• Easy to apply for and get approved as it is geared toward students

See this review for more information.

4. Simplii Financial Cash Back Visa Card

With no annual fee and a simple cash-back structure, this card is an excellent option for young adults who want to earn cash back on their everyday spending. Other benefits include:

• Up to 20% cash back on gas, drugstores, and groceries
• Enroll up to 3 supplementary cardholders and get cash back faster
• Easy to apply for and get approved

5. Scotia Momentum Visa Card

This card is suitable for young adults who want to earn cash back on their everyday purchases, with higher cash-back rates on categories such as groceries and recurring bills. Other features include:

• Annual fee of $39
• 2% cash back on fuel, pharmacy, grocery, and recurring bills
• 2% cash back on groceries
• 1% cash back on all other purchases
• Save 25% on car rentals at participating Avis and Budget locations

Discover more about Scotia Momentum Visa Card.

6. BMO CashBack Mastercard for Students

Aimed at students, this card offers cash-back rewards and the opportunity to build a credit history. Other benefits include:

• No Annual fee
• 3% cash back on groceries
• 1% cash back on recurring bill payments and 0.5% cash back on all other purchases
• Add a supplementary card for free

7. KOHO Prepaid Mastercard

KOHO is a no-fee spending and savings account for all Canadians. Budget, spend, and save like a pro with our prepaid MasterCard® and mobile app.

• 1% cash back on groceries or transportation
• Option to waive foreign transaction fees
• Earn interest on your savings as well as your spending account
• Chosen as one of the best credit cards to build credit by Forbes magazine

Related: Check out these KOHO Prepaid Cards.

8. American Express Green Card

American Express Green Card provides young adults with premium lifestyle benefits like the American Express Experiences program. Other features include:

• No annual fee
• 1x Membership Rewards for every $1 spent on eligible purchase
• Enjoy deals at select hotel and car rental bookings via American Express Travel Online

9. PC Financial World Elite Mastercard

With no annual fee and PC Optimum points on every purchase, this card is ideal for young adults who frequently shop at Loblaws-owned stores and want to maximize their rewards. Other features include:

• 30 reward points per $1 spent  at Loblaws and affiliated stores
• 45 reward points  per $1 spent at Shoppers Drug Mart
• 10 reward points per $1 spent everywhere else
• Requires good to excellent credit score

Each of these credit cards has its own set of benefits and features. Check them out based on your spending habits, financial goals, and preferences to choose the one that aligns with your needs.

Best Credit Cards For Young Adults Who Travel

For young adults who love to explore new destinations, there are credit cards that offer travel-related perks and rewards. Here are some of the top choices:

10. RBC ION+ Visa Card

RBC ION+ Visa

Annual fee: $48

Welcome offer: Get 7,000 bonus Avion points following approval.

Rewards: Earn 3x Avion points per $1 spent on groceries, rides, gas, streaming, subscriptions, digital gaming, and EV charging; 1 Avion point for every $1 spent on all other purchases.

Interest rates: 19.99% on purchases and 22.99% on cash advances.

Minimum income requirement: None

APPLY NOW

On RBC’s website

Card Review Summary

• Earn 3 Avion points for every dollar you spend on groceries, rideshare, daily public transit, gas, streaming, subscriptions, and digital gaming.
• Earn 1 Avion point for every dollar you spend on all other qualifying purchases.
• Save 3¢/L on fuel purchased at Petro-Canada when you link your credit card to your Petro-Canada Card.
• Redeem your points for air travel, gift cards, merchandise, statement credits, dining, etc. The minimum redemption is only $10.
• Get a 3-month complimentary DashPass subscription, valued at almost $30.
• Offers mobile device insurance and optional travel insurance coverage.
• Includes Purchase Security and Extended Warranty Insurance.

Pros & Cons

Competitive purchase APR at 19.99%

Attractive point redemption options

No minimum income threshold

Limited insurance benefits

The conversion rate for points is not as enticing

Our Verdict

The RBC ION+ Visa is a step up from the RBC ION Visa, with double the points on specific purchases. It is an excellent choice for students or newcomers looking to get approved for their first credit card in Canada.

RBC ION+ Visa Card offers a generous welcome bonus, accelerated rewards on dining and entertainment, and extended warranty coverage. Other features include:

• Annual fee of $48
• 3x Avion Points for every $1 spent on grocery, gas, and streaming subscriptions
• 1x Avion points on all other eligible purchases
• Requires good to excellent credit

11. American Express Cobalt Card

Designed for frequent travellers and food enthusiasts, this card provides flexible reward points that can be redeemed for travel, dining, and more.

• Annual fee of $155.88
• 5x reward points on groceries and restaurants
• 2x reward points on travel and transit
• 1x points on all other purchases
• Requires good to excellent credit

12. RBC Avion Visa Platinum

With this card, young adults can earn RBC Rewards points that can be redeemed for flights, hotel stays, and other travel-related expenses. Other features include:

• Annual fee of $120
• 1x Avion points per $1 spent on eligible purchases
• Comprehensive insurance coverage that covers trip interruption or hotel burglary
• Flexibility to choose flights from any airline and at any timing

13. CIBC Aeroplan Visa Card for Students

CIBC Aeroplan Visa Card allows students to earn Aeroplan points, which can be redeemed for flights, hotel stays, and merchandise. Other features are:

• No annual fee
• 2x Aeroplan points per $1 at over 150 affiliated partner merchants
• 1 Aeroplan point per $1 spent on gas, grocery, and Air Canada bookings
• No minimum income requirement

14. Student BMO AIR MILES Mastercard

Fashioned for students, this card offers AIR MILES reward on every purchase, helping young adults save on flights and other rewards. Other benefits include:

• No annual fee
• Earn 3x Air  Miles per $25 spent at participating Air Miles partners
• Earn 2x the Air Miles per $25 spent at any qualified grocery stores
• Student cards are usually easier to apply for than other credit card types

15. RBC WestJet Mastercard

This card is ideal for young adults who frequently fly with WestJet. It offers WestJet dollars, companion vouchers, and travel insurance coverage. Other features are:

• Annual fee of $39, Supplement card fee of $19
• For $199, you may earn a yearly round-trip companion voucher
• Earn 1% WestJet dollars for every eligible purchases
• Earn 50 Be Well points for every $1 spent on eligible products at Rexall

When choosing a travel credit card, consider factors such as annual fees, rewards programs, welcome bonuses, travel benefits, and foreign transaction fees. Assess your travel needs and preferences to select the card that matches your lifestyle.

How to Choose a Credit Card For Young Adults

In selecting a card that aligns with your lifestyle and financial objectives, you have to go through a variety of choices.

But by knowing the important elements to consider, like earning rewards, establishing your credit, or getting financial flexibility, you’ll be enlightened to make the best choice. As a young adult, the following are factors to keep in mind when selecting a credit card:

• Credit Score: If you’re just starting to build credit, look for cards that are accessible to individuals with limited or no credit history.

• Rewards Programs: Assess the rewards programs offered by different cards. Determine if you prefer cash back, travel rewards, or other perks that align with your spending habits.

• Annual Fees: While some credit cards charge an annual fee, others do not. Consider the value of the rewards and benefits offered by the card to decide if the annual fee is worth it.

• Interest Rates: Pay attention to the interest rates charged on the card. If you plan to carry a balance, look for cards with lower interest rates.

• Additional Benefits: Evaluate the additional benefits offered by the card, such as travel insurance, purchase protection, extended warranty, and concierge services.

As can be seen from the above points, there are several key factors to consider when choosing the right credit card as a young adult. Navigating the variety of options requires careful consideration.

Also, your choice should coincide with your financial objectives. Remember that everyone’s needs are different. Take the necessary time to check out different credit cards so that you can find the one that fits your spending habits and goals.

Embarking on your financial journey with confidence requires a well-informed choice to use your credit card as a valuable tool for building credit and maximizing rewards.

Pros and Cons of Credit Cards For Young Adults

There’s no question that young adults can benefit from credit cards as they offer valuable tools, including the chance to build credit, security, and convenience. Rewards programs, fraud protection, and emergency funds further enhance their value.

Despite their advantages, it’s important to exercise caution and be aware of potential downsides. Managing accumulated debt, high-interest rates, fees, and the temptation to overspend are concerns that need responsible handling.

Here are some of the pros and cons of having a credit card:

Pros:

• Convenient and secure way to make purchases
• Opportunity to build a credit history
• Access to rewards programs and benefits
• Emergency funds in case of unexpected expenses
• Protection against fraud and unauthorized transactions

Cons:

• Risk of accumulating debt if not used responsibly
• High-interest rates on outstanding balances
• Potential fees, such as annual fees and late payment fees
• Temptation to overspend and impulse buying lead to debt

A careful approach, prompt balance payments, and strict expense monitoring allow young adults to enjoy the benefits without losing what a credit card has to offer. 

Financial success requires a proper foundation, which can be established through the responsible use of credit cards.

Always remember that this important habit also affects personal goals and long-term aspirations.

FAQs

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