Entering adulthood is an exciting time filled with newfound responsibilities and opportunities, including the chance to establish a solid financial foundation. For young adults in Canada, choosing the right credit card is a crucial step towards building credit and learning to manage finances effectively. This comprehensive guide will help you explore the best credit cards for young adults in Canada, taking into account factors such as annual fees, rewards programs, and additional benefits.
Best Credit Cards for Young Adults in Canada 2023
- Tangerine Money-Back Credit Card
Annual Fee: $0 Rewards Rate: Up to 2% cashback
The Tangerine Money-Back Credit Card is an excellent choice for young adults seeking a no-annual-fee option with a straightforward rewards program. Cardholders can earn 2% cashback in two categories of their choice, such as groceries, gas, or entertainment, and 0.5% cashback on all other purchases. Additionally, cardholders can unlock a third 2% cashback category when they deposit their cashback directly into a Tangerine Savings Account. The card also offers purchase protection and extended warranty coverage, making it an attractive option for young adults looking to maximize their cashback earnings without paying an annual fee.
- Scotiabank SCENE Visa Card
Annual Fee: $0 Rewards Rate: 5 SCENE points per $1 spent at Cineplex theatres, 1 SCENE point per $1 spent elsewhere
For movie enthusiasts, the Scotiabank SCENE Visa Card offers an appealing rewards program centered around entertainment. Cardholders earn 5 SCENE points per $1 spent at Cineplex theatres and 1 SCENE point per $1 spent on all other purchases. With no annual fee and a relatively low income requirement, this card is an ideal choice for young adults looking to earn rewards towards free movies and entertainment experiences.
- BMO CashBack Mastercard
Annual Fee: $0 Rewards Rate: 3% cashback on groceries, 1% cashback on recurring bill payments, 0.5% cashback on all other purchases (for the first $500 spent per month)
The BMO CashBack Mastercard is another great no-annual-fee option that allows young adults to earn cashback on everyday purchases. Cardholders receive 3% cashback on groceries, 1% cashback on recurring bill payments, and 0.5% cashback on all other purchases, up to $500 spent per month. The card also includes a welcome offer of 5% cashback for the first three months (up to $100). With its simple cashback structure and no annual fee, this card is perfect for young adults looking to build credit while earning rewards on daily expenses.
- PC Financial Mastercard
Annual Fee: $0 Rewards Rate: Up to 45 PC Optimum points per $1 spent
For young adults who frequently shop at Loblaw-affiliated stores, the PC Financial Mastercard offers a lucrative rewards program with no annual fee. Cardholders can earn 45 PC Optimum points per $1 spent at Shoppers Drug Mart, 30 points per $1 spent at Loblaw banner stores, 30 points per litre at Esso or Mobil gas stations, and 10 points per $1 spent elsewhere. With a wide range of redemption options, including groceries, household items, and even travel, this card is an excellent choice for those looking to maximize rewards on their everyday purchases.
- CIBC Dividend Visa Card for Students
Annual Fee: $0 Rewards Rate: 2% cashback on groceries, 1% cashback on gas, transportation, dining, and recurring
payments, 0.5% cashback on all other purchases
Specifically designed for students, the CIBC Dividend Visa Card for Students provides an opportunity for young adults to build their credit history while enjoying cashback rewards. With no annual fee and no income requirement, this card is an ideal choice for students looking to manage their finances responsibly. Cardholders earn 2% cashback on groceries, 1% cashback on gas, transportation, dining, and recurring payments, and 0.5% cashback on all other purchases. The card also offers purchase security and extended warranty protection, adding extra peace of mind for cardholders.
- Desjardins Cash Back Visa Card for Students
Annual Fee: $0 Rewards Rate: 1% cashback on all purchases
The Desjardins Cash Back Visa Card for Students is another student-focused credit card that offers a simple cashback rewards program. With no annual fee and no income requirement, this card is well-suited for young adults seeking an uncomplicated rewards structure. Cardholders earn 1% cashback on all purchases, making it easy to earn rewards without worrying about specific spending categories. The card also includes mobile device insurance and travel insurance, providing additional value for students.
- Capital One Platinum Mastercard for Costco Members
Annual Fee: $0 (requires Costco membership) Rewards Rate: 3% cashback on restaurant purchases, 2% cashback on gas, and up to 1% cashback on all other purchases
For young adults with a Costco membership, the Capital One Platinum Mastercard offers an attractive cashback rewards program with no annual fee. Cardholders can earn 3% cashback on restaurant purchases, 2% cashback on gas, and up to 1% cashback on all other purchases. The card also includes price protection and extended warranty coverage, adding extra value to the card’s benefits.
Conclusion
Choosing the right credit card as a young adult in Canada is an important decision that can significantly impact your financial future. By selecting a card that aligns with your spending habits and financial goals, you can begin building a strong credit history and enjoy valuable rewards and benefits. The credit cards listed in this guide offer a variety of rewards programs, additional perks, and no annual fees, making them excellent options for young adults looking to establish a solid financial foundation. Remember to use your credit card responsibly, always paying your balance on time and in full, to ensure a healthy credit score and a bright financial future.
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