You moved to Canada to start a new life. Perhaps you relocated for school, work, or better opportunities. However, most newcomers don’t have any Canadian credit history when they land here. Without having an established credit score, it can be harder to get approved for your first credit card. On top of that, it can be difficult to borrow money, whether that’s through a line of credit, a car loan, or a mortgage someday.
Personally, I have friends who have immigrated from other countries and have found it challenging to navigate Canada’s credit card system. So, understandably, it can be a confusing process for those trying to settle down in a foreign country.
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Thankfully, several banks and fintech companies offer credit cards for newcomers to Canada without a credit score. These credit cards fall into two categories:
- Secured credit cards where you provide a refundable deposit
- Newcomer unsecured credit card programs where you’re approved based on your immigration status, Canadian income, or employment status.
So, I researched and found the top three credit cards for new immigrants to Canada. Which ones stood out to me? *Drumroll, please* In no particular order, they are:
Follow along as I explain the benefits of each credit card, the key takeaways, and which one is best for your needs.
Neo Secured Mastercard - Best credit card for guaranteed approval and credit building
You can set your credit limit by adding a security fund. You can shop in-store or online and pay your balance every month like a traditional credit card. Making payments on time will help you build your credit history.
Why it stands out
- 1% cashback on groceries and gas.
- Earn an average of 5% cashback when you shop at thousands of partner retailers across Canada.
- Guaranteed approval, no matter your credit score.
- Only a small deposit is required, starting at $50.
- The credit limit increases in as little as 3 months.
Who it’s best for
The Neo Secured Mastercard is ideal for those who want an easy approval process for their first credit card in Canada. You’ll receive an instant virtual card so you can start spending before your physical card arrives in the mail.
Key findings
From my perspective, if you’re eager to build your credit history, this card can help you do just that. Especially since newcomers will likely need to borrow money in the future, it’s important to focus on building your credit score.
There’s also an important distinction that I want to make. The Neo Secured Mastercard doesn’t have any income requirements. However, for newcomers with higher incomes, it’s possible to obtain a secured Neo World Mastercard or a secured Neo World Elite Mastercard. These credit cards have higher cashback rewards and can still help you build your credit score.
By the way, if you’re curious to see your credit report and credit score, you can get a copy for free from Equifax and TransUnion.
CIBC Adapta Mastercard - Best unsecured newcomer card with a reputable big bank
The card has a good banking platform and promotional welcome offers.
Why it stands out
- It’s part of the CIBC newcomer banking program.
- You don’t need to set aside a security deposit.
- You can earn 1.5 Adapta points per dollar spent in your top three spending categories; given than Adapta points are worth about 0.66 cents, it translates to about 1% of your spending in Adapata points
- You can use your points to pay down your credit card balance or pay for eligible recent purchases. You can also contribute to your Registered Retirement Savings Plan (RRSP) or Tax-Free Savings Account (TFSA).
- Receive roadside assistance from the Dominion Automobile Association. You may be eligible for services such as towing, battery boosting and gas delivery.
- The CIBC Pace It feature allows you to make installment payments at lower interest rates.
Who it’s best for
It’s for newcomers who qualify for a bank newcomer package and would like an unsecured rewards card. Also, if you have a job or a household annual income of at least $15,000 in Canada, this credit card could be a strong choice for you. So, if you’re working a part-time job or a side gig, you’re probably meeting this minimum income requirement.
Key findings
In my opinion, CIBC offers one of the best ways to obtain a traditional credit card as soon as you relocate to Canada. If you’re comfortable with the points-based system and understand the ways to redeem them, it could be beneficial for you.
RBC Cash Back Mastercard - Best no-fee cashback card from a major bank
By applying through the RBC Newcomer Advantage program, applicants may qualify for a credit card without any Canadian credit history if they also open an RBC bank account.
Why it stands out
- Earn up to 2% cash back on groceries and 1% cash back on everything else.
- You can access savings and perks from Petro-Canada, Rexall, and DoorDash.
- It includes extended warranty insurance.
- Newcomers can have a credit limit of up to $15,000.
- There’s no annual fee and no credit history required.
Who it’s best for
This card is suitable for newcomers who want a simple, everyday credit card. Or it could be a good option if they’re existing customers or plan to bank with RBC for the long-term. It’s also ideal for those who prefer an unsecured credit card and don’t want to provide a security deposit. Alternatively, it’s best suited for cardholders who prefer an easy cashback rewards system instead of earning points.
Key findings
I believe that the RBC Cash Back Mastercard is a unique credit card offered by a traditional bank that provides new immigrants a way to build their credit history. As long as you meet the eligibility requirements for RBC’s newcomer program, it could be a good starter credit card as it offers cashback on your purchases and exclusive deals from its partners.
Comparing the top credit cards for newcomers
Now that we’ve covered the details of the three credit cards, I know it’s a lot of information to take in. So, here’s a quick summary below of the top three credit cards for newcomers with no credit history.
How I chose the credit cards
The selection criteria for the best credit cards for newcomers to Canada were fairly straightforward. First of all, I wanted to ensure that newcomers could get approved without any credit history in Canada. I also selected credit cards that had no or low income requirements. Another factor was low or no fees, because new immigrants likely won’t use all the premium features if they pay for them. Lastly, once they get approved, they should be able to use the credit card instantly to track their credit activity.
While there are other credit cards that offer travel perks and other rewards, the main objective here is an easy approval process for those with no credit history. You’ll also notice that I didn’t include any prepaid credit cards, as they don’t help newcomers build credit.
As a side note, you may have noticed that all three credit cards in my top pick are Mastercard products. However, this wasn’t a factor in my ranking. They simply earned their spots because they offer some of the easiest approval processes, strongest newcomer perks, and the best credit-building opportunities for newcomers.
A credit card that follows your newcomer journey
As a newcomer to Canada, you’re probably adjusting to a new country, making new friends, learning the new culture, and figuring out how to build credit. Without any Canadian credit history, you still have several options for getting a credit card.
So, which credit card is right for you? I’ve made it easy for you to decide. If you want the fastest guaranteed approval and to start building your credit history right away, the Neo Secured Mastercard is a suitable option. If you prefer an unsecured credit card, CIBC’s Newcomer Program offers the Adapta Mastercard, which lets you earn rewards. If you want to earn cashback, the RBC Cash Back Mastercard is a solid choice. As long as you choose a card that aligns with your stage of life, you’ll be able to reap the most rewards.
