Can international students get a credit card in Canada?

You land with a new stamp on your passport, a study permit and the remains of your old life in boxes. Soon enough, you’re working through the practical stuff: locking down a place to live, setting up a chequing account and getting a Canadian phone number. Getting a Canadian credit card is usually on that list, too.

As an international student, you can get a credit card in Canada, even without a pre-established credit score or permanent residency. What you do need is the right type of credit card and a clear read on which applications are worth your time.

How to get a credit card in Canada with no credit history

Most international students on a valid study permit are eligible to apply for a credit card in Canada. But here’s the catch: Not everyone says yes. Big banks and major lenders may decline you because your Canadian credit file is empty (even if you have a strong credit score back home). 

A secured credit card sidesteps that problem. You put down a refundable deposit¹, and that amount becomes your credit limit. A $500 deposit unlocks a $500 limit. 

With Neo, you can get started with a $50 security deposit². Neo keeps track of how you use your card and pay off your balance, and with time, may increase your credit limit beyond your initial deposit³. 

Most financial institutions consider newcomers to Canada as higher-risk borrowers, but with your security deposit as collateral, secured credit cards typically have lower barriers to entry than regular credit cards.

Are secured credit cards the same as prepaid cards? 

No, secured credit cards and prepaid cards are different. Unlike secured credit cards, prepaid cards do not build your credit history or contribute to your Canadian credit score. Because prepaid cards are funded by your chequing account, you aren’t technically borrowing any funds and your activity does not get reported to Canada’s credit bureaus. If you’re looking to build your credit history, you’ll want to choose a card that reports your payments to Equifax and TransUnion®.

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How to get a credit card as an international student in Canada

Beyond providing a security deposit, the process of applying for a secured credit card is very similar to applying for a regular credit card. Have these ready when you apply: 

• Valid study permit
• Passport
• Canadian address
• Social Insurance Number (SIN)

With Neo, you get instant access to a virtual card that you can start using right away—no need to wait for your physical card to arrive in the mail.

How to build credit as an international student in Canada

Building your credit history doesn’t end with getting approved for a credit card. What actually matters is how you use your card once you have it. Keep these tips in mind:

1. Pay your full balance on time every month. Setting up automatic payments helps reduce your chances of missing a due date.
2. Keep your credit utilization low. This is how much of your limit you’re using at any given time. You’ll ideally want to keep this below 30%. If you have a $500 credit limit, keep your balance below $150.
3. Don’t close your account. Even if you decide that a credit card isn’t right for you, keep your account open—assuming you aren’t paying for any monthly or annual fees. The length of your credit history is one of the factors that contributes to your credit score. 

If you have a secured credit card and feel ready to graduate to a standard card, you can choose to keep your secured account open to cushion your credit profile, while you settle into using your new card. When you eventually close your secured account, you will get your security deposit back.

Learn more about international student finances in Canada

• How to open a bank account when you're an international student in Canada
• The biggest money mistakes newcomers make
• Your first 90 days in Canada: A newcomer's financial guide