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How to Build Credit as a College Student or Young Adult in Canada?

5 min read
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How to Build Credit as a College Student or Young Adult in Canada?
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Your credit history can impact the rest of your life. A good credit score means that banks will be more likely to give you loans, and buying things like a car or house will be easier for you.

Having good credit will help you to achieve your life’s most significant milestones successfully. As a college student having good credit will help you want to one day, buy a home, car or even get a loan.

So whether you are jetting off to college in the fall or have just graduated, having a strong credit history is crucial to setting up a good life. You should keep in mind that it is *never* too early to start building a good credit history.

Here are a few things you need to remember to build and maintain a good credit score.

What is a credit score?

You’ve undoubtedly heard the term « credit score » a thousand times by now. Building a good credit history can be confusing if you don’t even know what a credit score is.

A credit score is a way in which various financial institutions would rank your risk worthiness. If your score is higher, the better you are ranked. Financial institutions run their businesses on a risk-averse basis. So the more low risk you are, the better they will rank you.

No business wants to do business with someone who has been known to fall back on payments. Or someone with a low credit score. Low credit scores indicate that you will be less likely to pay back the full amount in a timeous manner, if at all. This is a huge risk as a bad credit score can stunt you from achieving goals like buying a house or car in the future.

Businesses and lenders want to know that the risk they are taking by loaning you money will be worthwhile and not wasteful. This is further emphasized by places like car dealerships and people entering a lease agreement with you.

These people want to know that you will pay them what you owe them on time. So the higher your single three-digit credit score is, the better your chances of success with financial institutions.

Factors that can influence your credit score

Your credit score gets based on information that lenders submit to financial credit bureaus, along with your credit reports.

On average, credit scores can range from 300 up to 850! However, several factors can change or affect your credit score. These are factors such as:

  • The amount of debt you have accumulated.
  • How many loans you currently have and the payments you have made towards them.
  • If you have opened any credit cards, and if you have, then how many credit cards you have opened could impact your credit score.
  • How many late payments you have made, and if you have made any payments towards your debt.

Difference factors carry different weights in the financial world. So having a lot of credit cards but making good payments is ranked as better than having one credit card but having made no payments on it.

Building a solid credit score will help set you up with a solid financial footing later in life.

Good credit scores give you the added benefits such as:

  • Lower interest rates in payments that you have to make.
  • A better chance of getting approved for other loans.
  • Higher and better credit limits on your credit cards.
  • More access to a broader selection of credit cards.
  • Your credit score can even impact your insurance payments and whether or not you get approved for an apartment or a house you want to rent.
  • Lastly, even employers find your credit score to be of utmost importance. In some instances, future employers do not hire you if you have a bad credit score.

Your credit score indicates how fiscally responsible you are, which is essential in living a financially stable life.

Building A Good Credit Score For Yourself

Now that you know how crucial a good credit score can be to your standard of living. Here are some simple ways to obtain and improve your credit score:

Always check your credit history

You won’t know how good or bad your credit score is unless you know what it is. You will be flying blind in trying to build a sound financial portfolio for yourself.

If you don’t know how to check your credit score or have never done it before, the credit bureaus probably don’t have much information on you.

Even if this is the case, you should still request a credit report from one of the three major financial credit bureaus. Equifax, Experian, and Transunion are good financial institutions that will help you in this regard.

Checking your credit history and credit score is crucial in more ways than one. Not only will your credit score help you know how many improvements you can still make, but it will also help you to make sure that no fraudulent actions have been taken in your name.

Open a student and secured credit card

You might think that you won’t have access to any credit cards as a student, so building a credit score, but that simply isn’t the case. You can open a student card and apply for a secured card to start building your credit history.

Make timely payments

If you have payments to make, make sure that they are done on time, as this gives you a good rating for your credit score.

Low credit usage

Truthfully having good credit means that you have an even better opportunity to build on your credit score. You will get the chance to get better rewards if you don’t use all of your credit at once.

National Bank mycredit™ Mastercard®

National BankCash Back
Annual fee
$0
Welcome offer
No current welcome offer
Apply Now

on National Bank's website

Terms of the offer

  • Earn $100 cashback if at least $2,500 in net purchases are charged to the Mastercard account over a 4-month period, following the account opening
  • Up to 1% cashback
  • Mobile protection: Get insured against theft or damage for up to 2 years following the purchase of your mobile device
  • Extended warranty
  • Purchase protection from loss, theft or damage for up to 90 days after the date of purchase
 
Legal

Cash back details

Card issued subject to National Bank credit approval. A 1% cash back is granted on restaurant purchases and recurring pre-authorized payments when settled by recurring automatic payments to your macrédit account. The 0.5% cash back applies to all other eligible purchases during a billing cycle. The account must be in good standing when the cash back is disbursed. Your account is in good standing when you meet the obligations of your credit card agreement (e.g., making the minimum payment by the due date). Eligible pre-authorized payments are defined as payments made regularly and automatically debited by a merchant from your credit card. Balance transfers, cash advances, and fees related to card usage are not included in the cash back calculation. To learn about the terms and restrictions applicable to cash back, consult the Cash Back Program [PDF].

Mobile device protection

Subject to purchase of device with card or telephony service subscription paid by recurring pre-authorized payments from your macro-credit account.

Credit terms

Grace period: No interest will be charged on purchases made during the month, provided the client pays the balance in full within twenty-one (21) days of the statement date. This grace period does not apply to cash advances or balance transfers.

Minimum payment: If your account balance is lower than $10, you must pay the entire balance.

If you reside in the province of Quebec, your minimum payment is the greater of 5% of your account balance, plus any overdue amounts, or $10.

If you live outside Quebec, your minimum payment is 2.5% of your credit card balance, plus any past-due amount or $10, whichever is greater.

Account statement: A statement is sent monthly.

Example of credit charges over a 30-day period

Annual interest rate Average balance
$500 $3,000
22.49% (regular card) $9.24 $55.45
20.99% (regular card) $8.63 $51.76
13.2% (Syncro card) $5.53 $33.16
9.2% (Syncro card) $3.78 $22.68

*Variable interest rate in effect on September 1, 2021.

Balance transfer and cash advance are subject to credit approval by National Bank. Each balance transfer must be at least $250.

®MASTERCARD is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. National Bank is an authorized user.

®NATIONAL BANK and the NATIONAL BANK logo are registered trademarks of National Bank of Canada.

TM mycredit is a trademark of National Bank of Canada.

Legal notes

™ MYCREDIT is a trademark of National Bank of Canada.

® MASTERCARD AND TAP & GO are registered trademarks, and the circles design is a trademark of Mastercard International Incorporated. Authorized user: National Bank.

™ ID Check and Identity Check are trademarks of Mastercard International Inc. Authorized user: National Bank.

These protections apply if the purchases or expenses are charged to the National Bank mycredit Mastercard credit card. Extended warranties apply to most new items purchased with the card, in Canada or abroad, as long as the manufacturer’s warranty is in effect and valid in Canada. Certain conditions and restrictions apply. For more information and details concerning your insurance coverage, please consult the insurance certificate attached to your card.

Subject to credit approval by National Bank. Each balance transfer must be at least $250.

Certain conditions apply. Visit mastercard.ca for more information. Refer to the credit card terms and conditions.

With NBC mycredit Mastercard, you get:

  • 1% cash back on restaurant purchases and recurring pre-authorized debits
  • 0.5% cash back on all other purchases

And since it’s a Mastercard credit card, you can use it at Costco.

Cash back is automatically applied to your credit card account balance when each monthly statement is issued.

This is a credit card we recommend for those new to credit cards and want a no-fee credit card. What’s more, this credit card comes with a number of insurances for your purchases, including mobile device insurance (which is rare for a credit card with no annual fee).

Annual fee

Primary card$0
Additional card$0

Annual income required

Individual$0
Household$0

Conversion fees

2.5%

Earning rate

  • 1xRestaurants
  • 1xBills & recurring payments
  • 1xTelecom
  • 0.5xAll spending

Value

1st Year Value$216
2nd Year Value$148

Purchase protection

Purchase ProtectionIncluded
Extended Warranty+1 years
Mobile DeviceUp to $1,000 / 2 years

Our featured card

Featured

Marriott Bonvoy® American Express®* Card

American ExpressMarriott Bonvoy
Annual fee
$120
Our valuation
$990
Milesopedia first-year estimateFirst-year valueWelcome bonus$990Total$990Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.
Welcome offer
Up to 110,000 points
Ends Sep 22, 2026
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on American Express's website

Apply with confidence — no impact on your credit scoreApply with confidenceCheck whether your application will be approved before you submit it, with no impact on your credit score*When you apply for a personal American Express Credit Card, we will tell you whether you are eligible without affecting your credit score. So you can apply with confidence.*Instant decisions are only available for consumer Card applications (also called “personal Cards”).

The Marriott Bonvoy® American Express®* Card is the best credit card in Canada for free hotel nights.

New Cardmembers can earn up to 110,000 Marriott Bonvoy® points with the current offer:

  • Earn 80,000 points after you spend $6,000 on your Card in your first 6 months of Cardmembership.
  • Plus, earn 30,000 points by making a purchase during your 15th month of Cardmembership.

This offer ends on September 22, 2026. The annual fee is $120, and there is no annual fee on Additional Cards, so you can add a partner or a family member at no extra cost.

Every year after your first Card anniversary, you receive an Annual Free Night Award good for a redemption of up to 35,000 points at eligible hotels and resorts worldwide. At a valuation of 0.9 cents per Marriott Bonvoy point, that certificate is worth roughly $315, which on its own more than covers the $120 annual fee. That is the main reason to keep this Card year after year instead of cancelling it.

To get the most out of the certificate, aim it at a night that would otherwise price close to the 35,000 point ceiling.

The Card also gives you 15 Elite Night Credits each calendar year and automatic Marriott Bonvoy Silver Elite status. Those credits count toward the next Elite tier, so you begin every year 15 nights ahead of where you would otherwise start.

You move up to Gold Elite status automatically when you reach $30,000 in purchases on the Card in a year, or when you combine 10 qualifying paid nights within one calendar year with the 15 Elite Night Credits from your Card.

Marriott Bonvoy points are generally valued at 0.9 cents each. On that basis, the 110,000 point welcome offer is worth about $990, and an Annual Free Night Award used at its full 35,000 point ceiling is worth about $315.

Marriott Bonvoy points pull their weight on free nights rather than on gift cards or merchandise, which is why this Card should be judged on the hotel stays it produces.

You earn 5 points per dollar on eligible purchases at participating Marriott Bonvoy hotels and 2 points per dollar on all other purchases. Points can be redeemed for free nights with no blackout dates at more than 7,000 hotels around the world.

The Card carries a solid package of coverages: $500,000 travel accident insurance, flight delay, baggage delay, lost or stolen baggage and hotel or motel burglary at $500 each, car rental theft and damage up to $85,000 for rentals of up to 48 days, Purchase Protection for 90 days and a one year Extended Warranty.

Two things to plan around: the 2.5% foreign transaction fee on purchases made in a foreign currency, and the 21.99% purchase interest rate, which makes this a Card to pay in full every month. Like all American Express Canada Cards, no minimum income is published for this Card, and you can see whether you would be approved before you apply, with no impact on your credit score.

Legal

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, we may receive compensation from American Express, which can be in the form of monetary payment.

Annual fee

Primary card$120
Additional card$0

Annual income required

Individual$0
Household$0

Conversion fees

2.5%

Earning rate

  • 5xMarriott Bonvoy hotels
  • 2xAll spending

Value

1st Year Value$1,437
2nd Year Value$312

Travel insurance

Delayed BaggageUp to $500
Lost BaggageUp to $500
Flight DelayUp to $500
Hotel BurglaryUp to $500
Travel AccidentUp to $500,000

Purchase protection

Purchase ProtectionIncluded
Extended Warranty+1 years
Auto Rental Collision (primary)Up to $85,000 / 48 days

Our editorial integrity

Our reviews and rankings are based on an objective assessment. Advertisers do not influence our content. We may receive compensation through some links; our analysis and opinions remain independent.