Why is it essential for a student or young adult to have a credit card?

Having a credit card allows you to start building a credit history, which will benefit future loans, such as car or home loans.

What criteria should I consider when choosing my first credit card?

Look at annual fees, interest rates, benefits (such as rewards programs), and credit requirements before signing up for a card. With over 200 credit cards in Canada, it's essential to compare them to find the one that's right for you.

Do I need a stable income to get my first credit card?

This depends on the card issuer's criteria. Most student or young adult cards do not require a stable income, while others may.

Is switching to a card with more benefits easy once I've established a good credit history?

Once you've demonstrated responsible credit management, many financial institutions will offer you cards with higher limits or additional benefits.

What are the risks involved in getting my first credit card?

If poorly managed, a credit card can lead to substantial debt, high interest rates on outstanding balances and a deteriorating credit rating.

Is it possible to have a credit card before the age of 18?

In order to own a credit card, you must have reached the age of majority in your province. However, a student or teenager aged 17 or under can be an additional cardholder, and thus have a secondary card on a parent's credit card account. The disadvantage is that he or she will not build a credit history. What's more, the parent will have to keep a close eye on his or her child's transactions, since the parent will be responsible for payments!