Building a good credit history is important to your financial success in Canada.
Whether you’re a younger person just starting out on your credit journey or a newcomer to Canada, it’s a good idea to learn about how the Canadian financial system works and the best ways to build a good financial foundation for your life.
In this article, we share the best credit cards to help you build your credit history and get yourself going on your credit journey.
Your credit history is a record of how well you’ve managed your credit over time. This information is based on the credit accounts you have (credit cards, lines of credit, mortgages, etc.), and details information such as:
The information is them compiled into your credit report and credit score by a credit bureau like Equifax and TransUnion.
Your credit history and credit score are both important as this information is what’s used when you apply for credit cards, personal and business loans, mortgages, and more. It tells the story of your ability to pay your bills on time and responsibly handle your finances.
Getting your first credit card in Canada is an important step in building up your credit history. Luckily, there are some credit cards that are structured to be more accessible, and these can support your first steps toward building a strong financial foundation.
When choosing the best credit card to build credit history, there are a few characteristics to look for:
Now, with all this in mind, let’s explore our picks for the best credit cards to build your credit history.
Remember that to build a strong credit score and credit history, it’s best to pay your credit card(s) off in full each month.
The first credit card on our list that can help you build credit history is the Neo Secured Credit Card.
This card has no annual fee, no minimum income requirements, and offers credit limits of up to $10,000. It also earns 1% cash back on gas and groceries, and up to 15% cash back with Neo’s partnered merchants.
As a secured credit card, you will need to provide a security deposit to get started, and this deposit determines what credit limit you’re able to access.
This card is great for building credit history since its accessible to anyone who lives in Canada, has a Canadian ID, and is the age of majority in their province. This means that it is accessible even if you don’t currently have foreign worker, international student, or permanent residency status.
The next card on our list is one of our absolute favourites: the American Express Cobalt® Card.
This credit card comes with a monthly fee is $12.99, and stands as one of the most popular credit cards in Canada thanks to its ability to earn up to 5 American Express Membership Rewards points per $1 spent.
These valuable and flexible points are not only redeemable for travel, merchandise, and more, but you can choose to transfer your points to airline and hotel loyalty programs like Aeroplan and Marriott Bonvoy, giving you the opportunity to maximize the value of your points and enjoy free travel.
What makes the American Express Cobalt® Card a good choice for those looking to build credit history is that American Express cards issued directly by American Express Canada have no minimum income requirements, and they often have require a lower credit score than Mastercard or Visa.
These factors combined with the relatively low monthly fee makes the American Express Cobalt® Card accessible to many people, and for this reason we’ve highlighted it on our list.
Alternatively, if you’re looking for a credit card with no annual or monthly fee, consider the American Express® Green Card.
The Scotiabank Gold American Express® Card is another great option to build credit history.
With a low minimum income requirement of only $15,000 and an annual fee of $120, this card is stands out for multiple reasons.
It’s one of the few credit cards in Canada that doesn’t charge a foreign transaction fee, which makes it great for when you’re spending abroad. It also earns up to 6 Scene+ points per $1 spent. These points can redeemed for free groceries, meals out, entertainment, travel, and more, making the card very good at saving you money.
As a mid-range credit card, you will likely need to have a reasonable credit score already in order to qualify, but if that’s not available to you the Scotiabank StartRight program can be another way to access this card.
This program is designed to support newcomers to Canada in the first steps of setting up their financial portfolio, so if you don’t qualify for the Scotiabank Gold American Express® Card on your own, a program representative can certainly help you find an option that suits your situation.
If you’d prefer to build credit history using a credit card that has no annual fee, there’s many excellent no-annual fee credit card choices.
The one we’ll highlight here is the CIBC Aventura® Visa* Card since it comes with a $0 annual fee, a low minimum income requirement of $15,000, and earns CIBC Aventura travel points.
CIBC also has special offers for international students, people who are new to Canada, and others looking to build their credit history, so if the CIBC Aventura® Visa* Card doesn’t feel quite right, the bank may still have a card that fits your credit priorities.
The last card on our list is the KOHO Mastercard Prepaid Card, which won the Milesopedia award for best card for newcomers. However, it’s important to immediately note that the card itself will not help you build your credit history.
This is because the KOHO Mastercard Prepaid Card is a prepaid credit card, so you actually load money onto the card and can then spend up to this amount. This style of card can be very helpful for budgeting and for having an accessible way to make online purchases and spend in situations where a credit card is needed.
This card comes with a low annual fee of $48, no minimum income requirement, and it earns up to 2% cash back on purchases. Additionally, you can get the KOHO Mastercard Prepaid Card even if you don’t currently have foreign worker or permanent residency status.
Now, although Koho’s credit card can’t help you build your credit history, Koho’s whole product range is excellent for newcomers and those starting out on their credit journey.
In particular, the product that will help you build your credit history is Koho’s 6-month Credit Enhancement Program. This program gives you access to a special no-fee, no-interest line of credit. When you make payments to this account each month, Koho will report this positive credit building activity to the credit bureaus, helping you get financially established faster.
Whether you’re brand new to Canada and just starting your credit journey or looking for the best way build up a lower credit score, there’s lots of great cards to choose from.
With so many fantastic credit card rewards options in Canada, as long you make sure you pay off your balance each month and spend within your means, a strong credit history and credit score can literally help take you around the world.
To explore even more options, check out guides to the best no-annual fee credit cards in Canada and the best credit cards for beginners.
A credit history is a record of how well you’ve managed your credit over time. The information is based on the credit accounts you have (credit cards, lines of credits, mortgages, etc.), and details things like how much you owe, whether you make payments on time, whether you’ve ever declared bankruptcy, and more.
Yes! There are a number of credit cards available even if you don’t have any Canadian credit history.
You can look at secured or prepaid credit cards like the Neo Secured Credit Card or the KOHO Mastercard Prepaid Card, or you find a credit card using the newcomer to Canada programs offered by banks like CIBC, Scotiabank, RBC, BMO, and TD.
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