The 10 Best Credit Cards for Young Adults in Canada for 2023
By Daniel Schoester | 13 Sep 2023 |
According to Statistics Canada, the median young adult earns $16,400 annually. As such, many premium credit cards requiring over $60,000 in income are out of the picture. However, many cards still offer this demographic loads of value. For example, you can receive enhanced cashback, credit building, and welcome bonuses for low to no annual fees. What are the best credit cards for young adults in Canada?
This article is part of our series on the best credit cards in Canada. Our master list provides a high-level overview, while our sub-pages dive into various value propositions. This lets you understand the important categories and research them in more detail to find the best card for your overall needs. Let’s dive into the best credit cards for young adults in Canada.
1. Best Overall Credit Card for Young Adults – Simplii Financial Cashback Visa
As per our master list of the best credit cards in Canada, the best overall credit card for young adults is the Simplii Cashback Visa. This is primarily due to its strong cashback and lack of an annual fee. The Simplii Cashback Visa offers elevated earn rates on essential spending, making it easy to maximize rewards. The chosen categories align well with the spending habits of young adults.
The Simplii Cashback Visa offers elevated earn rates on essential spending, such as 4% cash back on restaurants, bars, and cafes and 1.5% on groceries, gas, bills, and drugstores. Although there are caps on the bonus categories, they still provide ample opportunity to earn accelerated rewards. Once you reach the caps, your cashback rates drop to the 0.5% baseline.
Your cashback accumulates and is redeemed on the final day of your December statement, providing you with lump-sum savings to offset your holiday spending. The Simplii Cashback Visa is an affordable option for young adults with no annual fee, and it’s perfect for those seeking straightforward cashback earnings, thanks to its intuitive bonus categories and fee-free design that make maximizing value effortless.
| Eligibility requirements | Description |
| Credit score (estimated) | Good (660 or more) |
| Minimum income | $15,000 (for the household) |
| Other | Be a Canadian resident (excluding Quebec), have reached the age of majority in your province or territory, and haven’t declared bankruptcy in the last 7 years. |
2. Best Young Adult Card for Building Credit – KOHO Prepaid Mastercard
Get $20 with the promocode HARDBACON
Building credit is a significant barrier for young adults since they often need secured credit cards. That’s where the KOHO Prepaid Mastercard shines. It offers multiple credit-building options to help establish your history for up to $10 monthly. The program is simple – KOHO provides a credit limit, bills you monthly for a set amount, and reports your on-time payments. There’s no need to take on debt. After three months, users see their credit score climb by an average of 22 points.
Aside from building credit, the KOHO Prepaid Mastercard earns up to 2% cash back on purchases, depending on the plan you choose. Financial coaching is included to gain intelligent money habits. Additional perks like earning interest on deposits and discounted foreign exchange fees provide a complete financial package.
With accessible credit-building tools plus opportunities to earn rewards and learn budgeting, the KOHO Prepaid Mastercard gives young adults a unique option to establish financial health. It removes barriers to credit and financial services by turning cash into a powerful money management system.
| Eligibility requirements | Description |
| Credit score | None |
| Minimum income | None |
| Other | Be a permanent resident or Canadian citizen and have reached the age of majority in your province or territory of residence. |
3. Best Young Adult Credit Card for Entertainment – Scotiabank Gold American Express Card
3X Scene+ points for every $1 CAD spent on eligible gas, daily transit and eligible select streaming services.
1 Scotia Rewards point for every $ 1 : Other purchases
Earn up to $650 in savings and rewards
With its 5x earning rate on entertainment spending, the Scotiabank Gold American Express Card allows young adults to maximize rewards on fun with friends. You’ll earn 5 Scene+ points for every $1 spent on movies, concerts, plays, sports events, and more. This elevated earn rate applies to ticket purchases made directly through box offices or ticketing agencies, so you can rack up points whether you’re catching a flick at the cinema or seeing your favourite band live.
The Scotiabank Amex also offers strong bonus categories tailored to young adults, including 5x points on dining, 3x on gas and transit, and 6x at select grocery stores like Sobeys and Safeway. All other purchases earn a solid 1 point per dollar spent. It includes presale ticket access to concerts, theatre productions, and more.
Redeeming Scene+ points for Cineplex gift cards or movie tickets lets you enjoy entertainment at a great value. Otherwise, you can use points for travel expenses like flights and hotels. The card has perks like no foreign exchange fees, rental car insurance, travel insurance, and more. Make sure you use it enough to cover the cost of the annual fee.
The Scotiabank Gold American Express Card accelerates rewards earning on entertainment and dining for young adults looking to offset the costs of an active social life. With flexible redemption options, the card helps you save on fun experiences.
| Eligibility requirements | Description |
| Credit score (estimated) | Good (660 or higher) |
| Minimum income | $12,000 |
| Other | Be a permanent resident or Canadian citizen and have reached the age of majority in your province or territory of residence. Get a minimum credit limit of $5,000. |
4. Best Young Adult Credit Card for Groceries – BMO CashBack Mastercard
1% : Recurring bill payments;
0.5% : Other purchases
Get 0.99% interest rate on balance transfers for 9 months
As one of Canada’s highest grocery earners amongst no-fee cash back cards, the BMO CashBack Mastercard is an intelligent pick for young adults looking for one of the best grocery credit cards. You’ll earn an impressive 3% cash back on all grocery store purchases, up to $500 per statement period. This elevated earn rate helps you maximize rewards in a significant spending category. The BMO CashBack Mastercard also offers 1% cash back on recurring bill payments like phone bills and streaming services and 0.5% back on other purchases. Redeeming cash back is quick and flexible – you can redeem cashback starting at a dollar.
With no annual fee, the BMO CashBack Mastercard makes earning rewards affordable. For young adults looking to offset frequent grocery costs while building their credit profile, the BMO CashBack Mastercard is a strong choice. Between its high rewards rate on groceries, the flexibility of cash back redemptions, and the lack of an annual fee, this card can generate solid savings for young adults.
| Eligibility requirements | Description |
| Credit score (estimated) | Fair (around 600-659) or higher |
| Minimum income | $15,000 |
| Other | Be a permanent resident or Canadian citizen and have reached the age of majority in your province or territory of residence. Also, you must not have declared bankruptcy in the past seven years. Provide your name, date of birth, contact info, SIN, address, employment status, income source(s), and rent or mortgage amount. |
5. Best Young Adult Credit Card for Gas – American Express SimplyCash Card
As an eligible Basic Cardmember, earn up to a maximum annual referral bonus of $750 cash back for approved referral. Conditions apply.
With no annual fee and a solid 2% cash back earning rate on gas, the Amex SimplyCash Card is great for young adults fuelling their vehicles. You’ll maximize rewards whenever you fill up, whether commuting to campus or road-tripping with friends. Beyond gas rewards, the card maintains a nice 2% on groceries, with 1.25% on all other purchases.
The SimplyCash Card also offers an impressive welcome bonus – earn a $10 statement credit each month you spend $300 in the first ten months. This can total up to $100 in statement credits, offsetting the cost of textbooks, tuition, or other expenses. Cash back is redeemed once annually as a statement credit, providing a predictable influx of savings.
Those using the card as a grocery or gas credit card will get the most value from the Amex SimplyCash Card. But with the broad acceptance of American Express and the ability to earn ongoing cash back in other categories, this card can serve as an easy-to-use daily spender for young adults looking to offset their costs.
| Eligibility requirements | Description |
| Credit score (estimated) | Very Good (725 or higher) |
| Minimum income | None |
| Other | Be a permanent resident or Canadian citizen and have reached the age of majority in your province or territory of residence. You need to have a Canadian credit file. |
6. Best Young Adult Credit Card for shopping at your favorites local stores – Neo Credit
Neo offers a range of credit products, among them the Neo Credit card. This card enables you to earn an average of 5% cashback at numerous partners located throughout the country, including Avis and Clearly. To check which partners are available in your vicinity, simply log in to the Neo app. If you happen to have a Neo Money account, you have the option to deposit your cashback into this account, where it will accrue interest at a rate of 2.25%.
The Neo Credit card is provided at no cost, but you can opt for a subscription to enjoy additional benefits. Whether your interests lie in travel, dining, or maintaining a healthy lifestyle, you can enhance your Neo Credit card with various perks to amplify your enjoyment of these activities. For instance, with the Mind and Body perk priced at $9.99 per month, you can receive 1.25 times more cashback at gyms, yoga studios, recreational centers, wellness practitioners, and more. Additionally, this subscription provides access to Headspace Plus, an app which offers a plethora of meditation and mindfulness exercises, among other benefits.
| Eligibility requirements | Description |
| Credit score (estimated) | Fair (around 600) or higher |
| Minimum income | None |
| Other | You need to live in Canada, have a Canadian photo ID, and be the age of majority in your province or territory to apply for the Neo Credit card. |
7. Best Young Adult Credit Card for Rewards Flexibility – RBC Ion+ Visa
Get 7,000 Avion points
With its ability to earn accelerated points on essential spending categories and redeem those rewards in multiple valuable ways, the RBC ION+ Visa gives young adults flexible options to get the most from their rewards. You’ll earn 3x Avion points on groceries, dining, rides, gas, streaming services, and more. This covers many typical young adult expenses, letting you rack up points quickly. All other purchases earn one point per dollar spent. The card also offers a solid welcome bonus to kickstart your rewards.
As you earn Avion points, you have multiple redemption choices to maximize their value – cash back credits, gift cards, travel booked through Avion Rewards, transfers to airline partners, and more. For example, you can redeem points at one cent per point towards credit card balances or bank account deposits or transfer to Aeroplan, American Airlines, and other airline partners. This provides flexibility to redeem points in the best way for you.
With no income requirements, a low $4 monthly fee, and the ability to earn accelerated rewards on spending essentials like dining out and online subscriptions, the RBC ION+ Visa gives young adults options to redeem rewards in valuable ways. The card makes maximizing points convenient and straightforward.
| Eligibility requirements | Description |
| Credit score (estimated) | Very Good (725 or higher) |
| Minimum income | None |
| Other | Be a permanent resident or Canadian citizen and have reached the age of majority in your province or territory of residence. |
8. Best Young Adult Credit Card for Travelling with friends – TD® Aeroplan Visa Platinum Credit Card
get up to 20,000 Aeroplan points†
With its low annual fee and the ability to earn Aeroplan points, the TD Aeroplan Visa Platinum helps young adults maximize rewards for trips abroad. You can earn 1 Aeroplan point for every $1 you spend on eligible gas, grocery and Air Canada purchases, including Air Canada Vacations. You will also Earn points twice when you pay with your Card and provide your Aeroplan number at over 150 Aeroplan partner brands and at 170+ online retailers via the Aeroplan eStore.
The most interesting feature of Aeroplan is that you can share your points with up to 8 family members. Family sharing means you can accumulate faster. Don’t worry, “family” is defined broadly and you can include friends and anyone who is not blood-related to you in your group. There are also other perks. If you love having coffe, know that you can link your TD card to earn 50% more Stars at participating Starbucks stores.
While abroad, cardholders benefit from strong insurance protections like trip cancellation and lost baggage that will provide peace of mind when travelling. With its high rewards potential, the TD Aeroplan Visa Platinum offers an affordable way to explore the world with friends and family. The card can unlock valuable travel perks and savings.
| Eligibility requirements | Description |
| Credit score (estimated) | Good (660 or higher) |
| Minimum income | None |
| Other | You are a Canadian resident and are of the age of majority in your province/territory of residence. |
9. Best Young Adult Credit Card for Cashback – Tangerine Money-Back Mastercard
With no annual fee and a low income requirement, the Tangerine Money-Back Credit Card makes it easy for young adults to start earning enhanced cash back. Its flexible rewards program allows you to choose two categories to earn an elevated 2% back on spending – including gas, groceries, restaurants, entertainment, and more. However, you can unlock a third category by depositing rewards into a Tangerine savings account.
This customization ensures you can maximize rewards in the areas you spend the most. Based on average young adult budgets, picking gas, groceries, dining out, and entertainment as your top categories would result in solid earnings. The non-bonus categories earn a base rate of 0.5%.
Young adults appreciate the low income requirement and status as one of the best no-fee credit cards. With the flexibility to select categories, the customizable Tangerine Money-Back Card is ideal for young adults looking to maximize their spending. The card makes earning cash rewards simple and convenient.
| Eligibility requirements | Description |
| Credit score (estimated) | Fair (around 600-659) or higher |
| Minimum income | $12,000 |
| Other | Have the age of majority in your province or territory, be a permanent resident of Canada, be clear of bankruptcies over the past 7 year. |
10. Best Young Adult Credit Card for Frequent Flyers – CIBC Aeroplan Visa
The CIBC Aeroplan Visa Card is tailored to fit the needs of young adults who want to take advantage of travel perks. With no annual fee, you can earn valuable Aeroplan rewards on every dollar spent without paying a premium. At the time of writing, the card offers a generous welcome bonus of 10,000 Aeroplan points just for making your first purchase, worth up to $200 in travel. After your initial purchase, you’ll earn points at a solid rate of 1 point per $1 spent on gas, groceries, electric vehicle charging and Air Canada purchases. All other purchases earn a reduced rate of 1 point per $1.50 on all other purchases.
While Aeroplan points are precious for Air Canada loyalists who can redeem them for free flights with no blackout dates, they can also be used for car rentals, hotels, vacation packages, merchandise, gift cards, and more. Your points will never expire if you hold an active CIBC Aeroplan credit card.
Young adults will appreciate the array of cost-saving benefits, including rental car discounts and gas savings of up to 10 cents per litre through Journie Rewards. CIBC’s exclusive arrangement with the SPC+ program offers young adults various discounts. The card offers essential protections like purchase security, extended warranty, and common carrier accident insurance.
With no annual fee, a hefty welcome bonus, solid earning potential, and valuable travel redemption options, the CIBC Aeroplan Visa Card is a smart choice for young adults looking to earn their first travel rewards.
| Eligibility requirements | Description |
| Credit score (estimated) | Good (660-724) or higher |
| Minimum income | $15,000 |
| Other | Be a permanent resident or Canadian citizen and have reached the age of majority in your province or territory of residence. |
The Bottom Line
In conclusion, many credit card options are available to young adults in Canada. When choosing a credit card, it’s important to consider your spending habits and financial goals. The Simplii Cashback Visa, Tangerine Money-Back Mastercard, CIBC Aeroplan Visa, BMO CashBack Mastercard, and Amex SimplyCash Card are all great options with unique value propositions. Whether you’re looking for cashback rewards, travel perks, or credit-building opportunities, there is a credit card out there. Remember to use credit responsibly and always pay off your balances in full to avoid accumulating debt.
FAQ About Best Credit Cards for Young Adults
The Simplii Cashback Visa is considered the best overall credit card for young adults in Canada due to its strong cashback rates and no annual fee. Other great options include the Tangerine Money-Back Mastercard for cashback, the CIBC Aeroplan Visa for frequent flyers, and the BMO CashBack Mastercard for groceries.
The minimum age to get a credit card in Canada is 18. However, this varies by province; some banks may require applicants to be 19 years old. Furthermore, you can get a credit card under 18 as an authorized user or through a joint credit card.
Yes, a young person should get a credit card in Canada to build their credit history. This is essential for future financial opportunities, such as getting approved for a loan or mortgage. However, young people must use credit responsibly and pay off their balances in full each month to avoid accumulating high interest charges and debt.
Find the best credit card for your needs
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