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[OP]
Newbie
Mar 26, 2019
82 posts
25 upvotes

Create credit

Hi , I am a student do not have any credit background or so, do not have a credit card. Are they any tips or suggestions for creating a credit.?
14 replies
Deal Addict
Sep 24, 2018
1527 posts
757 upvotes
Capital One Secured or Guaranteed low rate card :)
Member
Sep 16, 2012
415 posts
166 upvotes
Scarborough
Going to pretty much repeat what I've said in prior threads, as a fellow uni student:

I started off with the BMO SPC card as it is the best student card- hands down. Very good chances of approval, SPC benefits, decent accelerator bonus, and 1% across everything. Highly recommend.

In regards to building good credit specifically as a student, we have the good fortune of having the ability for our credit scores to jump double digits in just a matter of months, but the flip side is also true- every inquiry and over utilization also can wreak havoc on your credit report.

For perspective, I was pulling mid 700s on both Equifax and TransUnion just with 3-4 months of credit history because I was responsible, always paid my bills on time, kept under 30% utilization for my CL, and only limited myself to one card. If you want to spend more than 35%, that's fine- just make sure to pay off your credit card balance to under 35% before the billing cycle ends. BMO lets you prepay your bill in order to reduce your balance ahead of time.

Follow these rules and your credit score will be sky high in no time.

I only started to apply for better cards I knew I would be using well into adulthood (fingers crossed they aren't devalued) after 9 months of credit history: the PCO WE for partner store groceries, and Rogers WE for everything else.

That being said, if you don't qualify for the World Elite cards under household income- I believe the Tangerine card is your next best bet as a secondary card. BMO for everything else, Tangerine for most other purchases. I haven't heard of anyone being approved for it as their first card, usually Tangerine needs some credit history.

AF cards are pretty much not worth it for students, unless your spend is high. Do a comparison between the cash back you would earn, compared to the cash back you already earn from your cards and see if you break even on both the AF and earn more than what you already would've.

All in all, don't spend money you can't pay off! #1 rule, treat your credit card like your debit card and you'll be fine.
Sr. Member
Mar 21, 2019
514 posts
442 upvotes
If you have a good relationship with your bank, and have funds in your account all the time, I’d start there before approaching any second rate lenders like Capital One.
Many times your bank will give you your first credit card, but it will likely have a small limit.
But it’s a starting point, and it’s better than being weighed down with a Capital One junk card as your oldest card down the road.
[OP]
Newbie
Mar 26, 2019
82 posts
25 upvotes
DaveProductions wrote:
Jun 14th, 2019 8:46 am
Going to pretty much repeat what I've said in prior threads, as a fellow uni student:

I started off with the BMO SPC card as it is the best student card- hands down. Very good chances of approval, SPC benefits, decent accelerator bonus, and 1% across everything. Highly recommend.

In regards to building good credit specifically as a student, we have the good fortune of having the ability for our credit scores to jump double digits in just a matter of months, but the flip side is also true- every inquiry and over utilization also can wreak havoc on your credit report.

For perspective, I was pulling mid 700s on both Equifax and TransUnion just with 3-4 months of credit history because I was responsible, always paid my bills on time, kept under 30% utilization for my CL, and only limited myself to one card. If you want to spend more than 35%, that's fine- just make sure to pay off your credit card balance to under 35% before the billing cycle ends. BMO lets you prepay your bill in order to reduce your balance ahead of time.

Follow these rules and your credit score will be sky high in no time.

I only started to apply for better cards I knew I would be using well into adulthood (fingers crossed they aren't devalued) after 9 months of credit history: the PCO WE for partner store groceries, and Rogers WE for everything else.

That being said, if you don't qualify for the World Elite cards under household income- I believe the Tangerine card is your next best bet as a secondary card. BMO for everything else, Tangerine for most other purchases. I haven't heard of anyone being approved for it as their first card, usually Tangerine needs some credit history.

AF cards are pretty much not worth it for students, unless your spend is high. Do a comparison between the cash back you would earn, compared to the cash back you already earn from your cards and see if you break even on both the AF and earn more than what you already would've.

All in all, don't spend money you can't pay off! #1 rule, treat your credit card like your debit card and you'll be fine.
Thanks . I really appreciate your help. I already have a bank account. Will try to apply for spc card.
Deal Fanatic
Aug 3, 2014
5244 posts
3033 upvotes
Big Five. You probably bank with one of those already. Apply in branch for better chances.
Scotiabank gave me my first card. Applied on the day I turned 18. Approved after income verification.

Capital One used to be good to students with their Vibe card, but no more.
Newbie
Apr 4, 2019
97 posts
63 upvotes
SKYhigh75f wrote:
Jun 14th, 2019 12:06 am
Hi , I am a student do not have any credit background or so, do not have a credit card. Are they any tips or suggestions for creating a credit.?
Try getting a basic credit card with your bank and if they say no apply for a home trust or capital one secured card. How this works basically is you will have to put down a deposit and that deposit becomes your credit line. Keep the card for 12 to 24 months use it than pay it each month before the statement date down to a few dollars than those few dollars by the due date. This means you are not carrying your balance and won't be charged interest, it will also look really good for your credit score. after 1-2 years of responsible spending you will be able to apply for better credit cards.
Deal Addict
Nov 6, 2018
1936 posts
1373 upvotes
MichaelT98265 wrote:
Jun 15th, 2019 3:43 pm
Try getting a basic credit card with your bank and if they say no apply for a home trust or capital one secured card. How this works basically is you will have to put down a deposit and that deposit becomes your credit line. Keep the card for 12 to 24 months use it than pay it each month before the statement date down to a few dollars than those few dollars by the due date. This means you are not carrying your balance and won't be charged interest, it will also look really good for your credit score. after 1-2 years of responsible spending you will be able to apply for better credit cards.
You do not have to wait that long.

Once you get a credit card from either your bank or cap1 and have been using it properly for a couple of months you can start applying for other non starter cards.
Newbie
Apr 4, 2019
97 posts
63 upvotes
Gtaphotog wrote:
Jun 15th, 2019 5:09 pm
You do not have to wait that long.

Once you get a credit card from either your bank or cap1 and have been using it properly for a couple of months you can start applying for other non starter cards.
It took me 14 months with capital one but that may have been because I had 2 carloans (total loss accident) and I tried Tangerine first haha.
Deal Addict
User avatar
Jul 26, 2007
4023 posts
1654 upvotes
Toronto
If you are student under 24, RBC have free student bank account. When you turn 18 or so, you should get free pre-approved RBC CC $2500 credit limit.
Member
Aug 5, 2018
390 posts
450 upvotes
I'll give some general suggestions, then give some concrete suggestions.

General suggestions:
1. Treat credit card like debit card.
2. Pay off the majority of your balance before the statement date, so that when the statement comes out, you would have a balance of less than $100 (but not $0).
Pay off the full balance after the statement comes out. (Pay credit card bills using your online banking bill payment system)
3. Never cancel (nor product switch) your first 2 or 3 credit cards when you are young.

Concrete suggestions:
Card 1:
BMO SPC should be your first credit card. One of the best cashback cards on the market today even for adults, offering 1% cashback for no annual fee.
BMO is very kind to students, and you have a very high chance of getting approved instantly.

Keep this card forever.
https://www.bmo.com/main/personal/credi ... dit-cards/

Card 2:
After 3 months, get the Canadian Tire Cash Advantage.
As a student (possibly on student loans), your number 1 expense will be tuition.
Unfortunately, most university charges a high % fee for paying tuition with your credit card, which you should not be using.
Instead, get this card, which allows you to make tuition payments with your credit card, without fee, and still getting cashback.
After you set up your Canadian tire credit card online account, wait 1 month.
Then on your online account, you can add your university as payee, under "payments", "manage payees"
Then make a payment to the university of your full credit limit, and immediately pay back the full amount onto the credit card from your bank account.
In fact, if you can even over-pay your canadian tire card with your bank account, to increase processing speed of tuition payment.
Having 10k in tuition payments a year, gets you about $80 of cashback, at ~1% rate.

Keep this card forever.
https://www.ctfs.com/content/ctfs/en/ca ... ntage.html

The 3rd card:
The above 2 cards are in my opinion, the best set-up for any student.
After 3 months of getting the canadian tire card, there are no more "must-have" card, and you have a lot more freedom.
Consider your spending patterns, and get cards that fits your spending:

1. For Gas and Grocery, I suggest going to great canadian rebates, gcr.ca.
Under categories, credit cards, find:
MBNA Smart Cash Platinum Plus Mastercard
2% on gas and grocery, with a great sign up bonus of 5% in 6 months, and $60 from GCR.
Never cancel this card.

2. For rent, if your landlord accepts bill payment, you can most likely pay with canadian tire. But most likely not.
Then for RBC getdigs, you'd need to convince your landlord in accepting rent from e-transfer.
https://www.getdigs.io/
Then you can get cashback on rent, with a RBC card.

Most RBC cards are utter garbage, so you'd need to put in a bit of work for this.
Go set up a RBC No Limit Banking for Student account, in branch.
Then apply in branch on the same day with the same clerk, for RBC Signature Rewards Visa.
Hopefully you get approved, if not, then try again after 4 months.
https://www.rbcroyalbank.com/accounts/s ... limit.html
https://www.rbcroyalbank.com/credit-car ... -visa.html

This cards earns 1"RBC reward points", which can only be redeemed at about 1c of value when RBC has sales on gift cards.
So this is a more complicated and worse 1% card.
But at least you get ~1% on your rent payment, which is also your biggest expense.

3. Rogers platinum or Fido platinum
1.25% cashback on everything, a full upgrade from BMO SPC (essentially replaces BMO completely)
It helps if you have some relationship with Rogers or Fido, as they tend to send you pre-approvals.
https://www.rogersbank.com/en/rogers_pl ... rd_details

4. Dining
I wouldn't think you have a lot of spending on dining, so I don't recommend this.
You'd need to first make a Simplii checking account, which takes a lot more work than setting up RBC checking account.
Then you can get the Simplii 4% cashback dining card, with a petty sign up bonus.
Aside from 4% on dining, the card is garbage.
You'd realize $40 in a year, if you spend $1000 on dining. (~$100 a month)
https://www.simplii.com/en/credit-cards ... -visa.html

5. Promotions
This is a huge topic, and one of the reasons why this forum exists.
Getting cards when a good promotion is on will get you outsized value.
Most cards with promotion require 60k income, which is not possible for students.
However, there are cards with good promos without income requirement, getting you $100 - $200 of value.
The downside is that these promotions will come with "spending $1000 in first 3 months" in order to get the bonus.
So you'd need to plan out your spending before applying.
(There are tools such as Plastiq to pay rent using credit card as well.)
Also, these cards tend to have annual fees in the 2nd year, so you need to cancel or product switch before the end of first year.

Examples:
BMO rewards MC
20k BMO points, worth ~$141. (after $1000 spend in 3 months)
You can cash out 15k points to $100 cash as "investment", if you make a free smart saver account with BMO.
Or you can redeem for travel.
https://www.bmo.com/main/personal/credi ... astercard/

American Express is one of those issuers where they don't require income, and is fairly nice to students with low income.
For example, amex gold with perkopolis offers first year free with 25k MR points, which tranferred to 25k aeroplan miles, are worth around $300-$400 when you travel.
(for $1500 spending in 3 months)
Visit Jerry's thread for link and RSVP code (or pm me for code):
jerrys-list-credit-cards-200-welcome-bo ... q-1685293/

TD just finished their promo (June 2) for aeroplan platinum, 15k aeroplan miles, worth around $200 to $250 (for $1000 spending in 3 months).
https://www.td.com/ca/en/personal-banki ... inum-card/



Why you need to build your credit score now?
If you are on student loans, they come with very high interest when you graduate.
This is typically a large sum, that can't be paid off immediately, and you'll be stuck paying interest.

Instead, if you have a good credit score when you graduate, you can go apply for balance transfer cards.
You can borrow your full credit limit from the credit card company, into your checking account (or to your student loan account) to pay back your loans.
You will now pay interest to the credit card company, which with balance transfer promotion cards, is typically ~2% interest for first 10 months. (typically 1% transfer fee and 1% interest)
You can apply for several cards, with balance transfer promotions, and reduce your interest for 10 months.
Before the 10 months are up, apply for more balance transfer cards, to borrow money to pay back your previous balance transfer cards.
This way, you can reduce high interest loans, to ~2% interest per year.

Having a high credit score will allow you to get more cards with higher credit limit, to pay off more of your loans.
For a student loan of 30k, at 10% interest, you are saving ~8% of interest per year, which is ~$2400 per year.
latest-balance-transfer-promos-2244577/
Member
Sep 16, 2012
415 posts
166 upvotes
Scarborough
xx1what wrote:
Jun 16th, 2019 9:49 pm
-snip-
Solid advice here. Some questions I personally have!

"In fact, if you can even over-pay your canadian tire card with your bank account, to increase processing speed of tuition payment."

Is this true? Are we allowed to overpay our CT card and then go over the credit limit?

"Most cards with promotion require 60k income, which is not possible for students."

This is true. The only exception is if you qualify under household income with your family. Even then, many of these cards have min 5k credit limits. For those cards specifically, I would say hold off until your current issuers are comfortable giving you a 5k limit.
I am a student with only 9 m/o CH and I have the Rogers and PCO WE.

If your landlord only accepts PAC like mine, you should probably churn the Meridian $300 bonus when you can.
Member
Aug 5, 2018
390 posts
450 upvotes
DaveProductions wrote:
Jun 16th, 2019 10:49 pm
Solid advice here. Some questions I personally have!

"In fact, if you can even over-pay your canadian tire card with your bank account, to increase processing speed of tuition payment."

Is this true? Are we allowed to overpay our CT card and then go over the credit limit?

"Most cards with promotion require 60k income, which is not possible for students."

This is true. The only exception is if you qualify under household income with your family. Even then, many of these cards have min 5k credit limits. For those cards specifically, I would say hold off until your current issuers are comfortable giving you a 5k limit.
I am a student with only 9 m/o CH and I have the Rogers and PCO WE.

If your landlord only accepts PAC like mine, you should probably churn the Meridian $300 bonus when you can.
You can not pay bills that exceed your canadian tire credit limit. Only pay bill amount up to the credit limit.
But in my experience if you prepay (overpay) your card, your credit limit will be freed 1 to 2 business days sooner after the 1st bill payment.
So you would have your full credit limit to use, even if the bill payment hasn't posted yet (still in pending), and you can initiate a payment again.


If one can get past the "household income" requirement, PC WE is definitely a good card, at 3% for PC grocery and ~2% for esso/mobil.
But the downside is, it doesn't typically come with a good sign up bonus.
The best I've seen is $100 starbucks GC from ratesupermarket.

For Mastercard WE specifically, there is no "minimum credit limit".
You can definitely get WE cards with limits of $600 or even less in some cases.
So it would be possible for someone with somewhat weak credit history to still get WE cards.

Of course, the "dream" of a student would be to get Rogers WE, the "best" 1-card solution 1.75% cashback and net 1.5% on forex, and you'd be set for the foreseeable future until its nerf.

As for other WE cards, they would have a high spending requirement for sign up bonus, so may not a great choice for students.


Checking account bonus is a completely different topic.
It would work very well if a student receives payroll, and cycles through most if not all the sign up bonus for checking accounts.
Probably valued at $1500 to $2000, across multiple issuers: HSBC $500, Meridian $300, Tangerine $200, Simplii $200, TD $200, Scotia $300 CIBC ($300 maybe this year).


For you personally, I would suggest get the canadian tire cash advantage.
Then, maybe get a card from my original post above.
Amex gold perkopolis is a good choice, if you can get past the $1500 spend requirement.
Member
Sep 16, 2012
415 posts
166 upvotes
Scarborough
xx1what wrote:
Jun 16th, 2019 11:04 pm
-snip-
The current promo for the PC WE is actually 100k optimum points, so basically $100 till July 4th.

Exactly, I never see a WE with min credit limits- I've only seen that for the Visa Inf and Scotia Amex Gold.

I will definitely consider the CTFS Cash Advantage, Will re-evaluate which card to get next after monitoring spending for the next few months.
Sr. Member
Mar 21, 2019
514 posts
442 upvotes
DaveProductions wrote:
Jun 16th, 2019 11:17 pm
Exactly, I never see a WE with min credit limits- I've only seen that for the Visa Inf and Scotia Amex Gold.
NBC World Elite Mastercard

Under “annual fee and interest rate”

Image

I’m sure there’s more.
Also, just because they don’t state there’s a minimum credit limit, doesn’t mean there isn’t one.
It also doesn’t mean the issuer can’t break the “rule” and issue one with a lower limit than the “minimum”.

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