Personal Finance

credit card for student.

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  • Feb 10th, 2006 2:23 pm
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Deal Addict
Jun 27, 2005
3030 posts
348 upvotes

credit card for student.

ok ill try to make this short and concise as possible

im a 21 year old university student that doesnt know jack about credit cards.
all i know is you buy stuff with them, if you dont pay bill by certain dates, you must pay late or interest fees.

can someone please suggest or guide me to where i can find a credit card for a student that has no monthly or yearly fees. I guess for obvious reasons they all have interest fees if you don't pay by certain date. I don't need a crazy limit. Anything else to look out for, any advantages to certain kind or disadvantages? (I have a bank account with TD - if that matters) thanks for the help.
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Sr. Member
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Feb 20, 2005
657 posts
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do you have a part time job or anything?

there are actually alot of no annual fee credit cards offer around. I believe RFD has a page where they compare all the credit cards.

but as a student, the easiest one to get is probably the MBNA card that they advertise in every single campus. Or many banks offer no annual fee cards too (RBC, TD, CIBC..etc) design for students.

If it's ur bank, they would probably look at how much $$ you have in ur bank account or if you have a job or if your parents are willing to be your collateral or something like that. Don't worry, as long as you have some income, they will pass you (I got mines when i was 18)
Deal Addict
Jun 27, 2005
3030 posts
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so my dad tells me to get a [rfdlink=/forums/autolink/redirectpage.php?linkid=24]canadian tire[/rfdlink] card because they give you back 'canadian tire' money, is there any advantages or disadvantages i'm (or he is) over looking?

thanks
Deal Addict
Jan 5, 2006
1054 posts
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Mississauga
Your local university should have people that cater to specifically to students - no annual fee. It might be harder to get other cards such as [rfdlink=/forums/autolink/redirectpage.php?linkid=24]Canadian Tire[/rfdlink] card, PC financial card, etc. without a previous credit history and stable income. After you get started, you can shop around a bit. I tend not to go for the ones that banks push, because they have perks that I'd use.
Sr. Member
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Feb 20, 2005
657 posts
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no no, you are not over looking, many of the no-annual fee cards offer you little freebies so you can give them freebies. I also have an MBNA [rfdlink=/forums/autolink/redirectpage.php?linkid=78]ebay[/rfdlink] mastercard which gives me back $1 [rfdlink=/forums/autolink/redirectpage.php?linkid=78]ebay[/rfdlink] for every $100 I spend and it's no annual fee. Just be aware that these cards usually have a higher interest rate tho ^^
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Jul 10, 2005
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One of the first credit cards that I signed up for when I went to university was the TD GM card. For every purchase, you receive 3% back in GM earnings for use towards a GM vehicle. It came in handy when I paid for tuition and textbooks :)
There is no annual fee but a 19.5% interest rate.

http://www.tdcanadatrust.com/tdvisa/gm.jsp
Deal Addict
Sep 16, 2005
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Local
crabby1997 wrote:no no, you are not over looking, many of the no-annual fee cards offer you little freebies so you can give them freebies. I also have an MBNA [rfdlink=/forums/autolink/redirectpage.php?linkid=78]ebay[/rfdlink] mastercard which gives me back $1 [rfdlink=/forums/autolink/redirectpage.php?linkid=78]ebay[/rfdlink] for every $100 I spend and it's no annual fee. Just be aware that these cards usually have a higher interest rate tho ^^

But if you pay your bills on time, then there is no reason to care about the higher interest rate. RIght?
Deal Guru
Mar 30, 2002
12415 posts
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d-man wrote:One of the first credit cards that I signed up for when I went to university was the TD GM card. For every purchase, you receive 3% back in GM earnings for use towards a GM vehicle. It came in handy when I paid for tuition and textbooks :)
There is no annual fee but a 19.5% interest rate.

http://www.tdcanadatrust.com/tdvisa/gm.jsp
Better to get the Citibank Drivers Edge card. I think it's 2%, but you can use it on any car. Also no annual fee.
:hay:

[You got a dream, you gotta protect it. People can't do something themselves, they wanna tell you that you can't do it. You want something? Go get it. Period.]
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Oct 12, 2005
1747 posts
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Toronto
Check this links for a complete list of Canadian Credit Cards and perks:

http://www.canadacreditcards.ca/
http://www.chargecards.ca/
http://www.creditwizard.ca/questions.asp

CT Options mastercard is preety good, you get points when you spend with it(CT Money) which you can redeem for stuff at CT. If you buy tools, or car accessories once in a while it's preety good. The only con is there is no way to check your transactions online.

PC Financial Master Card gives you ten points for every $1 spent. It works out that you get $20 worth for every $2000 spent. You can either go to NoFrills/Loblaws/Fortinos and redeem the $20 towards purchases, or you can order gift cards and movie tickets online. Personally I prefer this. If you have a PC account, points will add up faster, and if you drive and fill up at petro canada, apply for one of their free member card, and you can transfer petro points to PC points 10000 to 10000.

The Citi Drivers Edge is good if you are planning on buying a card in the next 5yrs or so. It doesn't matter where you buy, you send in paperwork and get a check for up to your balance(but no more than $2000,I think, each time-assuming you have $2000 worth of points).

On the student perspective, MBNA, RBC CLASSIC, CITIZENS BANK offer cards which you are more likely to get being a student and all, but no point system.

Look for a credit card with no annual fee, clearly no fee means high interest, but if you are not planning to hold a balance, there is in problem.

All in all with most cards you get 21-25 days grace period, which means if I buy today with the card, I wont have to pay the card back for about a month give or take.
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Member
May 3, 2004
466 posts
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I have a no-annual fee BMO Bank of Montreal Mastercard. I find that they start you off with a slightly higher limit than some other cards I've looked at. Most credit cards will start a student off with a limit of $500, but I started at $1100.

Either way, I like my current card as the reward program is Air Miles(not aeroplan). I get 1 Air Mile for every $40 spent on the card. In addition to this, if you shop at a place like Sobeys that have an Air Miles program, you can use your credit card and get double Air Miles. You get the Air Miles from the credit card(1 for every $40), then you get the Air Miles from Sobeys(1 for every $20). Over 4 years of using the credit card and shopping at Air Miles sponsors, I've got enough built up to fly across the country(return) for free. Not too bad for not paying a cent in fees.

The interest rate on the card is high at 18.5%, but cards like [rfdlink=/forums/autolink/redirectpage.php?linkid=24]Canadian Tire[/rfdlink] and Sears will basically be the same rate. If you want a lower interest rate, you will have to pay an annual fee.

Basically you just need to pick a reward program that you think would benefit you the most. The interest rate will be high regardless. The grace period(time period before interest is charged) is basically the same also, which is around 21days.

Also, if you get a credit card from a bank that you don't normally deal with, it's still easy to make payments on it. Just go to your normal bank and show them the credit card and tell them you want to setup your account to make payments on the card. Then you'll be able to make a payment on the credit card from an ATM or online banking.

Hope this helps.
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Feb 16, 2005
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Toronto
As a student going to University next year, I'll probably need a credit card to make purchases and what not. I liked the sound of that one connected with Air Miles points, my question is how hard are Air Miles cards to get?

I just want a simple card with a nice benefit I could use without being raped by fees and what not.
Jon Lim
Deal Guru
Mar 30, 2002
12415 posts
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FearSonic wrote:As a student going to University next year, I'll probably need a credit card to make purchases and what not. I liked the sound of that one connected with Air Miles points, my question is how hard are Air Miles cards to get?

I just want a simple card with a nice benefit I could use without being raped by fees and what not.
I suggest you get either a cashback/dividend card of the Citibank Driver's Edge card... collecting air miles or these other points are useless as you may never end up using them.
:hay:

[You got a dream, you gotta protect it. People can't do something themselves, they wanna tell you that you can't do it. You want something? Go get it. Period.]
Deal Addict
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Feb 16, 2005
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B40 wrote:I suggest you get either a cashback/dividend card of the Citibank Driver's Edge card... collecting air miles or these other points are useless as you may never end up using them.
My mom redeems her Air Miles points for free movie tickets rather often and I enjoy using those, saves me the $10 and $50 I would've spent on the ticket and food.
Jon Lim
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Oct 18, 2004
5534 posts
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Wat
[QUOTE]Either way, I like my current card as the reward program is Air Miles(not aeroplan). I get 1 Air Mile for every $40 spent on the card.[/QUOTE]

1 air mile for every $40 is horrible return. You should at least get the AMEX air miles card at 1 air mile for every $20.
Member
May 3, 2004
466 posts
2 upvotes
Wiseman wrote:1 air mile for every $40 is horrible return. You should at least get the AMEX air miles card at 1 air mile for every $20.
That may be a difficult card to get as a first time credit card. There's no harm in applying though. The BMO card is easy to get, but to get the 1 Air Mile for $20 you much pay $35 a year.

Personally I'm awaiting the AMEX in the mail as they keep sending me offers, so I finally gave in and applied.

Most credit card rewards are along the same lines anyway. It just a different form of rewards, whether is be cash back, Air Miles, or money towards a vehicle.
Deal Guru
Mar 30, 2002
12415 posts
10 upvotes
FearSonic wrote:My mom redeems her Air Miles points for free movie tickets rather often and I enjoy using those, saves me the $10 and $50 I would've spent on the ticket and food.
Well it all comes down to how much $ you're getting per point after you redeem them. If it's less than 1% go for the cashback card...I suggest Citibank's drivers edge as you're going to buy a car sooner or later
:hay:

[You got a dream, you gotta protect it. People can't do something themselves, they wanna tell you that you can't do it. You want something? Go get it. Period.]

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