best Credit Card for newcomers to Canada
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Scotiabank StartRight Visa Card
Pros
- No credit history required
- Low monthly fee
- Earn 1% cashback on eligible purchases
- Opportunity to establish Canadian credit history
Cons
- Foreign exchange fee applies
- Higher interest rate for cash advances
- Limited benefits and insurance coverage compared to other credit cards
Key Features
The best credit card for newcomers to Canada offers a unique combination of features that cater to the needs of individuals who have recently moved to the country. One such card is the American Express Cobalt Card, which provides a welcome bonus, earn rates, and other benefits that can help newcomers establish their credit history in Canada. The key features of this card include:
- Welcome bonus: Check the current offer on the American Express website, as it is subject to change.
- Fees: The annual fee for the American Express Cobalt Card varies, but it is currently $120 per year.
- Earn rates: Cardholders can earn standard rates on their purchases, including 5x points on food and drinks, 3x points on streaming services, 2x points on travel, and 1x point on all other purchases.
- Interest rate: The interest rate on the American Express Cobalt Card is 20.99% on purchases and 21.99% on cash advances.
Pros & Cons
The American Express Cobalt Card has several pros that make it an attractive option for newcomers to Canada. These include:
- No foreign transaction fees, making it an excellent choice for international purchases.
- A comprehensive insurance package, including travel insurance, purchase protection, and return protection.
- A rewards program that allows cardholders to earn points on their purchases, which can be redeemed for travel, merchandise, or other rewards.
However, there are also some cons to consider:
- The annual fee may be a deterrent for some applicants, especially those who are new to Canada and may not have a established credit history.
- The interest rate on the card is relatively high, which can make it expensive to carry a balance.
- Some merchants may not accept American Express, which can limit the card's usefulness for everyday purchases.
How It Compares
The American Express Cobalt Card is just one of several credit cards available to newcomers to Canada. Here's how it compares to a few other options:
| Card | Welcome Bonus | Annual Fee | Earn Rates | Interest Rate |
|---|---|---|---|---|
| American Express Cobalt Card | Check current offer | $120 | 5x points on food and drinks, 3x points on streaming services, 2x points on travel, 1x point on all other purchases | 20.99% on purchases, 21.99% on cash advances |
| Scotia Momentum Visa Card | 5% cash back on all purchases for the first 3 months, up to $2,000 in total purchases | $0 for the first year, then $99 | 4% cash back on gas and grocery purchases, 2% cash back on pharmacy purchases, 1% cash back on all other purchases | 20.99% on purchases, 22.99% on cash advances |
| CIBC Aventura Visa Card | 15,000 Aventura points when you spend $1,000 or more on purchases within the first 4 months | $139 | 2x points on travel purchases, 1x point on all other purchases | 20.99% on purchases, 22.99% on cash advances |
As you can see, each card has its own unique features and benefits. The American Express Cobalt Card is a good option for those who want to earn rewards on their purchases, while the Scotia Momentum Visa Card may be a better choice for those who want to earn cash back on their purchases.
Who It's For
The American Express Cobalt Card is a good option for newcomers to Canada who:
- Want to establish a credit history in Canada.
- Are looking for a card with a comprehensive insurance package.
- Want to earn rewards on their purchases.
- Are willing to pay an annual fee for the benefits and rewards offered by the card.
However, it may not be the best option for those who:
- Are looking for a card with no annual fee.
- Want to earn cash back on their purchases.
- Are not willing to pay a high interest rate on their purchases.
How to Apply
To apply for the American Express Cobalt Card, you can visit the American Express website and fill out the online application form. You will need to provide some personal and financial information, including your name, address, income, and credit history. You can also apply by phone or in person at an American Express office.
It's a good idea to check your credit score before applying for the card, as a good credit score can increase your chances of being approved. You can check your credit score for free through the websites of the two major credit reporting agencies in Canada, Equifax and TransUnion.
Once you have applied for the card, American Express will review your application and may request additional information or documentation to verify your identity and creditworthiness. If your application is approved, you will receive your card in the mail and can start using it to make purchases and earn rewards.
FAQ
What is the minimum credit score required to apply for the American Express Cobalt Card?
A good credit score can increase your chances of being approved for the American Express Cobalt Card, but there is no minimum credit score required to apply. American Express will consider a range of factors when reviewing your application, including your credit history, income, and debt obligations.
Can I apply for the American Express Cobalt Card if I am a newcomer to Canada?
Yes, you can apply for the American Express Cobalt Card if you are a newcomer to Canada. American Express considers applications from individuals who have recently moved to Canada, but you may need to provide additional documentation to verify your identity and creditworthiness.
How do I earn rewards on my purchases with the American Express Cobalt Card?
You can earn rewards on your purchases with the American Express Cobalt Card by using the card to make purchases at participating merchants. You will earn 5x points on food and drinks, 3x points on streaming services, 2x points on travel, and 1x point on all other purchases. You can redeem your points for travel, merchandise, or other rewards through the American Express rewards program.
What is the interest rate on the American Express Cobalt Card?
The interest rate on the American Express Cobalt Card is 20.99% on purchases and 21.99% on cash advances. This means that if you carry a balance on your card, you will be charged interest on that balance at the applicable rate.
Can I use the American Express Cobalt Card to make international purchases?
Yes, you can use the American Express Cobalt Card to make international purchases. The card has no foreign transaction fees, which means that you will not be charged a fee for making purchases in a foreign currency. However, you should be aware that some merchants may not accept American Express, so it's a good idea to have a backup card or other payment method available when traveling.
Not financial advice. Rates and offers change. Read provider terms.
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BGR's editorial team evaluates every Canadian credit card using a 7-factor scoring model aligned with FCAC guidelines.
Data sources: FCAC, CMHC, issuer websites, Equifax Canada, TransUnion Canada. Last audit: June 2026.