Credit cards can be a great financial tool and a big step of maturity for a young adult (or an older adult!). Credit card holders must use them responsibly, which is why banks have requirements that applicants must meet before they can get a credit card. What requirements must be met to get a credit card in Canada?
To receive a credit card in Canada, applicants must pass certain requirements (set by the bank) to qualify. General requirements fall under the categories of age, residency, credit score, and Social Insurance Number. Each bank has specific and varying qualifying factors.
What should someone know before applying for a Canadian credit card? Continue reading to learn more about the application process and how you can pass it.
Requirements to Qualify for a Credit Card in Canada
No matter where someone applies for a credit card, they will have to qualify before they can receive it. The requirements put in place to qualify for the card are meant to protect—not only the bank from losing money but also the individual from irresponsible financial decisions. If used incorrectly and recklessly, credit cards can destroy someone’s credit and cause future issues.
While each bank can set its own requirements for people who are applying for certain credit cards, there are a few general requirements applicants can expect in order to qualify. These include:
- Age
- Applicants must be at least 18 years of age. According to Manulife Bank, certain provinces require applicants to be 19 years old. BC requires applicants to be at least 19 years old while Ontario, Alberta, and Quebec only requires at least 18 years of age. (Full list of minimum age in Canada to open a credit card or buy stocks for each province)
- Residency
- Similar to the requirements for applying for a credit card in other countries, such as the United States of America, getting a credit card in Canada requires proof of permanent residency or citizenship in the country. This is required for all applicants.
- Credit Score
- Banks will not allow applicants with bad credit scores to receive a credit card. Paying on time every month can improve your credit score. Your credit score can also determine how much credit limit you can be approved of. Most banks give a credit limit of $500 on your first credit card, unless you have a full time job.
- Social Insurance Number
- Similar to an American Social Security Number, a Canadian Social Insurance Number is a 9 digit number assigned to Canadian citizens. This number is required to work, apply for certain colleges, receive a credit card, and more. It is required to receive most government benefits and programs.
Credit Score
In our current world, a good credit score is extremely important. Having bad credit can ruin—or at least severely damage—your chances of buying a home, purchasing a car, or applying for a loan. Credit can be affected by several different factors. It is important to know that credit can be affected both negatively and positively by these factors.
What Determines Your Credit Score?
Payment history is one of the deciding factors that determine a credit score. How fast and accurately you have paid off expenses in the past will affect your score. Missing a payment or paying something off late will negatively impact your credit score. Filing for bankruptcy will also hugely hurt your credit score.
A credit score is also impacted by how much money you currently owe. This includes loans you have taken out for personal reasons, houses, and vehicles. Student loans can also affect your credit score. The length that your credit has been building (or dropping) will also affect your current score. (Source)
Overall, there are so many factors that can and will affect your credit score. It can sometimes be stressful and scary to think about credit and everything that it can affect in the future, but it is important to remember there are lots of resources out there to help people understand their credit score and raise it. If you are worried about your score, go to your bank and speak with a local representative.
Applying for a Canadian Credit Card with a Low Credit Score
As previously mentioned under “Requirements to Qualify for a Credit Card in Canada”, banks have a required credit score that applicants must meet in order to qualify for a credit card. The important thing to keep in mind is each bank is different and has different requirements. If someone was unable to qualify for a credit card at one bank, that does not necessarily mean they cannot qualify somewhere else in Canada.
There are plenty of Canadian credit cards that accept applicants with credit scores under 650. Even applicants with credit scores as low as 300 can apply for some credit cards in Canada.
Below is a list of some of the top banks and credit card companies in Canada and the minimum credit score required to qualify for a credit card. The chart also includes the purchase interest rate. Click on the hyperlink attached to the Credit Card Name to find all the information on the credit card.
| Credit Card Name | Credit Score Needed to Qualify | Purchase Interest Rate |
| Refresh Financial Secured Card | 300 | 17.99% |
| Home Trust Secured Visa | 300 | 14.09% – 19.99% |
| Neo Financial Credit Card | 600 | 19.99% – 24.99% |
| HSBC +Rewards™ Mastercard® | 630 | 11.9% |
| BMO AIR MILES Mastercard | 660 | 19.99% |
| Scotiabank SCENE Visa Card | 660 | 19.99% |
| Tangerine World Mastercard | 680 | 19.95% |
| American Express Cobalt Card | 700 | 20.99% |
| Simply Cash Preferred Card from American Express | 700 | 19.99% |
| Scotiabank Passport Visa Infinite Card | 750 | 19.99% |
It is important to know what you are getting yourself into when you start applying for a credit card. Many credit cards require an annual fee. This fee can exceed one hundred dollars per year. The thing about credit cards with fees is they likely allow users to take out more money. When getting a credit card, it is critical to understand how to use it safely. You must be careful not to get into credit card debt because it can be hard to dig yourself out.