Best Credit Cards for Beginners

When you’re just starting out, the “best” credit card is usually one that’s:

• Easy to get (low or no income requirement)

• Simple to understand (no confusing rewards fine print)

• Forgiving if you’re still learning how to manage money

But if you’re worried about debt, there’s also a strong case for starting with a prepaid card instead of jumping straight into credit.

A Safer Starting Point: KOHO Essential

If you want card convenience without the risk of running up a balance, KOHO Essential is a good alternative to a beginner credit card.

With KOHO Essential Plan:

• It has a low monthly plan fee that can be waived when you set up direct deposit or add +$1,000.

• Get your Virtual Card to start spending online right away, securely.

• Use a prepaid Mastercard® for groceries, bills, subscriptions, and travel.

• Grow your savings with a 2% interest savings rate on your entire balance.

• Earn 1% cash back on groceries, eating & drinking, and transportation.

• You can add Credit Building for $10/month, it's an affordable way to build your credit history.

• Quickly and easily check your credit score for free.

• Enjoy unlimited transactions and free e-transfers (never worry about fees when sending money to someone again).

Beginner-Friendly Credit Cards to Know About

If you are ready for a real credit card and can commit to paying in full and on time every month, here are some common beginner/student options:

1. Scotiabank American Express® Card (for students)

A straightforward, entry-level rewards card often marketed to students and new-to-credit users:

• Typically no annual fee

• Earns Scene+ points on everyday spending (like groceries, dining, and transit)

• Can be a simple way to start building credit while earning flexible points for things like movies, travel, or statement credits

2. CIBC Dividend® Visa* Card for Students

A cash back card built specifically with students in mind:

• Typically no annual fee

• Earns cash back on everyday categories like groceries and recurring bills, plus a base rate on all other purchases

• Student-friendly approval criteria (no big income required, but you still need to qualify)

3. BMO CashBack® Mastercard®* for Students

Another popular no-fee student cash back card:

• Typically no annual fee

• Offers accelerated cash back on some everyday categories (often groceries and recurring bills), plus a base rate on everything else

• Runs on the Mastercard network, which is widely accepted in Canada and abroad

How to Choose as a Beginner

Ask yourself:

1. Do I actually need credit right now, or just a card that works online and in stores?

   • If you’re mainly worried about overspending or debt, starting with KOHO Essential is often safer.

   • If you’re ready for credit and confident you’ll pay in full, a student cash back or no-fee rewards card can be a good next step.

2. Could I realistically pay off the full balance every month?

   • If the honest answer is “I’m not sure,” lean toward prepaid + Credit Building instead of a full credit card.

3. What reward style do I understand better—cash back or points?

   • Cash back is simplest: money back on your statement.

   • Points can be great, but only if you’ll actually use them.

A Practical Path for True Beginners

If you’re starting from zero or rebuilding:

1. Use KOHO Essential as your main card for a while (build habits, track spending, avoid debt).

2. Subscribe to Credit Building to start forming a positive credit history.

3. Once you’re comfortable and consistent, apply for a simple, no-fee beginner credit card.