Top Credit Card Alternatives

If you do not want a credit card, the best alternatives are debit cards, prepaid cards, Interac e-Transfer, cash, and mobile wallets (like Apple Pay or Google Pay).

These let you pay for most everyday things without borrowing money.

A Simple Credit Card Alternative: KOHO Essential

With KOHO Essential, you get a prepaid Mastercard® that works for everyday spending and online purchases, while still earning perks.

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

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

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

1) Debit Card

A debit card spends money directly from your bank account.

Best for:

• Groceries, shopping, bills, and everyday purchases

Watch for:

• Some online purchases and travel deposits can be harder with debit, depending on the merchant.

2) Prepaid Card

A prepaid card lets you load money first, then spend from that balance (no borrowing).

Best for:

• Online shopping and subscriptions

• Staying on budget, since you can only spend what you load

3) Interac e-Transfer

e-Transfer is a simple way to send money from your bank to another person.

Best for:

• Paying rent (if your landlord accepts it)

• Paying a roommate back

• Buying something from a person (not a store)

4) Cash

Cash still works almost everywhere in person.

Best for:

• Small purchases

• Staying strict with spending

Watch for:

• Not helpful for online shopping, and it is easier to lose.

5) Mobile Wallet

Apple Pay or Google Pay usually uses your debit or prepaid card through your phone.

Best for:

• Fast tap payments in stores

• A little extra convenience and security

One Quick Heads-Up About Travel

Some hotels and car rental companies prefer a credit card for deposits.

If you do not have one, call ahead and ask what they accept so you do not get stuck.