The selection of cards out there geared towards students is a bit lacking, but the BMO CashBack Mastercard for students is at the top of the heap, offering the chance to earn up to 3% cash back on all your spending, and a few other surprises to boot.

BMO CashBack Mastercard for students rewards

The BMO CashBack Mastercard for students earns good old fashioned cash back rewards, saving you money on all your credit card purchases.

With this card you'll earn:

• 3% cash back on groceries (up to $500 spent per month),
• 1% cash back on recurring bill payments (up to $500 spent per month), and
• 0.5% cash back on all other eligible purchases.

Redeeming your cash back rewards

When it comes to redeeming your cash back rewards, this card couldn't be simpler. You get to decide how and when to get your cash back.

You can get your money in one of 3 ways:

• deposited into a BMO chequing account,
• added to your BMO InvestorLine account, or
• applied as a statement credit on your credit card bill.

Best of all is that you can redeem your rewards in a number of different ways, as well, either monthly, once per year, any time you hit a specified reward level (minimum $25), or as an on-demand lump sum payment (minimum $1).

This gives you a great deal of flexibility, particularly when compared to other cash back credit cards that only give you your money once a year, at a time of their choosing.

7 BMO CashBack Mastercard for students benefits

Here's what you can expect in terms of benefits from this student credit card.

1. Generous welcome bonus

You start with a generous welcome bonus worth up to $125, earned as 5% cash back on all purchases in your first 3 months, with a maximum spend of $2,500. After that, you'll earn the regular cash back rewards per category as we outlined above.

2. Earn cash back on all your spending

While the base cash back earn rate on this credit card is a relatively low 0.5%, you will earn at least that much on every purchase you make with this credit card. That's a nice bonus for a no fee credit card.

3. Bonus cash back categories

The bonus cash back categories – 3% on groceries, and 1% on recurring bills – are everyday things on which we all spend money. If you're going to be buying groceries and paying bills anyways, why not get a no fee credit card so you can earn some cash back on that money?

4. Boost your credit score

Getting and using a credit card responsibly is one of the easiest ways to establish and build your credit score over time. Of course, it can be tricky to get a credit card when you're young and have minimal income, such as when you're a student.

Luckily, most banks recognize this and offer a number of credit cards designed specifically for students, with lower approval requirements that most students are able to meet.

The BMO CashBack Mastercard for students is one of these credit cards designed for students, and it can help you build your credit score, as long as you pay it off in full every month.

5. No annual fee

While other credit cards have bigger welcome bonuses, better benefits, and richer rewards, they also almost always have a steep annual fee to make up for it.

The BMO CashBack Mastercard for students has no annual fee, meaning you can use it to build your credit and earn cash back rewards without having to pay a penny to keep it in your wallet.

6. Extended warranty and purchase protection

Most things you purchase with this credit card will be covered by the complimentary extended warranty and purchase protection that is included with your card. This can save you an enormous amount of money over time if you can take advantage of it. Just be sure to read the booklet that comes with your credit card to be sure you understand exactly what is and isn't covered, and what sorts of maximums are involved.

7. Up to a 25% discount on car rentals

If you ever need to rent a car or van (say for a quick road trip, or to move into a new apartment), you'll be able to save up to 25% on rentals from National Car Rental and Alamo Rent A Car locations.

3 BMO CashBack Mastercard for students drawbacks

Of course, there are a couple of drawbacks to keep in mind with this credit card.

1. High interest rates if you carry a balance

As with most credit cards, this card charges 21.99% interest if you carry a balance. This is obviously an exceedingly high interest rate and is to be avoided if at all possible.

Carrying a balance on a credit card can be a tricky hole to crawl out of, so you should be sure to pay off your balance in full every month.

2. Few other perks and benefits

This isn't unusual for a no fee credit card, of course, but you won't get a lot of extra perks and benefits with this card. Those luxe addons are generally reserved for the more expensive premium travel cards with high annual fees.

Bottom line

BMO's 2 student credit cards are both a solid choice for any student who's looking to establish their credit history and start building their credit score while earning rewards.

If you prefer the simplicity of cash back so you can just save money, the BMO CashBack Mastercard for students is a solid choice for your wallet.

Are you a student? Do you have a credit card?

If you have an opinion about it, find your credit card in our database and leave a review!

FAQ

Can a student apply for a credit card?

Yes, as long as you're the age of majority in your province or territory, you can apply for a credit card. Student credit cards are designed specifically for...well...students, and will be easier to qualify for when you have little or no credit history.

Which credit card is best for students in Canada?

We've crowned the BMO CashBack Mastercard for students the #1 student credit card in Canada. With up to 3% cash back on your spending for no annual fee, it will help you save money while also building your credit score over time. You can read more about this BMO Mastercard here.

What's the fastest way to build credit?

The fastest way to build credit is to get a credit card (such as a student credit card, or a secured credit card) and use it responsibly. This means using it regularly, but also paying it off in full every month. As long as you never miss any payments, this will demonstrate to creditors that you are able to manage your money effectively, and your credit score will reflect this.

Does a student credit card build credit?

It does. All credit cards will help you build your credit score with the exception of prepaid cards. Student credit cards are designed specifically for students, so are easier to qualify for than more traditional cards. If you have poor credit and aren't a student, you should take a look at secured credit cards, as approval for those is virtually guaranteed, and they will help you build your credit back up.