Guide for International Student Applying for Credit Cards in Canada

Obtaining a credit card from a local Canadian bank provides significant convenience for international students. Credit cards simplify daily spending and offer the necessary financial flexibility to handle unexpected economic needs, such as buying books, paying rent, or travelling. Additionally, using a credit card helps international students build a credit history, which is crucial for their future life and work in Canada.

Since 2017, Canadian banks have progressively tightened their credit policies, making it more difficult for international students to apply for credit cards. Banks have raised their credit assessment standards, required more financial documentation and guaranteed, thereby increasing the application difficulty. This has caused many international students to face challenges when applying for credit cards, affecting their daily life and financial flexibility in Canada.

The reasons for credit tightening include an increase in bad debts due to excessive credit expansion, malicious default by some international students who leave the country, and students using credit cards to pay tuition fees and then cancelling transactions, causing losses to banks and schools. These issues have prompted banks to strengthen credit card approvals and further tighten credit policies.

Establishing a credit history during student years is very beneficial for post-graduation life. Most Canadian banks issue low-credit-limit student credit cards to adult post-secondary students to help them build a good credit record. These credit cards not only improve students’ financial management skills but also provide more trust and support when applying for loans, renting apartments, and seeking employment in the future. Building a good credit history is a crucial foundation for international students’ success.