If you have a low income level and are looking for the perfect credit card, this post got you covered.
The importance of credit cards in our financial life is the same regardless of our income level.
However, it can be disappointing to get denied a credit card because of not meeting the minimum income eligibility.
By identifying a credit card within your income level, you can avoid disappointment and save time in the application process.
In this article, you will learn about the best credit cards for low income in Canada. You will also learn about the factors to consider when narrowing your selection.
Table of Contents
Can I Get a Credit Card if My Income is Low?
The short answer is yes. While some credit cards are designed specifically for high-income earners, others are designed with low income earners in mind.
One main reason why some credit card providers set personal/household income eligibility is to get a sense of security in your ability to clear your credit balance.
In some cases, the higher the income eligibility, the higher perks you will expect on a credit card. On the other hand, credit cards with low income eligibility are more easily accessible than those with high eligibility.
Whether you’re a student, a new graduate, or an employee with an average income, you can get access to a credit card for low income earners in Canada.
As you continue reading, you will learn about the best credit card for low income in Canada according to various categories.
10 Best Credit Cards For Low Income in Canada
Low income is a relative term that means different things to different people. So on this compilation, we cover credit cards with no income requirements and those with low income requirements.
For credit cards with low income requirements, we limit our selection to those with a $12,000 maximum personal gross annual income eligibility.
It’s worth noting that some of these credit cards compiled are among the best credit cards in Canada. This means that they compete significantly with some of the high-income credit cards out there.
That being said, below I present to you the best credit card for low income earners in Canada.
1. Neo Financial Mastercard
Best for Cashback
- Income Eligibility: None
- Annual Fee: $0
- APR: 19.99% on purchases & 21.99% on cash advances
- Reward: 5% cashback on eligible purchases
- Welcome Offer: 15% cashback on the first purchase
I rate the Neo Financial Mastercard as the overall best low income credit card in Canada for cashback earning.
The Neo Financial Mastercard has no minimum income eligibility, no monthly fees, and it’s a pacesetter as far as high cashback is concerned.
With this card, you will get a minimum of 5% cashback on every $1 spent at Neo partner stores. You’re guaranteed 1% cashback for every $1 you spent on every other purchase with the card.
Even more interesting is the fact that the Neo Mastercard offers 15% promotional cashback on your initial purchase with it.
If you’re looking to save more on your purchases, you can’t go wrong with Neo Financial Mastercard.
Check out Neo Financial Mastercard
2. HSBC +Rewards Mastercard
Best for Low Interest
- Income Eligibility: None
- Annual Fee: $25 (waived for the first year)
- APR: 11.9% on purchases & 11.9% on cash advances
- Reward: 2 points on every eligible purchase
- Welcome Offer: Up to 40,000 points
The HSBC +Rewards Mastercard is our overall best low income credit card in Canada for low interest on purchases, cash advances, and balance transfers.
This credit card has no income eligibility and the only requirements you need to qualify is to be a Canadian resident and reach the age of majority in your province/territory.
With low-interest rates, the HSBC +Rewards Mastercard still manages to offer competitive rewards to its users.
You will get up to 35,000 welcome bonus points when you apply for the card online and spend a minimum of $2,000 within your first 6 months of cardholding.
If you’re a Québec resident, you will earn up to 40,000 welcome points if you apply online and keep your account in good standing within your initial 180 days of cardholding.
Every $1 purchase with the card on dining and entertainment will earn you 2 points. For every other $1 purchase, you will earn 1 point.
Finally, the HSBC +Rewards Mastercard comes with comprehensive insurance which includes:
- Extended Warranty Insurance
- Purchase Assurance
- Price Protection Service
- Optional Travel and Medical Insurance
Check out HSBC +Rewards Mastercard
3. BMO CashBack Business Mastercard
Best for Businesses
- Income Eligibility: None
- Annual Fee: $0
- APR: 19.99% on purchases & 22.99% cash advances
- Reward: 1.75% cashback on eligible purchases
- Welcome Offer: 10% cashback
I rank the BMO CashBack Business Mastercard as the overall best low income credit card in Canada for businesses.
My rating is informed by the fact that the credit card doesn’t require minimum income and it doesn’t also charge annual fees.
Even though the card has no income eligibility, it has different requirements for different business structures such as:
- Sole proprietorship
- Corporation
- Partnership
- Unincorporated association
In your first 3 months of holding the BMO CashBack Business Mastercard, you will get 10% cashback on the following purchases:
- Gas
- Cellphone
- Internet bills
- Office supply
After the promo expires, you will get 1.5% cashback on the above purchases. And for every $1 purchase on Shell or pump with the card, you will get 1.75% cashback. Every other purchase will get you 0.75% cashback.
Besides these competitive rewards, the BMO CashBack Business Mastercard also gets you up to a 25% rebate on eligible purchases.
Finally, the card got you covered with an extended warranty, purchase protection, and liability waiver.
Check out BMO CashBack Business Mastercard
4. Students – BMO CashBack Mastercard
Best for Students
- Income Eligibility: None
- Annual Fee: $0
- APR: 20.99% on purchases & 22.99% on cash advances
- Reward: Up to 3% cashback on grocery purchases
- Welcome Offer: 5% cashback
The award of the best low income credit card for students goes to the Students – BMO CashBack Mastercard.
This cashback credit card has no minimum eligibility. The only requirements are highlighted below;
- Be a Canadian citizen or permanent resident
- Reach the age of majority in your province/territory
- Be within 18-24 years of age
- Enroll in a recognized post-secondary school
- Earn annual income (via family allowance, grant, student loan, scholarship, or employment)
With no annual fee, the credit card offers 5% promotional cashback on your first 3 months of cardholding.
When the promo expires, you will get 3% cashback on groceries, 1% cashback on recurring bills, and 0.5% cashback on every other purchase.
In addition to these competitive rewards, the credit card offers access to a 25% discount on car rentals at partner Alamo Rent a Car and National Car Rental locations. Moreso, the card offers access to a 15% discount on Cirque du Soleil shows touring Canada.
Check out Students – BMO CashBack Mastercard
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5. BMO CashBack Mastercard
Best for Introductory Balance Transfer
- Income Eligibility: None
- Annual Fee: $0
- APR: 20.99% on purchases & 22.99% on cash advances
- Reward: Up to 3% on grocery purchases
- Welcome Offer: 5% cash back and 0.99% introductory balance transfer interest
If you’re looking to switch your balance to a low-interest credit card, the BMO CashBack Mastercard is the overall best low income credit card with competitive introductory balance transfer interest.
The card doesn’t have minimum income eligibility and annual fees. Even at that, the card offers competitive rewards on the following purchases:
- 3% cashback on groceries
- 1% cashback on recurring bills
- 0.5% cashback on every other purchase
For your first three months of holding the card, you will get 5% cashback on your purchases. And for your first 9 months of card holding, you will get an extremely low introductory balance transfer interest rate of 0.99%.
Additionally, the BMO CashBack Mastercard offers access to a 25% discount on car rentals at partner locations and a 15% discount on Cirque du Soleil shows touring Canada.
Check out BMO CashBack Mastercard
6. RBC ION Visa
Best for Avion Points
- Income Eligibility: None
- Annual Fee: $0
- APR: 19.99% on purchases & 22.99% on cash advances
- Reward: 1.5x Avion points on every purchase
- Welcome Offer: 6,000 Avion points
The RBC ION Visa credit card is one of the best points credit cards in Canada that doesn’t require a minimum income.
I included this credit card on this compilation because of its competitive Avion points offering on purchases.
As of the time of writing, the card offers up to 6,000 Avion points on purchases as a welcome bonus. In addition, cardholders are offered 1.5x Avion points on every eligible $1 purchase.
When you make an eligible $1 purchase at Rexall with the card, you will get 50 Be Well points. You will also get 20% more points when you buy fuel with the card at Petro-Canada
In addition, the RBC ION Visa credit card also offers access to a 3¢ discount per litre on fuel purchases at Petro-Canada. The following are other discounts you can access with the card:
- Unlimited free deliveries from DoorDash
- A complimentary DashPass subscription for 3 months
Besides extended warranty and purchase protection, the RBC ION Visa credit card also offers the following optional add-on protections:
- Travel Insurance
- Credit & Identity Theft Protection
- BalanceProtector Max Insurance
- RBC Road Assist
7. Marriott Bonvoy American Express Card
Best for Hotel Stays
- Income Eligibility: None
- Annual Fee: $120
- APR: 19.99 on purchases & 21.99% on cash advances
- Reward: Up to 5x points on purchases
- Welcome Offer: Up to 50,000 points
The Marriott Bonvoy American Express Card is the overall best low income credit card for hotel stays.
With no income eligibility, the Marriott Bonvoy American Express Card offers up to 50,000 welcome bonus points on the first three months of card holding.
When you spend with the card at Marriott Bonvoy properties, you will earn 5x points. And for every other purchase, you will get 2x points.
Unlike other credit cards, the Marriott Bonvoy American Express Card allows you to earn up to 150,000 points annually on a referral bonus. This way, you don’t have to spend to earn reward points.
Besides that, the credit card also offers free 15 Elite Night Credits annually and a free annual night award on your card anniversary.
Although the card charges a $120 annual fee, it doesn’t charge a fee for supplementary cards and you can add up to 9 users.
Check Marriott Bonvoy American Express Card
8. Scotiabank Gold American Express
Best for Foreign Transactions
- Income Eligibility: None
- Annual Fee: $120 (waived for the first year)
- APR: 20.99% on purchases & 22.99% on cash advances
- Reward: Up to 6x Scene+ points on eligible purchases
- Welcome Offer: Up to 40,000 Scene+ points
The Scotiabank Gold American Express is our overall best low income credit card for foreign transactions.
This credit card doesn’t require minimum income and it doesn’t also charge foreign transactions fee. Although it charges a $120 fee, the fee is waived for the first year.
As a new user, you will get up to 40,000 bonus Scene+ points with the Scotiabank Gold American Express within your first year of holding the card.
When the promotion expires, you will get up to 6x Scene+ points on every eligible $1 purchase on grocery, dining, and entertainment. The following points apply to other purchases:
- 5 Scene+ points on every eligible $1 purchase on grocery, dining, food delivery, entertainment, movies, theatre, and ticket agencies
- 3 Scene+ points on eligible gas, daily transit, and select streaming services
- 1 Scene+ point on every other eligible $1 purchase
What I also like about the Scotiabank Gold American Express is that it has a wide range of insurance which includes:
- Purchase Security
- Extended Warranty Protection
- Travel Accident Insurance
- Travel Emergency Medical Insurance
- Trip Cancellation/Trip Interruption Insurance
- Flight Delay Insurance
- Delayed and Lost Baggage Insurance
- Rental Car Collision Loss/Damage Insurance
- New Mobile Device Insurance
- Hotel/Motel Burglary Insurance
Check Scotiabank Gold American Express
9. Home Trust Secured Visa
Best Secured Credit Card
- Income Eligibility: None
- Annual Fee: $0
- APR: 19.99% on purchases
- Reward: N/A
- Welcome Offer: N/A
If you have poor credit or are trying to build a credit history, the Home Trust Secured Visa card could be your best option.
This credit card has no income requirement or annual fee. As a secured credit card, your Home Trust Secured Visa card limit depends on your security deposit.
The minimum security deposit of the card is $500 and the maximum is $10,000. This makes the card accessible to low income earners.
By making a security deposit, you will be assigned a credit limit which you can use to make purchases as with a regular credit card. On the other hand, your deposit will be saved by Home Trust and insured by the Canada Deposit Insurance Corporation (CDIC).
Each month, Home Trust will report your credit activities to both TransUnion and Equifax. Once you keep up with your regular monthly payment, the Home Trust Secured Visa card will help improve your credit rating.
Although the card has a 19.99% interest rate on purchases, you can lower the interest to 14.90% by paying a $59 annual fee.
Check out Home Trust Secured Visa
10. Tangerine Money-Back Credit Card
- Income Eligibility: $12,000 average personal annual income
- Annual Fee: $0
- APR: 19.95% on purchases & cash advances
- Reward: Up to 2% cashback on eligible purchases
- Welcome Offer: 15% cashback & 1.95% introductory balance transfer interest
The last best low income credit card on this compilation is Tangerine Money-Back Credit Card.
This is the only card on this compilation that requires a minimum income of $12,000 personal annual income.
However, the Tangerine Money-Back Credit Card is tailored to low income Canadians because its personal annual income requirement is relatively low compared to the income eligibility of the Tangerine World Mastercard ($60,000).
With the Tangerine Money-Back Credit Card, you will get a welcome offer of 15% cashback on your first two months of cardholding which is applicable on up to $1,000 purchases.
In addition, you will get an introductory balance transfer interest of 1.95% for up to 6 months with the Tangerine Money-Back Credit Card.
Click here to learn more about Tangerine credit card promotions
For every 2 category purchases with the Tangerine Money-Back Credit Card, you will get 2% cashback. And every other purchase with the card will earn you 0.50% cashback.
With a spending tracker, Mastercard Zero Liability, extended warranty, and purchase assurance, the Tangerine Money-Back Credit Card has a lot for low income Canadians.
Check out Tangerine Money-Back Credit Card
Which Credit Card is Best For Low Income People?
Since there’s not a single definition of low income in Canada, we can’t single out one credit card that’s best for all low income earners.
That’s to say, the best credit card for low income in Canada depends on your actual income level and needs.
If you’re a student or someone with no steady cash flow, it could be safe to go for a credit card with no income eligibility at all. In that case, you have 9 options to choose from the above compilation.
But if you have a steady income that’s within $12,000 and above, then the Tangerine Money-Back Credit Card should be included in your consideration.
After determining your income level, the next step is to narrow your selection within the available credit cards within your income level.
The following are the key factors to consider when narrowing your selection of the best low income credit card in Canada:
- Card type: Choose the category of credit card that suits your needs be it a regular credit card or a secured card.
- Reward: Consider a credit card with competitive rewards on purchases – be it cashback or reward points.
- Annual fee: Most of the above credit cards don’t charge an annual fee. But if you’re going with a credit card that charges an annual fee, consider the one with a low fee to save cost. But if you’re looking for a credit card with more perks and luxurious touch, the annual fee may not be your problem.
- APR: Consider the annual interest rate on purchases and cash advances as they can impact your credit card cost.
Verdict
Hopefully, now you know the best credit cards for low income in Canada and how to choose the perfect one for your needs.
If you need more help, kindly hit me up in the comment section or contact our team at [email protected].
One takeaway from this review is that there’s no one-size-fits-all best low income credit card in Canada.
With different low income credit cards to choose from, it’s essential you understand your income level and credit card needs before deciding which card to choose.
Which low income credit card are you going with? Do you have a worthy recommendation? Kindly let me know in the comment section.
