Credit cards in Canada: A guide for expats

This guide walks through some important things to think about including how to choose a Canadian credit card, and how to improve your credit score as a new arrival. We’ll also touch on how alternatives like Wise can offer simple ways to manage your money when spending across currencies, with low cost transactions and mid-market rate currency conversions.

How to choose a credit card in Canada

Choosing the right credit card is important, to make sure you don’t incur unnecessary fees or charges when you spend. Here are a few things to think about when you pick the right Canadian credit card for your needs:

• Look out for foreign transaction fees – if your card charges a foreign transaction fee you’ll pay an extra percentage every time you transact in a foreign currency. This can push your spending up by about 2.5% on overseas purchases.
• Choose competitive exchange rates – credit cards usually use the network exchange rate for overseas depending which is a relatively good rate compared to the mid-market rate. However, do watch out for hiked up rates or high exchange fees.
• Get a card with global acceptance – not all card networks are as well accepted as others. Choosing the Visa or Mastercard networks can often mean getting the biggest global acceptance.
• Look for travel benefits and protections – if you’re an expat and need to travel often look for cards with complimentary insurance, lounge access or travel concierge programs.
• Pick reward programs that suit international lifestyles – many cards offer reward points or cash back on spending, and some have higher rates of earning on travel spend – this can be a big bonus if you travel a lot.
• Select a card with easy online management and customer support – finally make sure you know how to get in touch with your card issuer if you have a problem when you’re overseas. Most cards have 24/7 services online, in app or by phone.

Can I get a Canadian credit card as a new expat?

Credit card issuers set their own eligibility criteria which may include a minimum credit score. If you’re a new arrival in Canada and do not have a local Canadian credit history, you may still be able to get a credit card from a major bank through their newcomer program.

Most large banks have specific services aimed at new arrivals in Canada which can include banking packages and credit cards you can apply for with little or no local credit score. We’ll look at these in more detail in this guide.

Understanding credit card fees for international spending

If you travel a lot, or spend online in international retailers, you’ll need to think about the way your card charges for foreign currency transactions. Here are a few things to know:

• Foreign transaction fees: Foreign transaction fees are usually a percentage added to the mid-market rate which push up the cost of your overseas spending. This can mean a purchase overseas costs about 2.5% more than buying in Canada.
• ATM withdrawal fees abroad: Using your card to get cash from an ATM may incur a cash advance fee – often 5 CAD to 7.5 CAD, or a percentage of the withdrawal value – plus instant interest and any foreign transaction fee which applies. This can be very costly in the end.
• Dynamic currency conversion traps: If you’re asked if you’d prefer to spend in CAD when you’re overseas, just say no. Spending in your home currency (so CAD in this case) means the merchant converts your payment for you, with higher fees than your bank or card issuer will. Pay in the currency of the country you’re in, every time, for the best overall cost.
• Annual fees vs. benefits analysis: Finally, make sure you weigh up the cost of annual fees for your credit card against the benefits you expect to receive. Annual fees can be hundreds of dollars so making sure you get value for money is essential.

5 credit cards for expats in Canada

Let’s take a look at 5 great credit cards for expats in Canada. We’ve selected cards which are usually available to new arrivals in Canada through newcomer programs, although bear in mind that some eligibility rules are likely to apply. Here’s a quick comparison of our top picks, and there’s more on each right after the table.

Card name	💡 Important fees to know	💱 Exchange rates and fees	🔑 Key benefits
Scotiabank Passport Visa Infinite Card	150 CAD annual fee 5 CAD – 7.5 CAD cash withdrawal fee	Network rate, no foreign transaction fee	Available without local credit history Earn reward points, and get 6x entries to airport lounges
TD Cash Back Visa Card	No annual fee Variable fees may apply to cash withdrawals	Network rate, 2.5% foreign transaction fee	Available to new arrivals 0.5% – 1% cash back on spending
RBC Cash Back Mastercard	No annual fee 3.5 CAD – 5 CAD cash withdrawal fee	Network rate, 2.5% foreign transaction fee	Recommended for expats 2% cash back on groceries, 1% on other spending
BMO eclipse rise Visa Card	No annual fee 1% cash advance fee at an ATM, minimum 5 CAD	Network rate, 2.5% foreign transaction fee	Specialist card for newcomers 5X rewards on recurring bill payments, groceries, dining and takeout
CIBC Dividend Platinum Visa Card	99 CAD annual fee 5 CAD – 7.5 CAD cash withdrawal fee	Network rate, 2.5% foreign transaction fee	Available without local credit history 3% cash back on eligible gas, electric vehicle charging and grocery purchases

In this guide we mainly selected cards which have low or no fixed fees, including no annual fee cards and cards which may waive this cost for new arrivals for example.

However remember that there are still usually some fees to consider when using a credit card – cards are likely to have a cash advance fee which applies on ATM usage, and there may be interest or penalty costs to pay as well, depending on card use. We’ll look at each one – and who the card may suit best – next.

Scotiabank Passport Visa Infinite Card

💡 Great for: New arrivals to Canada looking for a banking package including credit options with no Canadian credit history

Scotiabank has great services for new arrivals to Canada which can see many fees waived and straightforward access to products and services, including credit cards like the Scotiabank Passport Visa Infinite Card.

To apply you’ll need a minimum income of 60,000 CAD per year, or a minimum household income of 100,000 CAD. There’s an annual fee to pay but this card may appeal to frequent travelers as there’s no foreign transaction fee on overseas spending and extras like free lounge access and discounts on car hire when you’re overseas.

⭐ Key features:
Annual or monthly fees	150 CAD annual fee
Exchange rates and conversion fees	Network rate, no foreign transaction fee
Benefits	Earn Scene+ Points which you can redeem for travel or other benefits, with extra including some complimentary insurance

Pros of Scotiabank Passport Visa Infinite Card	Cons of Scotiabank Passport Visa Infinite Card
✅No foreign transaction fee ✅Some options available to waive annual fee ✅Earn rewards as you spend ✅Travel focused perks like lounge access	❌150 CAD annual fee ❌Minimum income applies ❌Fees may apply for additional cards

TD Cash Back Visa Card

💡 Great for: Up to 15,000 CAD credit limit on eligible cards, even as a new arrival in Canada

If you’re a newcomer to Canada, the TD Cash Back Visa Card could be an attractive way to spend locally while building your credit history. You could apply even without a Canadian credit score, and earn variable cash back up to 1% of spend when you use your card. There’s no annual fee making this a fairly low risk option.

Bear in mind that foreign transaction fees apply so this may not be the most economical way to spend overseas.

⭐ Key features:
Annual or monthly fees	No annual fee
Exchange rates and conversion fees	Network rate, 2.5% foreign transaction fee
Benefits	0.5% – 1% cash back on spending, some car hire discounts and optional insurance

Pros of TD Cash Back Visa Card	Cons of TD Cash Back Visa Card
✅No annual fee ✅High credit options even for new arrivals ✅Get cash back on everyday spending ✅Newcomer package also has extra benefits on chequing accounts	❌Foreign transaction free of 2.5% ❌Cash advance fees may apply when you use an ATM ❌Subject to meeting eligibility rules

RBC Cash Back Mastercard

💡 Great for: High cash back on everyday grocery spending, available for newcomers to Canada without local credit scores

The RBC Cash Back Mastercard is offered as part of the broader RBC Newcomer program which also waives various account and service fees. This card allows you to earn cashback as you spend with higher rates on everyday purchases like groceries.

There’s no annual fee for the RBC Cash Back Mastercard but there is a foreign transaction fee when you travel, or 2.5%.

⭐ Key features:
Annual or monthly fees	No annual fee
Exchange rates and conversion fees	Network rate, 2.5% foreign transaction fee
Benefits	Excellent cashback on daily spend, with 2% on groceries and 1% on other purchases

Pros of RBC Cash Back Mastercard	Cons of RBC Cash Back Mastercard
✅No annual fee ✅Avaiable to new arrivals in Canada ✅Good cashback on things you need to buy anyway ✅Purchase security and extended warranty insurance available	❌2.5% foreign transaction fee ❌Cash advance fees an interest apply when you use an ATM ❌Interest and penalties may apply

BMO eclipse rise Visa Card

💡 Great for: Specific newcomers credit card which comes as part of a broader benefits package

The BMO eclipse rise Visa Card is one of two specific newcomer cards offered by BMO, which have features and fees designed to fit the needs of expats in Canada. You can earn high rewards on core spending categories, and also get extras like insurance when you purchase with your card.

Foreign transaction fees of 2.5% apply when you spend in a foreign currency in person or online.

⭐ Key features:
Annual or monthly fees	No annual fee
Exchange rates and conversion fees	Network rate, 2.5% foreign transaction fee
Benefits	5X rewards on key spend categories

Pros of BMO eclipse rise Visa Card	Cons of BMO eclipse rise Visa Card
✅No annual fee ✅Bonus reward earning on bills, groceries and dining ✅Phone insurance offered as part of the package ✅Designed for the needs of expats	❌2.5% foreign transaction fee ❌Eligibility rules may apply ❌Interest and penalties may apply depending on how you transact

CIBC Dividend Platinum Visa Card

💡 Great for: Annual fees waived for 2 years, with up to 3% cash back on common spending

The CIBC Dividend Platinum Visa Card does have an annual fee of 99 CAD, but it’s waived for your first 2 years, and you’ll be able to earn up to 3% cash back on spending during that time.

This card is recommended for new arrivals in Canada and can offer high credit limits to eligible customers who take out other products with the bank. Foreign transaction fees of 2.5% apply.

⭐ Key features:
Annual or monthly fees	99 CAD annual fee
Exchange rates and conversion fees	Network rate, 2.5% foreign transaction fee
Benefits	3% cash back on eligible gas, electric vehicle charging and grocery purchases

Pros of CIBC Dividend Platinum Visa Card	Cons of CIBC Dividend Platinum Visa Card
✅Available to new arrivals in Canada ✅Annual fee waived for 2 years ✅3% cash back on eligible gas, electric vehicle charging and grocery purchases ✅Some insurance offered as part of package	❌99 CAD annual fee ❌2.5% foreign transaction fee ❌Other fees may apply depending on how you use your card

Wise as an alternative to credit cards for expats in Canada

Using a credit card may not always be the right choice for your needs as an expat. An international debit card like the Wise card can be an excellent alternative to credit cards for expats in Canada.

With your Wise card you can spend in 150+ countries, with no fee to spendwhen you have enough balance in the currency required to cover the purchase. If you don’t have enough of the required currency the card can manage the conversion for you using the mid-market exchange rate and low fees, and no foreign transaction fee added.

The Wise card is a debit card not a credit card which means you will need a balance in your account before you spend. It also means there’s no risk of running into interest or penalty charges, and no need for a credit check when you apply.

🌎 Wise debit card benefits

The Wise debit card is not a credit card but can be an attractive option for expats who love these benefits:

• Mid-market exchange rates
• Low, transparent fees – Wise currency conversion is from 0.48% vs. foreign transaction fees which can be 2.5% on credit cards
• Hold and manage 40+ currencies and spend in 150+ countries (You can also spend in currencies you don’t hold in your Wise Account)
• Debit card that works globally without foreign transaction fees
• Real-time notifications and spending control

⭐ When Wise is a good alternative

Not sure if Wise is the right choice for you? Here are some great ways you may want to use a Wise card as well as or instead of getting a Canadian credit card:

• When you want to avoid credit card debt and manage your money in an app
• To spend in 150+ countries with no additional fee if you have enough balance in the currency required
• If you’re looking for mid-market exchange rates with low conversion fees
• If you want to hold a multi currency balance to save or for paying bills later
• For regular international money transfers with transparent, upfront pricing
• To send large international transactions with discounted fees and great rates
• Whenever you need to receive payments in CAD or foreign currencies – Wise accounts offer account details in 8+ currencies to get paid easily from abroad

How to choose the right credit card as an expat

Here’s a step by step look at how to choose the right credit card as an expat in Canada:

Step 1: Assess your spending patterns

To help you decide which card is right for you, think about how and when you may use it to spend. If you’ll use your card for travel, a no foreign transaction fee makes sense.

If you’ll want to roll over payments then choosing a low interest card is key. Or if you will use your card only as a back up payment method you may prefer a no annual fee option.

Step 2: Calculate potential fees and savings

Think about the costs of your card including annual fees, interest and penalties, and compare them against the benefits you may receive. Many card providers offer calculator tools to let you input your expected spending and see how many reward points you might earn in return.

Step 3: Evaluate additional benefits needed

Look out for extras like free insurance, lounge access, partner discounts and concierge services. If there’s a specific perk you want, make sure you pick providers which make this available.

Step 4: Consider your credit history status

Check your Canadian credit history using a service like Equifax if you can, to see what score you are likely to get when you apply. This can help you assess if you’re eligible for a specific card or not. If you find you struggle, our credit card picks in this guide can be a good option as they’re targeted to newcomers with low or no credit history in Canada.

Step 5: Check eligibility requirements

Finally make sure you are eligible to apply for the card – many providers let you check your eligibility with no risk to your credit score. Once you’re convenient you can apply for the card and get started spending.

Common rejection reasons

If you’ve been rejected for a Canadian credit card, it may be because of one of these common rejection reasons:

• Insufficient Canadian credit history
• Income verification issues
• Address verification problems
• Too many recent applications

You may be able to reach out to the card issuer to ask for more details about the rejection, or talk to bank staff. If you need to build Canadian credit history there are also some key steps to take, which we’ll look at next.

Building credit history as an expat

Building credit history as an expat is important as you may find that without a solid credit score it’s harder to access any sort of financing. The good news is that with careful use credit cards can help build credit. You can apply for a newcomer credit card and use it responsibly to grow your credit score. By avoiding maxing your card limit monthly, and paying back on time and in full every time, you can see improvements in your credit score.

If you don’t want to use a credit card to build your credit score you could improve it with a service like Koho’s credit builder product which lets you use payments for your rent to build your score more quickly.

Managing your credit card abroad

Once you have a Canadian credit card you may want to use it when you travel overseas. Don’t forget that there are usually a few common sense steps you’ll need to take before you travel with your credit card:

• Notify your bank of travel plans – check if your bank needs you to tell them of your travel plans to avoid your card being blocked when you use it overseas
• Update your contact details if needed – make sure your bank has the right details for you in case of any issues when you’re away
• Monitor transactions regularly – use your bank’s app to keep on top of your transactions and in case of fraudulent card use
• Choose local currency over home currency when you pay – avoid the extra costs of dynamic conversion by paying in the local currency wherever you are rather than in dollars
• Keep emergency contact numbers handy – know how to call your bank if your card is lost or stolen to avoid adding stress to a difficult situation if you misplace your credit card

Avoiding common pitfalls

Let’s finish up with a few common issues with using a credit card internationally so you can avoid any unnecessary headaches:

• Watch out for ATM fee accumulation: If you’re taking cash from an ATM with your card, the cash advance fees can be around 5 CAD to 7.5 CAD, with interest payable immediately. This can accumulate quickly
• Overspending due to currency confusion: Keep an eye on the currency exchange rate so you’re not caught out by confusion over what a purchase might cost you in dollars when you travel
• Missing payment due dates while traveling: Avoid late payment penalties by paying all your bills on time, even when you’re away from home

Conclusion

Having a credit card as an expat in Canada can be a helpful tool, both for day to day spending and also to grow your credit score to help you access more financial services in future. However, you’ll need to weigh up the costs and benefits of any cards you consider to make sure you get a good deal in the end.

This guide gives you some pointers to think about, and a few cards to compare – but there are thousands of options on the Canadian market which mean you’ll need to do a bit of research yourself too.

Don’t forget to also consider adding in an option like the Wise debit card to spend for less when you travel. Use your Wise debit card when you’re abroad alongside your credit card for domestic use, to get low conversion fees, ways to make ATM withdrawals overseas with low or no costs, and the option to hold 40+ currencies conveniently all in one place.

Useful Resources

(Information last checked on 21st November 2025)

• Wise – manage your money across borders easily
• Equifax – credit score bureau
• Scotiabank Passport Visa Infinite Card – newcomer credit card
• TD Cash Back Visa Card – newcomer credit card
• RBC Cash Back Mastercard – newcomer credit card
• BMO eclipse rise Visa Card – newcomer credit card
• CIBC Dividend Platinum Visa Card – newcomer credit card
• KOHO credit builder – tools to build your Canadian credit score without a credit card