Student and store credit cards in Canada: limits, interest and the traps to avoid
Quick summary
The FCAC says student cards often have lower limits and may add student perks. Store cards often come with interest-free offers, but if you do not pay in full before the offer ends, interest is charged from the purchase date. Compare before you sign, and see how credit cards work.
Checked November 12, 2026. Main source: FCAC: Choosing a credit card (modified October 15, 2025, read November 12, 2026). See all 2 sources.
Key facts
- Student cards
- Often lower credit limits. May include student discounts
- Source: FCAC, Oct. 15, 2025
- Store card offers
- If not paid in full before the offer ends, interest is charged from the purchase date
- Source: FCAC, Oct. 15, 2025
- Store card rates
- Generally high
- Source: FCAC, Oct. 15, 2025
- Intro low rates
- Usually last 6 to 12 months
- Source: FCAC, Oct. 15, 2025
Student credit cards
The FCAC says student cards often have lower credit limits than standard cards. They may include student benefits, such as discounts at some stores. Low-interest student cards also exist. Contact the issuer to check if you qualify.
A Quebec regulator advises comparing cards before you accept an on-campus offer, because the first offer may not fit your needs or income.
Sources: FCAC: Choosing a credit card (modified October 15, 2025, read November 12, 2026); Autorité des marchés financiers (Quebec): Applying for a credit card on campus, is it a good idea? (no date shown, last confirmed November 12, 2026).
Store cards and their offers
A store card, also called a retail card, gives rewards such as discounts at one store. The FCAC says stores often offer extended interest-free periods, and these often apply only to purchases at the store that issued the card.
The FCAC says store card rates are generally high. If you do not pay in full before the interest-free period ends, interest is charged from the purchase date.
How much do I need to pay each month?
Find it on the card agreement.
To pay it off by the end of the offer, pay at least $100.00 a month. Leave out any minimum payment the store shows, which is often smaller.
Estimate only. The FCAC says retail offers often charge interest from the purchase date if you do not pay in full before the interest-free period ends. Each store sets its own terms. Nothing you type is saved or sent.
Source: FCAC: Choosing a credit card (modified October 15, 2025, read November 12, 2026). The planner is our arithmetic.
Why the interest rate matters
The FCAC example: a $4,000 balance for one year costs $472 in interest on a 21% card and $199 on a 9% card.
Low introductory rates usually last 6 to 12 months, then the rate goes up.
Source: FCAC: Choosing a credit card (modified October 15, 2025, read November 12, 2026).
Annual fees
The FCAC says some cards charge an annual fee, often for extra rewards or a lower rate. Its examples: $0 for a standard card, $50 for a low-rate card, $25 for a grocery rewards card and $85 for a cash back card. Secured cards may add a set-up fee.
Source: FCAC: Choosing a credit card (modified October 15, 2025, read November 12, 2026). These are the FCAC's examples, not current prices.
Before you accept a student or store card
- Compare at least two other cards first, using the FCAC card selector tool.
- Check the interest rate, annual fee and limit.
- For a store offer, find the date the interest-free period ends and plan the monthly payment.
- Check your budget. A card bill comes later, so check you can pay it.
- If you already owe on a card, pay it down before you add another.
The checklist is our own, based on the sources above.
Check what you learned
3 quick questions. Nothing is saved or sent.
1. What do student cards often have, per the FCAC?
2. If a store offer ends with a balance, what may happen?
3. How long do intro low rates usually last, per the FCAC?
Questions people ask
Do student credit cards have lower limits?
The FCAC says they often do. Limits are set by each issuer.
Is a store card good for building credit?
We found no official source saying it builds more credit than other cards. The FCAC says store card rates are generally high, so pay in full.
What happens if I do not pay a store offer in full in time?
The FCAC says interest is charged from the purchase date. Read your offer for the exact rule.
Should I take the first card offered on campus?
A Quebec regulator advises comparing cards first, because the first offer may not fit you.
Do store cards have annual fees?
Some cards do. The FCAC's examples range from $0 to $85. Check the agreement.