How to choose a credit card with favorable terms?

Choosing the right credit card is one of the most important financial decisions for Ukrainian newcomers to Calgary, as it not only affects daily spending but also builds credit history, which will open doors to more serious financial products such as mortgages or business loans in the future. The Canadian credit card market offers a huge selection of options with different types of rewards, terms, and privileges, which can be both an advantage and a challenge for those who are just getting acquainted with the local financial system.

Understanding the Canadian credit card market

The Canadian credit card market in 2025 is characterized by intense competition between banks and other financial institutions, leading to innovative products and attractive offers for consumers. The main players include large banks (RBC, TD, BMO, Scotiabank, CIBC), alternative banks (Tangerine, Simplii Financial), credit unions, and specialized financial companies.

Main types of credit cards

  • Rewards Cards — designed for people who pay their balance in full each month and do not pay interest. These cards offer points, cash back, or miles for purchases, but usually have higher interest rates.

  • Low-interest cards — useful for those who can carry a balance on their card and want to pay off their existing debt quickly. These cards usually offer fewer rewards but have lower interest rates.

  • No annual fee cards — ideal for Ukrainian newcomers who want to minimize expenses during their first years of adjustment. While these cards may offer fewer perks, they provide access to the credit system without additional financial commitments.

Special offers for Ukrainian newcomers

Ukrainian Credit Union — the best solution for the Ukrainian community

Ukrainian Credit Union offers unique benefits for Ukrainian newcomers to Calgary. UCU has a special credit card package designed specifically for the needs of the Ukrainian community, with the option of obtaining a credit card even without a Canadian credit history.

Key benefits of UCU credit cards:

  • No annual fees on most cards
  • Low interest rates compared to big banks
  • Reward programs with cash back and other perks
  • Mobile payments: Apple Pay, Google Pay, and Samsung Pay supported
  • Ability to build credit history even for newcomers without prior credit

Special offer for newcomers: Eligible individuals who are new to Canada and have been approved for a UCU credit card can receive a $50 credit to their account upon card activation. This is a limited offer available only to new customers.

UCU also offers Ukrainian-language service, which is invaluable for newcomers who are not yet confident in English and want to receive financial advice in their native language.

Major bank programs for newcomers

BMO NewStart Program — Best Cash Back for Newcomers

BMO offers one of the most generous programs for newcomers with over $2,200 in welcome offers. The program includes access to credit cards with no Canadian credit history and limits of up to $5,000.

The BMO CashBack Mastercard was named the best credit card for newcomers in 2025:

  • 5% cash back for the first three months (with a welcome offer)
  • The most generous cash back on groceries in Canada with no annual fee
  • First year annual fee: $388 according to Best of Finance methodology
  • Flexible redemption: cash back starting at $1

Scotiabank StartRight Program — Best overall terms

Scotiabank offers up to $2,200 in welcome offers through its StartRight program. It is the most comprehensive program for newcomers to the Canadian market.

The Scotiabank Passport Visa Infinite Card was named the best overall travel card:

  • 35,000 Scene+ welcome points (worth $350)
  • No foreign transaction fees — save 2.5% on all purchases abroad
  • 6 free airport lounge visits per year
  • Comprehensive travel insurance, including medical coverage up to $2 million

CIBC Smart Account for Newcomers

CIBC is offering $450 in cash rewards through its program for newcomers:

CIBC Dividend Visa Card is available to newcomers with no credit history:

  • 2% cash back on all purchases for ease of use
  • No annual fee for the first two years of banking

RBC Newcomer Advantage

RBC provides access to credit cards with limits up to $15,000 even without a Canadian credit history:

RBC Cash Back Mastercard:

  • 10% bonus cash back in the first three months
  • No annual fee
  • Comprehensive program includes bank accounts and credit products

TD New to Canada Banking Package

TD offers up to $1,885 in welcome offers:

  • Three credit card options for newcomers
  • TD Cash Back Visa Card with no annual fee
  • Credit limits up to $15,000 even without a credit history

Detailed analysis of the best credit cards of 2025

Category: Best general rewards cards

American Express Cobalt Credit Card — Best general rewards card in Canada:

  • Monthly fee: $12.99 instead of the traditional annual fee
  • 5 points per dollar on restaurants, groceries, and food delivery
  • 3 points per dollar on streaming services
  • 2 points per dollar on transportation and travel
  • Potential annual rewards earnings: $1,257 for the average Canadian
  • Flexible Membership Rewards program: redeem points for travel, merchandise, or Amazon payments

Benefits for Calgary residents: This card is particularly suitable for people who live in the city, frequently visit restaurants, or order food delivery, which is common among young newcomers.

Category: Best Cash Back Cards

CIBC Dividend Visa Infinite:

  • 10% cash back for the first four months up to $2,000 in total spending
  • 4% cash back on gas, electric vehicle charging, and groceries
  • 2% cash back on transportation, dining, and regular payments
  • 1% cash back on all other purchases
  • Potential annual earnings: up to $832 with $2,000 in monthly spending
  • $120 annual fee refunded after the first year

Neo World Elite Mastercard — Best for groceries and gas:

  • Annual fee: $125
  • Specialization: high cash back on everyday purchases
  • Suitable for families with high grocery expenses

Category: Best cards with no annual fee

The Simplii Financial Cash Back Visa Card received a 5.0/5 rating from NerdWallet:

  • No annual fee, ever
  • Up to 8% cash back in select categories with promotional offers
  • Welcome offer: up to $80

BMO CashBack Mastercard also rated 4.5/5:

  • Up to 5% cash back in the first months
  • 3% cash back on groceries after the welcome period
  • 1% cash back on all other purchases

Tangerine World Mastercard for flexibility:

  • 2% cash back in three categories of your choice
  • Ability to change categories to maximize rewards
  • No annual fee

Category: Best Travel Cards

Scotiabank Passport Visa Infinite — Best Overall Travel Card:

  • Annual fee: $150
  • Up to $1,350 in rewards and savings in the first year
  • 3x Scene+ points at select grocery stores
  • 2x Scene+ points on dining, entertainment, and transportation
  • No foreign transaction fees

BMO AIR MILES World Elite Mastercard — Best Travel Insurance:

  • Over 12 types of insurance coverage
  • Annual fee: $120 (first year free)
  • Complimentary VIP lounge access

Factors to consider when choosing a credit card for Ukrainian newcomers

Analyze your spending

Before choosing a credit card, it is important to analyze your monthly expenses by category.

For a typical Ukrainian family in Calgary, the main categories include:

  • Food: On average, $214 per person per month. If this is your largest expense category, consider cards with high cash back on groceries, such as CIBC Dividend (4%) or BMO CashBack (3%).
  • Gas and transportation: Given the distances in Calgary and the need for a car, cards with gas bonuses, such as CIBC Dividend (4%) or Neo World Elite, would be beneficial.
  • Restaurants and food delivery: If you frequently dine out or order delivery, American Express Cobalt with 5x points would be optimal.

Evaluating annual fees vs. rewards

Rule of thumb: The annual fee should be less than the additional rewards compared to a free card.

For example, with $500/month in grocery spending, the difference between CIBC Dividend (4%) and a no-fee card (1%) = $180/year, which covers the $120 annual fee.

Calculation for newcomers: In the first few years of adjustment, it is better to start with cards with no annual fee. Once your income stabilizes, you can switch to premium cards.

The importance of insurance coverage

For Ukrainian newcomers traveling to Ukraine or North America, insurance can save hundreds of dollars:

  • Travel medical insurance: Scotiabank Gold American Express — up to $1 million for 25 days (savings of $200-500).
  • Car rental insurance: Up to $65,000 coverage — savings of $30/day.
  • Purchase protection: Protection for new purchases for 90 days.

Features for use in Calgary

Local partners and loyalty programs

  • Scene+: Using points at Cineplex (Calgary) makes Scotiabank cards attractive to movie lovers.
  • PC Optimum: President's Choice Financial Mastercard — points at Loblaws (Real Canadian Superstore, No Frills).
  • Petro-Points: RBC cards offer fuel discounts and extra points.

Winter features

  • Higher utility bills: Cards with bonuses on regular payments (CIBC Dividend 2%).
  • Winter equipment expenses: Purchase insurance will protect your investment in expensive clothing and equipment.
  • Increased fuel consumption: Cards with gas bonuses are especially useful.

Application and approval process

Document preparation

Essential:

  • Passport or other ID
  • SIN (social insurance number)
  • Proof of income (pay stubs, letter from employer)
  • Proof of address in Calgary
  • Bank statements (3 months)

For Ukrainian newcomers:

  • Permanent resident card or work permit
  • Documents confirming your status in the Ukraine Measures program

Strategies to increase your chances of approval

  • Start with a bank where you already have an account.
  • Expect an initial limit of $500–2,000, with an increase after 6–12 months.
  • Consider secured cards with a deposit.

Mistakes to avoid

  • Applying for multiple cards at once — this lowers your credit score.
  • Ignoring the terms and conditions — it is important to know the rates and fees.
  • Choosing based solely on the welcome offer — think about the long-term benefits.
  • Not considering your spending habits — choose bonuses that fit your lifestyle.

Financial pitfalls

  • Treating credit cards as free money: Credit cards should only be used for expenses you can afford with your available funds.
  • Carrying a balance for rewards: Interest payments quickly negate any rewards. Always pay your balance in full by the due date.
  • Ignoring changes in terms and conditions: Banks can change card terms and conditions, and it is important to keep track of these changes.

Long-term strategy for using credit cards

Credit portfolio evolution

  • Stage 1 (0-6 months): Start with one simple card with no annual fee to build basic credit history.
  • Stage 2 (6-18 months): Add a second card with a different set of rewards to maximize coverage of spending categories.
  • Stage 3 (18+ months): Consider premium cards with annual fees and extended benefits, including travel perks.

Maximizing rewards

Multi-card strategy: Experienced users often have 2-3 cards, each optimized for different spending categories. For example:

  • CIBC Dividend — for groceries and gas.
  • American Express Cobalt — for restaurants and delivery.
  • Scotiabank Passport — for travel and purchases abroad.

Calendar planning: Some cards have rotating categories or seasonal bonuses. Planning large purchases for these periods can maximize rewards.

Future trends and innovations

Technological innovations

  • Digital wallets: All modern credit cards support Apple Pay, Google Pay, and Samsung Pay, which is especially convenient in Calgary, where contactless payments are widespread.
  • Artificial intelligence: Some cards have started using AI for personalized offers and automatic reward optimization.

Regulatory changes

  • Open Banking: The future implementation of Open Banking in Canada could create new opportunities for comparison and switching between credit products.
  • Increased transparency: Regulatory changes are making credit card terms more transparent and understandable for consumers.

Conclusion

Choosing the right credit card for Ukrainian newcomers to Calgary requires careful analysis of your needs, understanding the options available, and long-term planning. Ukrainian Credit Union offers the most personalized approach for the Ukrainian community, while large banks provide a wide range of choices and competitive terms.

The key to success is to start with a simple card with no annual fee, use it responsibly to build credit, and then gradually move to more complex products with better rewards and privileges.

Remember: the best credit card is the one that fits your lifestyle, spending habits, and financial goals, not necessarily the one with the highest ratings or the biggest welcome offers.