Student Guide: Build Credit and Earn Travel Rewards for Europe

In September, Aya Kinsey began her first year at Western University in London, Ontario, where she is studying economics. This is the first time she has lived away from her family in Toronto; she shares a dorm room with another student.

Before starting school, Aya applied for her first credit card — an Alterna Savings Cash Back Visa — because she already had a primary banking relationship with Alterna Savings and Credit Union. She also uses EQ Bank, but getting a card from her credit union felt like the simplest option.

As a new cardholder, Aya has not yet established a credit score. She wants to build that score while earning rewards on everyday spending, whether through cash back or travel points; she is already an Aeroplan member and enjoys traveling to visit family and friends abroad.

Aya enjoys travel: she’s visited Greece and Japan, where she has relatives, and has travelled within North America, including Cuba and Florida. She has also spent time in Halifax with friends. While she plans to travel around Canada, her long-term interest is visiting more destinations in Europe.

What credit card features does she need?

Like many students, Aya is ambitious, eager to travel and focused on finding solid financial footing. Given her existing relationship with Alterna, it made sense for her to take the Alterna Savings Cash Back Visa. Many Canadians tend to stick with familiar institutions when choosing accounts and cards. That said, Aya could benefit from exploring other card options to better match her goals: building credit, earning useful rewards and keeping fees low while her income is modest.

Aya’s Alterna card uses the Collabria rewards program, which awards 1 point per $1 on groceries, gas, public transit, select recurring bills and digital streaming purchases, and 0.5 points per $1 on other purchases. The value of Collabria points varies with redemption type: cash back typically yields better value (about $0.01 per point when redeemed in set increments), while travel, merchandise or gift card redemptions often provide less value per point. In practice, cardholders often realize a maximum return near 1% back, and frequently less.

Traveling is clearly a priority for Aya, so a card that lowers flight costs or earns meaningful travel rewards would be useful. At the same time, she is newly responsible for tuition and living expenses, and her income this year is likely to be limited; she hopes to pick up freelance work in content marketing to supplement her studies.

Right now, Aya’s main objectives should be to build a strong credit score and keep her finances under control while she completes her education. A disciplined approach to on-time payments and reasonable use of her available credit will support both goals. As her income grows after graduation, she will become eligible for higher-tier travel cards that offer premium travel benefits.

Which credit card should she get?

Credit card pick #1: CIBC Aeroplan Visa Card for Students

The CIBC Aeroplan Visa Card for Students would meet many of Aya’s needs. It is a no-fee student card that does not require a stated income to apply. Because Aya is already an Aeroplan member, this card would allow her to earn Aeroplan points faster through the “earn points twice” feature that combines Aeroplan membership earnings with card-earn rates.

Under the card’s earn structure, Aya would collect 0.67 points per $1 on most purchases and 1 point per $1 on targeted categories like groceries and Air Canada purchases. Aeroplan points, when redeemed for travel, often equate to approximately $0.02 per point on average, which can translate into a roughly 2% return on flights and certain grocery purchases — a meaningful boost for an aspiring traveler.

The card also frequently includes a welcome bonus: the 10,000-point offer after the first purchase would be enough for a one-way short-haul economy flight in North America, which could help Aya visit friends or family early in her studies. Keep in mind that Aeroplan award pricing and availability can be complex, so it helps to learn the redemption rules before relying on points for travel.

Credit card pick #2: Tangerine Money-Back Credit Card

A second strong option is the Tangerine Money-Back Credit Card, which focuses on straightforward cash back rather than travel points. This card asks for a personal or household income of $12,000 to qualify and typically prefers applicants with a modest credit history. Aya may reach this income threshold through freelance work or summer employment and can build the necessary credit profile by using and responsibly managing her current card.