Best credit cards for newcomers from Pakistan

The picks

1. Best all-round pick

Scotia · Amex

Scotia Amex Gold Scene+

No foreign transaction fee removes the 2.5 percent surcharge on rupee-billed purchases, and 5x Scene+ on groceries and dining covers the largest line in a household that cooks at home. Scotiabank StartRight considers the application without Canadian credit history.

Watch out: Halal butchers and independent South Asian grocers are usually Visa and Mastercard only. Pair this with the CIBC Dividend below.

Annual fee

$120

Welcome bonus

25,000 - 45,000 pts

Minimum spend

$2,000 - $7,500

First-year value

$330

RatehubFull details in the comparison table

2. Best for grocery spend anywhere

CIBC · Visa

CIBC Dividend Visa Infinite

4 percent cash back on groceries and gas on a Visa, so it works at the stores that decline Amex. The first year is free and the cash back needs no redemption strategy.

Watch out: The 4 percent rate carries an annual cap, after which it drops to 1 percent. Check where your household lands before you rely on it.

Annual fee

$120

Welcome bonus

10% up to $2,000 + $50 PAP

Minimum spend

-

First-year value

$250

RatehubFull details in the comparison table

3. Best for flights home

TD · Visa

TD Aeroplan Visa Infinite

Aeroplan books Turkish Airlines through Istanbul to Islamabad, Lahore, and Karachi, which is the practical Star Alliance route from Canada. The free first checked bag is worth real money on trips that carry gifts in both directions.

Watch out: Partner surcharges on Turkish routings can be significant. Compare the cash-plus-points total against the cash fare before booking.

Annual fee

$139

Welcome bonus

10,000 - 40,000 pts

Minimum spend

$3,000

First-year value

$375

RatehubFull details in the comparison table

4. Best no-fee starter

Simplii · Visa

Simplii Financial Cash Back Visa

No annual fee and no income floor, so it clears when premium applications do not. It also sits inside Simplii, whose Global Money Transfer service advertises no transfer fee on sends to Pakistan.

Watch out: No transfer fee is not the same as no cost. Check the rate against another provider before each send.

Annual fee

$0

Welcome bonus

Up to 20% cashback (up to $100) in the first 3 months

Minimum spend

None

First-year value

$100

Compare on RatehubFull details in the comparison table

Getting approved with no Canadian credit history

Canadian lenders score you on a file that starts empty the day you land. That is a timing problem, not a credit problem, and every large bank runs a program built around it.

Apply through the newcomer program by name rather than the general application form. The general form runs a standard credit decision and will decline a thin file that the newcomer stream would have approved.

• Scotiabank StartRight, RBC Newcomer Advantage, CIBC Welcome to Canada, TD New to Canada, and BMO NewStart all issue unsecured cards to people with no Canadian credit file.
• Bring your permanent resident card or work permit, passport, SIN, and proof of a Canadian address. Some branches also accept a credit report from your home country to support a higher limit.
• Your first limit is usually $1,000 to $5,000. It grows on request after six to twelve months of on-time payments.
• A secured card, where you post a deposit equal to the limit, is the fallback if a newcomer program turns you down. It reports to the bureaus the same way.

Rupee-billed purchases carry a quiet 2.5 percent

Foreign transaction fees of 2.5 percent apply on almost every Canadian card. On a household that spends $6,000 a year in Pakistani currency, that is $150 that a no-FX card keeps.

It applies to more than holiday spending. Pakistani streaming subscriptions, domestic flight bookings, gifts ordered through Pakistani retailers, and any app billed in rupees all trigger it, wherever you are sitting when you buy.

• Check the merchant's billing currency, not its country. A Pakistani company billing in Canadian dollars costs you nothing extra.
• Decline dynamic currency conversion at a terminal in Pakistan. The merchant rate is worse than the network rate every time.

Getting to Islamabad, Lahore, or Karachi on points

Air Canada does not fly to Pakistan, so an Aeroplan award runs on a Star Alliance partner. Turkish Airlines is the workable one, connecting Toronto through Istanbul to all three main Pakistani airports.

Two things decide whether the award is worth it. Turkish carries surcharges on some fare classes, and award seats on the Istanbul to Pakistan legs open unevenly, so search a date range rather than a fixed date and book as far ahead as the schedule allows.

Sending money home is a separate decision

Keep remittances off the credit card. Providers usually code a card-funded transfer as a cash advance, which adds a fee and starts interest on the day, with no grace period.

Send from chequing instead. On the Canada to Pakistan corridor the advertised fee is often zero, so the cost sits entirely in the exchange margin. Quote the same Canadian amount at two providers on the day you send and compare the rupees delivered.

The habits that build your score fastest

Payment history and utilization drive most of a Canadian credit score. Pay the statement balance in full every month, and keep the balance you carry at statement time under about 30 percent of your limit.

One card used well beats three cards used carelessly. Add a second card once the first has six months of clean history, not before.

• Set the full-balance autopay the day the card arrives. A single missed payment costs more than a welcome bonus is worth.
• Do not close your first card once you upgrade. Length of history counts, and the oldest account anchors it.
• Check your report free at Equifax and TransUnion. Errors on newcomer files are common because names get transliterated inconsistently.

Questions, answered

Related guides

• Best credit cards for newcomers to Canada

  The cards Canadian banks approve without a Canadian credit file, ranked by what they pay in year one.

• Best credit cards for newcomers from India

  Cards that skip the 2.5 percent rupee surcharge, pay on grocery spend, and reach Delhi on Aeroplan.