CIBC Dividend Visa Card for Students review

How the student Dividend earns cash back

The CIBC Dividend Visa Card for Students pays 2% cash back on groceries, 1% on gas and EV charging, transportation, dining and recurring payments, and 0.5% on everything else. For a student budget, that covers most regular costs, from the weekly grocery run to transit and streaming subscriptions.

Here’s an example. A student spending $200 a month on groceries, $100 on dining, $80 on transportation, $50 on recurring payments and $150 on everything else would earn $4 from groceries, $2.30 from the 1% categories and $0.75 from the rest. That’s $7.05 a month, or $84.60 a year, with no fee to pay.

The welcome offer

New cardholders can earn up to $125 cash back. You get $25 after your first purchase within your first four statements, plus a 10% welcome bonus on up to $1,000 in net purchases over your first four statements, worth up to $100.

To collect the full $100 portion, you need to spend $1,000 in those four statements, about $250 per statement. The example student above spends $580 a month, so they would reach it, and the bonus would be worth more than a year of regular cash back.

SPC+ and other student perks

The card comes with a free SPC+ membership, which gives you discounts at more than 450 brands. It’s most useful if you already shop at brands that take part.

It’s designed to help post-secondary students build a credit history, and you can save up to 10 cents per litre on gas through Journie Rewards. There’s no minimum income requirement, which matters if you’re studying full time with little or no income.

Fees, interest and the fine print

There’s no annual fee. Purchases in a foreign currency carry a 2.5% foreign transaction fee, so $1,000 spent during a term abroad or with US online stores adds about $25.

Purchases are charged 21.99% interest and cash advances 22.99%. The best way to build credit with this card is to use it for regular purchases and pay the full statement balance by the due date every month, which also means you never pay interest.

Insurance coverage

Insurance is limited to coverage for things you buy with the card. Check the certificate for the time limits and exclusions.

• Purchase security and extended protection

Who it suits, and who should look elsewhere

The student Dividend suits post-secondary students who want a simple first credit card, earn little or no income, and spend mainly on groceries, food and transit.

Students who spend a lot outside those categories will find the 0.5% base rate low, and anyone studying abroad should consider how much the 2.5% foreign transaction fee would add.

How it compares

The RBC Cash Back Mastercard also has no annual fee and pays 2% on the first $6,000 of grocery purchases each year, with a welcome offer of up to $70. It’s aimed at people with a credit score of 600 or higher too, so it’s a direct alternative.

The Tangerine Money-Back Credit Card has no annual fee and lets you earn 2% on groceries as one of its 2% categories. It’s worth comparing if you’d like more control over which spending earns the top rate.

Before you apply

The recommended credit score is 600 or higher, and the card is designed for post-secondary students who are still building a credit history. CIBC makes the final decision based on your full profile, so confirm the current offer and terms on the CIBC website before you apply.