Are you struggling with bad credit and finding it difficult to get approved for a credit card? Don’t worry, because there are still options available to help you rebuild your credit. Many Canadian banks and financial institutions offer credit cards specifically designed for those with poor credit scores. These cards can provide you with the opportunity to improve your finances while also enjoying the benefits of having a credit card. To help you make an informed decision, we have compiled a list of the top 10 best credit cards for bad credit in Canada. So let’s dive in!
Best Credit Cards for Bad Credit in Canada – Top 10
1. Home Trust Secured Visa
Home Trust Secured Visa is a credit card that can be useful for people who have bad credit in Canada. This card requires a security deposit to be made and the amount of the deposit will determine the limit on the card. The security deposit is fully refundable when you close your account or upgrade to an unsecured credit card.
One advantage of this card is that it reports to both Equifax and TransUnion, which helps improve your credit score over time. Another advantage is that there are no income requirements, making this accessible even if you don’t meet certain financial criteria.
The Home Trust Secured Visa also offers perks such as purchase protection and extended warranty coverage on eligible purchases. In addition, customers can receive up to 1% cash back on all their purchases made with this card.
The Home Trust Secured Visa may not be perfect for everyone but it’s worth considering if you’re looking to rebuild your credit history in Canada.
2. Neo Secured Card
The Neo Secured Card is a great option for those who are looking to rebuild their credit. It’s a secured credit card, which means that you need to put down a deposit to use it. But the good news is that this deposit also acts as your credit limit, so you won’t be able to overspend and get into further debt.
One of the standout features of the Neo Secured Card is its low annual fee. At just $39 per year, it’s one of the most affordable secured cards on the market. Plus, there are no additional fees for balance transfers or cash advances.
Another benefit of using the Neo Secured Card is that it reports your activity to both Equifax and TransUnion, two major credit bureaus in Canada. This means that when you use your card responsibly and make timely payments each month, your credit score will gradually improve over time.
If you’re looking for an affordable way to rebuild your credit history and improve your financial situation, then the Neo Secured Card may be worth considering. With its low annual fee and reporting to major credit bureaus, it could help set you on a path toward better financial health.
3. PC Financial Mastercard
PC Financial Mastercard is one of the best credit cards available for those with bad credit in Canada. This card offers great benefits, including earning PC Optimum points on every purchase you make.
One of the biggest advantages of this card is that it has no annual fee, making it an affordable option for those trying to rebuild their credit history. The low-interest rate also helps keep your balance manageable if you carry a balance on your card.
Another benefit of the PC Financial Mastercard is that it can be used anywhere Mastercard is accepted, giving you flexibility and convenience when making purchases. Additionally, there are no foreign transaction fees, so you won’t be charged extra when using your card while travelling internationally.
The PC Financial Mastercard provides a solid option for Canadians who want to improve their credit score without breaking the bank. Its rewards program and low fees make it an excellent choice to help rebuild financial stability.
4. KOHO Prepaid Mastercard
KOHO Prepaid Mastercard is a great option for those with bad credit looking to rebuild their credit score. Unlike traditional credit cards, KOHO operates on a prepaid basis, meaning you load the card with funds before using it. This not only helps you stay within your budget but also ensures that you don’t get into debt.
One of the key advantages of the KOHO Prepaid Mastercard is its low fees. There are no annual fees or foreign transaction fees, and ATM withdrawals in Canada are free. The only fee associated with this card is a $1 fee for ATM withdrawals outside of Canada.
Another perk of using the KOHO Prepaid Mastercard is its cashback rewards program. Cardholders can earn up to 2% cash back on purchases at select retailers and earn an additional 0.5% cash back on all other purchases made using this card.
The application process for this card is straightforward, and approval rates are high even for those with poor credit scores. Plus, since it’s a prepaid card, there’s no risk involved when applying for it.
If you’re struggling to find a credit card due to bad credit history or simply want to avoid getting into debt while still enjoying some perks like cash-back rewards, then the KOHO Prepaid Mastercard might just be what you need!
5. Scotiabank Gold American Express Card
The Scotiabank Gold American Express Card is an excellent option for Canadians with bad credit who want to rebuild their score. This card offers a high credit limit, low-interest rates, and great rewards programs that can help you manage your finances better.
With this card, you’ll earn 5x the points on groceries, gas, dining out and entertainment purchases. You can also take advantage of discounts at partner retailers such as Apple Music and Avis car rentals. The annual fee for this card is $120 but it’s waived for the first year.
One key factor to consider when choosing a credit card with bad credit is the interest rate. Luckily, Scotiabank Gold American Express Card offers a competitively low interest rate of 19.99% on purchases and balance transfers.
Another benefit of this card is its travel insurance coverage which includes emergency medical insurance of up to $1 million in case something unexpected happens during your travels.
If you’re looking for a secured credit card that will give you peace of mind while helping you improve your financial standing- look no further than the Scotiabank Gold American Express Card!
6. RBC Visa Classic Low Rate Card
The RBC Visa Classic Low Rate Card is a great option for those looking to rebuild a good credit score. This card has an annual fee of $20 and offers a low-interest rate on purchases, balance transfers, and cash advances.
One feature that sets this card apart from others is the option to add an authorized user at no extra cost. This can be helpful for those trying to improve their credit score as it allows them to share the responsibility while building a positive credit history.
Additionally, the RBC Rewards program allows users to earn points on every purchase they make with their cards. The points can then be redeemed for travel rewards or merchandise.
It’s important to note that while this card may have a lower interest rate than others, it still requires responsible spending habits to avoid accumulating debt. However, with its reasonable annual fee and added benefits such as zero liability protection and purchase security insurance, the RBC Visa Classic Low Rate Card is worth considering for those with bad credit who are looking for ways to rebuild their financial standing.
7. Capital One Guaranteed Mastercard
Capital One Guaranteed Mastercard is a credit card that caters to those with bad credit history. It can help you rebuild your credit score by reporting your monthly payments to the major credit bureaus in Canada.
One of the best things about this card is that it comes with guaranteed approval, which means that even if you have a low income or no credit history at all, you still have a good chance of being approved.
Another great feature of this card is its low annual fee and interest rate compared to other cards for bad credit. This makes it an affordable option for those who are looking to improve their financial standing without breaking the bank.
The Capital One Guaranteed Mastercard also offers cashback rewards on every purchase you make, which can be redeemed as statement credits towards your balance or deposited directly into your account.
If you’re looking for an accessible way to rebuild your credit score while enjoying some benefits along the way, consider applying for the Capital One Guaranteed Mastercard today.
8. National Bank World Elite Mastercard
If you have bad credit and want to rebuild your credit score, the National Bank World Elite Mastercard could be a great option for you. This card offers a high credit limit, cashback rewards and travel benefits that can help boost your financial situation.
With this card, you’ll earn 1.5 points per dollar spent on eligible purchases which can be redeemed for flights, car rentals or hotel stays. Plus, you’ll receive complimentary travel insurance coverage including trip cancellation/interruption insurance up to $2,500 per person.
In addition to its travel benefits, the National Bank World Elite Mastercard also comes with access to VIP airport lounges through Priority Pass. You’ll also benefit from purchase protection insurance in case of theft or damage of items purchased with the card.
To apply for this card as someone with poor credit history is difficult but it’s not impossible. The National bank will consider factors such as income and employment status when evaluating applicants’ eligibility for this top-tier secured credit card product.
9. BMO Preferred Rate Mastercard
BMO Preferred Rate Mastercard is a great option if you have bad credit and are looking for a low-interest rate. With an annual fee of only $20, this card offers a preferred interest rate of 12.99% on purchases and cash advances.
One advantage of the BMO Preferred Rate Mastercard is that it allows you to save money on interest charges while still being able to use your credit card for everyday purchases. This can be especially helpful if you need to make large purchases or unexpected expenses but don’t want to pay high-interest rates.
Another benefit of this card is the ability to add additional cards for authorized users at no extra cost. This means that family members or friends can also benefit from the lower interest rate without having to apply for separate credit cards.
The BMO Preferred Rate Mastercard is a solid choice for those with bad credit who are looking for an affordable way to manage their finances and build their credit score over time.
10. Plastk Secured Visa
When it comes to rebuilding credit, the Plastk Secured Visa is a top choice for Canadians with bad credit. This secured credit card requires a deposit that will be held as collateral against your spending limit. But don’t worry, you can still enjoy all the benefits of a regular credit card such as online purchases and cash advances.
The Plastk Secured Visa also offers an easy approval process with no minimum income requirement or Canadian citizenship needed. Plus, they report your payments to both Equifax and TransUnion so you can start improving your credit score right away.
What sets this card apart is its low annual fee of only $48 which is significantly lower than other secured cards in Canada. You can also earn rewards points on every purchase made with the card which can be redeemed for travel, merchandise, and more.
If you’re looking for a budget-friendly option to rebuild your credit while earning rewards points, the Plastk Secured Visa should be on your list of options to consider.
Conclusion
After going through this list of the top 10 credit cards for bad credit in Canada, you should have a better idea of what options are available to you. Remember, rebuilding your credit takes time and effort, but having the right credit card can make all the difference.
When choosing a credit card for bad credit, it’s important to consider factors such as interest rates, fees, rewards programs (if applicable), and any additional benefits that may be offered. Be sure to read the fine print carefully before making a decision.
While these cards can help improve your score over time, it’s also important to practice responsible spending habits and always pay your bills on time. With patience and persistence, you can get back on track toward good credit standing.
Hopefully, this article has provided valuable insights into some of the best options available for those with bad or no credit history in Canada. Remember to do your research and choose wisely when selecting a new card!
