Are you looking for Best Credit Cards for Bad Credit in Canada? If Yes, You are at the right place.
In this article, We are sharing all the information about Best Credit Cards for Bad Credit in Canada and how to apply for it.
You can still get the Best Credit Cards for Bad Credit in Canada if you have a bad credit score, but you may have fewer cards to choose from. However, It should be noted that plenty of credit cards are designed specifically for those with little or no credit history.
Credit cards geared towards those with bad credit are a great option for anyone seeking to establish a credit history, restore a damaged credit score, or access a card that matches their financial situation.
Best Credit Cards for Bad Credit in Canada
- 1 Best Credit Cards for Bad Credit in Canada
- 1.1 Best Credit Cards for Bad Credit in Canada
- 1.2 Eligibility criteria for Guaranteed approval for Best Credit Cards for Bad Credit in Canada
- 1.3 How to apply for a Best Credit Cards for Bad Credit in Canada?
- 1.4 5 Best Credit Cards for Bad Credit in Canada
- 1.5 Video For Best Credit Cards for Bad Credit in Canada
- 1.6 Types of Credit Cards for People With Bad Credit in Canada
- 1.7 How to build Credit Score as a Newcomer in Canada
- 1.8 What is a bad credit score in Canada?
- 1.9 FAQs
|KOHO Prepaid Mastercard||Learn More|
|Capital One Guaranteed Mastercard||Learn More|
|Neo Secured Mastercard||Learn More|
|Home Trust Secured Visa Card||Learn More|
|Plastik Secured Credit Card||Learn More|
Best Credit Cards for Bad Credit in Canada
The Best Credit Cards for Bad Credit in Canada offer a low-interest rate, no annual fee, and a reasonable credit limit. Some of the best options include the Capital One Guaranteed Mastercard, the Neo Secured Mastercard, and the Home Trust Secured Visa Card. These credit cards can help you build your credit score and improve your credit score.
Do you know you can get Guaranteed Approval Credit Cards for bad credit UK if you live in the UK? But they typically have higher interest rates and fees than those available in Canada. If you are considering a guaranteed approval credit card, it is important to carefully compare the offers from different lenders to find the best one for your needs.
Eligibility criteria for Guaranteed approval for Best Credit Cards for Bad Credit in Canada
You will be approved for a guaranteed approval credit card if you meet the eligibility requirements. The majority of guaranteed approval credit cards are secured cards.
The following criteria typically apply to these cards:
- A Canadian citizen.
- You must be at least 18 years old in your province or territory.
- A minimum security deposit is required.
How to apply for a Best Credit Cards for Bad Credit in Canada?
You can still get a credit card even with a poor credit score. You can improve your credit score and rebuild your credit by finding a credit card that works for your financial situation.
The following are steps to apply for a credit card despite bad credit –
- Know your credit score. It is important to know your credit score to make an informed decision about which credit card to apply for. This will help you target cards you may be approved for, thereby preventing an application rejection that could be detrimental to your score. Visit your bank or a credit bureau to find out your credit score.
- Check out your options. A person with bad credit can choose between secured and prepaid cards. These cards’ credit limits, interest rates, and perks will differ, so you should carefully consider your options.
- Send your application. Limiting yourself to one credit card application at a time is important, no matter how eager you might be to get one. Multiple applications for credit cards could raise red flags for providers, hurting your chances of getting approved.
5 Best Credit Cards for Bad Credit in Canada
If you are looking for the options of Best Credit Cards for Bad Credit in Canada then you are reading the right article.
Here is the list of top 5 Best Credit Cards for Bad Credit in Canada–
KOHO Prepaid Mastercard
The KOHO Prepaid Mastercard has wide acceptance, great cashback earnings, budgeting features, and low foreign exchange fees, making it one of the best prepaid cards in Canada. Prepaid Mastercard with no fees and cashback rewards.
Capital One Guaranteed Mastercard
A few basic requirements must be met to qualify for Capital One Guaranteed Mastercard. It also includes several perks, including travel benefits. You are guaranteed approval for the Capital One Guaranteed Mastercard if you meet a few simple requirements.
Neo Secured Mastercard
The Neo Secured Mastercard offers cashback rewards. The minimum deposit requirement for secured credit cards in Canada is also the lowest, at $50. Secured credit cards with cashback rewards and low deposit requirements.
Home Trust Secured Visa Card
It is one of the easiest cards to be approved for among secured credit cards in Canada, making it a great option to build your credit. Easy approvals allow you to build credit more quickly.
Plastik Secured Credit Card
A Plastik-secured credit card is ideal for Canadians without credit who want to build it. Annual fees are $120, but a comprehensive rewards program is included. The easiest way for those without credit to begin building while also earning rewards.
Here is the table of Best Credit Cards for Bad Credit in Canada
|Feature||KOHO Prepaid Mastercard||Capital One Guaranteed Mastercard||Neo Secured Mastercard||Home Trust Secured Visa Card||
Plastk Secured Credit Card
|Rewards||1% cash back on grocery, bill, and service payments||None||Cashback||None||
Rewards points can be redeemed for merchandise, travel, gift cards, and more.
|Welcome Offer||None||None||Get 15% off your first purchase with a Neo partner.||None||
5,000 bonus points
|Other Benefits and Drawbacks||0.5% interest on balances and direct deposits from employers. There are, however, withdrawal limitations for cardholders.||You are guaranteed approval for the Capital One Guaranteed Mastercard if you meet a few simple requirements. There are numerous benefits to having a Capital One Guaranteed Mastercard for everyday purchases and travel. The high-interest rates do need to be considered by cardholders.||The minimum deposit requirement for secured credit cards in Canada is also the lowest, at $50. It makes it more accessible for those trying to establish credit since the minimum deposit is only $50. Additionally, it is one of the few bad credit cards that earn cash back.||This option has an annual fee, but the interest rate is lower.||
A Plastk Secured Credit Card offers instant approval and no credit score requirement, making it easy for anyone to apply and build credit. The good news is that payments are reported to Equifax, meaning you can rebuild your credit. It is very rewarding for cardholders to earn points, but they must be cautious because the interest rate will jump to 29.99% if two payments are missed.
Video For Best Credit Cards for Bad Credit in Canada
Types of Credit Cards for People With Bad Credit in Canada
If you have good credit, you can only qualify for a credit card that will help you rebuild your credit rating. The company offers a variety of credit cards, which can be used to budget, build credit, and take advantage of conventional credit card benefits.
How to build Credit Score as a Newcomer in Canada
Obtaining a mortgage through a financial institution that accepts credit history outside Canada is possible, but this is only sometimes possible. The best way for new immigrants to build their credit score is to get a credit card. Your credit history is established through credit cards, influencing your credit report. Credit scores are heavily influenced by payment and credit history, so take your time.
Your credit history is also affected by the payments on loans and lines of credit, so don’t be shy about having various credit products. As long as your bills are paid on time, you’ll be well on your way to proving your Canadian creditworthiness and getting a great credit card.
What is a bad credit score in Canada?
It is considered poor if your credit score is between 300 and 560. If your credit score exceeds this range, you may need help qualifying for an unsecured credit card. You may be denied a card even if you score 561 to 659.
Several factors can contribute to a lower credit score, including:
- Payment of bills late.
- There needs to be more credit history.
- A lack of credit accounts.
- The number of foreclosures, bankruptcy filings, and delinquencies is rising.
- The transfer of past-due accounts to collection agencies.
- Utilizing all or most of your credit available consistently.
- Multiple new accounts opened in a short period.
- Multiple credit accounts such as credit cards, loans, mortgages, etc.
Does applying for a credit card affect your credit score?
Yes. The card issuer must perform a hard credit inquiry every time you apply for a credit card. You can lose a few points on your credit score if you are unsuccessful in these hard credit checks.
How to rebuild credit with a credit card?
You can improve your credit score by paying your credit card statements on time and in full and keeping your debt ratio below 30%. You should be at most $3,000 of your credit limit if it is $10,000.
What is the Best Credit Cards for Bad Credit in Canada?
A credit card with the best features is the one that meets your particular spending needs. When finding the best credit card for your spending category, including cash back, travel, rewards, and business, you must determine which perks are important.