Top Canadian Credit Cards to Get Approved with Bad Credit

Bad Credit


Getting a stellar credit score can be tricky, especially when one has bad credit and various instances require a credit check.

From acquiring a loan to getting a cell phone plan and now landlords are checking credit before they consider one as their potential tenant. The list is quite endless.

Its quite unfortunate that sometimes bad credit isnt a result of ones poor financial choices.

Credit Score Drop

Several factors can hurt your credit score.

  • To mention a few, you will find that getting laid off, a divorce, identity theft, or co-signing a loan for someone else can create a bad rep with the credit bureau.

Forgetting to pay bills on time can harm your credit score, among other tiny details.

Related: How to create a monthly bill payment schedule (Free Download)

Getting a credit card is one of the most convenient ways to secure as well as assist you in your quest to build good credit.

You can use this chance to use the credit card responsibly and pay on time to ensure a clean payment history.

Credit cards are not easy to get. However, that doesnt mean there arent other alternatives.

When I moved to Canada, I had NO CREDIT which means I had to start from scratch.

I was fortunate where I was able to get a secured credit card from what was Canadas best department store, Sears Canada.

Are you aware that there arecredit cards for people with no creditor individuals with bad credit?

They are an excellent starting point if you seek to get approved.

Below you will find various types of credit cards as well as the best Canadian credit cards in each category.

It will enable you to find a credit card that will suit all your needs.

Secured and guaranteed credit cards for bad credit

Everyone dreams of guaranteed approval but it doesnt always happen that easily.

Its quite the case, especially when one is striving to acquire a credit card like I was when I moved to Canada.

Various credit cards come with minimum requirements that one must adhere to them while applying.

Its always exciting that guaranteed credit cards ask less from all their cash holders.

There are various vital requirements such as one that must be of majority age as well as does not hold a credit card within the same credit card company more so one thats in a bad stand.

However, there are credit cards that you must make a down payment or a security deposit on.

1. Secured credit cards

If you have a poor credit score, an individual can select a secured credit card as a valid option.

Despite this, you will have to make a certain amount of payment upfront, often referred to as the security deposit.

It will match your credit cards limit.

You will find out that these funds tend to stay with the credit card issuer until when the credit card account gets closed, or the balance gets settled.

The down payment gets used as the collateral.

When you max out the card and dont get to pay back, the lender can use that money to put against any debt that you might have.

  • Home trust secured no fee visa

Its an example of the best high credit card limit which is a secured credit card for bad credit.

You can choose the credit card even when your credit score is ranging from bad to mediocre.

There are zero annual fees, and the minimum personal income is also zero dollars.

The card has a higher approval rating.

You must deposit some funds to enable you to use the card as its a secured card.

The credit limit for this credit card ranges from $5000 to $10000.

Thus its an excellent option, especially when you want to make large purchases shortly.

However, you can choose the best no annual fee secured credit card for bad credit.

  • No-fee Scotia bank value visa card.

The card is quite popular, aside from having no annual fee.

As, well the credit card has a balance transfer option with an excellent 3.99% promotional interest rate.

Its an awesome way to minimize what you might be paying with any of the other credit cards.

In spite of this, you must note that the APR goes up to 16.99% after six months.

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You can also get a supplementary card at zero extra cost.

However, theres a catch.

For you to get the approval, you must not be declared bankruptcy over the past seven years.

2. Guaranteed credit cards

These are among the rarest cards in the market however, you can easily find a few of them.

Youll find the best-guaranteed approval secured credit card for bad credit below.

  • Capital One Guaranteed Secured MasterCard

Its the best overall secured credit card that you can have a look at any time.

You can get this card even when your credit score is ranging from bad to poor as it is out to assist Canadians with such low credit scores.

The annual fee required is $59 and a zero minimum personal income.

You must meet the minimum requirements to get approved.

The more you increase your credit fund with this credit card, the higher your credit limit gets.

Its a fascinating way to get more comfy with how you decide to use your credit card.

  • The Capital One Low Rate Guaranteed MasterCard

Heres one of the best secured, unsecured credit cards for bad credit.

In as much as you must have a minimum personal income of zero dollars, you are required to pay an annual fee of $79.

You get assured of getting your request approved if you avail of security funds that will range from $75 to $300.

You must have the age of majority within your area of residence.

To get this card, you must not have applied for any other capital one product for more than the last thirty days.

You shouldnt have another existing account that has a pending application with Capital One.

Once your card gets approved, the institution will notify you of how much deposit you ought to make and also give you a specific credit limit.

The agency always reports any report to the credit bureau.

Thus, you must strive to have a good standing account so that you can increase your credit score.

3. Unsecured credit cards for bad credit

These credit cards might be the ideal option for you if you arent sure about getting approved on a regular credit card.

You can also choose these cards if you dont want to have your money tied up in a secured credit card security depositing account.

Theres no collateral needed to use this credit card.

One can choose to go for the best low-interest unsecured credit card.

  • RBC visa classic low rate credit card

The annual fee for this credit card is $20, and one must have a minimum personal income of $15000.

It has a lower interest rate of 12.99% than most unsecured or secured credit card.

You must pay off all your bills in full each month as you could efficiently run into a cash flow emergency.

Canada's Credit Score Range
Canadas Credit Score Range

Your credit score needs to range from fair to good.

There are unique benefits if you get approved to have this card.

Youre likely to get zero fraud liability, purchase protection, among others.

Acquiring a credit card is one of the ideal ways to build a good credit score.

However, they must note that credit cards arent an extra source of income.

You must strive to use them to buy items you were planning on buying.

The ultimate goal of having a credit card is to build your credit score; thus, you must strive to settle your accounts each month in full or meet the minimum payment requirement.

Dont despair when you have a bad credit score due to unavoidable circumstances.

There are multiple options that you can choose to take in order to obtain a credit card if you need one.

For instance, you can have a look at the credit cards for people with no credit.

You should try to apply for the secured as well as unsecured credit cards as you never know if youll get approved.

Dont be blown away with the welcome bonus alone look for other perks that come with the credit card.

You must remember that the ultimate goal is to enhance your credit score with the credit bureau.

Discussion: Have you ever acquired a credit card with bad debt? Which credit card did you get? Leave me a comment below and Ill be sure to respond.


The post Top Canadian Credit Cards to Get Approved with Bad Credit appeared first on Canadian Budget Binder.

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