Credit Cards In Canada For Those Who Seek To Rebuild Their Credit

A secured or unsecured credit card intended for credit rebuilding might help you get your finances back on track if you have a poor or bad credit score.

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While a good credit score isn’t required to qualify for a prepaid card that may be used for ordinary internet shopping, credit card issuers are more stringent. Lenders look at your credit history, and if your credit score is below 660, your credit card application is likely to be denied. However, there are financial organizations in Canada that provide secured, unsecured, low-interest-rate cards, and even credit cards with guaranteed approval to persons with poor credit. The best credit cards for repairing or establishing credit in Canada are discussed in this article. 

Secured and Unsecured Credit Cards for Bad Credit

Before you may use credit on a secured credit card, you must pay a security deposit. Your credit limit is equal to the security deposit, which works as collateral. If you are unable to pay off your amount, your lender’s risk of default is reduced. When you no longer need the card, you may terminate your account and get a refund of your deposit.

A security deposit is not required for an unsecured credit card; nonetheless, you must fulfill minimal conditions, which include a strong credit score. Credit bureaus get information from both secured and unsecured credit cards. If you use the card appropriately, it may help you develop or repair your credit.

1. KOHO Prepaid Visa Card

The KOHO Prepaid Visa Card is not a traditional credit card (it’s a prepaid card), and it’s available to those with any credit score (including a bad credit score). For people who want to improve their credit score rapidly, it provides a Credit Building Program. Simply subscribe to Credit Building for $7 per month after receiving the free KOHO Card. Your monthly membership fee payments are reported to the credit agencies, which helps to restore your credit score over time.

2. Plastk Secured Visa

One of the greatest secured cards for those with bad credit is the Plastk Secured Visa Credit Card. You may apply for a credit limit of up to $10,000 and use Interac e-Transfer to make payments to clear your amount. Unlike regular secured cards, the Plastk Secured Credit Card comes with the following benefits:

~ For the first three months, the APR is 0%.
~ Bonus points of 5,000 points ($20 value)
~ Purchases have a 25-day interest-free grace period, whereas cash advances have a 3 day grace period.
~ You may use your rewards points to pay down your debt on your account, or you can use them to buy items, gift cards, vacation, charity contributions, and more.

3. Home Trust Secured Visa

The Home Trust Secured Visa, which has no annual fees, may help you restore your credit without the hassle. Cardholders may set their credit limit depending on the amount of security deposit they put down, with a minimum of $500 and a maximum of $10,000. If you carry a debt beyond the grace period, you will be charged a purchase rate of 19.99 percent.

4. Capital One Guaranteed Secured Mastercard

This card, which has a 100% acceptance rate, may help you repair or create credit.

To be eligible, you must:

~ Be at least the age of the majority in your province.
~ Have not applied for a Capital One credit card more than once in the past 30 days or had ~ Have a Capital One account in the previous year that was not in good standing
~ You don’t have a Capital One account or an application for one in the works.
~ Make a $75 or $300 security deposit.

5. Tangerine Money-Back Credit Card

The Tangerine Money-Back Credit Card is a no-fee credit card that offers up to 2% cash back on purchases. If you have a credit score of 600 or higher and an annual income of at least $12,000, you can apply for this card. For a limited time, new cardholders may receive an additional $150 cash back if they spend $1,000 in the first two months after receiving the card.

6. Scotiabank Value Visa Card

The Scotiabank Value Visa’s low interest rate might help you save money on fees if you carry a balance from month to month. It also provides a promotional balance transfer rate of 0.99 percent for the first six months. This credit card has a $500 minimum credit limit, and extra cards are free. At selected AVIS and Budget locations, cardholders may save up to 25% on vehicle rentals.

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