Best Credit Cards for Bad Credit in Canada
Bad credit can make it difficult to obtain a credit card, which in turn can hinder efforts to repair or improve one’s credit score. However, several financial institutions in Canada offer credit cards designed specifically for individuals with low credit scores. This article explores the best credit cards for bad credit in Canada, helping you make an informed decision and get on the path to improving your financial health.
1. Capital One Guaranteed Secured Mastercard:
The Capital One Guaranteed Secured Mastercard is an excellent option for Canadians with bad credit. This card requires a security deposit, varying from $75 to a maximum of $300, which serves as your credit limit. By making timely payments, you have the potential to improve your credit score over time.
2. Home Trust Secured Visa:
The Home Trust Secured Visa is another option for rebuilding your credit score. With a minimum deposit of $500, you can secure a card that doesn’t charge an annual fee. The interest rate is 19.99%, making it essential to pay off balances within the grace period to avoid accruing interest charges.
3. Refresh Financial Secured Visa:
With the Refresh Financial Secured Visa card, you have the opportunity to build or rebuild your credit score with no annual fee. A security deposit ranging from $200 to $10,000 is required to open an account; this amount serves as your credit limit. The card has an annual interest rate of 17.99%, which is slightly lower than other options for those with a poor credit history.
4. No-Fee Scotiabank Value Visa Card:
With no annual fee and an introductory interest rate of 3.99% on balance transfers for the first six months, the No-Fee Scotiabank Value Visa Card is a suitable option for those seeking to consolidate outstanding debt and repair their credit history. After the introductory period, the interest rate becomes 16.99%.
5. BMO Preferred Rate Mastercard:
The BMO Preferred Rate Mastercard is another excellent option to consider for rebuilding your credit score. With a low annual fee of $20 and an interest rate of 12.99% on purchases and balance transfers, this card offers a competitive option for Canadians with bad credit.
To improve your credit score, consistent and responsible use of these credit cards is crucial. Make sure to pay off your balances on time and in full each month to avoid accumulating high-interest charges. By doing so, you can gradually rebuild your credit history and pave the way towards better financial health in Canada.