Poor Credit in Canada? These Cards Can Help You Rebuild Your Score

Canadians with a damaged credit history have more options than they might think. Certain credit cards are built for people with poor credit, and used well, they can help repair a score quickly.

Paying bills late, carrying too much debt or filing for bankruptcy can all wreck a credit score. A low score can then complicate big goals, such as buying a car or getting into the housing market. The good news is that a credit-building card gives people with bad credit a way back. The details below explain how a card designed for low scores can lift your credit fast.

Card Types Open to People With Bad Credit

Excellent credit is not a requirement for every card. Some are designed specifically for people with bad credit. Making every payment on time, every time, is the best way to build credit quickly. Two kinds of cards are available to people in this situation.

Secured Cards

A secured card operates like an ordinary credit card, except that a cash deposit is required before it can be used. The deposit "secures" the card, so the lender gets its money back if the credit card bill goes unpaid.

Unsecured Cards

An unsecured card is simply a standard credit card, and no security deposit is needed. Applicants with bad credit may find that these cards come with higher interest rates and a lower credit limit.

Four of the best options for people with bad credit follow.

Refresh Financial Secured Card

The Refresh Financial Secured Card is meant to help you build credit quickly and safely. A major plus is that it requires no hard credit check, so applying will not affect your credit. People with low scores and even recent bankruptcies can apply.

• Minimum deposit: $200
• Annual fee: $49
• Interest rate: 18%
• Interest-free period: 21 days on all purchases

If you can cover the deposit and the annual fee, you are ready to go.

Home Trust Secured Visa

The Home Trust Secured Visa is an award-winning credit-building card with a very high approval rate. Nearly everyone who applies and puts down the required deposit is accepted, even with poor credit. Home Trust also reports all usage and payment history to the major credit reporting agencies, which means you can build credit quickly and safely.

Getting started requires a minimum deposit of $500. The standard interest rate is 20%, although new purchases are interest-free for 21 days. There is no annual fee.

Capital One Low Rate Guaranteed Mastercard

The Capital One Low Rate Guaranteed Mastercard lets you rebuild credit without steep interest charges. This card is unsecured, so no security deposit is needed. Overspending is less of a worry, since the credit limit starts low and rises as your credit history gets better.

The interest rate is a reasonable 15%. Frequent travellers will also appreciate that the card includes essential travel insurance coverage. To qualify, you need to meet the minimum credit score and income requirements and pay the $79 annual fee.

RBC Visa Classic Low Rate Option Visa Card

The RBC Visa Classic Low Rate Option Visa Card carries a low, fixed annual interest rate of 12.99% on purchases and cash advances, balance transfers included. There is no minimum credit score to apply. RBC instead makes its decision based on your income and your current outstanding debts. No security deposit is required either.

This unsecured card is easy to use and is accepted anywhere the Visa logo appears. Eligible customers can take cash advances of up to $1,000 CAD per day, depending on their available credit. RBC's "Zero Liability Protection" adds peace of mind by guarding the card against unauthorized use, whether in person or online.

Start Rebuilding Today

Anyone trying to repair their credit can search online for a card made for people with low credit and begin the repair process right away.