Bad Credit in Canada? Credit Card Options That Can Help You Rebuild

Past trouble getting approved for a credit card doesn't have to be the end of the road. Cards designed for imperfect credit exist, and Canadians with low scores can find several of them below.

Credit cards aren't reserved for people with spotless records. A bad score or no credit history at all is not a reason to give up. A common belief is that poor credit blocks access to a card or to a higher limit, but that isn't accurate. Some banks do turn away applicants with weak credit histories, yet many others approve cards for people who are working to raise their scores. Several banks currently offer competitive cards with instant approval and high credit lines for those with bad credit.

Here are some of the best card choices for Canadians with bad credit.

Capital One Secured Mastercard

This secured card lets you build your credit score quickly and steadily, as long as you use it responsibly. It suits anyone building credit on a budget, because applying costs nothing. The only up-front expense is your initial deposit.

To get started, pick the credit line that fits your needs and put down a deposit of $50 to $200. Cardholders also get free access to CreditWise, which makes it possible to follow your score as it improves. Pay at least the minimum on time every month and your score should climb. Once it reaches "Good," your credit limit can rise to as much as $10,000.

Indigo Platinum Mastercard

Anyone with a low score or a short credit history may find the Indigo Platinum Mastercard a good fit. It is unsecured, so no initial deposit is needed to begin using it. There is, however, an annual fee of up to $100.

Applicants can also check whether they prequalify without triggering a hard inquiry on their credit report. The starting limit is $300, and it grows as you make payments on time and strengthen your credit history.

Credit One Bank Platinum Visa for Rebuilding Credit

This is another unsecured card with no initial deposit. Pay your monthly bills on time and you can earn 1% cash back.

The card carries an annual fee of up to $99, and the exact figure depends on your credit score. The APR also varies with your creditworthiness, and people with low scores are more likely to see a rate above 20%. Checking whether you prequalify before applying helps you avoid unnecessary hard inquiries.

How to Rebuild Your Score

Need to raise your credit quickly? Each of the cards above reports to the major credit bureaus every month. Using the card responsibly and keeping up with payments can bring your score up fast.

Care is needed when applying, though. Submitting many card applications in a short period can lower your score and make you appear unreliable to lenders. Each time you apply for credit, the lender runs a detailed credit check before deciding, and that can affect your score. To protect it, research your options and decide which card suits you best before you apply.

Picking the right card with bad credit can be tough, but prequalification offers a route. It gives you a clearer sense of which cards you're likely to be approved for. Rather than applying blindly and risking denials, prequalify with several lenders first, then choose where to apply.

Start Your Search Today

If past credit missteps or a lack of credit history are holding you back, look online for cards made for people with bad credit and begin rebuilding your score now.