Best Credit Cards For Bad Credit In Canada 2022: Majority of the credit cards require a good credit history. Once you fail to pay back a loan or credit, your credit history goes from good to bad. With a bad credit history, it is almost impossible to get a credit card or a loan in the future. This worry can be put aside with credit cards shown below as they help you regain your good credit history.
What is a credit score?
A credit score determines whether a person is worthy of lending credit, in Canada. It is a three-digit score ranging from 300 to 900. A good credit score has a score above 660 and a bad score is below it.
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A bad score can be regained into good credit by obtaining credit cards. These are some kinds of cards through which one can increase a credit score:
- Secured credit cards: this requires a security deposit of the credit limit or a percentage of it.
- Unsecured credit cards: It works like a regular card and might even have perks or rewards.
- Guaranteed credit cards: It requires a full or partial deposit by which you receive instant approval.
- Low-interest rate credit cards: As the name says, they provide lower interests.
- Prepaid cards: An amount is required in advance within the account, to avail of the card.
All these cards report to the credit bureau, thus increasing your credit score if you pay in time.
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1. Home Trust Secured No fee Visa Card
The Home Trust Secured No Fee Visa Credit Card has been mainly brought to help the users with their credit rating. Their features are:
- No annual fee
- Interest: 19.99%
- Amount set according to the deposit made, ranging from $500 to $10,000.
- Eligibility: People having bad to poor credit scores can apply.
This card is not available in Quebec. The Home Trust Secured No Fee Visa Card has received recognition as the #1 Best Credit Card For Bad Credit for Building Credit of 2022.
2. Home Trust Secured Low-rate Visa Card
Home Trust secured cards give two options of either choosing no annual fee or low rate cards. The cardholder can choose according to their preferences. The features are:
- Annual fee: $59
- Interests: 14.90%
- Amount set according to the deposit made, ranging from $500 to $10,000.
- Eligibility: People having bad to poor credit scores can apply.
3. Plastk Secured Visa Card
Plastk Secured Visa card has one of the lowest interest rates and annual fees. It also has a high approval rate for people with imperfect credit histories. The features are:
- Annual fee: $48 ($6 monthly maintenance fee)
- Interests: 17.99% for purchases and 21.99% for cash advances (no interest for the first 3 months)
- Instant balance transfer and additional bonuses.
- Eligibility: People having bad to poor credit scores can apply.
4. KOHO Prepaid Visa card
Not all prepaid cards help with the credit history building, but the KOHO Prepaid Visa card allows a $7 per month to avail the credit building option. Prepaid cards necessarily require the cardholder to deposit an amount in the account in advance to use the card. Their features are:
- No annual fee (except $7 to avail of the credit building feature)
- Interest: 1.7% on savings and spending account
- 0.5% cashback on all expenses
- Eligibility: The card has no hard credit check. People having bad to poor credit scores can apply.
The KOHO app helps make transactions and money depositing easier.
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The Capital One Guaranteed Secured Mastercard was brought out to help people regain their credit history. Their features are:
- Annual fee: $59
- Interests: 19.8% on purchases and balance transfers; 21.9% on cash advances
- Necessary security funds from $75 to $300 should be provided.
- Additional bonuses and insurances
- Eligibility: A person with the majority age of the province who hasn’t applied for the Capital account more than once in the 30 days or had a good standing account till last year.
Conclusion:
The above-curated information is from meticulous research as I have not earned the opportunity to purchase these credit cards. The above 5 credit cards are the best credit cards for bad credit in Canada, as they have a high approval rate for people with poor to bad credit history. Bad credit is no longer a worry as it can be turned into a good credit score through the attentive use of these credit cards.
