Financial reports argue that Canada is slowly recovering from the moderate recession witnessed in the previous year. While things may be looking up economically, having several finance options ready is still a great idea – and that’s where credit cards for bad credit Canada comes in.
A credit card is a great option when shopping online or on the go. While it might be easy for some to apply for credit cards, those with bad credit score, no credit, or bankruptcy find obtaining them challenging. Good news: Some lenders provide credit cards to individuals with bad credit.
But are these bad credit cards worth the hype? If so, what are the best options out there? Keep reading this article to know Canada’s eight best credit cards for bad credit. We’ll also introduce you to an excellent credit card for bad credit option – loans for bad credit which gives you extensive freedom on your loan amount.
Top 8 Best Credit Cards for Bad Credit Canada in 2024
Recent data shows that eight in every ten Canadians own a credit card. With the growing preference for digital payments, especially among youths and young adults, credit card ownership is expected to grow exponentially. The different types of credit cards for bad credit include:
- Student credit cards – for students and come with minimal approval requirements.
- Unsecured credit cards – it’s a regular card with no need for initial deposit.
- Secured credit cards – needs a security deposit.
- Prepaid credit cards – works like your usual cards with an existing deposit.
- Low-interest credit cards – offer low interest of the user’s cash advances.
- Guaranteed credit cards – they guarantee approval upon agreeing to terms like the initial deposit.
- Newcomer credit cards – apply to those that have just migrated to Canada.
Having said that, here are some of the favorite options among Canadians!
Home Trust Secured Visa
Generally considered the best-secured credit card lender in Canada, Home Trust Secured Visa offers credit services determined by the amount deposited, ranging from $500 to $10,000.
You can manage your account online, and the card is accepted worldwide. The interest rates range from 14.9% if you pay an annual fee of $159 or 19.99% if you choose to forego the yearly subscription.
- Here are the conditions to meet before getting one:
- Ensure you’ve attained the age of majority.
- You must have valid identification documentation.
- You must provide proof of income.
- You can’t have declared bankruptcy recently.
- You must agree to their terms and conditions.
KOHO Card
KOHO is another popular prepaid card with credit-building capabilities and does not accrue interest. With a KOHO card, you earn interest whenever you purchase locally or internationally. The lender provides several personal loans for bad credit plans, each with a 30-day free trial.
The plans include;
- $10 for Easy
- $4 for Essential
- $9 for Extra
- $19 for Everything
Here’s what you need to apply for a KOHO card:
- You must be a permanent Canadian resident.
- Ensure you are at least 19 years old.
- You shouldn’t have any history of bankruptcy.
Neo Secured Credit
The Neo Secured Credit card offers guaranteed approval that lets you deposit a minimum of $50, the least on this list. The account also offers no annual fees and some unlimited cashback.
Your account limit depends on how much you place as a deposit and will be returned once you clear the balance.
The lender offers two interest rate versions;
- The standard purchase rate is from 19.99% to 29.99%.
- The cash advance rate ranges from 22.99% to 31.99%.
The rates also vary based on the location. For instance, in Quebec, it will range from 19.99% to 24.99% for the standard rates and 22.99% to 25.99% for the cash advances. While the card may offer credit score rebuilding, you must make timely monthly payments.
Here’s what you need to qualify:
- You must be a Canadian citizen
- You must be of recommended age in your province of residence.
- You must deposit security funds.
Capital One Cards
Capital One card is another card that offers credit-rebuilding capabilities and is excellent for people with bad credit. The lender provides two versions of the card: one that is secured and another that isn’t.
They are:
- Capital One Guaranteed Mastercard. It has an interest rate of 21.9% and an annual fee of $59.
- Capital One Secured. It requires you to deposit security funds from $75 to $300.
There are some qualifications that you need to meet before getting your card. Here’s the list.
- You must have reached the age of majority in your place of residence.
- You shouldn’t have any pending Capital One applications.
- It should be at least 30 days since you last applied for an account.
- You shouldn’t have a Capital One account that was in bad standing in the last year.
Canadian Tire Mastercard
The Canadian Tire Mastercard is great, especially if you love earning rewards when shopping. The account does not charge an annual subscription but has a standard interest rate of 19.99% and a foreign exchange rate of 2.5%.
What’s more, you can redeem your rewards in stores such as;
- Marks
- Hockey Experts
- Party City
- Sports trek
- Canadian Tire
Plastk Secured Credit Card
A Plastk secured credit card, just like other cards, will offer you personal loans for bad credit. It also allows you to earn points whenever you use the card and redeem them from 2500 points.
It has a relatively lower interest rate of 17.99% but charges an annual fee of $48 and a $6 monthly fee. However, if you miss two consecutive payments, the interest rate rises to 29.99%.
Some of the benefits you get with Plastk include:
- Referral programs
- 3-day cash advance grace period
- 25-day purchase grace period
- Instant bank balance payments with e-transfer.
ATB Alberta Secured Mastercard
ATB Secured Mastercard is very popular in Alberta. Unlike most other secured cards, the ATB secured card requires a minimum security deposit of $500.
It also attracts a $49 annual fee and a $25 annual fee for any additional card you have. More so, there’s a standard interest of 19.99%, a $29 rush replacement card fee, a $40 NSF fee, and a 2.9% foreign exchange charge.
Here are the qualifications you need to meet before getting the card;
- You must be at least 18 years old.
- You must be an Alberta resident.
- The card must be used for personal use only.
- You must not have declared bankruptcy in the last five years.
Vancity Enviro Secured Cards
The Vancity Enviro Secured card is targeted at British Columbia residents. It works differently from other cards on this list.
While other accounts place your deposit as security, the Vancity secured card puts your deposit into a savings account that earns interest.
The annual fees range from 0 to $395 and charge interest between 11.25% and 19.5% based on your eligibility. Here are the conditions to meet to get the card:
- You must be a British Columbia resident.
- You must be 19 years old and above.
- Your security deposit must be placed in a term deposit account.
- Ensure you are a new or an existing Vancity client in good standing.
CASH IN 24: Best Credit Card Option for Personal Loans with Bad Credit
Credit cards may come in handy occasionally, but CASH IN 24 still stands out as the best financial partner for no-credit-check loans. Here’s why you should go for us;
We Accept all Financial Conditions, Even Bankruptcy!
Are bankruptcy, unaffordable initial deposits, interest rates, and other nitty-gritty preventing you from getting a credit card with bad credit? Try out CASH IN 24 for prompt no credit check loans.
It doesn’t matter whether you have a poor credit score or went bankrupt a while back. We don’t judge you from previous inconveniences that might have contributed to your current financial state. Our mission is to help you get back on track without conditions.
We Offer Adequate Funding
Most credit cards offer little personal loans; some provide the equivalent of what you offer as a security deposit. We don’t trouble you with loans for bad credit security deposits. You can borrow anywhere from $350 to $50,000 – and get funded in just 24 hours.
Competitive Rates
We offer custom interest rates. Refuse to be charged exorbitant interest rates. Rewards sometimes sound like a good deal, but they don’t compare to the nightmare that is the card’s interest rates. Worse still, some rates rise by 10% if you don’t pay on time!
We offer personal loans at competitive rates and flexible payment options that will give you peace of mind.
No Hidden Conditions
Some lenders promise one thing but offer different terms in the fine print. Hidden conditions may include extra charges, late fees, increased rates, or withholding security deposits even after payments, frustrating you further.
At CASH 24, our terms are straightforward to help you take care of that urgent matter quickly without worrying over frustrating conditions.
Enjoy No Credit Check Loans from Anywhere!
Credit cards offer their would-be clients instant approvals, cashback rewards, or minimum cash collateral. However, you must be keen enough to avoid painful repayment terms, harsh penalties, and potential cash withholding if you don’t make your payments. Choose a secured credit card that suits your needs if you have to.
At CASH 24, we care about your financial well-being. You deserve every opportunity available to get your finances in order. Our application process is simple to fill out, and you enjoy guaranteed approval.
Better yet, we consider all personal loans for bad credit, including bankruptcy, and offer up to $50,000 guaranteed! Regardless of your credit score, start applying today and get everything sorted quickly!