11 Best Credit Cards For Bad Credit In Canada (Oct 2022)

September 14, 2022
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There are quite a few credit cards for people with bad credit, but some stand out above the rest for their benefits, including cash back rewards and very low annual fees. I constantly keep up with the latest policy updates and make my recommendations below based on years of experience in the credit card landscape.

I recommend the Capital One Guaranteed Approval Secured Mastercard as Canada's #1 credit card for individuals with bad credit. It is one of the few credit cards that doesn't charge foreign exchange fees on purchases abroad (online or in-person), has no annual fees, and reports monthly to TransUnion and Equifax.

What Is A Credit Card For Bad Credit?

Bad credit credit cards or credit cards for bad credit are a type of secured credit card that allows people with poor credit to access credit cards and start rebuilding their credit. Bad-credit cards are usually divided into secured and prepaid cards. Secured credit cards require a security deposit and are similar to debit cards in that you are limited by how much you deposit. Prepaid cards also work like debit cards, but you are usually limited by your first deposit, and not all allow for reloads; they are also usually store-bound, which means you can only use them at select stores. 

Prepaid cards also have the major drawback of not reporting to credit card bureaus, so you won’t be building your credit anytime soon. On the other hand, secured cards report (usually monthly) to TransUnion and Equifax, the two largest credit card bureaus in Canada. Both cards have the benefit that you will never incur overdraft fees – and there is no revolving balance or due date to keep track of. Some of these cards offer cash back plus other benefits for a reasonably low annual fee. However, most don't charge an annual fee or offer any kind of perk.

Without further ado, here are the best credit cards for bad credit Canada has to offer:

The Best Credit Cards For Bad Credit In Canada

  1. Capital One Guaranteed Approval Secured Mastercard: Best for low minimum security deposit
  2. Home Trust Secured Visa: Best for choosing if you pay an annual fee
  3. KOHO Mastercard Prepaid Card: Best for personalized financial advice
  4. KOHO Premium Reloadable Prepaid Mastercard: Best for physical and virtual card
  5. Neo Financial Mastercard: Best for crediting cash back instantly in your account
  6. Plastk Secured Credit Card: Best for zero introductory interest rate
  7. President's Choice Financial Mastercard: Best for generous welcome bonus
  8. Refresh Financial Secured Visa Card: Best for guaranteed approval
  9. Scotiabank Value Visa Card: Best for complimentary medical insurance

Canadian Tire Triangle Mastercard

Great for high earn rate on Canadian Tire stores
  • Annual Fee
    $0
  • Interest Rate
    19.99% on purchases, 22.99% on cash advances
  • Welcome Bonus
    N/A
  • Rec. Credit Score
    660+
  • Features & Benefits

    • Earn 15% cash back in CT Money on your first purchase as a welcome bonus
    • Redeem your CT Money at Canadian Tire, Sport Chek, Atmosphere, Sports Rousseau, Hockey Experts, and participating Sports Experts stores
    • No annual fee
  • Pros & Cons

    Why we like it

    Great for high earn rate on Canadian Tire stores

    Pros

    • No annual fee
    • 4% back in CT money on all purchases in Canadian Tire stores
    • Earn 5 cents per litre in CT money at Gas+ service stations
    • Collect 1.5% in CT money on all grocery purchase for up to $12,000 per year
    • Get your financed for purchases over $150 at select stores (no fees and no interests)
    • Customer service available 24/7

    Cons

    • You can only redeem CT points at select partner stores (CT, Sport Chek, Atmosphere and Sports Experts stores, among others)
    • High credit score to qualify (at least 660)
  • More Details

    Bonuses and fees 

    The Canadian Tire Triangle Mastercard is no-fee cash back. One of the downsides of the Canadian Tire credit cards is that rewards are paid in CT Money, and you can only redeem them at select stores like Canadian Tire, Sport Chek, and Atmosphere. However, if you shop often at any of these stores, you will find that the cash back rates are very generous.

    Rewards 

    This card has four main cash back categories. You can earn:

    • 4% cash back when purchasing at Canadian, Tire Sport Chek, L’Équipeur, Atmosphere, and more
    • 1.5% cash back at grocery stores
    • 0.5% cash back on all other purchases

    CT Money points are roughly equivalent to $1, which is more than reasonable. Also, keep in mind that cash back on grocery purchases is capped at $12,000 per year.

    Perks and Benefits 

    • Purchases over $150 at participating stores qualify for no fee, no interest financing
    • 5 cents cash back per litre of gas at partner gas stations Gas+ and Essence+

Capital One Guaranteed Approval Secured Mastercard

Great for building credit and no foreign exchange fees when purchasing abroad
  • Annual Fee
    $59
  • Interest Rate
    19.80% on purchases, 19.80% on cash advanes
  • Welcome Bonus
    N/A
  • Rec. Credit Score
    300+
  • Features & Benefits

    • Minimum security deposit between $75 and $300
    • Get your deposit back in full after you close your account
  • Pros & Cons

    Why we like it

    Great for building credit and no foreign exchange fees when purchasing abroad

    Pros

    • Great for building credit (reports monthly to Equifax and TransUnion)
    • No annual fee
    • No credit card or credit card history checks
    • No foreign exchange fees when purchasing abroad or online
    • Flexible initial deposit ($49, $99, or $200)
    • Add additional authorized users at no cost

    Cons

    • High interest rates on purchase (26.99%)
    • No rewards on purchases
  • More Details

    Bonuses and fees 

    The Capital One Guaranteed Approval Secured Mastercard is a secured credit card targeted at individuals with low credit scores. It charges an annual fee of $59, which is considered high for secured cards, but it comes with some benefits like insurance and travel assistance.

    The Capital One Secured card reports monthly to Canada's two largest credit card bureaus.

    Perks and benefits

    • Guaranteed approval
    • Reports monthly to TransUnion and Equifax
    • Great for rebuilding your credit history
    • Zero liability policy

Home Trust Secured Visa

Great for building your credit and the option to pay an annual fee for reduced interest rates
  • Annual Fee
    $0
  • Interest Rate
    19.99% on purchases, 19.99% on cash advances
  • Welcome Bonus
    N/A
  • Rec. Credit Score
    300+
  • Features & Benefits

    • Minimum security deposit of $500 ($10,000 max.)
    • Make purchases over the phone or online
    • Plan and book a vacation
    • Withdraw cash from over 1 million ATMs worldwide
    • Apply even if you declared bankruptcy in the past (A Discharge Certificate is necessary)
  • Pros & Cons

    Why we like it

    Great for building your credit and the option to pay an annual fee for reduced interest rates

    Pros

    • No minimum credit score or credit history requirements
    • Great for building your credit score (reports monthly to Equifax and TransUnion)
    • Option to pay a yearly fee of $59 to reduce purchase interests to 14.90% (from 19.99%)
    • Manage your account and pay bills from Home Trust Visa Online.
    • Sync with online payment platforms like the Apple Pay, Google Pay, and Samsung Pay
    • Fraud protection on all spendings

    Cons

    • Minimum deposit is $500
    • No welcome bonus or reward on purchases
  • More Details

    Bonuses and fees

    The Home Trust Secured Visa is a great way to start building your credit; it reports monthly to Equifax and TransUnion, and it doesn’t have a credit score minimum – virtually anybody can apply and get approved.

    In terms of fees, the Home Trust Secured Visa has two options:

    • Low-Interest Rate Option: $5 monthly fee (or $60/year) plus an interest rate of 14.99% on unpaid balances
    • No Annual-Fee Option: $0 annual fee (free) plus an interest rate of 19.99% on unpaid balances

    The main difference is that for the no annual fee option, you pay higher interest if you fall behind on payments. In general, we recommend the no annual fee option.

    You can start using the card after you make your first deposit; the minimum is $500, and the maximum is $10,000. Keep in mind you will only be able to use as much as you deposit.

    Perks and Benefits

    • Withdraw cash at any time from any Visa ATM worldwide
    • Use your card wherever Visa is accepted
    • You can apply even if you declared bankruptcy in the past
    • Budget your spending by limiting the amount you deposit
    • Completely covered against fraud through Visa’s Zero Liability Policy

KOHO Mastercard Prepaid Card

Great for automatic RoundUps and no annual fees
  • Annual Fee
    $0
  • Interest Rate
  • Welcome Bonus
    N/A
  • Rec. Credit Score
    300+
  • Features & Benefits

    • No foreign exchange fee
    • Price protection
    • Complimentary personalized financial coaching
    • Receive both a physical and virtual card
    • Load funds via e-transfer or direct deposits
    • Sync your KOHO card with Apple Pay, Google Pay, and Samsung Pay and receive real-time spending notifications
    • 10% cash back for 90 days after referring a friend
  • Pros & Cons

    Why we like it

    Great for automatic RoundUps and no annual fees

    Pros

    • 0.5% cash back on all purchases
    • No annual fee
    • Refer friends and earn 10% cash back on all purchases for 90 days
    • Set up automatic RoundUps to grow your savings
    • Track your spending habits in real-time
    • Access your payroll 3 days early

    Cons

    • Low cash back rate plus no bonus points on any category
    • 1.5% forex exchange fees
  • More Details

    Bonuses and fees

    The KOHO Reloadable Prepaid Mastercard doesn’t require a high credit score or a good credit history. This card has no annual fees and is compatible with most other KOHO services: you can manage it from your KOHO mobile app, build your credit, and link it with your KOHO Savings account. Anybody can apply for the card and approve it in just a few minutes.

    Perks and Benefits

    Some of the perks and benefits of this card are a base back on all purchases, a promotional cash back rate at partner stores, and low foreign exchange fees. Here’s the breakdown:

    • 10% cash back at partner stores (online and in-person)
    • 0.5% cash back on all purchases

    Additional benefits include:

    • No hard credit checks
    • No foreign fees when purchasing abroad or online
    • Create a KOHO Save account and start to earn interests on your balance (1.2% APR)
    • Set up automatic RoundUps to grow your savings
    • Reload your card through e-transfers or direct deposits

KOHO Premium Reloadable Prepaid Mastercard

Great for no foreign fees and customizable cash back categories
  • Annual Fee
    $84
  • Interest Rate
  • Welcome Bonus
    N/A
  • Rec. Credit Score
    300+
  • Features & Benefits

    • No foreign exchange fee
    • Price protection
    • Complimentary personalized financial coaching
    • Receive both a physical and virtual card
    • Load funds via e-transfer or direct deposits
    • Sync your KOHO card with Apple Pay, Google Pay, and Samsung Pay and receive real-time spending notifications
  • Pros & Cons

    Why we like it

    Great for no foreign fees and customizable cash back categories

    Pros

    • Earn 2% cash back on up to 3 categories (0.5% on all other purchases)
    • No foreign exchange fees when purchasing abroad or online
    • Free financial coaching with a professional
    • Earn up to 1.2% on your balance by signing up to KOHO Save
    • Set up automatic RoundUps to grow your savings
    • Access your payroll 3 days early

    Cons

    • High annual fee for a reloadable card ($84)
    • No welcome bonus
  • More Details

    Bonuses and fees

    The KOHO Premium Reloadable Prepaid Mastercard doesn’t require a high credit score or a good credit history; anybody can apply for the card and have it approved in just a couple of minutes. This card has an annual fee of $84 and is compatible with most other KOHO services, including the KOHO mobile app, KOHO Credit Building, and KOHO Saving.

    Through KOHO Saving, you can earn interest on your balance (up to 1.2% APR), something that is very rare in credit cards. It’s worth noting that KOHO reports to TransUnion, Equifax, and Experian, making this card a great option for rebuilding your credit.

    Perks and Benefits

    The KOHO Premium Reloadable Card's primary benefit is its cash back rewards. KOHO offers bonus cash back on the 3 biggest spending categories: groceries, eat & drinks, and transportation. All other categories earn a base rate of 0.5% cash back. Here’s the breakdown:

    • 2% cash back on 3 spending categories (Groceries, eat & drinks, transportation)
    • 0.5% on all other purchases

    Additional benefits include:

    • No foreign fees when purchasing abroad or online
    • Create a KOHO Save account and start to earn interests on your balance (1.2% APR)
    • Set up automatic RoundUps to grow your savings
    • Reload your card through e-transfers or direct deposits

Neo Financial Mastercard

Great for cash back rate on your first purchase and no cash back limits
  • Annual Fee
    $0
  • Interest Rate
    24.99% on purchases, 26.99% on cash advances
  • Welcome Bonus
    N/A
  • Rec. Credit Score
    660+
  • Features & Benefits

    • Earn 15% in cash back on your first purchase as a welcome bonus
    • No annual fee
    • Quick sign-up process
    • Sync your Neo credit card with Apple Play and Google Pay
  • Pros & Cons

    Why we like it

    Great for cash back rate on your first purchase and no cash back limits

    Pros

    • Earn 15% cash back on your first purchase
    • Earn 5% cash back at partner stores (Canadian Tire, Sport Chek, Loblaws, and more)
    • No cap on how much cash back you can earn
    • No annual fees
    • No minimum income requirement
    • Mastercard Zero Liability Protection

    Cons

    • Needs a good credit score (660+)
    • Very limited features
  • More Details

    Bonuses and fees

    The Neo Financial Mastercard is a no-fee cash back card that is part of the Neo family of products (Savings, Invest, and Mortgages). Neo is partnered with over 7,000 merchants through the Merchant Partners program and offers time-limited cash back offers and promotions. When you make your first purchase at Merchant Partners, you will earn 15% in cash back (this may vary slightly depending on the offer).

    Rewards

    Neo doesn’t offer a fixed cash back rate. Instead, you will earn cash back based on the offers available and the plan you choose. You can expect average cash back of 5% on every purchase; they’re so confident about how much you’ll earn that if you fall below 0.5% on average, they’ll top you up to 0.5%. So, there is a base rate of 0.5% on all purchases – with the potential to be much higher. Make sure to take advantage of all the offers available.

    Perks and benefits

    • Cash back is credited instantly to your account.
    • Budgeting and spending insights tools, accessible from the app
    • Access to a virtual card
    • New monthly cash back offers when purchasing at thousands of stores
    • Zero liability policy
    • Minimum 0.5% cash back guaranteed

Plastk Secured Credit Card

Great for building your credit and no-interest period applicable to all purchases
  • Annual Fee
    $120
  • Interest Rate
    17.99% on purchases, 21.99% on cash advances
  • Welcome Bonus
    5,000 pts
  • Rec. Credit Score
    300+
  • Features & Benefits

    • Earn 5,000 Rewards Points as a welcome bonus (redeemable after 3 months)
    • 0% introductory interest rate for the first 3 months
    • Monthly credit reports to Equifax
    • 25 days interest-free grace period
    • Minimum deposit of $300 and up to $10,000
  • Pros & Cons

    Why we like it

    Great for building your credit and no-interest period applicable to all purchases

    Pros

    • 5,000 bonus welcome points
    • Great for building your credit score (reports monthly to Equifax)
    • 0% interest rates for the first 3 months
    • 25 days no-interest period on purchases
    • No minimum credit score or credit history requirements
    • Low annual fee

    Cons

    • Minimum deposit of $300
    • High annual fee
  • More Details

    Bonuses and fees

    The Plastk Secured Credit Card is a premium secured card that offers a lot of perks and benefits for individuals with low credit scores. It has a base annual fee of $48, plus a maintenance fee of $6 per month. This adds up to a total of $120 per year.

    This card has no minimum income or credit history requirement, and you can start using it as soon as you make an initial deposit. The minimum deposit is $300, and you can load up to $10,000.

    Rewards

    Plastk points can be redeemed for merchandise, gift cards, a statement credit, and exclusive events. There’s a base earn rate, applicable across all types of purchases, of 1 point per $1 spent.

    Perks and benefits

    • 25-day interest-free grace period per year (3-days for cash advances)
    • Refer friends to earn bonus points
    • Instant approval
    • No hard credit check
    • Instant Balance Payments via Interac e-transfer

President's Choice Financial Mastercard

Great for earning PC points and very low credit score requirement
  • Annual Fee
    $0
  • Interest Rate
    20.97% on purchases, 22.97% on cash advances
  • Welcome Bonus
    20,000 pts
  • Rec. Credit Score
    560+
  • Features & Benefits

    • Earn 20,000 PC Optimum points as a welcome bonus
    • Extended warranty and purchase assurance
    • Access to Mastercard Global Services
    • Fraud protection and Proactive monitoring to manage and protect your credit card information
  • Pros & Cons

    Why we like it

    Great for earning PC points and very low credit score requirement

    Pros

    • 20,000 bonus welcome points
    • Earn 30 PC Optimum points per litre of gas at Esso and Mobil gas stations
    • Earn 10 PC Optimum points per $1 spent on groceries, household utilities, and beauty products
    • Doubles the warranty period offered by the manufacturer when using the card
    • No annual fee
    • Low credit score requirement (560+)

    Cons

    • No travel insurance
    • Requires a minimum yearly income of $60,000
  • More Details

    Bonuses and fees

    The President's Choice Financial Mastercard is a store credit card that offers very generous rewards when you shop at any of their partner stores. It doesn’t charge annual fees, and you can earn bonus points on most everyday purchases.

    Rewards

    PC Financial is partnered with a lot of stores; here are some of the best rewards by category:

    • 10 PC points per $1 spent on grocery stores (Loblaws, No Frills, and more)
    • 25 PC points per $1 spent at drugstores (Shoppers Drug Mart)
    • 30 PC points per litre of gas at Esso gas stations
    • 10 PC points per $1 spent everywhere else 

    Make sure to check the PC Financial site for new partner stores.

    Perks and benefits

    • 21-day interest-free grace period on purchases
    • 4 free additional authorized users
    • Extended warranty

Refresh Financial Secured Visa Card

Great for instant and guaranteed approval and credit score building
  • Annual Fee
    $49
  • Interest Rate
    17.99% on purchases
  • Welcome Bonus
    N/A
  • Rec. Credit Score
    300+
  • Features & Benefits

    • No credit check
    • Guaranteed approval
    • Minimum deposit of $200 ($10,000 max.)
  • Pros & Cons

    Why we like it

    Great for instant and guaranteed approval and credit score building

    Pros

    • No credit card or credit card history checks
    • All your credit card payments are reported to Equifax and TransUnion to help you build your credit
    • Instant and guaranteed approval for all applicants
    • Great for building your credit score
    • Low interest rate of 17.99% on purchases
    • No minimum personal income requirement

    Cons

    • Minimum deposit of $200
    • No welcome bonus
  • More Details

    Bonuses and fees

    The Refresh Financial Secured Visa Card is a secured credit card that offers an easy way to build your credit. It reports monthly to Equifax and TransUnion, and almost all applications are approved instantly. However, you will need to make a $200 deposit.

    This card has a base annual fee of $12.95, plus a maintenance fee of $3 per month. This adds up to $48.95 per year.

    Perks and Benefits 

    • Guaranteed approval
    • No hard credit check
    • All your payments are reported monthly to Equifax and TransUnion
    • Budget your spending by depositing exactly how much you want to spend
    • Deposit up to $10,000 and make everyday purchases

    Signing up for this secured card is very quick, and the application process can be completed online.

Scotiabank Value Visa Card

Great for building your credit, low balance transfer fees, and no annual fee
  • Annual Fee
    $29 (1st year free)
  • Interest Rate
    12.99% on purchase, 12.99% on cash advances
  • Welcome Bonus
    N/A
  • Rec. Credit Score
    660+
  • Features & Benefits

    • 0% introductory interest rate for the first 6 months
    • Annual fee waived for the first year
    • Transfer your balance seamlessly and pay higher interest balances quicker
  • Pros & Cons

    Why we like it

    Great for building your credit, low balance transfer fees, and no annual fee

    Pros

    • 0% interest on cash advances for the first 6 months
    • No annual fee for the first year
    • Low interest rate of just 12.99%
    • A low annual fee of just $29 (waived the first year)
    • Great for building your credit score (reports monthly to TransUnion)
    • No fees when requesting additional cards

    Cons

    • No welcome bonus
    • No rewards or perks
  • More Details

    Bonuses and fees

    The Scotiabank Value Visa Card is a low-interest credit card with a low annual fee of $29, waived for the first year. This card offers an introductory interest on cash advances of 0% for the first 6 months, and 12.99% after that. The same interest rate applies to purchases.

    Perks and benefits

    • Great for rebuilding your credit history
    • Interest-free grace period
    • Pay lower interests by transferring your balances to the Scotiabank card
    • Set up payment schedules on purchases over $100 through Scotiabank’s SelectPay, and pay no interests
    • Complimentary Avis and Budget car rental membership plus 25% discount in Canada and the US

    Insurance

    The Scotiabank Value Visa Card offers two insurance bundles, Basic and Comprehensive Protection. 

    • The basic bundle includes medical insurance for up to $50,000
    • The Comprehensive bundle includes medical, job loss, strike or lockout, and disability insurance

What Is A Bad Credit Score?

Credit score numbers in Canada range from 300 to 900; the higher the number the more trustworthy they deem you, and the better the perks and benefits you will be able to access. In fact, some credit cards have specific credit score requirements to apply. Here’s a breakdown so you can see how you stack up:

  • Excellent credit score: Between 760-900
  • Very Good credit score: Between 725-759
  • Good credit score: Between 660-724
  • Fair credit score: Between 560-659
  • Bad credit score: Between 300-559

What Are Credit Card Bureaus?

Credit bureaus – also known as Consumer Credit Reporting Agencies – are private companies that collect and aggregate credit card information about you and how you’ve used your credit in the past. It tracks things like how long you’ve had credit, if you miss your payments, how many credit cards you have, and more. Here’s a list of all the factors that can affect your credit score:

  • Length of your credit history
  • If you carry a balance on your credit cards
  • If you frequently miss payments
  • Amount of outstanding debts
  • Credit card utilization rate
  • Number of recent credit card applications
  • Records of insolvency or bankruptcy

In Canada, there are two major credit bureaus: TransUnion and Equifax. They assess your credit based on the parameters listed about your credit history and rank you based on how likely you are to pay back a debt. 

Pros & Cons Of A Credit Card For Bad Credit

Pros: Why A Bad-Credit Credit Card May Be Worth It

  • Reports monthly to credit card bureaus
  • Great for rebuilding your credit score
  • No risk of overspending
  • Low-to-no credit score requirements

Cons: Why A Bad-Credit Credit Card May Not Be Worth It

  • Very limited perks and benefits
  • Some cards have high-security deposit requirements
  • Your security deposit is locked in the account until you close it
  • You can still lose credit score points if you fail to pay your balance on time

Types Of Credit Cards For Bad Credit In Canada

#1 Secured Credit Cards

Secured credit cards require new users to provide a security deposit before they can start using the card. This deposit is used to offset the lending risk that credit card companies take by issuing a card to someone with bad credit. It also works as collateral and a credit limit; cardholders can never spend more than the money that was deposited.

#2 Prepaid Credit Cards

A prepaid credit card is a type of credit card that allows customers to make purchases from the funds loaded onto the prepaid card. Unlike traditional credit cards, prepaid card users don’t borrow money from credit card companies – instead, users have a credit limit equal to the amount they deposit. One limitation is that some prepaid cards are store-bound and can only be used at select stores.

#3 Guaranteed Approval Credit Cards 

Guaranteed approval credit cards are just regular credit cards that are guaranteed to approve your application. This type of card is usually considered a sub-type of secured card that comes with guaranteed approval. Like secured credit cards, they’re very limited in terms of perks and benefits.

How To Choose A Credit Card For Bad Credit In Canada

Credit Bureau Reporting

If you have a bad credit score, the main reason for getting a credit card is to rebuild your credit score. First, you should check if the credit card company reports to credit card bureaus. Credit bureaus collect information about your repayment history, utilization rate, and public records like bankruptcies, and these are the reason your credit score goes up or down. The two biggest bureaus in Canada are Equifax and TransUnion; make sure your credit card issuer reports monthly to both of these.

Annual Fee

If you have bad credit, the last thing you want is an annual fee. Most cards available for people with low credit – secured and prepaid – have very limited perks and rewards, and it’s usually not worth it paying an annual fee for that. Look for a card that charges no annual fee; you can always apply for a dedicated rewards card that will offer better perks.

Low Minimum Deposits

Another limiting factor is the minimum deposit. Cards for people with bad credit usually work by providing you a line of credit that matches your security deposit. However, some issuers have very high minimum deposits in place, which may not be ideal for all customers. You may want to look for a card that has a low minimum deposit.

Upgrade To An Unsecured Card

After you’ve built up your bad credit, you’ll want to upgrade to a credit card that offers better benefits and perks, like a cash back or travel card. Check if the card issuer offers the option to upgrade your secured or prepaid card to an unsecured one with better rewards – it’s okay if it doesn’t, you can always look for a dedicated rewards credit card after you improve your credit.

How To Apply For A Credit Card For Bad Credit In Canada

Age

In Canada, the minimum age to request a credit card is the age of the majority. Teens under that age can’t get approved for credit cards but can be added as authorized users to one of their parent’s credit cards. For reference, the age of the majority in Alberta, Manitoba, Ontario, Quebec, Prince Edward Island, and Saskatchewan is 18 years old. In all other provinces, the age of the majority is 19.

Residency Status

Canadian credit cards are available to residents and non-permanent residents. However, most premium credit cards require you to be a Canadian resident. For other card types like prepaid and secured credit cards, you don’t even need a credit history. At the end of the day, residency requirements will depend on the specific credit card issuer and the type of card.

Minimum Security Deposit

Most credit cards for people with bad credit require a security deposit. This amount ranges from $200 to $500, and is returned in full after you cancel your credit card – as long as your account is in good standing.

Bad-Credit Credit Cards FAQs

Are Cash Back Credit Cards worth it?

Bad Credit cards might be worth it for you:

  • If you have a low credit score and are looking to rebuild it
  • If you’re looking for a credit card with a low-to-no annual fee
  • If you want to limit your spending and are looking for a card that can help you manage your budget

Bad Credit cards might not be worth it for you:

  • If you are looking for a credit card with lots of perks and benefits 
  • If you have a high credit score and can apply for cards with better rewards

What Is The Best Free Credit Card For Bad Credit In Canada?

The best free Bad Credit card in Canada is the Neo Financial Mastercard. It features a 15% cash back on your first purchase, a quick sign-up process, and the option to sync it with your Apple and Google Pay to earn cash back on online purchases

Can I Get A Credit Card With Bad Credit In Canada?

Yes, you can get a credit card in Canada even with bad credit. You may not be eligible for premium cards that offer the best benefits, but secured and prepaid cards usually have low-to-no credit score requirements.

How Can I Fix My Bad Credit In Canada?

Secured credit cards are one of the best ways to rebuild your credit – as long as you make your payments on time. Other ways to rebuild your credit are to limit your number of credit card applications (hard checks will hurt your credit score in the short term), keep your utilization percentage on your credit cards low (less than 35%), and use different types of credit.

How Long Does It Take To Rebuild Your Credit In Canada?

It can take from three to six months to see an improvement in your credit score. Ultimately it will depend on your starting score and the credit score you’re aiming for; it can take years of paying your bills and credit on time.

Is It True That After 7 Years Your Credit Score Is Clear?

Yes, after 6 years, your credit score is cleared of all information that affects negatively your credit score. Here are some examples of negative information:

  • Missed payments on a debt (includes credit card debts)
  • Accounts sent to a collection agency
  • Bankruptcies

Keep in mind the debt is not cleared – just the negative information that appears on your credit report.

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