When it comes to loans, having a fair credit score means you’ll either have fewer options or pay higher interest rates.
In the case of credit cards, there are limited options. To get eligible for most credit cards, you must have a strong credit score.
However, there are a few outliers. For folks with fair credit, there are a few excellent credit cards. Here are the best credit cards for fair credit in Canada, as well as their pros and cons.
Key Takeaways
- The 10 best credit cards for people with a fair credit score in Canada, their pros and cons.
- The Best Credit Cards for Fair Credit in Canada
- Answers to most of the frequently asked questions on credit cards for fair credit
What Is a Credit Card for Fair Credit?
Fair-credit credit cards demand a credit score of at least 560 to apply. Annual costs for these cards are significantly lower than those for certain premium cards, and fees should be well around $50. Some don’t even impose annual fees or waive the first-year fee entirely.
Cards for fair credit include cash back cards, balance transfer & low credit cards, and budget travel cards. Benefits of no-fee choices include high cashback rates of up to 5% for the first few months, attractive welcome bonuses, and grace periods on balance transfers.
The premium fair-credit credit cards include an annual charge of $120-$150 and numerous travel amenities such as insurance, concierge services, and more. These are still limited in comparison to some of the premium travel cards available to persons with good credit.
The Best Credit Cards for Fair Credit in Canada
Below are some of the best credit cards for fair credit in Canada, and they include the following:
#1. Neo Financial Mastercard: Best 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+
Pros
- Earn 15% cash back on the first purchase
- Earn 5% cash back at partner stores (Canadian Tire, Sport Chek, Loblaws, and more)
- No cap on how much cash back one can earn
- There are no annual fees
- There is No minimum income requirement
- Mastercard Zero Liability Protection
Cons
- It Needs a good credit score (660+)
- It has Very limited features
#2. Home Trust Preferred Visa Card: Best for no foreign fees and also no limit on how much cash back one can earn
- Annual fee: $0
- Interest Rate: 19.99% on purchases, 19.99% on cash advances
- Welcome Bonus: N/A
- Rec. Credit Score: 660+
Pros
- There are no foreign exchange fees when buying abroad or online
- There is No annual fee
- 1% cash back on all purchases
- No cap on how much cash back one can earn
- Car rental insurance
- Visa Zero Liability Policy
Cons
- There is no welcome bonus
- Needs a good credit score (660+)
#3. Scotiabank Value Visa Card: Best 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+
Pros
- 0% interest on cash advances for the first six months
- There is no annual fee for the first year
- Very Low-interest rate of just 12.99%
- A low annual fee of just $29 (waived the first year)
- best for building your credit score (reports monthly to TransUnion)
- No fees when requesting additional cards
Cons
- There is no welcome bonus
- There are no rewards or perks
#4. MBNA Rewards Platinum Plus Mastercard: Best for high earn rates on restaurants, groceries, and also household utilities
- Annual fee: $0
- Interest Rate: 19.99% on purchases, 24.99% on cash advances
- Welcome Bonus: 10,000 pts
- Rec. Credit Score: 660+
Pros
- 10,000 bonus welcome points available
- There is No annual fee.
- Earn 4 points per $1 spent on eligible restaurants, groceries, and also household utilities for the first 90 days (2 points per $1 thereafter)
- Car rental and mobile device insurance (for up to $1,000)
- Annual birthday bonus of 10% of all the points earned in the last 12 months (maximum 10,000)
- An Extended warranty on purchases
Cons
- Low point yield after earning 10,000 points in a year (1 point per $1 spent)
- Can earn only bonus points on select categories
#5. President’s Choice Financial World Elite Mastercard: This is best for earning PC points and has a very low credit score requirement
- Annual fee: $0
- Interest Rate: 20.97% on purchase, 22.97% on cash advances
- Welcome Bonus: 20,000 pts
- Rec. Credit Score: 560+
Pros
- It has 20,000 bonus welcome points
- Earn up to 45 PC points per 1 dollar when buying at partner stores
- Get Comprehensive travel and medical insurance
- A Complimentary Concierge services
- There is No annual fee
- Has Relatively low credit score requirement (560+)
Cons
- The PC points can only be redeemed at select stores
- It Requires a minimum yearly income of $80,000
#6. American Express Cobalt Card: Best for exchanging MR points with other rewards programs as well as high MR earn rate
- Annual fee: $155 (1st year free)
- Interest Rate: 20.99% on purchases, 21.99% on cash advances
- Welcome Bonus: 30,000 MR points
- Rec. Credit Score: 660+
Pros
- 30,000 MR bonus is available.
- Earn 5 points per $1 spent on eligible eats and drinks purchases
- Transfer points 1:1 to other loyalty programs (Aeroplan, Marriot Bonvoy, and more)
- Access to presale tickets as well as VIP seating in select events through American Express’ Front of The Line program
- $100 Travel Credit and four complimentary visits to Plaza Premium Lounges
- Comprehensive travel and also medical insurance
Cons
- requires a good credit score (660+)
- a High annual fee ($155)
#7. TD Aeroplan Visa Infinite Card: best for earning Aeroplan points, a generous welcome bonus, as well as exclusive travel perks
- Annual fee: $139
- Interest Rate: 19.99% on purchases, 22.99% on cash advances
- Welcome Bonus: 50,000 pts
- Rec. Credit Score: 660+
Pros
- 50,000 bonus welcome points
- Earn 1.5 Aeroplan points per $1 spent
- Earn double the points when you pay with your card at over 320 partner brands
- Your Aeroplan points won’t expire as long as your card is in good standing
- Comprehensive travel and medical insurance
- Complimentary Concierge service
Cons
- Needs a good credit score (660+)
- Requires a yearly minimum income of $60,000
#8. BMO CashBack MasterCard: Great for high earn rate on groceries and very low balance transfer fees
- Annual fee: $0
- Interest Rate: 19.99% on purchases, 22.99% on cash advances
- Welcome Bonus: $25
- Rec. Credit Score: 660+
Pros
- Redeem any amount of cashback instantly and set up automatic deposits
- Extended warranty and protection on all your purchases
- 25% off at National Car Rental and Alamo Rent a Car locations
- receive 5% cash back on all purchases for the first three months
- 3% cash back on groceries
- Very low introductory interest rate (1.99%) for the first nine months
Cons
- Cashback capped at $500/month
- Low base earn rate
#9. Tangerine Money-Back Credit Card: Best for no annual cash back limit and a low-interest rate on balance transfers
- Annual fee: $0
- Interest Rate: 19.95% on purchases
- Welcome Bonus: $100
- Rec. Credit Score: 660+
Pros
- There is a $100 bonus
- Select two Money-Back categories and start earning 2% cash back (0.50% cash back on all others)
- There is no annual limit to how much cash back one can earn
- Cash back earnings are paid out monthly
- Customizable cash back spending categories
- Low 1.95% interest on balance transfers
Cons
- There are very limited features
- Low cashback rate compared to other cashback cards
#10. President’s Choice Financial Mastercard: best 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+
Pros
- Available 20,000 bonus welcome points
- Earn 30 PC Optimum points per litre of gas at Esso and also 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
- There is No annual fee
- There are Low credit score requirements (560+)
Cons
- There is No travel insurance
- Requires a yearly minimum income of $60,000
How To Choose a Best Credit Cards for Fair Credit in Canada
Here are some factors to consider depending on the sort of card you choose:
Promotional Bonus
Promotional incentives are limited-time offers that credit card companies make to new cardholders. These are usually greater cashback rates and higher point yields for cashback and travel cards, respectively.
Promotional bonuses for balance transfer cards are typically grace periods during which you do not pay interest on your transferred balances. Check the non-promotional rates and evaluate if it’s worth it to apply for the card ahead of time.
Annual fee
When shopping for a credit card, the first thing you should consider is the annual fee. If you are unable to take advantage of all the perks and privileges, a large yearly charge may dramatically lower your earnings.
Paying a higher annual fee generally results in more rewards, but you still have to spend money to get money. Make sure the yearly charge is proportional to how much you intend to use your card in a given year.
Welcome Bonus
In Canada, premium cash back and travel reward cards typically come with a welcome bonus or a special rate period. Welcome bonuses are usually in the form of points that can be redeemed for incentives, and the type of card that offers a welcome bonus usually has an annual charge as well.
Perks & benefits
Depending on the sort of card you desire, you want it to have the finest advantages, which could include high cashback rates, discounts on flights and hotel stays, or low-interest rates.
Read Also:
How To Get Instant Approval Virtual Credit Card With Instant Use
How To Build Credit Without A Credit Card (2022 Guide)
How To Accept Credit Card Payments In 7 Simple Ways
FAQs
Can I get a credit card with a 600 score in Canada?
Credit scores in Canada range from 300 to 900 points, with most credit bureaus indicating that a good score begins at around 650. In general, 650 is the minimum credit score required for credit card approval.
Can I get a credit card with a 750-credit score?
FICO scores can reach 850, but a score of 750 or higher entitles you to the finest credit deals available, particularly on credit cards. Credit card companies want your business and will provide the finest combination of incentives and fees if you have excellent credit.
What is a fair credit score in Canada?
A fair credit score begins with a rating of 575 and rises to 650. The higher your score, the more trustworthy you will appear to banks, lenders, employers, and landlords. The closer your score comes to 575, the closer you are to having a negative credit score.
How much credit limit can I get with 700 credits?
“In the 700 clubs, your credit limit will most likely be close to the average credit limit for a freshly issued card, around $5,000,” “That limit can change depending on income and other debts.”
You can learn more from the video below:
About Author
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My name is Precious Ejiofor, I am a professional self motivated, dependable writer and editor, with over 4 year of experience in writing for variety of business and platforms. I am able and capable to write on any kind of topic.
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