If you’re looking for the best credit cards to rebuild credit in Canada, look no further! Here are 10 of the best options available. Credit cards that help people rebuild their credit are secured credit cards that don’t need credit score requirements to apply.
Secured credit cards report periodically to the major credit card bureaus in Equifax, Canada, and TransUnion, which means that if people keep making their credit card payments on time, they will slowly start rebuilding their credit.
KEY TAKEAWAYS
- You will learn what credit cards to rebuild credit works.
- How secure credit cards work.
- List of the best credit cards to rebuild credit in Canada.
- Answers to some frequently asked questions on the best credit card to rebuild credit.
10 Best Credit Cards to Rebuild Credit in Canada
Secured credit card work by using a security deposit to ensure they will get their principal back. If people have low credit, they are less likely to pay back debts, and credit card providers want to minimize that risk.
Compared to regular credit cards, secured credit cards are limited perks and don’t offer insurance or cash-back benefits.
Anything amount above $50 is considered a high annual fee for a secured credit card. Like a debit card, people are limited by their security deposit and can’t spend more than the amount they deposited – that also means no overdraft.
Let’s look at the best credit cards to rebuild credit in Canada.
1. Home Trust Secured Visa
A credit card is a great way to start building credit. The credit card reports monthly to Equifax and TransUnion, and the card doesn’t have a credit score minimum – virtually, people can apply and get approved. In terms of fees, the credit card has 2 options:
- Low-Interest Rate Option: $5 monthly fee and $60 for a year with an interest rate of 14.99 percent on unpaid balances
- No Annual-Fee Option: $0 annual fee with an interest rate of 19.99 percent on unpaid balances
The difference between these options is that for the no annual fee option, people pay higher interest if they fall behind on payments.
Features
- Offers Minimum security deposit of $500 ($10,000 maximum.)
- Make purchases online or over the phone
- Plan and book a vacation
- Withdraw cash from over 1 million ATMs globally
- Apply even if declared bankrupt in the past
NB: A Discharge Certificate is necessary
Pros
- Offers No minimum credit score and credit history requirements
- Sync with online payment platforms like Google Pay, Apple Pay, and Samsung Pay
- Fraud protection on all spending
- The credit card is great for building credit score (reports monthly to Equifax and TransUnion)
- Option to pay a yearly fee of $59 to reduce purchase interests to 14.90 percent (%)
- Manage accounts and pay bills from Home Trust Visa Online.
Cons
- Offers Minimum deposit is $500
- Offers No welcome bonus or reward on purchases
2. KOHO Mastercard Prepaid Card
The Mastercard doesn’t require a good credit history or a high credit score. The credit card has no annual fees and is compatible with other KOHO services: people can manage it from their KOHO mobile app, build their credit, and link it with their KOHO Savings account. People can apply for the card and approve it in just a few minutes.
Features
- Receive a physical and virtual card
- Load funds via direct deposits or e-transfer
- Offers No foreign exchange fee
- Price protection
- Complimentary personalized financial coaching
- Sync your KOHO card with Google Pay, Apple Pay, and Samsung Pay and receive real-time spending notifications
- 10 percent (%) cash back for 90 days after referring a friend
Pros
- Set up automatic RoundUps to grow people’s savings
- Track spending habits in real-time
- Access payroll 3 days early
- 0.5 percent (%) cash back on all purchases
- Offers No annual fee
- Refer friends and earn 10 percent (%) cash back on all purchases for 90 days
Cons
- Offers Low cashback rate plus no bonus points on any category
- Offers 1.5 percent (%) forex exchange fees
4. Plastk Secured Credit Card
The Credit Card is a premium secured card that offers many benefits for people with low credit scores. The credit card has a base annual fee of $48 with a maintenance fee of $6 per month.
It sums up to a total of $120 per year. The credit card has no credit history requirement or minimum income, and people can start using it as soon as they make an initial deposit. The minimum deposit is $300, and people can load up to $10,000.
Features
- Monthly credit reports to Equifax
- 25 days interest-free grace period
- People earn 5,000 Rewards Points as a welcome bonus
- Offers 0% introductory interest rate for the first three months
- Offers minimum deposit of $300 to $10,000
Pros
- 25 days no-interest period on purchases
- Offers no minimum credit score or credit history requirements
- Low annual fee
- Offers 5,000 bonus welcome points
- The credit card is great for building a credit score
- Offers 0% interest rates for the first three (3) months
Cons
- Offers Minimum deposit of $300
- High annual fee
5. Scotiabank Value Visa Card
The Visa Card is a low-interest credit card with a low annual fee of just $29, waived for the 1st year. The card offers an introductory interest on cash advances of 0 percent (%) for the first six months and 12.99 percent (%) after that. The same interest rate applies to purchases.
Features
- Offers 0% introductory interest rate for the first six months
- Annual fee waived for the 1st year
- Transfer balance seamlessly and pay higher interest balances quicker
Pros
- Offers 0% interest on cash advances for the first six months
- No annual fee for the 1st year
- A low-interest rate of 12.99%
- A low annual fee of just $29 (waived the 1st year)
- Great for building a credit score
- No fees are added when requesting additional cards
Cons
- Offers No welcome bonus
- Offers No rewards or perks
6. Refresh Financial Secured Visa Card
The Visa Card is a secured credit card that offers a simple way to build credit. The card reports monthly to Equifax and TransUnion, and almost all applications get approved instantly.
However, people will need to make a $200 deposit. The card has a base annual fee of $12.95 and a maintenance fee of $3 per month. This sum up to $48.95 per year.
Features
- No credit checks
- The credit card Guaranteed approval
- Offers Minimum deposit of $200 ($10,000 max.)
Pros
- No credit card history checks
- All credit card payments are reported to TransUnion and Equifax to help build credit
- Instant and guaranteed approval
- Great for building a credit score
- A low-interest rate of 17.99 percent (%) on purchases
- No minimum personal income requirement
Cons
- Offers a minimum deposit of $200
- Offers No welcome bonus
7. Capital One Guaranteed Approval Secured Mastercard
The Mastercard is a secured credit card targeted at people with low credit scores. The credit card charges an annual fee of $59, considered high for secured credit cards, but it comes with benefits like travel assistance and insurance.
The credit card reports monthly to Canada’s 2 largest credit card bureaus (TransUnion and Equifax).
Features
- Offers Minimum security deposit between $75 and $300
- Get people deposit back in full after they close their account
Pros
- Great for building credit
- Offers No annual fee
- No credit card or credit card history checks
- No foreign exchange fees when people are purchasing abroad or online
- Flexible initial deposit ($49, $99, $200)
- Add additional authorized users at no fee
Cons
- Offers High-interest rates on purchases (26.99 percent)
- Offers No rewards on purchases
8. President’s Choice Financial Mastercard
The Mastercard is a store credit card that offers people very generous rewards when they shop at any of their partner stores. The card doesn’t charge annual fees, and people can earn bonus points on everyday purchases.
Features
- Offers Access to Mastercard Global Services
- Fraud protection and Proactive monitoring to protect and manage credit card information
- People can earn 20,000 PC Optimum points as a welcome bonus
- Purchase assurance and extended warranty
Pros
- Offers 20,000 bonus welcome points
- 2x of the warranty period offered by the manufacturer when using the card
- No annual fee
- People can earn 30 PC Optimum points for each liter of gas at Esso and Mobil gas stations
- People can earn 10 PC Optimum points for each $1 spent on household utilities, groceries, and beauty products
- The low credit score requirement is 560 and above
Cons
- Offers No travel insurance
- Requires a minimum yearly income of $60,000
9. Canadian Tire Triangle Mastercard
The Mastercard is no-fee cash back. One of the cons of these credit cards is that rewards are paid in CT Money, and people can only redeem them at select stores like Sport Chek, Canadian Tire, and Atmosphere. However, if people often shop at any of these stores, they will find that the cashback rates are very generous.
Features
- People earn 15 percent (%) cashback in CT Money on their first purchase as a welcome bonus.
- Redeem CT Money at Canadian Tire, Hockey Experts, Sport Chek, Atmosphere, Sports Rousseau, and participating Sports Experts stores
- Offers No annual fee
Pros
- Collect 1.5 percent (%) in CT money on all grocery purchases for up to $12,000 per year
- Get financing for purchases over $150 at select stores (no interest and no fees)
- Customer support is available 24/7
- Offers No annual fee
- Offers 4 percent (%) back in CT money on all purchases in Canadian Tire stores
- People earn 5 cents per liter in CT money at Gas+ service stations
Cons
- People can only redeem CT points at select partner stores (Atmosphere, CT, Sport Chek, and Sports Experts stores, among others)
- High credit score to qualify (at least 660 and above)
10. Neo Financial Mastercard
The Mastercard is a no-fee cashback card that is part of the Neo family of products (Invest, Savings, and Mortgages). The credit card is partnered with more than 7,000 merchants through the Merchant Partners program and offers cashback offers and promotions.
When people make their first purchase at Merchant Partners, they will earn 15 percent (%) in cash back.
The credit card doesn’t offer a fixed cashback rate. Instead, people will earn cash back based on the offers and the plan they choose. People can expect an average cashback of 5 percent on every purchase; they are so confident about how much people will earn that if they fall below 0.5% on average, they will top people up to 0.5%.
Features
- People earn 15 percent (%) in cash back on their first purchase as a welcome bonus
- Offers No annual fee
- Fast sign-up process
- People can Sync their Neo credit card with Google Pay and Apple Play
Pros
- Offers No annual fees
- No minimum income requirement
- Mastercard Zero Liability Protection
- Earn 15 percent (%) cashback on the first purchase
- Earn 5 percent (%) cash back at partner stores (Loblaws, Canadian Tire, Sport Chek, and more)
- No cap on how much cash back people can earn
Cons
- Needs a good credit score of 660 and above
- Has Very limited features
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
Conclusion
Traditionally, credit card companies risk default when issuing a card to people with low credit. Secured credit cards dedicated to rebuilding credit eliminate this risk by expecting a cardholder to make a security deposit, which acts as collateral and credit limit; people can only use as much as they deposited.
In that way, secured credit cards are like debit cards, but unlike debit cards, secured cards will help people rebuild their credit.
FAQS
What is the best credit card to build your credit backup?
Secured credit cards are one of the best chances of building credit.
What is the fastest way to rebuild bad credit?
- Review Credit Report.
- Pay Bills on Time.
- Catch Up on Overdue Bills.
- Become an Authorized User.
- Consider a Secured Credit Card.
- Keep Some of Your Credit Available.
- Stay on Top of Your Progress.
What credit card is the easiest to get in Canada?
There are no easy credit cards. People must learn to explore their options when matching the right easy approval credit card with their financial situation.
Which bank gives credit cards easily?
Canada’s big 5 banks offer credit cards with instant approval, as do a few other card providers.
What credit score is needed for a BMO credit card?
People only need a fair credit score to qualify (575–649 credit score). However, their application will be denied if the person has declared bankruptcy within the last 7 years.
You can learn more from the video below:
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