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The Best Canadian Credit Cards For Rebuilding Credit

In daily life, you need a credit card for all kinds of transactions and if you have no card or your cards are over-extended or you have a poor credit score, you may well find it difficult get any kind of loan, lease an apartment, buy goods on installments or apply for a mortgage. In such a scenario you may find it hard to get a new credit card. For those hoping to use credit as a way to restore blemished credit, understanding your options is very important in choosing the best path forward.

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Can You Repair Your Credit Ratings?

Don’t despair, it is possible to repair your credit ratings and you can do this by getting and using another credit card. In order to repair your credit ratings, when you get a new card, you should

  • Make the card payments (This should be a no brainer but falling behind can be very detrimental.)
  • Use only a small fraction of your limit every month (30%-35%) and improve your credit score (Carrying larget balances will only further lower your score).
  • Avoid paying minimum balance and pay in full (Carrying SOME sort of balance shows you can budget for payments and manage your finances responsibly).
  • Don’t incur late payment charges.

This will slowly but surely improve your bad credit ratings.

Credit Cards Available with Bad Credit in Canada

There are a wide range of credit cards available if you bad credit (or no credit) in Canada. You can get secured or unsecured credit cards, guaranteed credit cards, balance transfer credit cards, and even store credit cards. All credit cards are not created equal and you do need to spend some time and put your research in place before trying to get a credit card as all kinds of credit cards may not help you repair bad credit. Depending on your financial situation and your credit history and other eligibility criteria, you can check out the following credit cards:

  • The Capital One Guaranteed Credit Card is popular for building or re-building credit history and repairing bad credit. Depending on what criteria you fulfill, the company can offer you a secured or an unsecured credit card. You can get a credit limit ranging from $300 to $7,000 with an APR of 17.9% and an annual fee of $59. The caveat with this card is that you should not have an existing account or credit with the company that is not in good standing during the course of the previous year.
  • The Refresh Financial Secured Credit Card is available to people who have a poor or bad credit history. However, you do need to have a Canadian ID, bank account and proof of minimum monthly income. The deposit for this card starts at $200 and goes up to $10,000 and it carries an APR of 17.99% and an annual fee of $12.95.
  • The Home Trust Secured Credit Card is available with a deposit ranging from $500 to $10,000 and your deposit will be the line of credit you get. You can get this card by paying an annual fee of $59 in which case your APR is 14.9% or you can get it free, in which your APR is 19.99%.
  • Another card in the same category is the BMO Secured Credit Card. This card is available with a deposit of $100 to $10,000 and has an annual fee of only $6.95.

When you do get another credit card despite bad credit in Canada, do not fall into another debt trap, but use your card wisely to repair your bad credit ratings.

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Featured Tip

“For me, I am driven by two main philosophies: know more today about the world than I knew yesterday and lessen the suffering of others. You'd be surprised how far that gets you.”
― Neil deGrasse Tyson

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