You may have heard that having a good credit score is something you should strive for, but what does that mean? Well, our credit score is a number between 300 and 900, the higher the number, the better our credit score is. This is important since we require a high credit score if we ever plan on getting a major loan in the future such as a mortgage or car financing. If you’re not sure what your credit score is, check it for free with Borrowell.
Having a low credit score will also mean that we won’t qualify for some of the best travel credit cards in Canada or the best cash back credit cards in Canada. In fact, we’ll likely have limited access to any type of credit which could be problematic. The good news is that if you want to rebuild your credit score, all you need to do is get one of the best credit cards for bad credit.
|Guaranteed approval||Annual fee||Interest rate|
|Home Trust Secured Visa Card||95%+||Yes||19.99%|
|Scotiabank Value Visa Card||No||$29||12.99%|
|Refresh Financial Secured Visa||Yes||$49||17.99%|
|Capital One Guaranteed Secured Mastercard||Yes||$59||19.80%|
Home Trust Secured Visa Card
- No annual fee
- $500 minimum deposit
- 19.99% interest rate
- 95%+ approval rate
What’s appealing about the Home Trust Secured Visa Card is that it comes with no annual fee. There’s a $500 minimum deposit required, but having funds secured is typical for the best credit cards for bad credit. These security funds can’t be used to pay your monthly balance, but you would get that money back if you ever close your account.
As you make payments on a regular basis, your credit score will slowly go up. Don’t expect it to go from poor to excellent overnight, think of it more of a slow burn as you learn to use your credit responsibly. When applying for this card, there is a hard check done on your account, but your credit score is not the only factor in determining if you’re approved. This card has an approval rating over 95% so it’s a great choice if you’re looking to take control of your credit.
Scotiabank Value Visa Card
- $29 annual fee
- 12.99% interest rate
- 0.99% interest rate on balance transfers for the first 6 months
- Up to 25% off at participating Avis car rental locations
The Scotiabank Value Visa Card is meant for people who have a credit score in the fair to good range but are still struggling to be approved for higher tier cards. You don’t get many benefits, but you do have an optional balance transfer that comes with an interest rate of 0.99% for six months. Once the promotional period ends, you’ll be paying 12.99% interest which is still relatively low and one of the reasons why this card is one of the best balance transfer credit cards in Canada. As you can imagine, this is a great opportunity to eliminate any outstanding credit card debt you may have.
Even though the card comes with an annual fee, the only extra benefit you get is up to 25% off at participating Avis car rental locations which is nice, but nothing special.
Refresh Financial Secured Visa
- $49 annual fee
- $200 minimum deposit
- 17.99% interest rate
- Guaranteed approval
What’s interesting about the Refresh Financial Secured Visa is that there’s no hard credit check done when you apply. Normally, a hard check is done whenever you apply for new credit which results in a 10 point drop in your credit score, but not with this card since you’re guaranteed approval.
Although the annual fee of $49 is higher compared to the Home Trust Secured Visa Card, the minimum deposit is much lower at $200 compared to $500. The interest rate is also slightly lower with this card at 17.99%. When you apply for this card, you also get access to Refresh f.i.t. which is an online course that will educate you on how to make smarter decisions with your money. Oh, you also get $100 for every referral you make.
Capital One Guaranteed Secured Mastercard
- $59 annual fee
- $75 minimum deposit
- 19.80% interest rate
- Guaranteed approval
Capital One always strives to help Canadians rebuild their credit with their Capital One Guaranteed Secured Mastercard. You’re guaranteed to get approved for this card and you only need $75 as a security deposit. That said, you can increase your deposit to get access to additional credit.
Even though the card is guaranteed, you do need to meet some basic conditions. You need to be at least the age of majority in your province or territory. You haven’t applied for a Capital One account more than once in the last 30 days or had a Capital One account that was not in good standing in the last year. You don’t have an existing or pending account with Capital One and you have the security funds available