Are you a Canadian citizen and struggling with a bad credit score? Trust us, you're not alone! Repairing your credit can be a daunting task, but fear not because Flik Eco has got you covered. In this comprehensive guide, we'll be discussing the best Canadian credit cards for individuals with bad credit, as well as helpful tips to get you back on track!
Canadian Credit Cards For Bad Credit Table of Contents
Understanding Bad Credit
Before we dive into the best credit cards, it's essential to understand what bad credit means. In Canada, credit scores typically range from 300 to 900, with 300 being the lowest possible score and 900 being the highest. A score below 600 is considered "poor" or "bad," which can make it difficult to secure credit, loans, or other financial products.
Having bad credit can result from a variety of factors, such as late payments, maxed-out credit cards, bankruptcy, and more. It's crucial to identify the root causes of your credit issues and work towards improving your financial habits.
Canadian Secured Credit Cards
When it comes to credit cards for individuals with bad credit, secured credit cards are one of the most popular options. These cards require a security deposit, which acts as collateral and determines your credit limit. By making on-time payments and managing your secured credit card responsibly, you can start rebuilding your credit score.
Here are some top secured credit card options for Canadians with bad credit:
- Home Trust Secured Visa: Known for its flexibility, the Home Trust Secured Visa allows you to select your own credit limit based on the security deposit you provide, with a minimum deposit of $500. There is no annual fee and it is widely accepted, making it an excellent choice for rebuilding credit.
- Refresh Financial Secured Visa: With a low annual fee of $12.95, the Refresh Financial Secured Visa is another popular option. With a minimum deposit of $200, this card also offers the opportunity to increase your credit limit without further deposits, giving you more room to build your credit score.
- Capital One Guaranteed Secured Mastercard: This card offers guaranteed approval for those who can provide the required security deposit. With a minimum deposit of $300 and a $59 annual fee, this card allows you to build credit with responsible use.
Canadian Unsecured Credit Cards for Bad Credit
Finding unsecured credit cards may be more challenging with a poor credit score, but they do exist. Here are some options:
- PC Financial Mastercard: Although it doesn't target individuals with bad credit, PC Financial Mastercard's lenient approval process may allow individuals with lower credit scores to be approved. This card has no annual fee and can help rebuild credit with responsible use.
- Triangle Mastercard from Canadian Tire: This card offers rewards on Canadian Tire purchases, making it appealing for those shopping at Canadian Tire, Sport Chek, or participating Mark's and Atmosphere stores. Although not specifically designed for bad credit, the lenient approval process might provide an opportunity for those with poor credit.
Canadian Credit Cards For Bad Credit Example:
Imagine you're a Canadian citizen with a credit score of 550. After researching your options, you decide to apply for the Home Trust Secured Visa card. You provide a $1,000 security deposit and are approved with a $1,000 credit limit. By using your card responsibly - keeping your credit utilization below 30% and paying your balance on time each month - your credit score gradually improves. Over time, you may become eligible for an unsecured credit card and continue rebuilding your credit with responsible financial habits.
Now that you're equipped with the knowledge of various Canadian credit cards for bad credit, it's time to take the first step in rebuilding your credit score! Remember, consistent positive financial habits and responsible credit card use are the best ways to get your credit back on track. And don't forget to visit Flik Eco for more helpful guides and tips on personal finance.
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