The Top Credit Cards For Poor Credit in Canada

A poor credit score limits the number of credit cards you can apply for; however, you are not without options.

In this article, I cover some of the best credit cards for poor credit in Canada, what they offer, their fees, benefits, and more.

A credit score that falls between 560 and 659 is a fair or poor credit score, and it means getting approved for a credit product will be more challenging.

That being said, if you’d like to improve your credit rating, getting a credit card and using it responsibly is one way to do so.

Credit Card Options For Poor Credit in Canada

Credit scores in Canada range from 300 to 900 and are ranked as follows:

• Excellent credit score: 760 – 900
• Very good credit score: 725 – 759
• Good credit score: 660 – 724
• Poor credit score: 560 – 659
• Bad credit score: 300 – 559

If you have a poor credit score, a secured credit card is usually your best bet. If your score is above 600, you could also qualify for a few unsecured credit cards.

In general, your options include the following:

• Secured credit cards
• Unsecured credit cards
• Prepaid credit cards

A secured credit card requires you to provide a security deposit equivalent to your credit limit. It is easier to qualify for.

An unsecured credit card does not require a deposit, but its eligibility requirements are more demanding.

The prepaid cards on this list do not require a hard credit score check, and you can apply with any credit score. Regular prepaid cards do not report your payments to a credit bureau. However, using KOHO, you can build credit by subscribing to its optional credit-building service.

Best Credit Cards For Poor Credit in Canada

Credit Card	Card Type	Features	Annual Fee
Neo Secured Card	Secured	Guaranteed approval; $50 minimum security deposit; up to 5% cash back, $25 bonus	$0
KOHO Mastercard	Prepaid	Up to 5% cash back; Up to 5% savings interest paid on your balance; free budgeting app; $20 bonus	$0
Neo Mastercard	Unsecured	Up to 5% cash back at partners; $25 bonus	$0
Home Trust Secured Visa	Secured	14.99% purchase interest	$59
Capital One Guaranteed Secured Mastercard	Secured	N/A	$59
Scotiabank Value Visa	Unsecured	Fair to good credit score: 0% promo balance transfer	$29

1. Neo Secured Mastercard

• Annual fee: $0
• Rewards: Earn up to 5% cash back; $25 sign-up bonus
• Minimum credit score: None
• Minimum income: None

The Neo Secured Mastercard is a secured credit card that works for both poor and bad credit. It is the best secured credit card in Canada, and getting approved is almost guaranteed.

You can deposit as little as $50 to start, and there is no income or credit score threshold to qualify.

Even better is the fact that this card has no annual fees, and you earn 0.5% to 5% cash back rewards at thousands of retailers.

Since Neo also reports your transaction to a credit bureau, you can use this Neo Card to build your credit score. Learn more about its offerings in this review.

2. KOHO Prepaid Mastercard

• Annual fee: $0
• Rewards: Earn up to 5% cash back on purchases; $20 sign-up bonus
• Credit score: None
• Minimum income: None

The KOHO Mastercard is a free reloadable prepaid card that offers cash back on all purchases and several other perks.

Unlike a traditional credit card, you can apply for a KOHO account with a poor or bad credit score.

While a standard KOHO card does not impact your credit score, you can add on an optional “credit building” feature that costs $5 to $10 per month.

The KOHO Card comes with a free budgeting app. It pays interest on your balance and you get up to 5% cash back rewards for your spending. Here is how KOHO works.

3. Neo Mastercard

• Annual fee: $0
• Rewards: Up to 5% cash back at partners
• Credit score: 600+
• Minimum income: N/A

The Neo Mastercard is an unsecured credit card from Neo Financial that accepts low credit scores.

The rewards for the Neo Secured Mastercard and regular Neo Mastercard are the same; however, a security deposit is not required for the standard Neo Card.

Learn more in our detailed review.

4. Home Trust Secured Visa Card

• Annual fee: $59
• Rewards: None
• Credit score: Poor or bad credit
• Minimum income: None

The Home Trust Secured Visa is a guaranteed secured credit card for poor and bad credit.

It requires a minimum of $500 and can be used to build credit.

There is a low-interest rate option that has a $59 annual fee, or you could opt for the standard card with the 19.99% interest and pay no annual fee.

5. Capital One Guaranteed Secured Mastercard

• Annual fee: $59
• Rewards: None
• Credit score: None
• Minimum income: None

The Capital One Guaranteed Secured Mastercard offers guaranteed approval regardless of your credit score if you provide a $75 or $300 security deposit and meet other basic requirements.

Like the other cards on this list, it is also great for rebuilding credit.

6. Scotiabank Value Visa

• Annual fee: $29
• Rewards: None; 0% promo balance transfer
• Credit score: Fair to good (660+)
• Minimum income: $12,000 annually

If you are looking for an unsecured credit card with no deposit, the Scotiabank Value Visa may be for you.

It has a slightly higher credit score requirement, and in return, cardholders enjoy some of the lowest purchase APRs in Canada at 12.99%.

Learn more about the card in this review.

How To Apply For a Credit Card With Poor Credit

To apply for any of the credit cards on this list, click on the links provided to visit the financial institution’s website.

In general, to qualify, you must be the age of the majority in your province.

Depending on the card, a minimum income and employment may be required, as well as your security deposit.

Lastly, many credit card issuers want a clear bankruptcy record for at least seven years.

It could help to know your credit score before you apply so you know what your options are. You can check your credit score for free online.

How To Choose a Credit Card for Poor Credit

Some things to watch for when applying for a credit card with poor credit are:

Card fees: Compare the annual fees and what you get in return. Also, watch out for the interest rates, as many secured cards come with hefty interest rates.

Approval odds: Each time you apply for a credit card, the lender pulls your credit file, and this impacts your credit score negatively. Focus on credit cards with a high chance of approval, such as those with guaranteed approval when you provide a deposit and meet other basic requirements.

Credit card rewards: Most secured cards do not offer rewards or perks. This is why the Neo Secured Mastercard is in a class of its own.

Credit reporting: Before a credit card can help you build or improve your credit score, it must report your transactions to a credit bureau, such as Equifax or TransUnion.

How To Improve a Poor Credit Score

• Pay your bills on time
• Limit your credit use to no more than 30% of your credit limit
• Keep old credit accounts open, so you have a longer credit history
• Limit your credit applications, so you don’t appear desperate or in financial trouble
• Monitor your credit report for errors and dispute any inaccuracies
• Use a secured credit card if you do not qualify for a regular card and pay your bills promptly

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