Guaranteed approval credit cards are some of the easiest types of credit cards to apply for. But even though they say they have guaranteed approval, you will often need to meet certain conditions to apply.
This guide lists Canada’s best guaranteed approval credit cards. It also includes useful information on how to get a credit score with bad credit and choose the top guaranteed approval credit card.
Best Secured Credit Cards for Bad Credit
If you have bad credit but still want to use a credit card, here are some of the best secured credit cards you can apply for in Canada.
1. Neo Secured Mastercard
Neo Secured Credit
Rewards: Earn an average of 5% real cash back on purchases.
Welcome offer: Up to 15% cashback on your first-time purchases, plus a $25 welcome bonus.
Interest rates: 19.99% – 29.99% for purchases; 22.99% – 31.99% for cash advances.
Annual fee: $0
Credit limit: Starts at $50.
Credit score required: Poor or bad credit score.
The Neo Secured Card is one of the most popular secured credit cards on the market. It is similar to the Neo Credit Card, but there is no hard credit check, and it has guaranteed approval.
You can use this card to earn up to 5% cashback, and the amount you can earn is unlimited. The credit limit is flexible, and you can increase it when you want to. It also has no over-limit fees.
New customers get a $25 bonus following approval.
2. KOHO Prepaid Mastercard (With Credit Builder)
KOHO Prepaid Mastercard
Rewards: Earn 1% cash back on groceries and transportation, up to 5% unlimited cash back at partner stores in Canada. Get 5% interest on your entire balance. Users also get access to a free budgeting app, 0% APR cash advances and free credit score checks.
Welcome offer: $20 sign up bonus after first purchase (use CASHBACK promo code during sign-up)
Interest rate fee: N/A
Annual fee: $0*
The KOHO Prepaid Mastercard allows you to earn cashback at a rate of 1% on selected spending categories, including groceries, gas, and transportation. But you can also purchase at partner stores and earn up to 5% cashback.
In addition to earning cash back, you can use it to improve your credit score by signing up for the credit-building tool, which costs $5 to $10 monthly. With Credit Building, you take out a line of credit and repay it over time. KOHO then reports your payments to the credit bureaus.
New KOHO users get a $20 bonus when they sign up using the code CASHBACK and complete a first purchase.
Related: Best KOHO MasterCard in Canada.
3. Home Trust Secured Visa Card (Low Rate)
Home Trust claims that almost everyone who applies and pays a security deposit is approved for its secured card. There is no annual fee to use the version of this card with an APR of 19.99%. However, you can also pay a $59 annual fee and get a lower interest rate of just 14.90%.
It has a Visa Zero Liability policy to protect you from fraud. The amount you can deposit can be between $500 and $10,000. It also reports your payments to a credit bureau each month.
4. Capital One Guaranteed Secured Mastercard
There is an annual fee of $59 to use this card, which has an APR of 19.8% on purchases and balance transfers and 21.9% on cash advances.
It has guaranteed approval, but there are a few conditions, including that you must be the age of majority in your province or territory, you don’t have an existing account with Capital One, and you can provide between $75 and $300 security funds.
It does not provide any rewards but comes with a few perks, including travel accident insurance coverage, car rental collision/loss damage waiver, and Zero Liability protection.
Related: Best Capital One credit cards.
Best Unsecured Credit Cards for Bad Credit
If you want a credit card for bad credit with no security deposit, there are several unsecured cards to choose from. Here are some of the best:
5. Capital One Low Rate Guaranteed Mastercard
The annual fee for the Capital One Low Rate Guaranteed Mastercard is $79 per year. It has an APR of 14.9% on purchases and balance transfers and 21.9% on cash advances.
It has guaranteed approval as long as you meet a few requirements. For example, you must be the age of majority in your province or territory, and you can’t have an existing account with Capital One.
It comes with a few basic benefits like Zero Liability protection, travel accident insurance, extended warranty, and more. It’s a good option if you want a credit card with a low-interest rate.
6. Scotiabank Value Visa Card
The annual fee for the Scotiabank Value Visa Card is $29 per year, which is quite low. It also has a very low-interest rate of just 12.99% on both purchases and cash advances.
This is the primary benefit, and you can save a significant amount in interest each year if you carry a balance. In addition, you could use it to finance large purchases, and you can also switch balances from credit cards with higher interest rates.
Related: Scotiabank Value Visa card review.
7. Tangerine Money-Back Credit Card
Tangerine Money-Back Credit Card
Get 0.50% to 2% cash back on purchases
Cash back is paid out every month
Has no annual credit card fees
Easy to qualify for
The Tangerine Money-Back Credit Card has a $0 annual fee, and you can earn unlimited cashback, which is the main benefit of using the card.
You will earn 2% cashback on two categories of your choice, like groceries and gas, and 0.5% on everything else. Cashback you earn is paid out monthly. It also comes with Mastercard Zero Liability, and the APR is 19.95%.
8. RBC RateAdvantage Visa Card
There is no annual fee to use this card, and the main benefit here is the low-interest rate. The APR for purchases and cash advances is from 4.99% to 8.99%. That’s very low, and the variable interest rate is based on your credit rating.
It also comes with purchase security and extended warranty insurance, RBC Offers, savings on gas at Petro-Canada, and more. It also has optional add-ons like travel insurance coverage.
Related: Best RBC Low-Interest Credit Cards.
9. Canadian Tire Triangle Mastercard
You can use the Canadian Tire Triangle Mastercard to earn Canadian Tire Money. There’s no annual fee, and you can earn up to 4% at partner stores, 1.5% at eligible grocery stores on the first $12,000 each year, and 0.5% on everything else.
You’ll also earn 5¢ per litre back at Gas+, and you can redeem $1 in Canadian Tire Money for $1 in discounts. It also has several other benefits, including car rental collision insurance.
10. Scotia Momentum Visa Card
There is a $39 annual fee to use the Scotia Momentum Visa Card, and supplementary cards cost $15 annually. It has an APR of 19.99% on purchases and 22.99% on cash advances.
The main benefit is the ability to earn up to 2% cashback. You can earn this rate for every $1 spent on groceries, gas, subscriptions, and drugstore purchases, and you will earn 1% on other eligible purchases.
Methodology:
We considered several factors when choosing the best guaranteed approval credit cards on this list. The first was how suitable they are for people with poor or bad credit scores with respect to their application requirements. We also looked at other factors, including the annual fee, interest rates, and rewards available with each card, to decide on the best.
How to Get a Credit Card with Bad Credit in Canada
If you have a poor or bad credit rating, you may still be able to apply for a credit card.
Whether you want a secured credit card or a guaranteed credit card approval with no deposit in Canada, there are several options available, and you can start by looking at the options I’ve listed above.
Secured credit cards are often the easiest option. The requirements are less strict because you provide a security deposit, meaning there is less risk for the lender. These can be a good way to improve your credit score.
You are not always limited to secured credit cards. If you are able to qualify for an unsecured credit card on this list, you may prefer to apply for one.
If you can wait a bit longer before applying for a credit card, you may want to work on improving your credit score, and you may then qualify for a wider range of credit cards.
Pros and Cons of Guaranteed Approval Credit Cards
Pros:
- Start using a credit card even if you have a bad credit score.
- Improve your credit score by making your payments on time.
- There are several credit cards to choose from, including both secured and unsecured.
- Several credit cards provide the option of earning cashback or other rewards.
Cons:
- The best rewards tend to come with premium credit cards, for which a good credit score is required.
- If you fail to make your payments on time, your credit score can be negatively impacted.
- Even though they are called guaranteed credit cards, you must still meet the requirements to qualify.
How to Choose the Best Guaranteed Approval Credit Card
If you think a guaranteed approval credit card is a good option, you need to pick one out and apply for it. But how should you choose? There are several factors to consider.
First, make sure you will qualify for the credit card. The requirements are usually less strict than for regular credit cards, but there may still be some requirements. There are several credit cards with no credit check in Canada, so one of these may be a good option.
Next, consider the rewards. Some provide cashback, while others allow you to earn reward points that you can redeem for discounts and more.
You should also check the other details like the annual fee, if there is one, and the interest rate. If you carry a balance, the interest rate can make a big difference to the overall expense of your card.
FAQs
Several credit cards have a credit limit of $5,000 or more in Canada. The limit you are given may depend on factors like your credit history and income.
There are several unsecured credit cards available in Canada for people with less-than-perfect credit. Whether you qualify for one depends on the specific requirements of the card and your personal situation.
The absolute lowest credit score you can have in Canada is 300. The rating goes up to a maximum of 900, and anything over 660 is considered good.
There are several ways to fix a low credit score. You could apply for a secured credit card and make your payments on time over a period of several months. You could also sign up for a credit builder program.
