Credit cards for bad credit

There are several different types of credit cards for bad credit in Canada if you’re struggling to qualify for an unsecured credit card. Just be aware that you may need to put some money down up front to secure your balance. Learn more about how you can get a credit card with bad credit in Canada, compare cards to find the best fit for you, and learn how having a credit card for bad credit can help you improve your credit score.

What are credit cards for bad credit?

Credit cards for bad credit are specialized cards that you can qualify for even if your credit score is below 600. There are several types of bad credit credit cards in Canada to choose from. These include secured, prepaid and authorized user credit cards. Unfortunately, it can be very difficult to get a regular unsecured credit card if you have bad credit, though your eligibility could depend on your relationship with your bank and how much you have in savings.

What’s considered bad credit in Canada?

Credit scores range from 300 to 900 in Canada. Many lenders consider credit scores that fall below 600 as bad or poor credit scores. A lower credit score may lead you to have difficulty in qualifying for loans or credit cards, and you could get stuck with higher interest rates and fees on any financing you do manage to qualify for.

3 types of credit cards for bad credit in Canada

You may want to consider the following types of credit cards for bad credit in Canada:

1. Secured credit cards

Secured credit cards let you borrow money against a pre-established credit limit that you fund with your own money. You put down a deposit up front and you can borrow up to that amount to make purchases. Your provider can use your deposit to pay off your balance if you default on your payments. Most secured credit cards charge interest and an annual fee, and you’ll only get your deposit back when you pay your card off in full and close your account.

Compare secured credit cards for bad credit in the table above

• Read more: How does a secured credit card help you rebuild credit?

  A secured card does not automatically improve your credit score. To raise your credit score using a secured credit card, you’ll need to:

  • Pay off your balance every month. Secured credit cards report to the credit bureaus just like unsecured cards, which means you’ll have a better chance at improving your score if you pay off your balance in full each month. This will also help you save money on interest and reduce your payments.
  • Use your credit card regularly. Credit bureaus look for regular activity on your card as a measure of your credit worthiness. Try to make a few purchases every month and pay them off as quickly as possible to build up your credit score.
  • Graduate to a regular credit card. Once your credit score is in better shape, you may be able to graduate to a regular unsecured credit card. For example, the TD Cash Secured Credit Card offers graduation to an unsecured TD card on a case-by-case basis.

2. Prepaid credit cards

Prepaid cards are available from banks, private companies and grocery stores. These work a bit like gift cards because all you need to do is load money onto the card and start spending. When that money runs out, you can load in more to make purchases as you see fit. These cards don’t charge interest or come with rewards and they won’t help you build credit.

Compare prepaid credit cards for bad credit

Sort by:

Name	Product	Monthly fee	Cost per transaction	Foreign transaction fee	Rewards with this card	Feature
OFFER KOHO Prepaid Visa card KOHO Prepaid Visa card	OFFER	$0	$0	1.5%	0.5% cash back	Use promo code FINDERCODE and receive a $20 cash bonus into your KOHO balance once you make your first purchase within 30 days of signing up.	Earn 0.5% cash back on every eligible purchase. KOHO offer credit-building through their prepaid card for an extra monthly fee.	Go to site More Info	Compare	loading Fetching your data...
CIBC AC Conversion Visa Prepaid Card CIBC AC Conversion Visa Prepaid Card		$0	$0	0%	1% cash back		Avoid foreign transaction fees. Load up to 10 currencies anytime including CAD, USD, EUR, GBP, AUD, JPY, HKD, TRY, CHF and MXN.	Go to site More Info	Compare	loading Fetching your data...
Mogo Visa Platinum Prepaid Card Mogo Visa Platinum Prepaid Card		$0	$0	2.5%	N/A		For every $1 you spend, 1 pound of CO2 will be offset for free through Mogos Amazon Rainforest project.	Go to site More Info	Compare	loading Fetching your data...
OFFER KOHO Premium Prepaid Card KOHO Premium Prepaid Card	OFFER	$9/month or $84 annually	$0	0%	Up to 2% cash back	Use promo code FINDERCODE and receive a $20 cash bonus into your KOHO balance once you make your first purchase within 30 days of signing up.	Earn 2% cash back on transportation, grocery and restaurant purchases. Plus, get a 30 day free trial. KOHO offer credit-building through their prepaid card for an extra monthly fee.	Go to site More Info	Compare	loading Fetching your data...

loading

Compare up to 4 providers

Clear selection

Compare

3. Authorized user credit cards

If you’d like direct access to credit, you may want to consider becoming an authorized user on a friend’s or family member’s account. This will let you spend money on their card even if you have bad credit and can’t qualify for your own. Just be aware that the benefits and rewards on the card will stay in the primary cardholder’s name so you may not be able to take full advantage of the card’s perks.

Compare credit cards that allow you to sign up as an authorized user

Sort by:

Name	Product	Welcome Offer	Rewards	Purchase Interest Rate	Annual Fee		Min. Credit Score	Description
Tangerine World Mastercard Tangerine World Mastercard		15% cash back	Up to 2% cash back	19.95%	$0	Apply now More Info	Min. recommended credit score: 600	Earn an extra 15% cash back (up to $150) on up to $1,000 of everyday purchases in the first 2 months Until January 31, 2022. Plus, get a 1.95% interest rate on balance transfers for the first 6 months (valid within the first 30 days of account opening, 1% transfer fee applies).	Compare	loading Fetching your data...
Scotiabank Value Visa Card Scotiabank Value Visa Card		0.99% rate on balance transfers for 6 months	N/A	12.99%	$29	Apply now More Info	Min. recommended credit score: 660	Get a 0.99% introductory interest rate on balance transfers with a 0% transfer fee for the first 6 months. Apply by February 28, 2022.	Compare	loading Fetching your data...
Brim Mastercard Brim Mastercard		Up to $200 worth of bonuses	1 point per $1 spent	19.99%	$0	Apply now More Info	Min. recommended credit score: 700	Earn up to $200 worth of bonus points when you shop with Brim retailers for the first time through the Brim mobile app.	Compare	loading Fetching your data...
Simplii Financial Cash Back Visa Card Simplii Financial Cash Back Visa Card		10% cash back	Up to 4% cash back	9.99% intro APR for the first 6 months, 19.99% thereafter	$0	Apply now More Info	Min. recommended credit score: 650	Get 10% bonus cash back at eligible restaurants and bars for the first 4 months (up to $500 spend). Plus, get a 9.99% introductory annual interest rate on purchases for the first 6 months.	Compare	loading Fetching your data...
SimplyCash Card from American Express SimplyCash Card from American Express		4% cash back	Up to 1.25% cash back	19.99%	$0	Apply now More Info	Min. recommended credit score: 700	Earn 4% cash back on purchases (up to $200 cash back) for the first 6 months of Cardmembership.	Compare	loading Fetching your data...
American Express Cobalt Card American Express Cobalt Card		50,000 points	Up to 5x points per $1 spent	20.99%	$155.88	Apply now More Info	Min. recommended credit score: 700	Earn up to 50,000 Membership Rewards points in your first year. Earn 2,500 Membership Rewards points for each monthly billing period in which you spend $500 in net purchases on your card (up to 30,000 points). Plus, earn a Welcome Bonus of 20,000 Membership Rewards points when you spend a total of $3,000 in purchases on your Card in your first 3 months of Cardmembership.	Compare	loading Fetching your data...
BMO Rewards Mastercard BMO Rewards Mastercard		10,000 points	Up to 2 points per $1 spent	19.99%	$0	Apply now More Info	Min. recommended credit score: 725	Get a bonus of 10,000 BMO Rewards points when you spend $1,000 in the first 3 months. Plus, get a rate of 1.99% on balance transfers for 9 months. A 1% fee applies to transferred balances.	Compare	loading Fetching your data...
SimplyCash Preferred Card from American Express SimplyCash Preferred Card from American Express		10% cash back	2% cash back	19.99%	$99	Apply now More Info	Min. recommended credit score: 700	Earn 10% cash back on all eligible purchases (up to $400 in cash back) for the first four months of Cardmembership.	Compare	loading Fetching your data...
American Express Business Edge Card American Express Business Edge Card		57,000 points	Up to 3 points per $1 spent	19.99%	$99	Apply now More Info	Min. recommended credit score: 700	Earn up to 57,000 Membership Rewards points in your first year.	Compare	loading Fetching your data...
American Express AIR MILES Platinum Credit Card American Express AIR MILES Platinum Credit Card		2,000 Miles	Up to 1 Air Mile per $5 - $10 spent	20.99%	$120	Apply now More Info	Min. recommended credit score: 700	Earn a Welcome Bonus of 2,000 AIR MILES within the first three months. That’s enough to redeem for $200 towards your purchases with AIR MILES Cash.	Compare	loading Fetching your data...
Marriott Bonvoy American Express Card Marriott Bonvoy American Express Card		50,000 points	Up to 5x points per $1 spent	19.99%	$120	Apply now More Info	Min. recommended credit score: 700	Earn 50,000 Marriott Bonvoy points when you spend $1,500 in the first 3 months.	Compare	loading Fetching your data...
BMO U.S. Dollar Mastercard BMO U.S. Dollar Mastercard		N/A	N/A	19.99%	$35 USD	Apply now More Info	Min. recommended credit score: 725	When your purchases total US$1,000 or more in a year, the next year's annual fee (US$35) is rebated to your card.	Compare	loading Fetching your data...
BMO AIR MILES Mastercard BMO AIR MILES Mastercard Finder Award		800 Miles	Up to 3x Air Miles for every $25 spent	19.99%	$0	Apply now More Info	Min. recommended credit score: 660	Get 800 AIR MILES Bonus Miles (enough for $80 towards purchases with AIR MILES Cash). Get a rate of 1.99% on balance transfers for 9 months. A 1% fee applies to transferred balances.	Compare	loading Fetching your data...
BMO AIR MILES Mastercard For Students BMO AIR MILES Mastercard For Students		800 Miles	1 Mile per $25 spent	19.99%	$0	Apply now More Info	Min. recommended credit score: 660	Get 800 AIR MILES Bonus Miles (enough for $80 towards purchases with AIR MILES Cash).	Compare	loading Fetching your data...
BMO CashBack Mastercard For Students BMO CashBack Mastercard For Students		5% cash back	Up to 3% cash back	19.99%	$0	Apply now More Info	Min. recommended credit score: 660	Get up to 5% cash back in the first three months (up to max. spend of $2,500).	Compare	loading Fetching your data...
BMO Air Miles No-Fee Business Mastercard BMO Air Miles No-Fee Business Mastercard		1,000 Miles	1 Mile per $20 spent	19.99%	$0	Apply now More Info	Min. recommended credit score: 650	Get 1,000 AIR MILES Bonus Miles (over $100 towards your purchases with AIR MILES Cash).	Compare	loading Fetching your data...
American Express AIR MILES Gold Business Card American Express AIR MILES Gold Business Card		150 Miles	1 Mile for every $15 - $20 spent	19.99%	$0	Apply now More Info	Min. recommended credit score: 700	Earn a Welcome Bonus of 150 AIR MILES when you spend at least $1,000 in eligible purchases within the first three months	Compare	loading Fetching your data...
Scotia Momentum No-Fee Visa Card Scotia Momentum No-Fee Visa Card Finder Award		Up to 5% cash back	1% cash back	2.99% intro APR for the first 6 months, 19.99% thereafter	$0	Apply now More Info	Min. recommended credit score: 660	Earn 5% cash back on all purchases for the first 3 months (up to $2,000 in total purchases). Plus, get a 2.99% introductory interest rate on balance transfers for the first 6 months with no balance transfer fee. Apply by February 28, 2022.	Compare	loading Fetching your data...
Scotia Momentum Mastercard Scotia Momentum Mastercard		7.99% rate on balance transfers for 6 months	Up to 1% cash back	7.99% intro APR for the first 6 months, 20.99% thereafter	$0	Apply now More Info	Min. recommended credit score: 660	Get a 7.99% introductory interest rate on all eligible purchases for the first 6 months. Apply by February 28, 2022.	Compare	loading Fetching your data...
Scotiabank SCENE Visa Card Scotiabank SCENE Visa Card		5,000 points	Up to 5 points per $1 spent	19.99%	$0	Apply now More Info	Min. recommended credit score: 660	Earn 5,000 bonus Scene+ points when you spend a minimum of $750 on eligible purchases in the first three months as a new SCENE Visa cardholder. Apply by February 28, 2022.	Compare	loading Fetching your data...

loading

Load More

Compare up to 4 providers

Clear selection

Compare

How to compare bad credit credit cards in Canada

Compare the following features to find the best Canadian credit cards for bad credit:

• Type of credit card. Think about which type of bad credit credit card will work best for you. Choose a prepaid card or sign up as an authorized user on someone else’s account if you simply want to shop online. Select a secured credit card if you want to build up your credit score.
• Interest rates. Most credit cards for bad credit come with a 19.99% interest rate for purchases and 21.99% for cash advances. You may be able to find a lower interest rate credit card if you shop around but you’ll have to sacrifice rewards and/or benefits to take advantage of lower rates in most cases.
• Annual fees. You may have to pay fees to qualify for secured credit cards for bad credit. These fees can range from $20 to $120 per year, depending on the card. Aim for a card with a low fee to make sure you’re not cutting into your savings to build up your credit.
• Rewards. Some secured credit cards for bad credit will let you earn a small return on rewards or cash back when you make purchases. One example of this type of card would be the TD Cash Secured Credit Card, which lets you earn cash back on eligible purchases. Look for a card that gives you the best return on rewards for the lowest fee.
• Eligibility criteria. It’s usually possible to qualify for most bad credit credit cards as long as you’re the age of majority in your province and a permanent resident of Canada. That said, you’ll need to check specific criteria with your provider before you apply to make sure you’re eligible.
• Provider. When deciding on credit cards for bad credit in Canada, you can choose from many providers. Only apply for credit cards that have positive online reviews and come from an establishment you trust, especially if you have to send money in advance to secure your credit card balance.

Who can qualify for credit cards for people with bad credit?

You’ll usually need to meet the following criteria to qualify for credit cards for people with bad credit:

1. Be 18 years old or the age of majority in your province or territory.
2. Be a Canadian citizen or a permanent resident with a valid Canadian address.
3. Have a working bank account (this is sometimes not a requirement – it varies between providers).

Not a Canadian citizen? Find out what credit cards you can qualify for as a temporary resident

How to get a credit card with bad credit in Canada

You can follow these steps for how to get a credit card with bad credit in Canada:

Compare credit cards for bad credit in Canada. Compare credit cards for people with bad credit from several providers to find the one that best suits your needs.

Apply for the card of your choice. Apply for the credit card of your choice by visiting the main site of the provider you’re interested in.

Fill out application details. Provide personal information such as your full name, address, email and phone number to start your application.

Review the fine print. Review the details of your contract to make sure you understand and can abide by the terms and conditions of your card.

Click submit. Click submit on your application and send money to your provider if you need to preload funds onto your account to set your credit limit.

What should I do once I get my card?

For secured credit cards, you’ll want to commit to making timely payments because this is how you’ll increase your credit score. Mark your calendar, set reminders on your phone and set up automatic withdrawals from your bank account to avoid running late on payments.

You may also want to create a budget for spending and make sure you stick to it each month. Working on your financial habits in general can help you build your credit score so that you don’t fall back into debt when you’re ready to graduate to an unsecured credit card.

How to improve your credit

Bottom line

There are many credit cards for bad credit in Canada to choose from if you’re struggling to qualify for an unsecured credit card. These include secured, prepaid and authorized user credit cards. Find out how each type of credit card works, and compare credit cards for people with bad credit quickly and easily to find the best fit for your needs.

Frequently asked questions about credit cards for bad credit

• What are the best credit cards for bad credit in Canada?

  The best type of bad credit credit cards are secured cards. These cards may come with benefits or rewards, and you can use them to help rebuild your credit score as long as you make your payments on time. Just be aware that you’ll need to secure your credit limit with a deposit and you may need to pay an annual fee for this type of credit card.
  → Check out our list of credit builder credit cards for more information about suitable options.

• How long does it take to be approved for bad credit credit cards?

  That depends on the card and your provider. You may be able to apply for bad credit credit cards in 10-15 minutes online, and you’ll usually find out if you’ve been approved on the same day.

• What will my credit limit be on a secured credit card?

  Usually, your credit limit will be set at the same amount that you provide as a deposit. If you can provide $1,000 for a security deposit, your limit will be $1,000. If you can provide $2,500, it is possible that some credit card providers may allow you to have a limit this high.

• What is the eligibility criteria for a bad credit credit card?

  While it can vary between providers, you’ll usually need to:

  • Be at least 18 years of age, or the age of majority in your province or territory.
  • Be a Canadian citizen or a permanent resident.
  • Meet any minimum income requirements.

More financial guides

Walmart Rewards World Mastercard Review

{"menuItems":[{"label":"What are credit cards for bad credit?","anchorName":"#what-are-credit-cards-for-bad-credit"},{"label":"3 types of credit cards for bad credit in Canada","anchorName":"#3-types-of-credit-cards-for-bad-credit-in-canada"},{"label":"How to compare bad credit credit cards in Canada","anchorName":"#how-to-compare-bad-credit-credit-cards-in-canada"},{"label":"Who can qualify for credit cards for people with bad credit?","anchorName":"#who-can-qualify-for-credit-cards-for-people-with-bad-credit"},{"label":"How to get a credit card with bad credit in Canada","anchorName":"#how-to-get-a-credit-card-with-bad-credit-in-canada"},{"label":"What should I do once I get my card?","anchorName":"#what-should-i-do-once-i-get-my-card"},{"label":"Bottom line","anchorName":"#bottom-line"},{"label":"Frequently asked questions about credit cards for bad credit","anchorName":"#frequently-asked-questions-about-credit-cards-for-bad-credit"}]}

Earn Walmart Rewards Dollars and get a decent welcome bonus when you sign up for this fee-free card.

Read more…

BMO AIR MILES World Elite Business Mastercard review

{"menuItems":[{"label":"What are credit cards for bad credit?","anchorName":"#what-are-credit-cards-for-bad-credit"},{"label":"3 types of credit cards for bad credit in Canada","anchorName":"#3-types-of-credit-cards-for-bad-credit-in-canada"},{"label":"How to compare bad credit credit cards in Canada","anchorName":"#how-to-compare-bad-credit-credit-cards-in-canada"},{"label":"Who can qualify for credit cards for people with bad credit?","anchorName":"#who-can-qualify-for-credit-cards-for-people-with-bad-credit"},{"label":"How to get a credit card with bad credit in Canada","anchorName":"#how-to-get-a-credit-card-with-bad-credit-in-canada"},{"label":"What should I do once I get my card?","anchorName":"#what-should-i-do-once-i-get-my-card"},{"label":"Bottom line","anchorName":"#bottom-line"},{"label":"Frequently asked questions about credit cards for bad credit","anchorName":"#frequently-asked-questions-about-credit-cards-for-bad-credit"}]}

Sign up for this premium business card to earn AIR MILES and get access to travel insurance and virtual health care.

Read more…

BMO World Elite Business Mastercard Review

{"menuItems":[{"label":"What are credit cards for bad credit?","anchorName":"#what-are-credit-cards-for-bad-credit"},{"label":"3 types of credit cards for bad credit in Canada","anchorName":"#3-types-of-credit-cards-for-bad-credit-in-canada"},{"label":"How to compare bad credit credit cards in Canada","anchorName":"#how-to-compare-bad-credit-credit-cards-in-canada"},{"label":"Who can qualify for credit cards for people with bad credit?","anchorName":"#who-can-qualify-for-credit-cards-for-people-with-bad-credit"},{"label":"How to get a credit card with bad credit in Canada","anchorName":"#how-to-get-a-credit-card-with-bad-credit-in-canada"},{"label":"What should I do once I get my card?","anchorName":"#what-should-i-do-once-i-get-my-card"},{"label":"Bottom line","anchorName":"#bottom-line"},{"label":"Frequently asked questions about credit cards for bad credit","anchorName":"#frequently-asked-questions-about-credit-cards-for-bad-credit"}]}

Earn BMO points on every purchase and take advantage of travel perks and virtual healthcare with this innovative business card.

Read more…

Compare credit cards

{"menuItems":[{"label":"What are credit cards for bad credit?","anchorName":"#what-are-credit-cards-for-bad-credit"},{"label":"3 types of credit cards for bad credit in Canada","anchorName":"#3-types-of-credit-cards-for-bad-credit-in-canada"},{"label":"How to compare bad credit credit cards in Canada","anchorName":"#how-to-compare-bad-credit-credit-cards-in-canada"},{"label":"Who can qualify for credit cards for people with bad credit?","anchorName":"#who-can-qualify-for-credit-cards-for-people-with-bad-credit"},{"label":"How to get a credit card with bad credit in Canada","anchorName":"#how-to-get-a-credit-card-with-bad-credit-in-canada"},{"label":"What should I do once I get my card?","anchorName":"#what-should-i-do-once-i-get-my-card"},{"label":"Bottom line","anchorName":"#bottom-line"},{"label":"Frequently asked questions about credit cards for bad credit","anchorName":"#frequently-asked-questions-about-credit-cards-for-bad-credit"}]}

From rewards and fun perks, to low interest rates and no annual fees, compare the best credit cards in Canada to find the right card for you.

Read more…

Best credit cards

{"menuItems":[{"label":"What are credit cards for bad credit?","anchorName":"#what-are-credit-cards-for-bad-credit"},{"label":"3 types of credit cards for bad credit in Canada","anchorName":"#3-types-of-credit-cards-for-bad-credit-in-canada"},{"label":"How to compare bad credit credit cards in Canada","anchorName":"#how-to-compare-bad-credit-credit-cards-in-canada"},{"label":"Who can qualify for credit cards for people with bad credit?","anchorName":"#who-can-qualify-for-credit-cards-for-people-with-bad-credit"},{"label":"How to get a credit card with bad credit in Canada","anchorName":"#how-to-get-a-credit-card-with-bad-credit-in-canada"},{"label":"What should I do once I get my card?","anchorName":"#what-should-i-do-once-i-get-my-card"},{"label":"Bottom line","anchorName":"#bottom-line"},{"label":"Frequently asked questions about credit cards for bad credit","anchorName":"#frequently-asked-questions-about-credit-cards-for-bad-credit"}]}

We’ve taken a look at some of the best credit cards in Canada and explained who they’re best suited to.

Read more…

CIBC Aeroplan Visa Business Plus Card review

{"menuItems":[{"label":"What are credit cards for bad credit?","anchorName":"#what-are-credit-cards-for-bad-credit"},{"label":"3 types of credit cards for bad credit in Canada","anchorName":"#3-types-of-credit-cards-for-bad-credit-in-canada"},{"label":"How to compare bad credit credit cards in Canada","anchorName":"#how-to-compare-bad-credit-credit-cards-in-canada"},{"label":"Who can qualify for credit cards for people with bad credit?","anchorName":"#who-can-qualify-for-credit-cards-for-people-with-bad-credit"},{"label":"How to get a credit card with bad credit in Canada","anchorName":"#how-to-get-a-credit-card-with-bad-credit-in-canada"},{"label":"What should I do once I get my card?","anchorName":"#what-should-i-do-once-i-get-my-card"},{"label":"Bottom line","anchorName":"#bottom-line"},{"label":"Frequently asked questions about credit cards for bad credit","anchorName":"#frequently-asked-questions-about-credit-cards-for-bad-credit"}]}

Enjoy travel perks and earn accelerated points for business purchases with this premium credit card.

Read more…