Best Credit Cards for Bad/Limited Credit in Canada
- No Annual Fee!
- Great way to build and repair your credit!
- Home Trust reports your file to the credit bureau on a monthly basis.
- Deposit is insured by CDIC!
- Credit limit is matched dollar for dollar on your deposit.
- $500 to $10,000 credit limit!
- Virtually everyone is approved!
- 19.99% interest rate
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The advantages and disadvantages of credit cards with bad to limited credit
The biggest advantage of a credit card for bad to limited credit is that you have a decent chance of having an approved application.
The downside is the cashback benefits are somewhat low compared to the credit cards that require good credit. Depending on the card and your credit, you may also have to put up your own money as a deposit.
Who should apply?
If you have limited credit, then an entry level credit card would be a good fit for you. You should also apply if you have a less than good credit score.
Who shouldn't apply?
If you have fair to good credit, then you might want to get a better credit card. With a decent credit score you can take advantage of cashback and travel rewards credit cards.
If you have been recently discharged from a bankruptcy, then you might want to apply for a secured credit card instead. Secured cards are the only guaranteed approval credit card available.
FAQ on Credit Cards with Limited to Bad Credit
Why apply for a credit card that accepts bad credit?
It might be your only option and it is a great way to start building/rebuilding your credit.
How can I get a better credit card?
Making your credit card payments on time every month with your first credit card should help you improve your credit score. After which you should be able to get a decent credit card with cashback.
I have been using my first credit card for a while now, should I cancel and replace it?
No, at the very least you should replace it then cancel it. It is a good idea that you keep the card open at least until you have been approved for a better credit card. Even then, you may consider keeping it if it is your longest open line of credit.