There are a variety of options for customers with poor or no credit history in Canada, ranging from payday loans and cash advances in Canada to secured credit cards and prepaid credit cards.
Do I Need a Credit Card if I Have Bad Credit?
A credit card can help you repair your bad credit into a healthier state. That is if you made a conscious decision to change your spending habits, and being able to pay off your monthly fee in a timely manner. If you often make financial blunders and are knee-deep in debt, you may want to learn more about credit first.
Does a Credit Card Help Me Rebuild Bad Credit?
Aside from pre-paid credit cards, they are indeed a good way to boost your score as long as you make timely payments each month. However, a missed or late payment will result in a score decrease. Just make sure your balance each month doesn’t exceed 30% of your total credit, as this will affect your score as well.
Can I Get a Credit Card with Bad Credit?
There are a lot of lenders that are marketing their credit cards to customers with low credit to no credit, who are dedicated to improving their credit score. We will discuss each of the different options below.
What Credit Cards Can I Get with Bad Credit?
Secured Credit Cards
Secured Credit Cards in Canada, such as Home Trust Secured Visa, offer many benefits, such as low annual fee. Since these financial establishments are not burdened with any risks, they tend to be a lot more lenient towards low credit score borrower. Cardholders will deposit their own money into their Secured Credit Cards to make purchases. If the cardholder closes their account with a positive credit in their card, these funds will be returned back to the cardholder. The purpose of these cards are meant to improve the credit score of the borrower, so make sure you check with the lender that they report to the credit bureaus of Canada (Equifax Canada and Transunion Canada) consistently.
If you are in need of a No Fee Secured Credit Card, please click on that link and fill out a secure application form.
Low Interest Credit Cards
Borrowers with less than average credit score may still be eligible for low interest credit cards in Canada. However, the credit line for these cards may be lower, ranging from $500 – $1000, depending on the banks, finance companies, or major unions. As long as you make consistent and timely payments on these cards, some issuers will offer you an option for an increase in your credit. Make sure to check your credit report on either Equifax Canada and Transunion Canada to make sure your timely payments are reported regularly.
Guaranteed Credit Cards
Any low credit score borrowers, who needs help in credit improvement, may also get qualified for Guarantee Credit Cards in Canada. These lenders or issuers tend to be more lenient towards their applicants, with minimum requirements for approval. These company, such as Capital One Canada will look to advertise towards those who are struggling to find credit cards elsewhere. Aside from the ability to improve your credit score in Canada, some will even offer standard benefits such as credit card price protection, travel assistance, baggage delay coverage, and others.
Prepaid Credit Cards
Since making payments on Prepaid Credit Cards in Canada are typically not reported to credit bureaus, they are normally not the best recommendation if you are on a mission to rebuilding credit score. However, people with very bad credit history, such foreclosure, bankruptcy, or delinquent accounts, may still want to take advantage of their very lenient for credit card application approval in Canada. These cards will still allow the cardholder to make online purchases and pay online bills. And with different reload options — including in person, online, and through direct deposit, these cards can still give low credit consumers flexibility and convenience.
Store Credit Cards
Borrowers with a need for a credit boost may opt to go with a department store credit card in Canada. Some department store will even offer no annual fee, such as Canada Tire Credit Cards. Cardholders can also take advantage of their promos and discounts associated with the credit card, such as savings on purchases.
If you opt not to get a credit card, and prefer a faster method of getting a credit boost, you may also do so by getting Pre-approved for car loan in Canada. The auto and financial experts here will help you bring home a new car, regardless of your credit history. Not only will you get a new car, but you will also be able to improve your credit score fast by making monthly payments in a timely matter.
If you require more information, just visit them at Canada Auto Experts or call 1-855-550-5565 to speak to a credit specialist.