best credit cards for bad credit Canada
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Capital One Guaranteed Mastercard
Pros
- Guaranteed approval with a cash deposit
- Helps build or rebuild credit score
- No annual fee
- Accessible for those with bad credit
Cons
- Requires a cash deposit as collateral
- Limited credit limit based on deposit
- Interest rates may be higher than unsecured cards
Finding the right credit card when you have bad credit can be challenging, but now is an excellent time to compare options. With the prime rate at approximately 7.20%, understanding your choices can help you secure a card that aids in rebuilding your credit while managing costs effectively.
Key Features
- Welcome Bonus: Up to 1,500 points on first purchase (check current offers).
- Annual Fee: Varies, with options for no annual fee available.
- Interest Rates: Standard rates around 19.99% to 24.99% APR.
- Credit Limit: Typically ranges from $300 to $1,000 for those with bad credit.
- Rewards Program: Earn 1% cash back on all purchases.
Pros & Cons
- Pros:
- Helps rebuild credit score.
- Accessible to individuals with bad credit.
- Potential for rewards on everyday purchases.
- Flexible payment options available.
- Cons:
- Higher interest rates compared to other cards.
- Lower credit limits may apply.
- Some cards may have annual fees.
- Limited rewards options.
How It Compares
| Credit Card | Annual Fee | Rewards Rate | Min Credit Score |
|---|---|---|---|
| Card A | $0 | 1% cash back | 500+ |
| Card B | $39 | 1.5% cash back | 550+ |
| Card C | $0 | No rewards | 600+ |
Who It's For
This credit card option is ideal for individuals looking to rebuild their credit history after financial setbacks. Residents in provinces like British Columbia and Ontario may find specific offers tailored to local banking institutions that can further enhance their credit-building journey.
How to Apply
Applying for a credit card designed for bad credit is straightforward. Follow these steps:
- Check your credit score using Equifax or TransUnion.
- Research the best credit cards for bad credit in Canada.
- Gather required documents (ID, income verification).
- Complete the online application form on the provider's website.
FAQ
Can newcomers get it?
Yes, many credit cards are available to newcomers to Canada, but it's essential to check the specific requirements of each card.
What credit score do I need?
Generally, credit cards for bad credit are available for individuals with scores below 600.
Are there any no-annual-fee options?
Yes, several cards offer no annual fee, making them a good choice for budgeting.
How long does it take to get approved?
Approval times can vary, but many applications are processed within a few minutes to a few days.
Can I improve my credit score with this card?
Yes, responsible use of the card can help improve your credit score over time.
Not financial advice. Rates and offers change. Read provider terms.
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Compare & Apply →Our Methodology
BGR's editorial team evaluates every Canadian credit card using a 7-factor scoring model aligned with FCAC guidelines.
Data sources: FCAC, CMHC, issuer websites, Equifax Canada, TransUnion Canada. Last audit: June 2026.