If you have bad credit, you may think that your options for obtaining a credit card are limited. However, there are a few cards out there designed specifically for people with bad credit—and they can be an invaluable tool in helping you to rebuild your credit score. Let’s look at some of the best Canadian credit cards available to those with bad credit.
The MBNA True Line Mastercard
The MBNA True Line Mastercard is one of the most popular choices among Canadians with bad credit. It offers up to $1000 in available credit and features no annual fee and a low-interest rate of 19.99% on purchases and balance transfers. The card also comes with access to 24/7 customer service and online banking tools that make it easy to manage your account from anywhere.
Pros and Cons of MBNA True Line Mastercard
1. No annual fee – One of the primary benefits of the MBNA True Line Mastercard is that it does not have an annual fee. This can be a significant saving compared to other credit cards, which often charge annual fees of $100 or more.
2. Low-interest rate – Another benefit of the MBNA True Line Mastercard is that it has a low-interest rate. The card has an introductory APR of 0% for the first 12 months, and a standard APR of 13.99% thereafter. This can be a great saving compared to other credit cards, which often have much higher interest rates.
3. No balance transfer fee – Another benefit of the MBNA True Line Mastercard is that there is no balance transfer fee. This can be a great way to save money if you are carrying a balance on another credit card with a high-interest rate.
4. Limited rewards program – One of the primary drawbacks of the MBNA True Line Mastercard is that it has a limited rewards program. The card only offers 1 point for every $1 spent, which can be redeemed for cash back, merchandise, or travel. If you are looking for a card with a more robust rewards program, this may not be the right choice for you.
5. High foreign transaction fee – Another drawback of the MBNA True Line Mastercard is that it has a high foreign transaction fee. The card charges 3% of each transaction made in a foreign currency, which can add up quickly if you travel frequently or make purchases in foreign currencies often.
6. No introductory APR on purchases -Another drawback of the MBNA True Line Mastercard is that it does not offer an introductory APR on purchases. This means that you will immediately accrue interest on any purchases made with the card, which can add up quickly if you are not careful with your spending
The Capital One Guaranteed Secured Mastercard
For those who need more than $1000 in available credit, the Capital One Guaranteed Secured Mastercard is another great option. This card comes with up to $7500 in available credit, has no annual fee, and charges just 19.8% interest on purchases and balance transfers. Plus, as a bonus, you can earn 1% cash back on every purchase you make.
Pros and Cons of The Capital One Guaranteed Secured Mastercard
1. The Capital One Guaranteed Secured Mastercard is a good option for people with bad credit because it has a low annual fee and a relatively high credit limit.
2. However, the interest rate on the Capital One Guaranteed Secured Mastercard is quite high, so it’s important to pay off your balance in full each month.
3. Another downside of the Capital One Guaranteed Secured Mastercard is that it doesn’t offer any rewards or perks as many other credit cards do.
4. Overall, the Capital One Guaranteed Secured Mastercard is a good option for people with bad credit who are looking for a basic credit card with a low annual fee.
5. If you’re looking for a credit card with rewards or perks, though, you’ll likely be better off with another option.
6. And if you’re able to qualify for a traditional unsecured credit card, you’ll probably get a better interest rate than what’s offered on the Capital One Guaranteed Secured Mastercard.
The Home Trust Secured Visa Card
Finally, the Home Trust Secured Visa Card is another good choice for those looking to rebuild their credit score while getting access to extra funds when needed. This card features no annual fee and offers up to $10 000 in available credit—a boon if you need more than what other cards can offer. Plus, after 12 months of good payment history, you may be eligible for an upgrade to an unsecured version of this card or even a higher-tier rewards program!
Conclusion: Achieving financial stability is possible even when your credit score is less than ideal—but it does require careful planning and thoughtful decision-making about which products are best for your needs and goals. By familiarizing yourself with the different types of Canadian bad-credit cards available on the market today, you’ll be able to make informed decisions about which ones provide the most value for your situation so that you can begin rebuilding your credit score as quickly as possible!
Pros and Cons of Home Trust Secured Visa Card
1. The Home Trust Secured Visa Card is a good option for people with bad credit who are looking to rebuild their credit score.
2. One of the main advantages of the Home Trust Secured Visa Card is that it reports to all three major credit bureaus, which can help you to improve your credit score over time.
3. Another advantage of the Home Trust Secured Visa Card is that it has a relatively low-interest rate, which can save you money if you carry a balance on your card.
4. However, one of the disadvantages of the Home Trust Secured Visa Card is that it has an annual fee, which can add up over time.
5. Additionally, the Home Trust Secured Visa Card has a relatively high-interest rate on cash advances, which can be costly if you use your card for this purpose.
6. Overall, the Home Trust Secured Visa Card is a good option for people with bad credit who are looking to rebuild their credit score. However, it is important to be aware of the potential drawbacks of the card before you apply.
Orchard Bank Classic Visa Card
The Orchard Bank Classic Visa Card is another good option for those with bad credit who want to start building their credit score. This card does not require an annual fee and has no security deposit required for approval. Additionally, this card offers low-interest rates and access to your FICO score so that you can easily track your progress as you build up your credit score over time.
Pros and Cons of Orchard Bank Classic Visa Card
1. The Orchard Bank Classic Visa Card is a good choice for people with bad credit because it has a relatively low APR and no annual fee.
2. However, the Orchard Bank Classic Visa Card also has some drawbacks. For example, the card has a high balance transfer fee and a high late payment fee. Additionally, the card does not offer any rewards or cash back.
3. Overall, the Orchard Bank Classic Visa Card is a good option for people with bad credit who are looking for a basic credit card with no annual fee. However, people who are looking for a card with rewards or cash back may want to consider other options.
4. The Orchard Bank Secured Visa Card is another option for people with bad credit. This card has a lower APR than the Orchard Bank Classic Visa Card and also offers a rewards program. However, the Orchard Bank Secured Visa Card requires a security deposit, which may be a drawback for some people.
5. The Capital One Secured Mastercard is another option for people with bad credit. This card has no annual fee and offers a cash-back rewards program. However, the Capital One Secured Mastercard requires a security deposit and has a high APR.
6. Overall, there are pros and cons to each of these credit cards for people with bad credit. It is important to compare each option and choose the card that best suits your needs and financial situation
Royal Bank Secured Credit Card
The Royal Bank Secured Credit Card is one of the best-secured cards available in Canada if you have a bad or limited credit history. This card requires a security deposit upfront but gives you access to features such as low-interest rates and fraud protection—all while helping you build or rebuild your credit score over time by reporting your activity to Equifax Canada every month. Plus, this card comes with exclusive rewards programs such as RBC Rewards where you can earn points on all eligible purchases made with the card.
Pros and Cons of Royal Bank Secured Credit Card:
1. A Royal Bank Secured Credit Card can help you rebuild your credit score.
2. A Royal Bank Secured Credit Card has a lower interest rate than a regular credit card.
3. A Royal Bank Secured Credit Card requires a security deposit
4. A Royal Bank Secured Credit Card may have an annual fee.
5. A Royal Bank Secured Credit Card may not be available to everyone.
6. A Royal Bank Secured Credit Card can help you establish a good credit history.
Conclusion:
The building or rebuilding your credit after experiencing financial difficulties isn’t easy—but it isn’t impossible either! There are several great options available today when it comes to choosing secured or unsecured credit cards for people with bad credit in Canada. From no-annual-fee cards like the Capital One Guaranteed MasterCard and Orchard Bank Classic Visa Card to secured cards like the Royal Bank Secured Credit Card, there is something out there for everyone regardless of their current financial situation. With these cards in hand, Canadians will be well on their way toward achieving better financial health in no time!