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The Best Unsecured Credit Cards in Canada (2022)
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Many Canadians stopped using credit cards because of their bad credit history. They think it is a wise move, but it only worsens the already bad credit. This is basically because you need a credit card to prove you can responsibly handle credits, which will result in the improvement of your credit history. What does this mean? It means having a credit card is the best and most helpful tool you need to assist you in establishing or rebuilding your bad credit history. Fortunately, there are a variety of credit cards specifically designed to help Canadians with bad credit history.
The assistance these credit cards offer Canadians with bad credits is a great plus to their credit, but these cards often come with high-interest rates and low spending limits. Meanwhile, these limitations are not as crucial or limiting as not building or establishing a good credit history. Since the benefits of using these cards supersede the limitations, it will be great if you consider using them rather than putting a stop to the use of credit cards.
There is no doubt that having an excellent credit history plays a significant role in determining if you will be liable to get approved for loans, credits and mortgages.
Many Canadians stopped using credit cards because of their bad credit history. They think it is a wise move, but it only worsens the already bad credit. This is basically because you need a credit card to prove you can responsibly handle credits, which will result in the improvement of your credit history. What does this mean? It means having a credit card is the best and most helpful tool you need to assist you in establishing or rebuilding your bad credit history. Fortunately, there are a variety of credit cards specifically designed to help Canadians with bad credit history.
The assistance these credit cards offer Canadians with bad credits is a great plus to their credit, but these cards often come with high-interest rates and low spending limits. Meanwhile, these limitations are not as crucial or limiting as not building or establishing a good credit history. Since the benefits of using these cards supersede the limitations, it will be great if you consider using them rather than putting a stop to the use of credit cards.
There is no doubt that having an excellent credit history plays a significant role in determining if you will be liable to get approved for loans, credits and mortgages.
Differences Between Secured Credit Cards And Unsecured Credit Cards On Your Credit History
A secured credit card, as the name implies, is a credit that you can get by “securing” it with specific collateral. The type of collateral used for the securing of secured credit cards is often in the form of refundable deposits. The issuer or lender often claims these refundable deposits should incase your card holder default on their payment.
Secured credit cards are, however, not generally available to Canadians with bad credit scores. Instead, unsecured credit cards are often offered to people with fair credit scores. An unsecured credit card is a credit card that does not require a refundable deposit, and they often offer rewards absent in secured credit cards, like points and cashback.
Furthermore, unsecured credit cards do not require difficult requirements for approval, but they come with high annual percentage rates and interest rates. They also come with steep penalties for late-payments and maintenance fees. These costly features that come with using unsecured credit cards are mainly to ensure lenders and issuers get their money back should the cardholder default without payments because they do not come with collateral.
Best Unsecured Credit Cards In Canada
There are various unsecured credit cards to pick from in Canada for the rebuilding of your bad credit history. But only a few of them offer the best features to build your low credit gradually. It is always advisable to consider a few factors such as interest rate, annual fees, personal payments and rewards before choosing an unsecured credit card.
These factors may be challenging for some people to understand, especially when it comes to determining if it is beneficial to them. To save you the stress, we have considered these factors for a number of unsecured credit cards, and the best among them include the following:
Capital One Low Rate Gold Mastercard
Refresh Secured Visa
Koho Visa
In conclusion
These are the best-unsecured credit cards to help Canadians build their bad credit history to the point where they will begin to get approved for loans, credits and mortgages.
