Credit Cards In Canada For Those Who Seek To Rebuild Their Credit

It’s not ideal to have bad credit. The terms you are getting once you have a bad credit aren’t as good as the terms that people with good credit have. Therefore, it’s important to improve your credit score as much as you can. Even though you can get a mortgage, buy a car or even go to a vacation with bad credit it will prove to be quite costly to do so.

One possible solution to this problem is to get a new credit card. If you want to improve your credit score, building a healthy activity on the new credit card might do wonders to your credit score. Issuing a new credit card to fix your credit score might sound a bit counter-intuitive . However, your mission is to prove that you are liable enough to pay for your credit card purchases.

Secured Vs Guaranteed Credit Cards

Those who have bad credit can’t apply to regular credit cards. Therefore, they have two options. Either a secured credit card or a guaranteed credit card. A secured credit card most likely will need a deposit to ensure that you will pay back your credit line. For instance, if you deposit $300 you will have a $300 credit line. A Guaranteed credit card will also require a deposit but could give you more space on your credit line. For instance, a $300 deposit might supply for a $1500 credit line.

The best thing about these cards is that the low risk they possess to the bank allows the bank to approve almost every application. There isn’t any %100 approval rate, but it’s close to it

Best Credit Cards For Bad Credit

Every credit card provider has options for those who have bad credit. It’s important for you to do a proper research before you choose the right card for you. However, we will try to assist you with your research. Here are 4 cards that we have found the best for people with bad credit.

1. Home Trusted Secured No Fee Visa

Eligibility Criteria:

-Credit Score: Bad-Poor.

-Minnimum Personal Income: $0

-Annual Fees: $0 (19.99% APR)

This credit card has no annual fees. Therefore, if you’ll be a good credit card user you won’t pay obscene amounts of money just to hold the credit card. Since it’s secured your credit limit will be depended on your security deposit. In our opinion it’s the ideal credit card to build your credit score. It doesn’t feature many perks. But, once you’ll build your credit score those would be easier to get

The downsides of this card is the 19.99% APR and the credit check process. However, if you won’t go into debt you’ll avoid the APR cost. The credit check process is not too invasive and most applicants are approved. This is what makes this credit card the best option, it limits your options to spend excessively while also allowing the credit card provider to trust you enough.

2. Capital One® Low Rate Guaranteed Mastercard®

Eligibility Criteria:

-Credit Score: Bad-Poor.

-Minnimum Personal Income: $0

-Annual Fees: $79 (14.99% APR)

With Guaranteed Approval, no wonder why this card is so popular. Since this card isn’t secured, it allows you to have a higher credit limit. Also, 14.99% APR is lower than the rest of the cards. Meaning that if you don’t spend your money properly it will hold a lower interest rate than the other cards.

The $79 annual fee is a difficult pill to swallow. But, it gives you the flexibility to have a higher credit limit and also pay a lower interest on your overdraft. If you are looking to rebuild your credit this option is less appropriate than the Home Trusted Secured No Fee Visa.

3. Capital One® Guaranteed Secured Mastercard®

Eligibility Criteria:

-Credit Score: Bad-Poor.

-Minnimum Personal Income: $0

-Annual Fees: $59 (19.99% APR)

The difference between this card and the previous card is that this one is secured. It comes with a lower annual fee and a higher APR which under certain circumstances could prove to be more costly. But, if you’ll use it responsibly it might be cheaper than the guaranteed card.

We still believe that the first option is better than the two that are following. You’ll save $60 on your annual plan if you’ll go with the Home Trusted Credit Card. The APR is the same so basically it’s up to your negotation skills if you can top that terms.

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