Bad Credit, I know it is a nightmare for at least some of you. Getting out of it is not easy, but you can, only if you do that in the proper ways. This article is about the best Credit Cards for Bad Credit holders in Canada.

Possible ways to get rid of Bad Credit

Do you have Bad Credit?

There are two different ways to get rid of Bad Credit and re-establish that to an excellent quality.

  1. Get a Credit Card and use it to re-establish your Credit.
  2. Wait for years and get it fixed by time.

I know you have too many questions in your mind and I’m going to answer all of them today, sit tight.

How a Credit Card can you help in this?

A Credit Card is always the most effective and quickest way to resolve your Bad Credit Issues.

I assume that you already have a Credit Card and you can keep using it of course. Use it as much as you can and leave the country.

I’m just kidding. Never do that.

Make sure you do this way;

#1 You will have to be very strict on paying bills on time.

Even if you couldn’t pay the full amount in one time, do not miss at least the minimum monthly payment. Otherwise, it will be worse than before.

#2 Keep your Balances as low as 30%.

If you’ve used 75% of your Credit limit, that means you are maxed out your Credit Card. That is not good for your Credit health. So, make sure you keep your balances always as low as 30%.

Even if you go up, pay the full amount sooner if you can – Always Good for you.

#3 You shouldn’t apply for any other Credit Card soon.

Every time you apply for a Credit Card, that is considered as an inquiry in your Credit and will end up on losing Credit Score again. You shouldn’t do that until your Credit is Excellent.

Doing these things will help you to improve your Creditworthiness to your Credit Card lender and your Credit will get better.

What if you don’t have a Credit Card already?

Things that I mentioned above will work for those who already have a Credit Card.

No worries even if you don’t have one already.

You can consider getting a new Credit Card. Do not raise your eyebrows, I know it is tough to get a new Credit Card if you already have Bad Credit.

But, there are Credit Cards which are specially designed to help people who struggling with Bad Credit.

It is not like the Cash Back Credit Cards or Rewards Credit Cards you see out there. You may get very fewer perks or may be nothing at all with this kind of Credit Cards.

But, that is not what you want right now. You need to get out this trouble and re-establish your Credit, right?

So, stop thinking about the benefits that you’re going to get from these Credit Cards.

Let’s check the different kinds of Credit Cards available for you.

What kind of Credit Cards are you eligible to get if you have Bad Credit?

There are 3 kinds of Credit Cards for Bad Credit.

#1 Secured Credit Cards.

#2 Guaranteed Credit Cards.

#3 Prepaid Credit Cards.

#1 Secured Credit Cards

Here, you need to deposit a certain amount of money into the account and you can use it. The Lender will not issue their own money. No trouble to them!

The great thing about this Card; These Credit Card Issuers will report your payments to Credit Bureaus, thus you can re-build your Credit.

You will need a bank account to get this Card. Most Lender will demand anywhere from $500 – $1000 as deposit and they will refund it when you close your account.

#2 Guaranteed Credit Cards

As the name implies, these Cards are guaranteed to get approval. The lender will give you a Credit limit within the specified range which depends on your current Credit status.

No worries, you get at least the minimum Credit limit they offer.

But in the worst case scenario, they may end up on asking deposits to get your account up and running.

#3 Prepaid Credit Cards

It is really easy to get one but Using a Prepaid Credit Card is not an effective solution to rebuild your Credit as the payments are not reported to Credit Bureaus.  So, forget this one from the list.

In today’s article, I’m going to list the best Credit Cards for Bad Credit holders in Canada.

Let’s get started.

Summary of the Best Credit Cards for Bad Credit

#1 Affirm MasterCard® Credit Card

#2 Home Trust Secured Visa Card

#3 People Trust Secured MasterCard

Let me explain each of them in detail so that you can get a better understanding of them.

#1 Affirm MasterCard® Credit Card

This is the only one Unsecured Credit Card for Bad Credit holders in Canada with absolutely no security deposits needed.

For that reason, Affirm MasterCard is in the first place in “Credit Cards for Bad Credit” category.

Key things to know about Affirm MasterCard®

Annual Fee: $84 – That seems to be reasonable for an unsecured Credit Card account because you are going to see – even secured Credit Cards also demand an annual fee.

Annual Interest Rates (APR): 29.99% for homeowners and 34.99% for non-homeowners.

The best thing about Affirm: They report to both Credit Bureaus, TransUnion, and Equifax. That will help you re-build your credit as quickly as possible.

#2 Home Trust Secured Visa Card

As it is a secured Visa Card as you need to deposit a certain amount of money in your account and can use it. Mostly, you will have a guaranty on approval because you are depositing money.

You need to deposit at least $500 to get an approval and they report every payment to both Credit Bureaus.

Key things to know about a Home Trust Visa

Annual Fee: No annual fee needed.

Secured Deposit: Anywhere from $500 to $25,000.

Annual Interest Rate: 19.99%.

#3 People Trust Secured MasterCard

When it comes to Low-Interest Credit cards for Bad Credit Holders, People Trust Secured MasterCard is the best in the list.

It offers 12.99% interest rate on balances and everything else is similar to the other Secured Credit Cards in the list.

Key things to know about a People Trust Secured MasterCard

Monthly Fee: $5.75

Secured Deposit: Anywhere from $500 to $25,000.

Annual Interest Rate: 12.99%.

In conclusion

Getting a suitable Credit Card is not just the proper resolution to your Bad Credit.

You need to learn how to use it properly in order to get rid of bad credit so that you can re-establish your Credit to an excellent quality.

2 Comments

  1. I JUST GRADUATED FROM MEDICAL SCHOOL THIS SEPTEMBER. MY SPECIALITY IS INFECTION DISEASES AND I AM WORKING AT humber river regional hospital since april with annoual income of 18000, which i would gladlly send you a copy of that.

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