The Best Credit Cards for Canadians with Poor Credit
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Navigating life with negative credit can be difficult. It complicates routine operations such as obtaining a car loan or just using a credit card at the petrol station. In today’s digital age, not having a credit card can be a major nuisance, preventing internet purchases, hotel reservations, and other necessary transactions, particularly during a pandemic.
If you don’t qualify for a traditional credit card, you may feel stuck. However, Canadians with less-than-perfect credit still have options for obtaining new credit cards. While these options frequently come with higher interest rates and lesser limits, they do offer a way to rehabilitate credit. The responsible usage of a credit card can help in this process. Consider these possibilities:
Home Trust Secured Visa:
A easy secured card to get you started. With a regular interest rate of 19.99% and no annual fee, it requires a minimum $500 security deposit. Commit to paying off balances monthly to reduce interest expenses and avoid the $12 inactivity fee by using the card frequently for minor purchases.
Capital One’s Low Rate Gold MasterCard:
An unsecured option with an annual cost of $79 and a 14.9% interest rate. Despite the cost, it includes perks such as price protection and travel insurance, making it ideal for budget-conscious visitors. Capital One also provides a secured Mastercard for customers who do not meet the requirements for this card.
No-fee Scotiabank Value Visa
A step up, needing no bankruptcy in the previous seven years and a minimum annual income of $12,000. Enjoy a minimum credit limit of $500, a 16.99% interest rate, and no annual fees. Take advantage of occasional balance transfer offers to minimize the interest on your existing credit card debt.
Refresh the Secured Visa:
With a 17.99% interest rate and an annual fee of $48.99, this card ensures approval without a credit check. It contains financial instruction and referral bonuses, which add value beyond the basic credit card capabilities.
RBC Visa Classic Low Rate Options:
It has a $20 annual fee and a 12.99% interest rate, making it ideal for those with slightly better credit scores. Benefits include purchase protection and discounts at Petro-Canada stations, but charges may vary depending on creditworthiness.
TD Emerald Visa:
With a $25 annual fee and variable interest rates ranging from 4.5% to 12.75%, this card is great for debt transfers and adding cardholders. Benefit from fraud protection and rental vehicle discounts, making it an adaptable alternative for those with low credit ratings.
BMO Preferred Rate MasterCard:
This card, designed for fair credit, has interest rates ranging from 11.9% to 17.5% depending on credit history. Enjoy travel privileges, purchase protection, and attractive balance transfer incentives, making it an excellent instrument for credit improvement.
Understanding Secured vs. Unsecured Cards: Secured cards demand a cash deposit equal to the credit limit, providing an opportunity to create or rehabilitate credit. Unsecured cards offer quick credit but may require a higher credit score to get approved.
To create and maintain a positive credit history, use your new credit card wisely, make timely payments, and avoid exceeding your credit limit.
Even with bad credit, there are ways to navigate the contemporary world with ease.
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