Credit cards are often known for giving cashback or rewards points . However, there are other types of credit cards. Even if you have bad credit or no credit history, you can still get a store credit card . Obtaining a credit card rather than using a Visa debit card or a prepaid credit card has a definite advantage: by paying off your credit card balance each month, you will be able to establish a positive credit history which will allow you to boost your credit rating. This is an attractive solution for immigrants, who have no credit history, consumers who have gone bankrupt, or those who have bad credit.
Guaranteed Approval Credit Cards and Secured Credit Cards
There are two types of credit cards that you can get regardless of your credit rating. First, there are guaranteed approval credit cards that require no security deposit. Typically, your credit limit will be just a few hundred dollars with such cards.
There are also secured credit cards, also called secured credit cards, which require a security deposit that you cannot touch for as long as you hold that credit card. When the card expires, or when you cancel it, you can get your security deposit back. Although it requires more capital initially, this type of card will suit those who have to make larger purchases with their credit cards, and who therefore need a credit limit higher than what they are offered. with a guaranteed approval credit card with no security deposit.
To help you choose a credit card to rebuild your credit, we researched our credit card comparison tool and identified the 8 best cards to rebuild your credit. Here they are:
Secured credit card from Refresh Financial
Refresh Financial’s secured card has an annual fee of $12.95 and an account maintenance fee of $3 per month. The costs therefore amount to $48.95 per year in total. However, approval is required if applying for this card. It has an interest rate on purchases, cash advances and balance transfers of 17.99%. The card’s minimum deposit is $200 and the maximum deposit is $10,000. Since your deposit is the same amount as your credit limit, you can get a credit limit of up to $10,000, provided you have the necessary funds.
Capital One Guaranteed Approval Guarantee Mastercard
As the name suggests, you can be sure that your application will be approved when you apply for the Guaranteed Approval Guaranteed Mastercard . It has an annual fee of $59 and an interest rate of 19.80%. The required deposit is between $75 and $300, and the maximum credit limit is $2,500. It offers several benefits, such as purchase insurance, extended warranty on purchases, common carrier travel accident insurance and collision/loss damage insurance for rental vehicles.
Capital One Guaranteed Approval Mastercard Credit Card
Regardless of your credit rating, you can rest assured that your application will be approved when you apply for the Capital One Guaranteed Approval Mastercard . It has an annual fee of $59 and its interest rate on purchases, balance transfers and cash advances is 19.80%. It is a card that offers several insurances and the required deposit is between $75 and $300.
Capital One Guaranteed Approval Low Rate Mastercard
The Guaranteed Approval Low Rate Mastercard is a great choice if you want to rebuild your credit while earning a low interest rate of 14.90% on purchases and balance transfers. The annual card fee is $79 and the required deposit is between $75 and $300, depending on your current credit score.
No Annual Fee Scotia Minimum Visa Card
This card is specially designed for people who are new to the country or who do not have a credit history. The no annual fee Scotia Minimum Visa card has no annual fee and its interest rate of 16.99% is lower than the market average. It also offers an interest rate for balance transfers of as low as 3.99% for the first 6 months. A salary of $12,000 per year is required, and the minimum credit limit is $500.
RBC RateAdvantage Visa Credit Card
The main advantage of the RBC RateAdvantage Visa , besides the fact that it is free, is that the interest rate varies according to your credit score. The lower your rating, the higher the interest rate, and vice versa. Thus, this card can be obtained by individuals with bad credit, although approval is not guaranteed. Despite this, its interest rate is mostly lower than most credit cards on the market. Indeed, the interest rate is based on the prime rate of the Royal Bank, to which is added between 4.99% and 8.99%. It also offers rewards, such as a 3 cents per liter gas rebate at Petro-Canada and a 20% bonus Petro-Points when making purchases with the card.
National Bank Mastercard MC1
The Mastercard MC1 credit card , offered by National Bank, is excellent for people with no credit history. With a zero annual fee ($0), it offers an interest rate on purchases of 20.99% and an interest rate on cash advances and balance transfers of 22.99%. The minimum credit limit is $500.
Alberta Mastercard – Secured from ATB Financial
Available only in Alberta, this guaranteed card comes with an annual fee of $49 (and $25 for each additional card). The Alberta Mastercard – Secured offers an interest rate on purchases of 19.90%, and an interest rate on cash advances and balance transfers of 21.90%. The minimum deposit required with this card is $500.