Bad Credit

Bad credit is not a hindrance for credit card option for Canadians

Credit scores are an important part of lifestyle for the people living in Canada. In countries like Canada, you can easily get a credit card, but once the card is in the hand, one will always have to take care of the credit score of the same. Credit scores are later looked into when one goes for renting an apartment or might go to get a loan for a particular reason. Maintaining a good credit score helps you access such financial facilities easily. The score goes up till 900 but the good score ranges from 660 to 900. 

Issues while getting another credit card when you have a bad score:

The availability of credit cards when the person is having a bad credit score is no difficulty but one might have to face issues or rather there are some negative points that one needs to go through when they have a bad credit score in the credit card history.

Following points only talk about the possible issues that one will have to face but that does not define that the cards are not available for the person:

  • One might have to pay extra interest rates. The cards in the market with a good credit score might charge less than the cards who offer the card facilities to the people having a bad credit score. This is because of the risk factor that the companies face while issuing the card to the people with less score.
  • One must take care that the amount is repaid on time because the APR after some months is very high. The companies offering cards to lower score holders will have high APR as compared to normal card and this is a disadvantage for the bad credit score. 
  • One will always have to keep in mind about the repayment and maintaining the score because when you have already got a card with a bad score and then still ruining your score is not going to help one. Also, the timely repayment cannot be taken for granted as that will affect the credit score.

Best credit card options for bad credit score:

There are times when one might not be able to maintain the credit score due to any harsh condition and then when they set out to get a credit card, its difficult to find many. The following are the best cards that can be used by a person with less credit score. The following options also create a space for the user to bring up their credit score with less effort. Also, when it comes to the conditions of the card, the following cards might be the one with 

No-fee Scotia Value Visa Card 

When one is already facing a crisis, the annual fee card can be a great option. Also, this card with other good conditions and thus this is among the top choices. When might not have this good feature in other cards, this card offers a 3.99% promotional interest rate when the user goes for a balance transfer option. But the card belongs to the unsecured card category and for a person carrying a habit of not repaying on time, the most disturbing fact might be that the APR turns to 16.99% after six months.  Also, this card has some extra benefits which are not usually offered by other card issuing companies. 

RBC Visa Classic Low Rate Card

The card option is great for the people who are sure that they will always be carrying a balance in the card because this card provides an interest rate of 12.99%. while the rate might be better when talked about the secured cards but then the person with a low score will never be eligible to get that card.

This card comes with low annual fees and not many additional benefits but provides some perks like discounts at some gas stations in Canada. This card also looks for a fair credit score but a person with a bad score can still apply because they also take other factors like savings, etc into consideration.

Refresh Financial Secured Visa

When one might have no option left as they carry a low credit score or no score at all, this card still offers them good deals. They agree to provide cards to people with a bad score and help them to increase score while the person is using the card. The credit limit lies from $200 to $1000 while the purchase interest rate still lies at 17.99%. They also have normal annual card fees.

Peoples Trust Secured MasterCard

This card does not look for many conditions and is a great option for the people who have just entered the new credit score environment. They offer approval to almost everyone and also to the people who are having a bad score due to any reason. They do have their conditions straight which demands a minimum deposit of $500 and the interest rate which is normal like other cards, set at 12.99%. They have monthly fee structure, charging $5.80 fee for a single card for a month and an extra $2.93 for any additional card if taken.

The Capital One Low Rate Guaranteed Mastercard

The card is for the people having bad credit score and badly looking for help. With the annual fees of $79 and balance transfer rates $14.90, the card checks the profile will ask how much to deposit and then will give you your credit limits personally. If the person deals with everything finely, the credit score increases and so does limit with time.

Conclusion

While a person living in Canada might have a lot many options to get a credit card even with a bad credit score, it is always advised to maintain the score above the fair mark. The fact that whenever the person goes to get something important from renting something to buying something with a loan, one must have a great credit score to enjoy the best options available. The credit cards mentioned in the above section can also help the person to get back the good credit score and the user can choose the card according to their needs for the list.