Secured Credit Cards

The Top secured credit cards in Canada for people

According to the saying, past behavior is the best indicator of future behavior. Using this same logic, your credit history is what the lender uses to determine your creditworthiness. In other words, they use your financial history to determine the likelihood that you will pay your debts completely on time.

If you have a bad credit history or no history, either the lenders do not believe that you will be consistent and timely in your repayments, or they have nothing to assess your risk. They are certainly not ready to give you the benefit of the doubt. Nevertheless, it is worth checking your credit rating because it may be higher than you thought.

If so, how do you build (or rebuild) your credit history? Because of this, there are several credit cards for bad credit, and most of them are secure credit cards. A guaranteed or guaranteed credit card, unlike other credit cards, must provide a deposit that is at least equal to the credit limit provided. Here are three cards, among the ones we think are the best credit cards in Canada for people with bad credit or no credit at all:

Refresh Secured Visamore details

  • Annual fees: $ 49 ($ 12.95, plus $ 3 per month, for a total of $ 48.99 per year)
  • Interest rate: 17.99% on purchases
  • The credit limit is determined by the amount of the security deposit, between $ 200 and $ 10,000

While your request for approval of a secured credit card may be almost certain, you often need to establish your credit standing before obtaining it. This can temporarily affect your credit rating, something to avoid when you have bad credit or have been refused a credit card recently. This is what sets the Refresh Financial Secure Visa Card apart: it does not include any credit checks, eliminating stress in the application process.

The activities related to this card are reported to the credit bureaus, and therefore you can improve or build your credit history, on the condition that you repay your balance at the required time, of course. The annual rate for this card is 17.99% of the remaining balance, which is lower than the rate of 19.99% offered by most credit cards. The annual fee is $ 49, and the minimum security deposit is $ 200.

Also, Refresh Financial cardholders access a seven-part Refresh fit online course (unfortunately available only in English) to manage their money and make the best financial decisions for the future Learn how. If you sponsor someone, you can receive up to $ 100.

Home Trust Guaranteed Visa Card

  • No annual fee
  • 19.99% interest rate
  • Your credit limit is set at the amount of the security deposit
  • Applicants who have been discharged from bankruptcy are eligible at any time
  • Candidates who are in a consumer proposal can apply at any time
  • Not available in Quebec

If you are looking for a credit card with no annual fee but don’t qualify for an unsecured credit card, the Home Trust Secured Visa card may be a good option for you.

This card requires a security deposit corresponding to the desired credit limit. You can deposit from $ 500 to $ 10,000. This allows you to develop your credit rating at a convenient pace. This card is ideal if you want to use the card for small purchases to gradually gain creditor confidence but still have the freedom to make large purchases.

The card is available to all Canadian residents except those in Quebec. It has an approval rating of over 95%, so it is almost certainly available even if you have gone bankrupt in the past (discharged ). However, because this card is designed for those with bad or no credits, it has a 19.99% interest rate on all purchases and cash advance and ensures that the user has no outstanding balance. Also, since it is not a prepaid card, the balance cannot be refunded using a security deposit but will be fully refunded if the account is closed.

Otherwise, if you like the credit limit this card offers but would like to have a lower interest rate, you can apply for the Home Trust Guaranteed Visa Card with annual fees.

Home Trust Guaranteed Visa Card with Annual Fee

  • Annual fee: $ 59
  • 19.99% interest rate
  • Your credit limit is set at the amount of the security deposit
  • Applicants who have been discharged from bankruptcy are eligible at any time
  • Candidates who are in a consumer proposal can apply at any time
  • Not available in Quebec

This card has an interest rate of 14.9% and an annual fee of $ 59, which you can choose to pay at $ 5 per month. This is a great alternative because applicants are just as likely to be approved for this card as one that has no annual fee, but its interest rate is 5% lower. This card would be the preferred choice for those looking to restore their credit rating and who trust themselves not to have a balance owed too often.

Low-interest credit card

Before applying for a credit card, it is worth knowing a higher credit rating than you think. If you have a credit score of 600 or higher, it is possible that you could qualify for a low-interest credit card and do not need a secured credit card to build your credit score.

The Scotia Minimum Visa Card is not a guaranteed credit card, and therefore a security deposit is not required. With an 11.99% interest rate on purchases, cash advances, and balance transfers, it’s a good card to get once you’ve improved your credit score using a secure credit card. If you think you will occasionally have a balance on your credit card, one of the best low-interest credit cards would be a good option.

Scotia Minimum Visa Card

  • Annual fee: $ 29
  • A low-interest rate of 12.99% on purchases, cash advances, and balance transfers
  • Launch interest rate of 0.99% on balance transfers for the first six months

Note that this is not a rewards credit card. However, low-interest credit cards are generally easier to obtain, and the annual fees of $ 29 and the low minimum annual income of $ 12,000 per person make it an accessible option for many Canadians. The card also offers an introductory interest rate of 1.99% on balance transfers in the first six months, making it an excellent card if you are looking to pay off credit card debt.

Unsecured or guaranteed credit card?

However, if your credit rating is low, you have no credit history or have been discharged from bankruptcy, you may not be able to qualify for an unsecured credit card.

When thinking about a typical credit card, think about the unsecured credit card to which the membership application is sent. Lenders analyze credit, credit ratings, and various other variables to set credit limits—credits and whether they are acceptable. No warranty is provided. Refund your purchase every month and receive bonus points and cashback in some cases.

A secured credit card is a card guaranteed by a deposit of money generally equivalent to one or two times your credit limit. Since a deposit backs the secured credit card, it does not pose a very big risk to the lender, which is why just about anyone can get one, even people with bad credit – also, it does not require a minimum income. No wonder that secured credit cards are the easiest to obtain.

You can shop online, book a trip, and use it to pay for everyday purchases. Also, like an unsecured card, you should strive to pay the full monthly amount each month.

The financial activities of secured and unsecured credit card holders are passed on to credit bureaus, which means that both types of cards can be used to build a credit history. In contrast, activities related to prepaid credit cards and debit cards are not reported to the credit bureaus and therefore, cannot be used to build or restore your credit.