Yes, you can get a credit card with bad credit in Canada by applying for a secured credit card or a guaranteed approval card. These options require a refundable deposit and are designed to help you rebuild your credit score through responsible use and on-time payments, with most reporting directly to Equifax and TransUnion.
Struggling with bad credit in Canada and wondering if you can still qualify for a credit card in 2025? The answer is yes — and you’re not alone.
With the rising cost of living, inflation, and financial instability over the past few years, many Canadians have experienced a drop in their credit scores. But don’t worry. Whether you’re dealing with a low credit score, no credit history, or recent financial hardships, there are practical, achievable ways to get a credit card, rebuild your score, and take back control of your financial future.
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Your credit score in Canada typically falls between 300 and 900. Scores are assigned by two major credit bureaus: Equifax and TransUnion. Here’s how scores are generally categorized:
Score Range
Category
800 – 900
Excellent
740 – 799
Very Good
670 – 739
Good
580 – 669
Fair
300 – 579
Poor
If your score is under 620, most lenders will consider you a higher-risk borrower. But that doesn’t mean you can’t get approved — it just means you’ll likely need to look at secured or subprime credit cards first.
According to NerdWallet Canada, the average Canadian credit score in 2024 was around 760 — but that number varies based on age, region, and debt level Source.
Why Do Credit Scores Matter?
Lenders, landlords, and even some employers may check your credit score to assess your financial reliability. A low score can affect:
Credit card and loan approvals
Interest rates and credit limits
Rental applications
Job background checks
Insurance premiums
That’s why improving your score should be a financial priority — and why even getting a starter credit card is an important step in rebuilding your reputation.
Can You Get a Credit Card with Bad Credit?
Yes, you absolutely can. There are several types of credit cards for Canadians with bad credit. You may not qualify for premium rewards cards right away, but you can start with products designed specifically for rebuilding.
Let’s look at your top options:
1. Secured Credit Cards (Best for Rebuilding Credit)
Secured credit cards are the most accessible type of card for individuals with low or no credit.
How they work:
You provide a security deposit (e.g., $300–$500)
Your deposit becomes your credit limit
Your activity is reported to credit bureaus
You build a payment history by using and repaying your card
Tip: These cards work like normal credit cards — you can use them online, in stores, and abroad.
Best Secured Credit Cards in Canada for 2025:
Card
Key Features
Neo Secured Card
No annual fee, earn cashback rewards, $50 minimum deposit
Home Trust Secured Visa
Choose low interest or no annual fee version
Capital One Guaranteed Secured Mastercard
Guaranteed approval, flexible deposit starting at $75
For detailed information about the best secured credit cards in Canada, check out this article.
2. Subprime or "Second Chance" Credit Cards
These unsecured credit cards are designed for people with poor credit — but they come with higher interest rates and fees.
They don’t require a deposit, but you might face:
Monthly maintenance fees
Low starting credit limits
Higher APRs (20%–30%)
Use them cautiously and only if you can pay off your balance each month to avoid expensive interest charges.
3. Retail or Store Credit Cards
Many department stores, grocery chains, and fuel brands offer credit cards with:
Easier approval
Modest credit limits
Points or discounts
However, they typically come with high interest rates and limited usability. They're helpful for rebuilding credit but not ideal for major purchases or emergencies.
4. Credit Builder Loans (An Alternative to Credit Cards)
If you want to improve your score but aren’t ready for a card, a credit builder loan might be right for you.
How they work:
You “borrow” a set amount ($500–$2,000)
The lender holds the funds in a savings account
You make monthly payments for 6–24 months
Payments are reported to the credit bureau
Once fully paid, you get access to the funds — and a better score.
5. Becoming an Authorized User
If a family member or partner has good credit, ask if you can be added to their card as an authorized user. Their positive payment history may be reflected on your report — helping you boost your score with no risk to them (if you don’t use the card).
How to Choose the Best Credit Card for Bad Credit in 2025
Not all cards are created equal. When comparing options, ask yourself:
Does it report to major credit bureaus?
Are there hidden fees (activation, monthly, etc.)?
What’s the interest rate if I carry a balance?
Can I upgrade to an unsecured card later?
Does it offer any cashback or perks?
Also, look out for predatory lending — some companies target people with bad credit and charge excessive fees. Stick with reputable banks or fintechs.
How to Use Your Card to Rebuild Credit
Getting approved is just the first step — how you use your card is what truly matters.
1. Always Pay On Time
Payment history is 35% of your score. Even one late payment can set you back.
2. Keep Your Utilization Low
Use less than 30% of your available credit. For example, if your limit is $500, aim to keep your balance under $150.
3. Don’t Max Out Your Card
Carrying a full balance (or close to your limit) signals risk to lenders.
4. Avoid New Hard Inquiries
Limit how often you apply for new credit. Too many hard checks in a short period can lower your score.
5. Monitor Your Progress
Check your credit reports regularly using free tools like:
Borrowell
Credit Karma Canada
Mogo
FAQs About Getting a Funeral Insurance
Here are 5 highly searched FAQs related to getting a funeral insurance:
Yes. While you won’t qualify for most unsecured cards, you can still get a secured credit card with a deposit. Some guaranteed cards don’t even check your credit.
The Capital One Guaranteed Secured Mastercard is widely considered the easiest to get approved for — almost anyone over 18 (with no active bankruptcy) qualifies with a minimum deposit.
No. Prepaid cards do not involve borrowing and do not report to credit bureaus, so they won’t help your credit. Only secured credit cards build credit.
Final Thoughts: You Can Bounce Back
Having bad credit doesn’t make you a bad person. Life happens — whether it’s job loss, illness, or a rough patch. What matters now is how you move forward.
Getting a credit card with bad credit in 2025 is 100% possible. Whether you choose a secured card, a credit builder loan, or a co-signed product, consistent effort will lead to a better credit score, more financial freedom, and greater peace of mind.
Important Notice:
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