Find Your Canadian Credit Card: Even with Credit Challenges
Discover which Canadian credit card options are available to you, even if you have a less-than-perfect credit history or are new to Canada. Get personalized recommendations and actionable advice.
Frequently Asked Questions
What is considered 'bad credit' in Canada?
In Canada, a credit score below 600-650 is generally considered 'fair' to 'poor.' This can make it difficult to qualify for traditional credit cards, loans, or mortgages at favorable rates. Scores range from 300 to 900, with higher scores indicating better creditworthiness.
Can I get an unsecured credit card with bad credit?
It's challenging to get an unsecured credit card with genuinely bad credit, as lenders see it as a higher risk. However, some lenders offer unsecured cards with lower limits specifically for individuals with fair credit who are actively working to improve their score. Secured credit cards are a more common and often easier first step.
What is a secured credit card and how does it help build credit?
A secured credit card requires you to provide a security deposit, which typically becomes your credit limit. This deposit minimizes risk for the lender. By using the card responsibly and making on-time payments, you demonstrate creditworthiness to credit bureaus, which helps build or rebuild your credit score over time. After a period of good behavior, you may qualify for an unsecured card.
How long does it take to improve my credit score in Canada?
Improving a credit score takes time and consistent effort. Generally, you can see noticeable improvements within 6-12 months of adopting good financial habits like making all payments on time, keeping credit utilization low (below 30%), and avoiding new debt. Major negative items like bankruptcies can stay on your report for 6-7 years, but their impact lessens over time.
