Life on Credit

The art of borrowing money

Home Trust Credit Cards

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Home Trust is a major mortgage and loan provider that offers a selection of financial solutions, including retail credit, deposits, VISA credit cards, and other products. Customers are also offered retail credit and receivable purchase plans. The home improvement program offers fully open loans, instant approval, and flexible financing solutions for kitchens, room additions, patio construction, decks and patios, flooring, air conditioning, and other items.

Home Trust Credit Cards

Home Trust offers credit cards for bad credit by VISA to its customers, regardless of their credit profile. Secured versions are available to borrowers with tarnished scores who are unable to access other sources of funding.

Home Trust Equityline® Visa Card

This card is available to borrowers who have equity in their homes and offers the opportunity to earn cash back on eligible purchases. It is a good solution for home improvement projects and business financing. This card by Visa allows customers to earn 1 percent back on everyday purchases and comes with no annual fee and benefits such as guaranteed hotel reservations, legal assistance and health services, and emergency card replacement. Virtually everyone qualifies. Given the low interest rate, this is a good solution for high-interest balances and debt consolidation. Customers who repay the outstanding balance in full are free to cancel the card.

  • APR: as low as 9.99 percent
  • No annual fee
  • Up to $100,000 in credit

Home Trust Secured Visa Card

This is another product for customers with less than perfect and bad credit that goes with a maximum credit limit of $10,000 and minimum limit of $500. Holders are free to use the card to book vacations and to make purchases over the phone and online. The main benefit is that payments are reported to the major bureaus meaning that timely payments allow borrowers to establish credit.

1st Option

  • APR: 14.9 percent
  • Monthly fee: $5
  • Annual fee: $59

2nd Option

  • Purchase APR: 19.99 percent
  • Cash Advance rate: 19.99 percent
  • No annual fee
  • Interest-free period: at least 21 days

apply

About the Company

Home Trust is a Canadian trust company that is federally regulated and serves a large customer base, from borrowers with past credit problems to customers with no credit history or provable income and self-employed entrepreneurs. The company was founded in 1977 and was originally named the Home Savings and Loan Corporation. It is publicly traded under the ticker HCG on the Toronto Stock Exchange. Headquartered in Toronto, the company has branches across Canada and is a member of VISA Canada and the Canada Deposit Insurance Corporation. Home Trust takes pride in offering flexible solutions and non-traditional financial products to help clients consolidate high-interest balances, save on interest, or purchase a home.

Scotiabank Credit Cards at a Glance

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The Bank of Nova Scotia offers specialty and standard credit cards with add-ons and incentives such as concierge service, complimentary hotel room and ticket upgrades, bonus rewards points, low annual and service fees, and many more. The bank offers business and personal cards and additional cards as well as secured and unsecured versions, depending on the customers’ debt to income ratio, income level, and credit score. There are low rate, no annual fee, student, travel, cashback, and other types of cards on offer with plenty of added features, including optional and complimentary services. Clients can choose from American Express and Visa offers with different credit limits, security features, travel and shopping benefits, and a lot more. There are special offers for creditworthy customers as well.

Scotiabank Secured Credit Cards

No-Fee Scotiabank Value® VISA Credit Cardsb

This card is definitely a great deal for people with bad credit and comes with a special intro rate, VISA checkout, no annual fees, and no balance transfer fees. The bank also offers special discounts, safety features such as credit card protection, and the opportunity to repay high-interest outstanding balances. Card checks are also available to help pay utilities, groceries, medical bills, and so on.

• No annual fee
• APR: 16.99 percent
• Intro rate: 3.99 percentapply

Scotiabank No Fee Credit Cards

No-Fee ScotiaGold® VISA cardSB_gold

A yet another no-fee Scotiabank offer, this card is the perfect choice for frequent travelers because of the added everyday and travel benefits. In addition to exclusive car rental discounts, the card comes with rental car collision coverage, commission-free travelers checks, and other add-ons. Credit card protection is an optional safety feature, and cardholders benefit from add-ons such as instant cash advances, chip technology, and more.

• Purchase APR: 19.99 percent
• Credit limit: $5,000
• Annual fee: none
• Grace period: 21 daysapply

SCENE® VISA* CardSB_scene

SCENE VISA also goes with no annual fee and rewards points for purchases at select retailers and for everyday purchases. The first purchase made on the card earns 4,000 rewards points, and there are added benefits such as exclusive rental discounts, mobile wallet features. Clients are free to exchange points for free movies, entertainment, and more. A free movie is worth just 1,000 points, and customers get 10 percent off snacks.

• Annual fee: none
• APR: 19.99 percent
• Credit limit: min $500apply

Scotiabank Low Rate Credit Cards

Scotiabank Value VISA* cardSB_value

This is a great card for major savings on balance transfers, and holders benefits from no transfer fees and a special rate of 0.99 percent valid for six months. Added incentives include discounts on AVIS rentals, supplementary cards, VISA checkout for smartphones, laptops, and other devices, and the option to pay down balances over a shorter period.

• APR: 11.99 percent
• Free supplementary cards
• Annual fee: $29
• Grace period: min 21 daysapply

Scotiabank Cashback Credit Cards

Scotia Momentum® VISA Infinite* cardSB_monentum_infinite

Scotia Momentum goes with a fee waiver during the first year, cashback on regular and drugstore purchases, gas, and grocery store purchases. Cardholders earn 4 percent back on groceries and gas and 2 percent on recurring bill payments. Purchases at drug stores also earn at 2 percent. One percent is offered on all other purchases. Insurance and standard benefits apply, including flight delay and trip interruption coverage.

• APR: 19.99 percent
• Credit limit: at least $5,000
• Annual fee: $99apply

Scotia Momentum® Cash back VISA* cardSB_momentun_no_fee

A great cashback offer by Scotiabank, this card features a special intro rate offered on transfers and advances as well as card checks, up to 2 percent cash back on eligible drug store, gas, and other purchases, and other incentives. The intro rate during the first 6 months is just 1.99 percent. Worldwide acceptance and Scotia card protection are added benefits. The bank also features a handy calculator to help calculate cashback.

• APR: 19.99 percent
• Credit limit: min $500
• Annual fee: $39apply

Scotia Momentum® No-Fee VISA* CardSB_momentun_no_fee

A no-fee VISA card with great features, Scotia Momentum comes with a special rate of 7.99 percent and 0.5 to 1 percent cash back. Cash back is offered on eligible grocery, everyday, gas, and other purchases. Recurring bill payments earn 1 percent, including subscriptions, home and car insurance coverage, utilities, cable and phone. Cashback applies to purchases at service stations, pharmacies and drug stores, supermarkets, grocery stores, and other participating merchants.

• APR: 19.99 percent
• Min credit limit: $500
• No annual fee
• Grace period: 21 daysapply

Scotiabank Student Credit Cards

L’earn VISA* cardSB_learn

This card comes with money rewards and helps students build a healthy credit score. Students earn up to 1 percent in cashback and benefit from added features such as instant cash advances, 20 percent off rental discounts, and card checks. Holders are free to order additional cards or optional balance protection.

• No annual fee
• APR: 19.99 percentapply

Scotiabank Rewards Credit Cards

ScotiaGold Passport® VISA* cardSB_gold_passport

This card is also a good choice for frequent travelers and goes with comprehensive travel insurance, 1 point for each $1 in eligible purchases, 5 percent cashback, and other incentives. Add-ons include rental car collision, trip cancellation, and travel emergency insurance. Cardholders benefit from major savings on travelers checks and emergency medical insurance.

• APR: 19.99 percent
• Annual fee: $65apply

ScotiaHockey® NHL® VISA* cardSB_nhl

Scotiabank offers a specialty rewards card that goes with discounts on in-store purchases, rewards points, and other incentives. Discounts are offered on car rentals and NHL merchandise. The first purchase on the card earns 5,000 rewards points.

• Earn rate: 1 point per $1 in purchases
• APR: 19.99 percent
• Annual fee: $29apply

Scotiabank Rewards® VISA* CardSB_rewards

This product is a great choice for customers looking for a credit card with rewards and no annual fee. The card goes with points to be redeemed for cruise deals, holiday packages, hotel accommodation, airfare, and more.

• APR: 19.99 percent
• No annual fee

apply

Scotiabank Travel Rewards Cards

Scotiabank Gold American Express CardSB_amex_gold

This travel rewards card offers 1 point on every two dollars in eligible purchases and features travel benefits and a flexible redemption schedule. Easy access and the option to book travel online are add-ons in addition to discounts on airfare, vacations and cruise packages, and car rentals. Points can be redeemed for gift items, investments, and more.

• APR: 19.99 percent
• No annual feeapply

Scotiabank American Express CardSB_amex

Scotiabank offers customers the opportunity to earn 20,000 in complimentary points and features a flexible rewards program that allows cardholders to earn 4 points on purchases made at entertainment venues, restaurants, grocery stores, and gas stations.

• Purchase APR: 19.99 percent
• Annual fee: $99apply

Scotiabank Credit Card Application

It is easy to apply online or at the local branch, provided that you haven’t declared bankruptcy recently (during the last 7 years), are a Canadian citizen, and fill in an application you’re your personal, income, financial, and other information. Applicants are asked to provide details such as deposit and savings accounts, time at job, place of employment, residential address, stock and investments.

Online Banking

Scotiabank also offers online banking facilities with beneficial features such as e-transfers, info alerts, Western Union money transfers. Customers are free to make money transfers, pay bills, check their account and balance history, and make pre-authorized payments. There is an option to open a trade account online and benefit from attractive pricing and commissions.

Top 6 Secured Credit Cards for Canadians

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Find a solution to credit issues – get a secured credit card

Individuals with a thin credit file usually apply for a secured card because they have a more limited choice, especially when it comes to specialty cards with attractive rates and terms. They are also offered to those who are new to credit as well as recent immigrants, newcomers, and students. Secured credit cards are available from unions, small and major banks, and other establishments and help consumers establish credit.

How Secured Cards Work

Issuers require a cash deposit or security funds as a guarantee of on-time payment. It is usually equal to or larger than the limit offered. The only difference between secured and unsecured cards is the fact that security funds are required because financial institutions deal with high-risk borrowers who are more likely to default. Other than that, holders can use the card to make payments online and in-store, to pay bills, and so on.

Benefits for Users

The main benefit for users is that payments are reported regularly to major bureaus such as TransUnion and Experian. Customers who keep their balance low and make on-time payments gradually establish or reestablish credit. The timing of reports and the issuer’s reporting practices determine how long it takes before your card appears on your credit file.

What Is the Right Credit Card for You?

The choice of a secured card depends on whether you are a regular bank customer or a union member and other factors. When comparison shopping, look at the credit limit, grace period, and purchase and penalty interest. In general, whether a product is right for you depends on the issuer’s reporting practices. Some establishments report only missed and late payments while others report all payments and help build credit with time.

Who Is Eligible to Apply

Individuals with any credit profile qualify, from tarnished and fair to stellar. Legal residents and Canadian citizens of legal age are eligible to apply. You must be of the age of majority for the province or territory where you reside. Some major banks like TD even offer secured cards to customers who don’t have Canadian credit history, including international students and foreign nationals (temporary residents). The range of products available depends on different factors, including your credit rating and financial situation. When applying for a secured card, consumers are often asked about estimated monthly payments, including lines of credit, loans, mortgages, and other accounts. Financial establishments also request information about your rent or mortgage payments as well as income amount, employer, and sources of income. Many card issuers require that applicants have a verifiable permanent address in Canada and a verifiable source of income (i.e. proof of income).

Top 6 Secured Credit Card Picks

#1 – First Place
No-Fee Scotiabank Value VISA Cardsb

A yet another secured card by Scotiabank, this is a great solution to transfer existing balances. The introductory rate is just 3.99 percent and is in effect within 6 months of opening the account. The intro rate applies to credit card checks, balance transfers, and cash advances. The interest-free period is 21 days. Special discounts are offered, including car rental discounts. Optional credit card protection coverage is also available in the event of job loss, disability, or another unfortunate event.
• Balance transfer fees: none
• Interest rate: 16.99 percent
• Annual fee: none

apply

#2 – Second Place
Peoples Trust Secured MasterCardpeoplestrust_card

This secured card is a flexible solution designed for customers with limited or no credit exposure, new immigrants to Canada, students, and anyone looking to build credit. It is also ideal for borrowers with poor ratings such as discharged bankrupts and those with serious credit problems. Similar to standard cards, this MasterCard helps holders to improve their rating with time. Customers with a verifiable source of income qualify.

  • Credit limit: $500 or higher
  • Purchase Interest rate: 12.99 percent
  • Monthly fee: CAD $5.80
  • Interest rate on cash advances: 24.50 percent

apply

#3 – Third Place
Home Trust Secured Visa CardHomeTrustSecuredVisaCard

Home Trust also offers a credit card that helps consumers to enhance their credit profile. Virtually everyone applying for a secured Visa gets approved, and there are two options available:
• No annual fee with 19.99 percent interest rate
and
• Annual fee of $59 with 14.9 percent interest rate

In addition to attractive terms and interest rate, this card goes with benefits such as the option to add an authorized user and a credit limit that can be as high as $10,000. The minimum limit is $500. This card can be used to book a vacation, make purchases online and over the phone, and access cash.

#4 – Fourth Place
Vancity enviro Secured Visa

Vancity features a secured card with a deposit of just $500 and plenty of added and optional perks, including delay and lost baggage insurance, price protection, travel accident insurance, and others. This card is available to applicants who don’t have a previous Canadian credit history and to recent immigrants. There are different options to look into, for example, enviro Classic which is a good choice for customers who pay the full balance. This card helps borrowers to rebuild credit and is intended for customers who have experienced financial problems in the past.
• Annual fee: none
• Interest rate: 19.5 percent

#5 – Fifth Place
DCU Visa Platinum Secured Credit CardDCUvisa-secured-platinum

This card is a low-cost alternative to other secured products and goes with travel and everyday benefits and optional overdraft protection. Added benefits include travel insurance coverage, auto rental collision damage waiver, and extended warranty. A major benefit is the fact that there is no minimum interest charge. As an added benefit, balance transfers and cash advances are free. The card also goes with Visa Checkout for safe and convenient shopping.
• Interest rate: 11.50 percent
• Penalty charges: 18.00 percent
• Annual fee: none

#6 – Sixth Place
RBC Visa Classic Low Raterb

RBC features a low-cost card designed for customers who carry a balance. The card features optional and standard add-ons such as travel insurance and chip and PIN technology and can be used as a tool for debt consolidation to save on interest payments. Users are also offered additional cards with no annual fee. There is a card registration service for important documents and cards and auto payment service for ease and convenience.
• Interest rate: 11.99 percent
• Annual fee: $20

#7 – Seventh Place
Capital One Guaranteed Secured MasterCard guaranteed-secured-Cap-One

This card is ideal for individuals who need to establish credit history and goes with guaranteed approval. The credit limit varies and can be $300 or higher. The minimum security funds to deposit with the bank and access credit are in the amount of $75. Standard benefits that go with this card include referral to the closest ATM, zero liability, and others. Holders are free to make internet and in-store purchases, hotel reservations, car rental bookings, gas purchases, and more.
• Purchase rate: 19.8 percent
• Annual fee: $59
• Grace period: min 25 days

Fees, Limits, and Rates

The interest rate varies by issuer and is usually around 20 percent. It is in effect once the account has been activated. The rate on balance transfers and cash advances can be the same or different. In general, the rate is slightly higher compared to unsecured cards because financial institutions take more risk. Many applicants have a history of missed or late payments, maxed out cards, defaults, foreclosure, and even bankruptcy. This is why fees and service charges are usually higher as well. At the same time, there are many banks that feature credit cards with no annual fee, including Scotiabank and TD Canada Trust.

The grace period also varies from 19 to 25 days and applies to regular bank transfers and new purchases. Secured cards have a zero-day grace period on special bank transfers and cash advances. The available limit and security funds required depend on your financial circumstances and can be as high as $10,000 and as low as $500. Some banks even offer cards with lower credit limits. If you plan to make large purchases (one-time and big-ticket items), it is better to choose a card with a larger limit provided that you make timely payments and pay at least the minimum before the deadline (grace period). The minimum payment can be $10 or 3 percent or fees plus interest but this depends on the card of choice. Make sure you check the minimum monthly payment, especially if you only pay the minimum.

Top 6 Credit Cards for Bad Credit in Canada

By 106 Comments

There are different options for customers with poor credit, from payday loans and cash advances to secured lines and credit cards for bad credit.

Do You Need a Credit Card if You Already Have Bad Credit?

This depends on your lifestyle, financial literacy, and spending habits but a credit card can actually help build a healthy score. Timely payments allow users to rebuild credit. If you often make financial blunders and are knee-deep in debt, you may want to learn more about credit first.

Can You Get a Credit Card with Bad Credit?

Some lenders offer cards to borrowers with poor and average credit. They often offer cards with a lower limit and higher interest rates because they are considered to be high risk.

Does a Credit Card Help You Rebuild Bad Credit? Secured Credit Cards Explained

A credit card is a useful tool to reestablish credit unless you make late payments. Missed payments also affect your score. Avoid prepaid cards because payments are not reported to the major bureaus. Other cards, including secured and department store cards, help build credit. To get a secured card, clients are asked to make a deposit which is higher or equal to the card’s limit.

Types of Credit Cards for Bad Credit

Secured Credit Cards

securedSecured cards offer many benefits, and one is that it is easier to get approved compared to standard credit cards and unsecured loans. The reason is that financial establishments take no risk. Cardholders use their own money (the deposit made) to make purchases. Lenders will not return the deposit in case of default. They refund the deposit made when the customer decides to close the account. The payments are usually reflected in the borrower’s credit report. The limit normally varies from $200 – $500 to $5,000. Many issuers advertise low annual fees in the range of $10 – $30.

Low Interest Credit Cards

Low interest cards are offered by major unions, banks, finance companies, and online lending services. The main benefit for users is that they save on interest charges. Some issuers offer low interest cards to borrowers with less-than-perfect credit and feature perks such as gas rewards, cash back, payment alerts, and others. The credit line is usually lower, for example, $500 – $1,000, but some companies advertise opportunities for line increases provided that cardholders make timely payments. It is important to ask whether payments are reported to TransUnion or Equifax on a regular basis.

Guaranteed Credit Cards

Guaranteed approval cards by MasterCard and Visa are also offered to borrowers with less than perfect and tarnished credit. While some issuers advertise guaranteed or instant approval, they offer secured versions whereby the deposit serves as a guarantee of timely payments. They are available to consumers who need credit improvement and feature standard benefits such as price protection, travel assistance, baggage delay coverage, and others. Basically, issuers that offer guaranteed cards have more lenient or minimum requirements for approval. They may advertise no employment or credit checks and no application or processing fees.

Prepaid Credit Cards

LOCPrepaid cards allow users to make purchases and payments but are not the best solution for rebuilding credit. Payments are usually not reported. Still this is one option for customers with bad credit and a history of consumer proposals, foreclosure, bankruptcy, and seriously delinquent accounts. There are different reload options, including in person, online, and through direct deposit. Some issuers advertise no-fee cash withdrawals. Prepaid cards also feature online bill pay options, balance alerts, free ATM withdrawals, business and payroll programs, refer-a-friend bonuses, and other benefits. Many issuers advertise no activation or application fees, free online banking, online statements, and free direct deposits.

Store Credit Cards

A department store card is yet another option for borrowers with bad credit and offers plenty of added benefits. Cardholders benefit from perks such as promos and discounts, sales, savings on major or one-time purchases, coupons, and other benefits. Some department stores even advertise interest-free financing. Holders enjoy a zero introductory rate for a certain period, for example, six months. However, department store cards usually go with higher charges than secured and standard credit cards. While the rate is slightly higher, this is one option for applicants with a thin credit file and borrowers who need a credit boost.

Where Can You Find Credit Card Lenders for People with Bad Credit?

Major financial establishments such as RBC, BMO, and other big banks offer cards for bad credit.

Affirm MasterCard®

Affirm Financial Services specializes in providing credit solutions for Canadians who may have difficulty obtaining a credit card or loan from traditional financial institutions. Here are the most important Affirm MasterCard® features:

  • True credit – no security deposit required
  • Credit limit up to $3,000
  • Use it anywhere MasterCard® cards are accepted
  • Fixed interest rate – 29.99% for homeowners and 34.99% for non-homeowners
  • Reports to credit bureaus every month

This card is issued by Peoples Trust Company pursuant to license by MasterCard® International Incorporated. MasterCard® and MasterCard® Brand Mark are registered trademarks of MasterCard® International Incorporated.

No-Fee Scotiabank Value Visa Card

sbThe Bank of Nova Scotia features the No-Fee Scotiabank Value Visa Card which is available to debt-ridden borrowers with credit problems. The bank offers benefits such as card protection, an introductory rate of 3.99 percent, and car rental discounts. Additional benefits include itemized transactions and supplementary cards. The introductory rate applies to balance transfers and cash advances, which makes it a great choice if you plan to transfer high-interest balances to a low-interest card. The low introductory rate helps borrowers to pay down existing balances faster and get rid of debt.

• Interest rate: 16.99 percent
• Annual fee: zero
• Credit limit: $500 or more

apply

Peoples Trust Secured MasterCardpeoplestrust_card

Peoples Trust Secured MasterCard is ideal for those who are new to credit, consumers with credit problems, new immigrants, and students. Holders can use it just like a regular card to make hotel bookings and everyday purchases, car rentals, online purchases, and anything else. This card also allows consumers to make cash advances and build credit over time. Peoples Trust advertises almost guaranteed approval, regardless of credit profile.

  • Minimum deposit: $500
  • Interest rate: 12.99 percent
  • Monthly fee: CAD $5.80
  • Monthly fee (additional cards): CAD $2.95

apply

Home Trust Secured Visa Card

The Home Trust Secured Visa Card is another option that requires a security deposit of at least $500. The limit is based on the deposit made and ranges from $500 to $10,000. There is a low-rate option that goes with an interest rate of 14.9 percent. The standard rate is 19.99 percent and there is no annual fee. The low-rate option goes with a fee of $59. This card is offered to consumers with bad credit and everyone gets approved. If you have less than perfect or poor credit, this card will help you to build or reestablish your credit history. You can use it to book a hotel room, make purchases online and by phone, pay bills, pay for gas, and more.

Apply Now 14.90% $59 annual fee or $5 per monthApply Now 19.99% No annual fee

BMO Preferred Rate MasterCard

bmThe BMO Preferred Rate MasterCard is a card advertised with no annual fee and an interest rate of 17.5 percent. The card also features a long interest-free period of 21 days. While applicants with bad credit get approved, those with a history of bankruptcies do not qualify. If you have filed for bankruptcy over the last 7 years, your application will be declined. BMO also requires employment and income information. Customers are offered perks and benefits such as:

• Low-rate options (11.9 percent)
• Travel benefits
• Purchase protection
• Extended warranty
• Roadside assistance
• Medical protection
• Trip cancellation coverage

Capital One Guaranteed Secured MasterCard

CapThe Capital One Guaranteed Secured MasterCard, for example, features guaranteed approval and a limit of $300 or higher. It is a good choice for customers with no credit and tarnished credit. The good thing about this card is that you can use it like a standard card – to make bookings, for car rentals, online purchases, in-store purchases, and more. Capital One features standard benefits such as emergency cash advances and card replacement and zero liability.

• Interest rate: 19.8 percent
• Annual fee: $59

TD Emerald Visa Card

The TD Emerald Visa Card is also a good choice for bad credit borrowers and goes with benefits such as:td

• Low annual fee of $25
• Security and purchasing convenience
• Automotive benefits
• Travel benefits
• Medical insurance

Applicants are allowed to add up to three cardholders. The card goes with a competitive variable rate of 12.75 percent and is a great option for borrowers with bad credit, students, and newcomers to Canada. Cardholders are offered trip interruption coverage, trip cancellation insurance, car rental discounts, and other perks. TD Emerald Visa is also advertised as a balance transfer card for debt consolidation.

RBC Visa Classic Low Rate

rbThe RBC Visa Classic Low Rate is yet another card with a low interest rate of 11.99 percent and an annual fee of $20. Additional cards are available at no added cost. This option is a great choice for those considering debt consolidation. Major benefits include free travelers checks, worldwide acceptance, easy application, and others. Optional travel insurance is also available to protect customers in case of loss of job or illness. Customers benefit from autopayment options, cash advances, and quick application processing. This card is also an excellent choice for debt consolidation. You can use it to make one-time or larger purchases.

What to Do Next?

Once you have been approved for a low rate, department store, or secured card, it is time to learn how to manage credit responsibly. This means timely and regular payments to avoid penalty fees and charges. Late and missing payments also affect your score and chances to get approved for low-cost unsecured loans, LOCs, and premium credit cards. Avoid using multiple cards because it is more difficult to keep track of due dates, payments, and other details. Check your financial statements regularly to track your spending and payments. Using online banking is a great way to view your statements, payment history, and transactions. Make sure you check your credit report for mistakes and omissions. Consumers are entitled to receive a free report once a year.

If you have other balances, try to pay down your auto, consumer, and other loan balances to boost your score. The goal is to maintain a debt to income ratio of 30 percent or lower. Paying down small balances on different cards helps improve your score. Pick one or two cards with affordable rates and use them for payments and purchases.

Keep in mind that credit cards are intended for regular, small purchases and unexpected expenses, for example, utility and medical bills, auto insurance, plumbing and electrical problems, car repairs, and others. You can use your card for grocery shopping, bill payment, trips to the ER, car maintenance, vehicle registration fees, and other small expenses. It makes no sense to buy big-ticket items on a credit card. It is better to use a low-cost unsecured loan instead. Otherwise, you will end up paying a huge balance, and your score may suffer as a result.

If you have poor credit and find it difficult to manage your finances, you may want to contact a credit counseling service. They offer financial education to teach borrowers how to manage debt responsibly. The goal is to gain financial stability and control and make sound credit and borrowing decisions. Specialists negotiate with creditors, help customers to calculate their debt to income ratio, sort out their finances, and more.