This post has been updated on August 20th, 2020 to keep up with recent developments in the Canadian financial and credit markets due to the COVID-19 pandemic.
Even before the pandemic hit many Canadians have been struggling with colossal debt levels, and the current health/economic crisis have made things worse. For Canadians with bad credit borrowing on a credit card has been the go-to solution, but banks and smaller lenders are becoming very selective whom they extend credit to. Credit cards are getting harder to get, and depending on how bad the economic situation gets it might be close to impossible to get one with bad credit.
Accessing credit is never easy if you have anything but pristine credit score. The most common form of borrowing of course is a credit card, and there are many Canadian financial institutions that offer variety of cards targeted at different market segments. The bad credit credit card market in Canada is really under-served with many of the big players withdrawing their financial products including Peoples Trust who stopped offering their secured credit card, and Affirm financial who also no longer offer their credit cards for bad credit. Home Trust still offer a secured credit card, but they are very picky and getting one from them is not an easy task. Still there is hope for Canadian consumers with bad credit, as a new player called Refresh Financial has entered the secured/bad credit card marketplace. Refresh offer credit cards for borrowers with bad credit, and the good news is they do not do a credit check. The card is relatively easy to qualify for, however keep in mind that this is a secured card, and you will have to come up with the deposit to get one. As the credit conditions get tighter in Canada it will get harder to get a credit card if you have a poor credit, however don’t get discouraged – just check our list of card below and use it as a starting point in your quest for credit card. * It should be noted that some clients reported that credit checks have been done.
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
Secured 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
Prepaid 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.
This card is no longer available.
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
The 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
Refresh Secured Card
This secured card is a new product from Refresh Financial targeted at customers with low credit score or no credit. The card can be used to re-build credit score, and as it doesn’t require a credit check, it may be your best chance for getting a credit card. Here are the main Refresh secured card features.
- Credit limit: $200 to $10,000
- Purchase Interest rate: 17.99 percent
- Annual fee: CAD $48.95
Peoples Trust Secured MasterCard®
This card is no longer available.
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
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®
The 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®
The 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:
• 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
The 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.
Very well-researched post, thank you! You saved me hours of searching and comparing and I even found a card I like – the RBC Visa. Keep up the good work and I’ll be coming back for more valuable financial tips.
Samantha Clarke says
Looking for a credit card and i had bad credit but back on my feet
which one did you apply for? how bad was your credit?
Affrim credit card no security deposit only 1000$ lmited iamon a consumer proposal and have the crdit card good forme
Mary ann Tucker says
is this a canadian card? Did it help your score? Im looking to buy a home soon and need to boost my credit.
I’m glad to hear that you are back on your feet. You can try to apply for any of the above cards but first try your own bank. If they deny your application you can try Home Trust Secured Visa Card or the No-Fee Scotiabank Value Visa Card.
That’s not quite true. Scotia laughed me outta the bank even after 3 yrs flawless with capital one secured.
Mark, I have bruised credit after I bought my home….life happened….all I could get was a secured $500 card….
Out I boredom I came across this site and applied for scotia, rbc & bmo…..I got scotia and rbc….I could not believe it. …I read the approval email like ten times in a row…..
Apply on line….you may be surprise.
May I ask how much the credit limit was for each? I know some cc only offer a few hundred dollars. Thanks so much
Mostly likely because you still owed stuff on your credit report. Ei. Collection services. Using a secured capital one card doesnt make those things go away. You need to pay everything off in yor name and then use credit cards to build your credit back up. I’d advise paying transunion or equafax and getting your report to see what you actually owe. You may think you have everything paid off but infact you could major blemishes that need taking care of..
I was told if it was in collections not to pay for the exception of newer debts. For example you may owe a mobile company X amount of dollars and if it was 5 to 6 years ago ..well 7 been the statues of limitations. As soon as u give them anything it starts back at the 7 year mark. Not to be shady but im sure those with unperfect credit who have a few or more things and if from a while back and are making progress wouldnt want to be back tracked with their credit.
Idk jus saying
Marianne Carr says
The reason I am wrighting this is because in 2007 we had a bankrupcy, and in 2012 my husband had a letter of proposal for a car he was returning and I was included and that made me resposible. Well we had to make a fast trip to Ontario and was forced to sleep in our car as no motel would take cash or debit. Also last month I had $6000.00 damage done to my car and the insurance company couldn,t get us a car for two days they were all out. The only place with a car wouldn,t accept the insurance , cash or debit only a credit card. So there we were 100kms from home no car, my daughter had to come after us then take me back two days later for a car. So without any card I am in a rut. I had one from Capital One a while back but I was cheated out of a $693.00 payment an couldn,t get credit for my payment so I want nothing to do with them. We are in our 70,s and believe me it isn,t pleasant to have to sleep in your car. Thanking you in advance. Deal with Bank of Nova Scotia for over 50 years but had to change due to bankrupcy to RBC. will understand if we are refused gotten used to it.
I agree with you on Capital one, there was charges that I wasnt responsible for and they added all back on cause I didnt get a police report, I didn’t know that I needed one, they advertise worry free fraud charges, I had a 100 charge from a canadian tire gas bar from quebec, I lived in NS at the time wow aye. So I declined to pay them to this day. Capial one sucks.
C. Simms says
I had a very similar experience with them! I had charges for maternity vitamins yet I have a hysterectomy!! Got complete run around while they just added interest to my card. I refuse to pay it!
Marianne, if you ever need a room again, try a smaller motel rather than a hotel. It may not be as nice, but they don’t always require credit cards. I’m so sorry you had to experience this!!
I have bad credit and its not easy trying to pay it off, everything just came crushing all at once. What to do? I barely have money.
Consider declaring Bankruptcy over a Consumer Proposal. Bankruptcy stays on your credit for 7 years, but as soon as you do it you are able to start building your credit again. Where as a CP is 5 years (or less if your able to pay it off sooner) but you have a two year waiting period after you are discharged before any bank will look at you for pretty much anything (CC/LOC/Loan,Mortgage, etc..) Thus one might as well do a BR over a CP. With a CP you pay about 25 cents on the dollar to your creditors over 5 years. BR you pay nothing depending on your situation. Hope this helps. Also if you can or have the means look into getting a loan from your family to get you out of debt as it is usually interest free.
I have been in consumer proposal only 1 year and got an unsecured capital 1 card $1000 and a $2000 loan from a finance company. Bankruptcy most definitely NOT better than CP
Do you mind me asking what financial company?
Can you tell me where your got the $2000 loan from? I would like to apply as well
Who were you able to get the $2000 loan from?
No completely true. I’m in the middle of a credit proposal right now. Two months after the proposal started, I applied and got a secured capital one Master Card. I maintained on time payments for a year and they upgraded me to an unsecured gold card with a higher limit and returned my security deposit. You don’t have to wait for your proposal to complete before you start building your credit back up…
I was just at the Bank of Montreal, their secured card isn’t available for Canadian residents.
Yes it’s true….some sites have BMO as a secured credit card option but unless your a non-resident or recently come to Canada….you don’t have a chance….
I recently applied and I’ve been a BMO customer for a considerable amount of time.
I got refused even though I had the cash to secure it…..sad.
Yup – but they do have a diff card that you can place money on
steve bottomley says
I was led to believe st RBC that if I payed off my debts that were listed at the credit bureau I would be given a credit card. After 2 years of paying for their VIP account at $30 a month and finally paying my debts, they denied the card. RBC sucks. The Bank of Nova Scotia immediately gave me a business credit card with $3500 credit limit, even with my debts not all paid. It just shows how different financial institutions can be.
hi! ima single mom with 2 kids unemployed due to medical conditions with bad credit due to a defaulted student loan from like 20 yrs ago still haunting me. im not employed but have an income of still 2066 a month after taxes. this included monthly income supplement and child support. I also do odd jobs for cash like crafts for occasions and sell them on yard sales. everytime i apply for a credit card i get denied. i don’t know why because my rents always paid my bills r paid food in the fridge and clothes on the kids back. i always manage to work it out so i consider myself responsible. we don’t have luxuries but we have our necessaries. my mom got a credit card and lets me use it for personal use and emergencies and im giving her good credit by not only paying the monthly fee per month but also paying an extra 80 to 100 whenever i can just to bring the limit down. is there any advice someone can give me on how to go about applying for a credit card of my own so i can rebuild my credit and not feel so worthless and dependant all the time? what kind of card should i look for etc and what company could approve a person in a situation like mine? thanking you in advanced!
I would suggest you to apply for the Affirm MasterCard® in the post above. The card is designed for people with credit problems.
i applied for the affirm card and got denied for it
Coleen Wilson says
I applied and was denied. So it isn’t true for all who have bad credit.
Hey Di i would go with the Affirm also that what i’m about to do. Plus If you want to put about minumum $300 I would go with the capital one secured credit card which helps you build your credit they are pretty good and been with them for about 3 years. Good luck to you all the best
Seems to me that you may want to resolve your issue with the student loan from 20 years ago that you even admit STILL haunts you today…There are two types of bad credit in my opinion: #1) bad credit with debt owing and #2) bad credit with debt paid off or an arrangement like Bankruptcy or Consumer proposal is completed.
It doesn’t matter what credit product you apply for with which ever bank, as long as you have debt owing that is still showing as unresolved, most banks will not take a chance on you…And can we really blame them? Make at least arrangement to repay your student loan or negotiate to repay only part of it and then approach a new lender for credit.
Capital One may or may not ask for a deposit…but I went with them and so did my wife with no issues.
I have kids and don’t work due to just having baby and I claimed bankruptcy in 2015 and got discharged in 2016. My credit is in the 500’S and I applied for the capital one secured card and got 1000$ and I also applied for the low intrest gold and got that as well. I’d try capital one they guarantee a card even bad credit. I got two so it can happen
Hi Mel, did you have to pay a deposit for either of those cards? Thanks
I’ve had a secured MasterCard with capital one since 2005. I paid a $75 deposit for a $200 limit. Now 13 years later my limit is $3400.
I did the same thing! Got discharged from bankruptcy in June 2018 and I got approved for a capital one $1000 limit card with no deposit in December of 2018!
Tammy S. says
Regardless of your income, banks want to see that you’re employed. Even full-time at McDonald’s is fine. And they never check. I got a $500 Capital One MC (now at $1000 limit) with a credit score of 488. I didn’t tell them I was on ODSP, I said I worked at Michael’s (the craft store). A year later I applied for a Canadian Tire MC and got $1000 limit. Now it’s been a year again and I’m going to apply for Walmart. My bank (TD) has turned me down so I know that bank credit cards are still not within my reach. But building my credit using these other cards is just fine. I ALWAYS, ALWAYS every single month pay more than my minimum due. So if they say my minimum payment is $31, I pay $40.
Go to walmart store and they immediately gove card with 1000 CAD limit, better than bank refusals. Worked in many cases.
Try the PC MasterCard. I applied as unemployed and was approved Started with $500 but up to $3500 now after a few yrs of on time payments.
Capital one MC and Presidents Choice MC pretty much approves anyone. Everyone I know who has no credit or bad credit is approved right away. I had fraud charges on my Capital one MC a few months ago and their customer service took care of it right away, they did their internal investigation and credit was refunded. Been with them for years now with an $8000 credit limit.
Well.. PC decline me with clean credit with 602 EQ score. Only have car loan. High income with thin file. Only Cap1 approve for score below 650. It would be waste of hard pull if anyone thinking about applying for any other cards.
Hello all, I am in a tight situation myself. To make a long story short, I have bad credit (ie: being late on CC payments in the past).
I currently have a full time job and make 2400/month gross + 1650/month expense account.
I have my own condo, car payments, approx. $9300 of CC (one BMO $4500 5% interest and the other MBA 4800 29.99% interest) debt that I am paying off and also $13500 balance on a line of credit. As we speak everything is up to date, nothing is late.
I used to have a company and apparently I owe revenue quebec $3000 which I do not have. I was thinking of applying for a low interest CC to pay off the high interest MBNA card and the $3000 to the government. So looking for about $7000-8000 credit limit.
Whats my best option to guarantee my approval?? I don’t want to have a co signer if I don’t need to.
Im in a mess… my old business already made me open the $15000 LOC otherwise I wouldn’t be in this situation.
Go to your bank and explain the situation . an other credit card is not what you need… The interest rate would eat you alive… I was in a similar issue and resolved it by combining all my debts with canada consolidated credit. Im paying 2 credit cards and two loans all at once without any interest.
Hi I’ve completed and been discharged from a consumer prosposal 14 months now. I still have a very high interest rate car payment , that’ll finish May 2016. When I last checked Equifax obviously my credit rating was very poor. I have a steady job for years. Samantha can you or anyone suggest a credit card that I get with minimal or no deposit?
Have you tried the Affirm MasterCard? They don’t require security deposit and you can get a credit up to $3,000. The card is designed for people with less than ideal credit, so I think you should be able to qualify. You can find the application link in the post above.
Samantha…I do not see a link anywhere for the Affirm MasterCard, or any information regarding it. Could you please post it.
Hi, I have very bad credit, I still owe two other very low credit cards from department stores, I had a a bank credit card and I finally paid that one off- it is no long active. I owe funds to a previous cell phone carrier and funds to my first car that I no longer have but it is very little. My debt is in collections and I am planning on paying it off. Which card would best suit me? My score is no where close to the 500s :/ I want to invest in a condo in the next couple of years so I want to built my score asap. Please respond!
You can try applying for the Affirm Mastercard, or you can try getting a secured credit card.
Hi. I’m currently on consumer proposal. I already have the AFFIRM MC, but is there any way of getting a loan somewhere? I’ve dealt with a couple lenders that trick me to paying $1000 for a so called insurance but I don’t fall for those. Are there actual lenders out there for people on consumer proposal or those that are actually legitimate and don’t do credit checks? Sometimes, you have emergency expenses and a $1000-2000 will help a lot! Thanks.
I don’t think you’ll find a reputable lender that doesn’t do credit checks. Of course you can go for a payday loan, but I’ll strongly advise against that.
apply for capital one credit card.
Hi there, I have very poor credit score due to defaulted student loans and now settled – defaulted credit line loans from RBC. It’s been 3 years of efforts of building my score; still poor. My husband and I are in the process of buying a house with my father in law co- signing for me. I am thinking of applying for a credit card to help build my credit but also so I can have it for ER situations as we have 2 little ones. Which card should I go for? I am currently with TD and my mortgage approval is from TD as well
Try the Affirm credit card – it looks like a good fit for your situation.
Hi i was discharged from bankruptcy back in august 2010. I have then started to slowly build my credit with 2 capital one credit cards. I was wondering which bank is my best bet to apply a credit card with?
Any bank that offers secured credit cards.
Austin O says
Hey Samantha i have a credit scroescore just below 400 whats the best thing i can do?
thanks for your time?
I tried the Affirm and the BMO one you posted and have been denied for both. My credit is poor, but I make over 50k a year in gross income. I have a very HIGH interest car loan that I’m paying, but it isn’t rebuilding my credit fast enough, along with paying my student loans on time (as I had mad a terrible decision of trying to ignore them for about 5 years).
I really don’t want to jump onto the secured card bandwagon, I guess there are no other options for someone like myself, who CAN afford to pay the card off, but just had terrible credit from bad decisions when I was younger. I’m really not impressed Canada.
There is nothing wrong in getting a secured credit card. After all it will help you to rebuild your credit score.
I hate to say it, but if u truly make 50k a year and cannot get approved for a credit card or even be able to live well, you are living FAR beyond your means. I live on substantially less and am able to survive. I make like 14k a year. So, stop spending so much on stupid things, get a smaller or less pricey place to live and less pricey car. You should be able to live EXTREMELY WELL on 50k.. It really makes me sick to hear that people making so much are claiming to be broke, broke enough to have bad credit I mean.. Learn to manage your money a bit better. I’m sorry, I don’t mean to sound harsh, But I’d only dream of being able to live on even half of what you make per year..
I think Emi was saying she MADE bad mistakes. Of course she can live on 50K but having a bad credit history prevents you from getting a new credit card – you know, something a lot of people need because its not always good to use Interac/debit everywhere. How can you get a hotel room? Credit transactions can be safer than debit transactions. Plus, old credit cards expire. In no way was Emi saying they were poor/living beyond their means. Old financial decisions come to bite you back in the butt later on in life when you’re financially sound. I know this too because I was a bit like Emi, but honestly I only make $13/h but I can live on everything. Nice rant though.
So judgemental Deryk…! 50k gross isn’t what it once was…first of all, you barely paying taxes on your 14k a year and you most likely get money back for being considered low-income. 50K is a higher tax bracket and you may only end up with around 38k of disposable income. Now, depending where you live, even that 38k may not be much…If you’re in the GTA area (Toronto), rent for a studio or one bedroom can be as high as $1,400/month! that’s basically $17 a year! and moving to another less expensive city isn’t always an option, especially if you will be making much more less than your original 50k/year…
We all make mistakes and live to regret them; as long as we learn from them and don’t repeat them, we should be out here supporting each other instead of criticizing…In my humble opinion.
Being broke and having bad credit are not correlated. That’s a naïve way to think. I make 96,000 a year and I am still paying for poor credit choices I made over 5 years ago and can’t get anything but a secured card. The lady that asked the question didn’t give enough information your you to make the ASSumptions you made.
I share your sentiments. I’ve been to both of the financial institutions I bank with and they basically told me they can’t help me rebuild my credit. So why do I bank with you? I opened up an account at TD yesterday as they said they could help me but I still need to go through an approval process because I am not a recent immigrant.
I don’t understand how being a Canadian citizen or a long term resident makes you less worthy of rebuilding your credit than someone who’s never paid taxes.
Not impressed Canada.
Hi there, just wondering if you could help me out here, I don’t have a credit score and only have 1 collection on my account from 5 years ago for 900 dollars. What card would you recommend for someone with no credit? My td bank told me they would give me a secured card after I pay the 900 collection , but I’d rather try for. Regular visa. I make around 4000 a month after tax. Thanks for the help and time!
Hi Mike, I think the best thing to do at the moment is to get a secured credit card: https://www.lifeoncredit.ca/top-6-secured-credit-cards-for-canadians/
After you build some credit you can apply for a regular credit card. It will be very hard to get approved for any credit card before you rebuild your credit score. The best way to do that is to get a secured credit card and pay the balance in full every month.
I have been having problems maintaining my debts but I have recently started paying off my debts . I hope to finish paying it off all by January 2016 and my current credit score is around 591. Would you recommend to apply for a credit card now or to wait after all my debts have been paid off. I currently have the capital one secured card but was hoping for something which offer a lttle bit more. Please help before I make the worst mistake ever.
I have a consumer proposal due to a series of unfortunate unexpected high vet, medical and dental bills and applied for the BMO Preferred Rate Master Card, as suggested above. I was refused and they said they don’t take people with consumer proposals. Just to let you know, even though I have a good steady income and am working hard at rebuilding my credit.
hello I have a couple of questions. first off is a debt consolidation or proposal classed as the same as bankruptcy or is it different and how would that affect the chance of getting credit card? next is how and where can you go to check your credit rating and score for free that is safe and secure ? my questions apply for people in Canada . help would be appreciated . thanks.
You can contact Consolidated Credit (see link in the top menu of the blog) and they can help you with your questions.
Hey Brenda, they are classed differently on credit report. Proposals are r7 rating where bankruptcy is r9 which is worse. One lasts on report for 3 years the latter for 10 on your report. However as long as they are on your report they are treated the same way I have found. I’m treated like I have the plague from RBC, Scotia, TD so far. Won’t touch me for even their secured cards. Even though I’m discharged from my proposal and have had a perfect credit rating with capital one cc for almost 4 yrs. As long as it is on there big banks want nothing to do with you regardless of how perfect you were before or after your misfortune.. Sucks…
Have you ever tried to get a mortgage since you’ve been discharged from you’re proposal?
So I have a credit score of 481 and I have a couple pay day loans and and suspended phone bill I was wondering what loan or credit card I could possible approve for around $5000 I make around $1800 a month
Canadian tire Mastercard is your best bet. They started me with a $1500 limit n than they gave me a $4000 limit .. I usually like to pay my purchases right away so I believe that help me. Ps – they called me to offer me an increase.
did you get approved right away? or did it say 7-10 days
Hi Amanda, I was walking through Canadian Tire one day and got approached by their credit card rep., I told him not to waste his time. But he told me that Canadian Tire requirements weren’t as tough as the banks. So, I let him scan my drivers licence and gave him my employment information and in about ten minutes he said I was approved. They gave me only a $350 limit but it is unsecured and good for my history. I am only using it for my weekly gasoline purchase (no danger of splurging there) and pay off the balance every two weeks when I get paid. I think I read if you make multiple payments in a month it is better for your record.
I randomly applied for CT Gas Advantage and I’m surprised they approved me as well. 2k is the limit, good start.
Zero for unsecured credit cards you need a score of 700 for good credit 750 plus is excellent credit
My son wanted to get a small $3000.00 loan , but the bank said no – due to a Telus
bill that sent him a strike to his credit. He makes $20 bucks an hour, so approx. 2500.00 a month (after taxes)
What would be a good step for him ?
Have you tried other banks or credit unions? If none of those works your son can try borrowing from a company that offers loans to people with damaged credit.
Hi Samantha, I read through this post and comments and I noticed that you have told a lot of people to apply for the Affirm card but I don’t see any link for it in the story. Could you possibly send it to me?
My credit isn’t ideal, I have 2 strikes on it right now that are from ages ago which I didn’t even know about until I applied for a credit card and got declined. My question is can I get approved for anything before resolving that or do I need to resolve that first?
If I can get something which card would be my best bet as I don’t want to have so many cards going into my credit.
Please let me know, thank you so much
Affirm has a notice that they are not issuing any credit cards at the moment. It will not permit you rot apply
Which credit card is better. While on consumer proposal. Capital one or affirm MasterCard?
Just as an FYI… started a consumer proposal in 2011, will be discharged in 2016, never missed a payment. I bank with TD and asked about a secured credit card. I was recently informed that TD’s policy is 2 yrs after discharge before they will consider approving a secured credit card. I think someone posted about this but thought I’d share the experience I recently encountered. I thought it would be a shoe-in since, A. I’m putting up the cash and B. I bank with them and they know my history. Thanks for the article, appreciate the info!
If you’re thinking to apply online with a financial institution, please ensure the link you are submitting your personal information through is secure (SSL). If the link does not begin with https, it is not recommended to continue, your information is not secure / protected.
I was approved for a Capital One Secured Mastercard with a credit limit of $1000. I have fair credit, but was so bad that I had to apply for credit counselling and after 2 years of working with them and finally having $0 debt I was able to get a credit card again. I didn’t make the same mistakes again. I haven’t had any issues at all with Capital One. I would definitely recommend them.
Hi I have a credit score of 536. I paid of all my accounts a year ago. And finished paying the lasts one 2 months ago. i don’t have a single thing owing. I have a stable job and the Only thing I pay is my cellphone and rent. what credit card would you suggest I apply for?
Hi – I had a rating of around 585 about 18 months ago. I started with a Captial One Secured Credit card – $300 unsecured limit was initially granted.
After 6 months of payments they gave me a $1300 limit.
By making the payments on time and more than minimum my Equifax score is now 640.
you can apply for the capital one security card with low interest. it needs security deposit but it really helps to rebuild your credit fast!
I applied for a secured MasterCard with Capital one last year in January 2015. I was initially approved for $300 dollars because that is all I have put in for secured deposit. As time went by i put in at least $50 towards my security deposit and increased my credit limit to $600. and of course with my own money but that was still considered and reported to credit bureau as having $600 credit limit. After about 8 months of making my payments on time. They offered me $2800 credit limit increase. After another 7 months of good payments, they recently offered my a $6800 credit limit increase. It took me more than a year to get here and a bit of effort. My credit score is still pretty low but with this card i think i can get back to normal range within couple years from now. First is always time consuming but it is worth it at the end.
Hey Jason, is it a Canadian card you were using?
Pretty much no banks in Canada offer a secured card anymore, if you go in and ask they laugh at you or look confused.
People’s Trust, Capital 1 or Home Trust is the only real choices available.
If you need a prepaid card right away for something then HBC will let you walk in off the street with cash and buy a prepaid Visa on the spot without needing an account. No other bank does this tried with TD, Royal, Scotia, they all claimed they didn’t offer this.
Wait, strike Home Trust from this list. Their page does not use TLS whatsoever and they want you to send all your information to them in plaintext including SIN. If you click on “Mortgage Broker Login” it’s also plaintext. Avoid like the plague
Hello. I finished a consumer proposal in Jan 2015. I have a very good income of 120,000 annually. At the time of my proposal I was no where near this. One month out of my proposal I was approved for a new car loan through TD at 9%. This was a huge hike in my credit score. A year and a half out of my proposal and my score is 691. But it wasn’t until recently I applied for credit cards. I was approved through Affirm financial first, then Scotia and RBC. It takes time, it’s not always easy but it will happen for you. I never thought my credit would get on track so quickly. Be patient and persistent aND good things will come.
Pete McPoster says
I was approved for an Affirm Mastercard 1 week after signing my bankruptcy. I make good money so that may be a contributing factor. The BMO prepaid Travel Mastercard is also an option. It doesn’t help with rebuilding your credit score but it can be used for booking hotels, renting cars, flights, online purchases, etc.
I have had the BMO prepaid Travel MC for YEARS and there is NO car rental company (in Manitoba) that accepts this as a ‘true’ credit card. I know this b/c I have tried to use mine and it is refused.Everytime.
Hi there. Im currently struggling with an overdue phone bill while in the red with rogers and a cibc credit card on the side. Any ideas on whether one of these companies will actually give me a card even though im in hot water for two unpaid bills.
Hello – my problem is my Transunion score is way different to Equifax.
As of today my Equifax score is 640. My transunion is only 566.
Both have nothing bad on there. No late payments. No collections.
Only thing Transunion said was length of time of accounts (which is about 3 yrs average) and amount of searches – 16 in 6 years (which I didn’t think was bad).
They also still list a vehicle secured loan on there which was paid off last year. Equifax removed. Transunion I have sent in documentation to remove.
Anyway, I have a Capital One Credit card with $1300 limit. Which I keep under 70% usage.
I get married very soon and would like a second credit card. Is there one you recommend and ideally only pulls Equifax ?
Try Cibc aventura! I got approved for 5k with similar scores as yours.
I went through a bankruptcy in 2010. Got a Capital One secured card. I was told by a finance guy that I need at least a balance of $2000.00 for it to make a difference to my rating for future loans. I kept adding until I had that. I did make a missed payment to Capital accidentally, I was doing min. payment and was off by $3.00 which set me back because yearly they review your file and if you have no missed payment you get moved ahead and if you missed you stay the same. At ant rate, within 8 months after that I got offered $6800 credit limit too. Its been a slow journey but I’m getting there!
Hey guys I wanted share this. i wrote in april 28th and i told you guys about my experience with captial one for just over a year and how they approved my credit limit to $6800. I figured you know what i think my bank will like that so i applied for a credit card with my bank (TD) and you know what, the credit adviser/specialist helped me get the credit card! i told her exactly why i had bad credit history. (young and no responsibility) and my good track for just over a year was enough for them to give me a credit limit of $2000 with an actual bank with no deposit required!! and also she helped me get overdraft protection on my account. my credit score? still not in “GOOD” section at trans or equifax but guys small baby steps is all it takes!! if you have any questions you would like to ask personally please leave your email and i can email you directly! Thanks!:D
Fred Arnold says
comments are all over the place about getting a credit card.
Anybody have really bad credit where all cards and lines of credit have been terminated? Issues with mortgage and car repos over the last five year??? The wife and I have been thru this but we’ve turned things around, many bad debts are more than two years old and we’ve made full car payments and a few other debts are up to date. The wife has been able to secure a bank credit card and just got a big increase in the limit but I am still having issues. All the bills that are still at issue are in my name.
Thoughts anybody? Go for a secure credit card or is there hope for a regular c.c.? I’ve heard as one comment said that Can. Tire financial is pretty lenient.
How ’bout President’s Choice or similar like Tangerine???
Is there hope????? Or bite hard, get a CapOne secure/guaranteed card and move forward slowly.
Krissy W. says
I had a proposal in 2016, applied for Canadian tire MC in 2017 even i haven’t been discharge from my proposal, they gave me $3000.00 credit limit and after 6 months of regular payments they increased my credit limit to $9,500. My credit score hasn’t really increased, but was able to apply and approved by capital one for $5,000 dollars. Quite happy actually. My equifax was/is 509, transunion was/604 and is now 672.
I did a Consumer Proposal in 2013 and paid it off completely in 2015. Which credit card is suitable for me to build up my credit. I am not working either.
Similar situation here. My Consumer Proposal was paid off in 2013. CapitalOne approved me for a $1,000 credit limit MC a couple of months ago. I’m very happy with it, first credit card in about 15 years.
I’m looking to get a second CC and went to the Affirm Financial application page. My question is:
On the application it asks, “Are you currently or have you been in a bankruptcy or consumer proposal process within the last 7 years?”
For some reason I thought bankruptcies were treated differently from consumer proposals. I’m wondering if they are likely to deny the application when I answer yes to that question because of the Consumer Proposal. And if denied will that negatively affect my credit score after they do the credit check?
Bob Brown says
My experience have been good with capital one. They gave me $4000 credit limit vibe credit card with a equifax credit score of 515 only. They were even included in my cp. I am in the 20th month of my 60 month cp. The good thing going for me is I have a stable job with $60000 annual salary. My suggestion is try cap one. They seem to be pretty forgiving. So them you are responsible with on time payments. You should be on the way to repair & recovery. However remember it is going to take time. I have only improved by about 50 points in a year. If i don’t mess up this time next year i should see my score go past 600. So there is hope…..
Kim Forest says
I have a question everyone. My bankruptcy was discharged in 2010. I would like to borrow 5K as a student line of credit to take RN refresher course. I am with CIBC, and they said no to everything. What do you recommend? I have not missed any bill payments, and have a small consistent bank balance.
first change your bank ing institution
you should have a letter form your trustee stating that you are all pay off and cibc should call them and find out customer relation before you change your banking insitution find out tell them your story and if there ok then you change my opinion
i am presentely on a Consumer propasal and my trutee sucgest to get the Affirm credit card annual fee of 96$ and 1000$ limite no security deposit and good way to slowly rebuilt your credit i am happy with that my opinion
Are you also paying the monthly insurance for your proposal? This is designed to report to bureau and build up credit while paying the proposal down. I highly recommend it.
Why would one pay monthly insurance on a CP?
Thank you so much for providing all this information. I am a young divorced mother and I had a consumer proposal in 2012 and have had poor credit for years as I struggle to pay back my debts while raising two children. I read this article and applied for the Affirm M/C and was approved. Thank you, it’s been a long time coming to work toward rebuilding my credit!
I have repaired my credit and no one will approve a credit card especially since I went to court to prove that the charges were not mine they still refuse my I am very upset over that and still being denied
I had a Capital One credit card which was charged off in 2012. My financial situation is so much better. I want to apply for a credit card but don’t want to be turned down. Please let me know if anyone’s had a situation like this
Go for the Affirm M/C unsecured, or Capital One secured.
I had a Consumer Proposal that was paid off last week. I have had a secured Capital One card for a few years now, but they will not increase the limit (currently $400 , secured). I read the reviews on this page and took a chance of being approved for the Affirm M/C. I applied for $1000 and it was approved! I found it interesting at how easy it was. I did not have to confirm employment, salary, expenses, etc. They just took my word for the info I submitted.
It is difficult to repair credit when no one will approve a card, although I am in a significantly better financial position now that the proposal is paid off and I have no debt. My financial advisor recommended that I apply for a RRSP loan, as a way of also repairing credit while also contributing to RRSP’s.
Is it true, Can you actually repair your credit with a RRSP loan? Has anyone else done this? What were the results.
I am a home maker haven’t worked for over 20 years. We have zero debt. I do not have a credit card solely in my own name but would like to apply for one for myself. Is this possible? If so, please advise. Thank you!
Canadian Tire is pretty easy to apply with as they are more easy than any banks. I had Gold Capital One for nearly a year, I pay twice a month then they increased my credit to 5k. Then recently I got approved 2k for CT Gas Advantage.
Rey, I recently got the Capital One gold card with $1000 limit and was considering to apply for a Canadian Tire mastercard. What credit score do you need for Canadian Tire?
Rhea Anne says
Hi, I have a credit score of 752 on Transunion and last time I check Equifax it was over 600. I applied for the Affirm card didn’t even get past the first page, and said no. I tried Can tire, denied. Just did online for MBNA and denied. I don’t understand. I thought that is a good score. I believe I did get approved for AMEX, as they are sending me a letter to confirm my identity. But they wouldn’t say it was approved. Does anyone know if that means it would be approved? Can someone explain the credit score dilemma?
Hi Samantha, thank you for your excellent advices. I live in Montreal and looked on the Affirm website, when you enter the information for the province, there is no choice for Quebec so i guess it is not available for Quebec residents. I have one question though: I was aboard a plane a few years ago and there was a young man who wanted a drink or something, then he asked the flight attendant if he could use a secured credit card and she refused to take it. So if they don’t accept those cards on airplanes, there might be a lot of places that will do the same. Can you give me examples of places, businesses that won’t accept those cards?
Thank you very much
Secured credit cards are like all other credit cards. They are accepted by all merchants who accept credit cards as a form of payment.
Thank you. I have had the capital one guaranteed card for 2 years and I’m very happy with it. They even increased my credit limit, however, now that I need an additional card to parse out my business expenses, to make things easier for the bookkeeper, and cap1 won’t issue me a second card or upgrade me to an airmiles card.
So that was a little disappointing after two years with them, that I can’t get a separate business card through them, so I have to go and find someone else.
This post has been helpful and I’ve applied for a couple of cards.
TD Bank couldn’t help me. When I said bad credit they did not even tried. 2 of them. I got a Capital one card. np. Capital one great to help. A bit more costly but it is the price you got to pay when you screwed your credit history. I am looking for a new bank
Elisheva Eisenberg says
Which ones will take me right out of Bankruptcy? I get discharged the end of the month.
Kawartha Jane says
I have RBC Visa Classic Low Rate card. I’m pretty happy about it.
Peter Weston says
Hi. Thanks for all your valuable advice. I have two questions. First, I had 2 credit cards about 10 years ago and let them both go into default. It’s more than 7 years now and they are no longer on my file. I have just restarted to get cards again and slowly but surely it’s going well. The two defaulted cards are RBC Avion for about 12,000 and Amex Airmiles for $5400.00.
My question is, will either of these companies ever deal with me again even though the seven year statue is over, or should Inforget about them Amex and RBC forever?
Thanks in advance for all your trusted advice
I got approved for the Capital One card but they didn’t send me an email. Is it possible they didn’t send a verification email or did I somehow put in the wrong email address? Did anyone else not get an email within an hour of getting approved?
This is a follow-up to my post above. Capital One didn’t send me the first email until November 15, about two days after approving me. The email basically said send in the $75 deposit if you haven’t already done so. I had done that within 10 minutes of getting approved so things may move slowly over there. Anyway, point is don’t stress if you don’t get a verification email within minutes like others seem to send.
I defaulted on my Capital One card 5 years ago. The balance owing was written off and sent to collections. Two years later I reapplied to for a Capital One card and was approved for $300 even though the previous card with them was still on my bureau showing I had defaulted in payment and card was written off.
3 years later I still have the Capital one card, I’m in good standing and my limit is still $300.
Can’t do much with a $300 limit but at least I can rent a car and pay for online purchases etc…
Based on the info on their files about me I don’t see my limit raising any time soon but I’m thankful to have a credit card.
With a credit score of 630 with Equifax. I wouldn’t dare apply for any other credit cards from other institutions, I’m sure to get denied but happy to have my little $300 card for now.
So if Capital One approved me after defaulting a card 2 years prior then I feel anyone can be approved with them.
Hi, I have been dealing with bad credit for, what feels like, an eternity. I have worked very had to improve my score. I started off with an unsecured personal loan from easy financial, I believe it was around $2600 – the interest is ridiculous – but the bi-weekly payments were affordable, this was in 2014. They called me about 6-8 months in and offered me an increase of $1000 – I took it. In 2016 I financed a new car. I was approved with TD Auto Finance – there is something to be proud of when a major intuition approves you. It is 7% but I’m ok with that for now. I later applied for a Capital One MC – I was approved for a $300 limit with no security deposit. I have had this since July. I have not applied for or been offered an increase but I’m happy with my card. I pay it every month on time. After reading a few comments – I might try paying it bi-weekly and see if that helps to boost things. I recently applied for the Canadian Tire MC and was approved for that, again a low limit but I’m not doing this for the amount of credit I’m granted, I want my credit score to be in the 700, once I reach that limit I want it at 750+, that is my goal.
My credit score is 600 with Equifax – I have a lot of work to do still but I have increased it and it keeps growing. I have 1 thing in collections from a hydro company for $267 – it’s been paid in full but will sit in there for another 3 years before falling off. I have missed 2 payments on TD auto loan – I switched banks and thought I left enough $$ for them to take the payments before switching everything over. Something told me to check on things and of course I didn’t…my own stupidity. It is up-to-date now. I will not let that happen again. I have a cell bill with Rogers that has been paid (settlement) it shows that I paid it but it keeps reporting monthly. A little longer before it falls off too.
The bottom line is that although it is frustrating at times and feels like you’ll never hear “approved” with a little determination and time you will get there, as will I. Easy Financial was my stepping stone and got it all started for me. I will never use their service again because it’s such high interest but I did what I had to do. I’m the one that messed up my credit from being young and foolish, so I paid/pay the price.
I hope this helps someone. Good Luck 🙂
Hello, I am on a credit proposal and I have just made my first payment. In about a month or two I will have a lump sum to pay it off completely. Should I wait until I have paid it off in full before I start to try and apply for a credit card to build up my credit or can I apply for one right now?
I just checked on credit score I range about 607. But basically I have paid off all my collection which I realized I didnt even need to because its already tainted off my credit bureau. I also paid off all my loans my credit history now is a Secured credit card from capital one and my phone bill with Bell? Any suggestions which credit card company will accept me?
Do you bank with any of the big 5 Canadian banks?
I’ve a credit score of 631. That’s not bad right? There is nothing outstanding. I however left an old Fido bill catch up on me in 2016 but I did pay it off entirely eventually. Currently using debitcards and cash for most of everything. But going to attempt at rebuilding my credit with secured cards. The website gave me two options – both Capital One cards that is suitable for me, they said. Is this the best option..
William, there is no best option as different people have different needs and circumstances. Secured credit card is probably the safest bet. Have you tried applying for the Refresh secured Visa?
Hi Samantha – I went ahead and applied for a Capital One Secured card and was approved with a $300 limit and a $75 secured fee. I didn’t go with Refresh because they needed $300 for a $300 credit limit. I tried looking up my Equifax rating under Borrowell and they cannot find me. Basically its a zero from Equifax but under Transunion I was 631, but after applying for Capital One, it’s now 628. I’m just happy that I got any creditcard approved! About that Fido bill, which I had paid in full before it went to collections, on my Transunion report, it said that account was cancelled and given a deregulatory rating. What does that mean?
I clicked ‘enter’ before finishing… Sorry ! Having said that, should I attempt to get another secured creditcard with HomeTrust now or should I wait a bit ? Can anyone else give your opinions on these issues too? It makes me feel better that I am not the lost hope case that I think I am. For years I was afraid to even check my credit score because I knew it was just so bad.
William, congrats on the Capital One card approval! If I were you I wouldn’t get another secured credit card – instead I would try to keep my payments on the Capital One on time and after a while as your credit score improves, you can try converting the card to unsecured.
I know this is a new post on your older comment from March, but just wanted to let you know that I have been in the boat you’re in myself. You are not a lost hope case!!! Things will come together!! You just need to hang in there. After my rough patch, it was Capital One that gave me a credit card and I still have it!! 🙂 Now, I have a Prestigious Visa card with a $24k limit – so if I can do it, you can do it! I first had the CapOne MC, then got a loan eventually, then a LOC, etc. etc. Try to pay stuff off and then just use the credit card for small stuff and pay if off monthly – it’ll help your rating! 🙂
I was wondering which credit card you would recommend getting for a young student with a credit score in the low 500’s. I was sent to collections with an old credit card ( which has recently been paid off), as well as have student loan debt. I am wanting to rent a car but am unable to do so without a credit card. Any suggestions/advice? Thank you!
Probably going for a secured credit card is the way to go for you at this point.
In 2005, I had an unpaid credit cards debit of $22000(I’ll save you the drama why I couldn’t pay), I never applied for a bankruptcy, I just went AWOL.
Last month, I came across your blog, I thought to myself : why not try and apply to capital one and see what happens after 13 years without any credit cards.
I was approved and got a $300 limit with no security funds.
Last week I started getting phone calls from a collection agency (cbv ! How the hell they got my number!?). The moment they introduced themselves to me, I told them I owe nothing and to not call me anymore.
My question to you is :
Can a collection agency report a 13 years old credit card debt on my report?
Can a 13 years old debt be considered a hard pull on my credit?
Well, since no one answered my questions, I found the answers.
An old debt (past SOL) bought by a collection agency can not report it as new.
When a collection agency pull a credit report on an old debt (past sol), it is considered a soft pull.
Oh I meant after an old debt drop off from the credit bureau (7 years)
Capital One: initially good. Increased my limit for 3 years recognising regular payments — up to a $9,500 credit limit unsecured, despite being in a consumer proposal. All payments were made on time, no lates, no over limits. Fast forward to after the proposal was satisfied: no credit increase, despite 4+ years of perfect payment history (full balance each month). Called for a limit increase, was told, “not at this time.” Then I had a large charge that I knew was going to be made, so I prepaid my balance plus an extra $10,000. Apparently this does nothing to increase my spending power. My limit remains $9,500 and I cannot access the additional funds THAT I PREPAID. Frustrating. Worst service ever — their 800# is clearly managed offshore, and unable to speak to a supervisor. No credit where credit is due!
i have bad credit and trying to fix this what wold be the easiest way to do this?
Hi Ryan, to improve your credit score you have to try and pay all your credit card balances. I think you may find this helpful: https://www.lifeoncredit.ca/5-ways-to-improve-your-credit-score/
Pc financial DOES do a credit check, get your facts straight.
Affirm is NOT lending credit cards out at this time! June/22/2018
William T. says
Hi Mel and Samantha..
Well, 4 months after getting the Capital One Secured card with the $300 limit, I’ve been paying my balance off full on time. Unfortunately I almost use up all of my available credit. My balance is usually around $290. Would this be a problem in the long run? Should I put in more secured funds in getting my credit limit increased? My credit scores are 628 on Equifax and 659 with Transunion. So they’re getting up! Would this be too soon in trying to apply for an unsecured card or when do you think would be a good time to attempt that?
2015 I started my proposal and 2017 was payed off and all the banks except CIBC Were part of it.
My question is will they ever do business with again?.
My CP still shows on my credit bureau and will only drop off in 2020.
I currently hold a master card with Capital one and a secured one with CIBC.
Does the Refresh card have any other fees apart from the $12.95 annual fee?
Yes Mel, it does have a $3 monthly fee. So the total fees per year come to $48.95.
Barb High says
I am in bad credit debt due to an ex. My children live two provinces away. To visit i need to stay at hotels along the way. But as others posted hotels dont take cash or debit. Neef a credit card. Scared to apply for one but need one for necessary and unplanned trips. Which one to try. Dont trust Capital One had bad experience.
Hi Barb, Sorry to hear about your troubles. Have you considered a secured credit card?
Jon smith says
To share my story to help others is my goal here. So my credit was around score was around 500 transunion. I signed up and received the capitol one secure credit card. 15 months later score is 670. Equifax went from 475 to 550. Have 3 accounts in collect. Pay all my current accounts on time every month. Applied and was approved for pc mastercard. 60k in collection on 1 account.
750 collection on another account.
110 collection on another account.
I have 14 year credit history.
Use under 20% Max of my available credit.
Pay every bill on time and have paid on time for the last 30 months.
Have a cell account.
Have the secure card account.
Also have another credit account that I can’t access but still provides a boost to my available credit and shows positive payment history even though I never use the credit.
Hope this can help people.
Thanks for sharing this with us Jon! It’s always great to hear when people get back on their feet!
Jacques Panaeos says
Skip Canadian Tire / Triangle card or whatever they call it now days.
CT arbitrarily adjusts your credit limit every few months and decreases it if inactivity warrants it. I went from 20 grand to 5 grand in a year! This increases your debt to credit ratio if you have a balace with any other card while killing your credit rating!
Next time they issue a use it or lose it let the card expire. I no longer shop or get gas there where I spent several thousands annually with another card accompanying lower interest rates. This card stinks and they should be ashamed to be anything remotely associated with “Canadian” the crooked weasles!
I’ve had Canadian tire MasterCard card for over 18 years…I switched to Triangle™ World Elite Mastercard and I haven’t noticed adjustment of my credit limit. It’s actually a great card if you shop at Canadian tire.
Janice Hume says
My husband is still in bankruptcy and waiting to be discharged once he pays off the balance owing to the Trustee. He has a secured credit card (BMO) with a $1000 limit and has managed it perfectly for 2 years. The problem is he needs to travel for work and cannot use the BMO card for car rentals. We have relatives willing to co-sign, but apparently that is not allowed in Canada.
Any suggestions would be appreciated. His job is at stake!
Mike S. says
I’m looking for a credit card with low limit, and my credit score is on the low end. Is getting a secured card my only option?
Getting a secured card is your best bet yes, however you might be able to find a banking institution that deals with customers with bad credit that is willing to extend credit to you in a form of unsecured credit card. Keep in mind that if you find an unsecured credit card, probably the limit will be very low, and the APR will be on the high end.
I am halfway through an insolvency agreement (few more years left) and have a credit score of 501. I have $500 I can put down towards a secured credit card but am researching the right one. Ideally I’d like to get an unsecured card and put away that $500 as a bailout just in case, but which cards will take someone with that low of a score while in the middle of insolvency (not bankruptcy)?
I really feel RBC Visa Classic Low Rate should be removed from the list.
I had 3 running unsecured credit cards at the time of application on May 1 2019 and my scorewas 574 or 575 (TransUnion) and that’s what they pulled. They declined my application. (Not a single late payment on any of the running cards since activation).
Applied for CT on Apr 30 2019 and got approved for $500. Now my score is 602 as of Jun 5 2019.
I have a cibc auto loan for 50 000 i was paying high interest with scotia dealer advantage and now in a lower rate 7.99% i just got approved for a low rate cap 1 credit (not sure of limit yet) my credit scores are both in the lower 600 mark, one 640 and the other 610 I’m trying to rebuild my credit up should i aply for a ct master card or is it too soon i don’t want to take a hit if i won’t be approved. No big banks will even look at me for a credit card but they gave me a car loan. Doesn’t make sense
Mark Desjardins says
Hey I’ve got bad credit. It’s been about 8 years now not having a credit card
It would be so nice to have that little freedom again being able to rebuild my credit score. I am willing to do a deposit for a secure credit card.
Some one out there have any suggestions and help would be greatly appreciated
My credit score is below 400 and I need a credit card for on going car insurance payments and storage rental.
Kris, I’m don’t know who you bank with, but you can call your bank and ask them if they offer secured cards. If they don’t or are unwilling to give you a card, then try the Refresh card maybe?
Which credit bureau does Canadian Tire Master card report to?
William, I think they report to Equifax.
I have a bad credit and I need a credit card, but my own bank denied me last week. I don’t think it’s worth it to apply for more unsecured card, because I’ll probably be denied again and every credit check will pull my credit score a bit lower. Looking at the list in this post I narrowed down my choices to 2 secured credit cards, the Refresh and the HomeTrust one. Which one would you guys recommend? Which of the 2 credit cards is easier to get?
Thank you for all the comments in this chat. Very helpful!! I paid off my Consumer Proposal 2 weeks ago.
Have 2 Questions:
1- is it sabe to apply for a secured Capital One CC online?
2- Applying for a car loan will boost my credit score?
My husband and I need to restore our credit.
Thank you in advance!!
Serge Robidas says
I applied for all these cards and got approved for almost all of them. The only one I didn’t get was Refresh financial. That is okay, they are not good enough for me anyway!!
Which credit cards did you apply for and which ones approved you?
Is there a Canadian business credit card that would consider bad credit? My business credit is OK, however my personal credit is not very good, and I was wondering if that would be taken into consideration when applying for business credit?
Ryan, I think you will have a hard time getting a business credit card in this economic environment. Have you looked at the CEBA (Canada Emergency Business Account) loans? I believe you can get a $40,000 business loan if you qualify and the loan is interest free for a while.
Jim, CEBA is close to impossible to get at this point, because the government is delaying the approval of applications.
@Ryan, do they take personal credit rating into consideration when you apply for business credit card?