Credit Cards for Bad Credit in Canada | March 2026
If you have bad credit — whether that’s a low score, a thin credit file, or past missed payments — getting approved for a traditional unsecured credit card can be tough. But you still have options.
This roundup covers two practical paths for people with bad credit scores: secured credit cards, which require a refundable deposit and may help build credit when issuers report to the bureaus, and prepaid cards, which let you spend without borrowing (often with no credit check). We also include a few unsecured cards that some fair-credit applicants may qualify for.
Our picks emphasize predictable costs, credit-bureau reporting when credit-building is the goal, and products that are straightforward to use responsibly.
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Complete summary of all selections:
| Card | NerdWallet rating | Annual fee | Rewards rate | Recommended credit score | Apply Now |
|---|---|---|---|---|---|
| Tangerine® Money-Back World Mastercard®* | APPLY NOW on Tangerine's website | ||||
 APPLY NOW on Tangerine's website | 4.5/5 | $0 | 0.5%-2% | 655-724 | |
| Secured Neo Mastercard | APPLY NOW on Neo's website | ||||
 APPLY NOW on Neo's website | 4.1/5 | $7.99/Month | 1%-5% | 300-900 | |
| Neo Mastercard | APPLY NOW on Neo's website | ||||
 APPLY NOW on Neo's website | 4.1/5 | $0 | 1%-5% | 640-900 | |
| BMO CashBack® Mastercard®* | APPLY NOW on BMO's website | ||||
 APPLY NOW on BMO's website | 4.5/5 | $0 | 0.5%-3% | 640-900 | |
| Home Trust No Fee Preferred Visa card | APPLY NOW on Home Trust's website | ||||
 APPLY NOW on Home Trust's website | 4.1/5 | $0 | 1% | 560-900 | |
Our picks for rebuilding credit with bad credit
BACK TO TOPIf your credit is poor — generally 300–559 with Equifax Canada or 300–600 for TransUnion Canada — or you have limited history, secured cards or prepaid cards are typically the most reliable options. We selected products accessible with a low score or thin file, prioritizing predictable deposits and fees, regular credit bureau reporting (for building credit), and clear upgrade paths.
Secured cards that help build credit
Rewards breakdown
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Card detailsWhy consider a secured card if you have bad credit?
A secured credit card works like a standard credit card, but you put down a refundable security deposit to open the account. In many cases, your deposit amount becomes your credit limit.
Used responsibly, a secured card can help rebuild credit because the issuer may report your payments to the credit bureaus. The key is consistency: pay at least the minimum on time every month (ideally, pay your balance in full), and keep your balance low relative to your limit.
Prepaid cards to spend without borrowing (or a credit check)
NerdWallet's take
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Card detailsWhy consider a prepaid card if you have bad credit?
Prepaid cards aren’t credit cards — you load money onto the card and spend what you’ve added. Because you’re not borrowing, prepaid cards can be a good option if you want:
a payment card for online and in-store purchases.
a way to control spending.
an option that doesn’t rely on credit approval.
Most prepaid cards won’t build credit on their own because they don’t typically report activity to the credit bureaus. However, some prepaid products offer optional credit-building programs (usually for an added fee), which may report to the bureaus if you meet the program requirements.
Fair credit applicants may qualify for these top picks, too
BACK TO TOPIf you have fair credit — generally 560–659 with Equifax Canada or 601–660 with TransUnion Canada — approval for unsecured cards is possible but not guaranteed, as issuers also review income and debt.
The cards chosen for this group are accessible to fair-credit applicants and aid rebuilding by offering: reasonable fees (or clear value), useful everyday features, routine credit bureau reporting, and the potential to step up to better options later.
| Card | NerdWallet rating | Annual fee | Interest rates | Rewards rate | Apply Now |
|---|---|---|---|---|---|
| CIBC Adapta™ Mastercard® | APPLY NOW on CIBC's website | ||||
 APPLY NOW on CIBC's website | 5.0/5 | $0 | 21.99%/22.99% | 1-1.5x Points | |
| Neo Mastercard | APPLY NOW on Neo's website | ||||
APPLY NOW on Neo's website | 4.1/5 | $0 | 19.99%-29.99%/22.99%-31.99% | 1%-5% | |
| Home Trust No Fee Preferred Visa card | APPLY NOW on Home Trust's website | ||||
APPLY NOW on Home Trust's website | 4.1/5 | $0 | 21.99% | 1% | |
Newcomer to Canada?
Student with no credit?
Methodology
BACK TO TOPHow to get a credit card with bad credit
BACK TO TOPBad credit doesn’t mean you’re stuck. The right next move depends on what you need the card to do: build credit, make everyday purchases without borrowing, or step back into unsecured credit responsibly.
1) Check your credit report (and score, if available)
Before you apply, get a clear picture of where you stand. Your credit report shows what’s on file — accounts, payment history, and any negative marks — and your credit score summarizes that information.
To check your credit score in Canada, you can typically:
Request your credit report from Equifax and TransUnion.
Access a score through some banks and financial apps (availability varies).
Review your report for errors and dispute inaccuracies if you find them.
2) Choose the path that matches your situation
For many people with poor or limited credit, these are the most common options:
Secured credit card (best for building credit)
You put down a refundable deposit and use the card like a regular credit card. If the issuer reports your payments, on-time history can help rebuild your credit.
» MORE: What’s the difference between secured and unsecured credit cards?
Prepaid card (best for spending without borrowing)
You load money and spend what you’ve added. Prepaid cards can help with budgeting and access, but it usually won’t build credit unless a credit-building add-on is included and used properly.
Unsecured card (possible with fair credit)
If your credit is fair, you may qualify for certain unsecured cards — especially simpler products with fewer premium perks. If you’re denied, consider a secured option to build positive history first.
3) Apply strategically
A few practical rules help protect your score and improve your odds:
Apply only when you’ve picked a card that matches your likely approval range.
Submit one application at a time. Multiple applications close together can hurt your odds and may lower your score.
If you’re choosing a secured card, decide what deposit amount you can comfortably set aside and leave there while you rebuild.
4) Use the card to rebuild credit (without backsliding)
If credit-building is your goal, your monthly habits matter more than the specific card:
Pay on time, every time (set up automatic payments if possible).
Keep your balance low relative to your limit.
Avoid carrying a balance you can’t pay down steadily.
Give it time — credit profiles usually improve through consistent, boring reliability.
» MORE: How to use your credit card like a pro
Frequently asked questions
What is a credit score?
What is a credit score?
A credit score is a three-digit number — typically between 300 to 900 — that represents your creditworthiness. The higher your score, the more creditworthy you appear to lenders.
Your score is based on information in your credit report, including payment history, how much of your available credit you use, the length of your credit history, recent applications, and the types of credit you carry.
What is a “bad” credit score in Canada?
What is a “bad” credit score in Canada?
There’s no single definition, but a score below roughly 600 is commonly considered poor. A score in the fair range may still limit your choices, especially for premium cards.
Credit score ranges vary by credit bureau and lender, and approval depends on more than your score alone.
How can I improve my credit score?
How can I improve my credit score?
Improving your score usually comes down to building positive history and avoiding new negatives:
Pay every bill on time.
Keep credit utilization low (avoid maxing out your limit).
Apply for new credit sparingly.
Review your credit report for errors and dispute inaccuracies.
Build time in good standing — improvements often come from months of consistent payments.
Does applying for a credit card affect your credit score?
Does applying for a credit card affect your credit score?
Applying for a credit card usually triggers a hard credit inquiry, which can temporarily lower your score. That’s why it’s smart to apply only when you’ve chosen a card you’re reasonably likely to qualify for.
Can prepaid cards build credit?
Can prepaid cards build credit?
Usually, no — most prepaid cards don’t report transactions to the credit bureaus because you’re not borrowing. However, some prepaid products offer optional credit-building programs for a fee, which may report to the bureaus if you meet the program requirements.
Can you get a credit card with fair credit?
Can you get a credit card with fair credit?
Sometimes. If your credit is in the fair range, you may qualify for some unsecured cards, depending on your income, existing debt, and overall credit file. If you’re denied, a secured card can be a reliable way to build positive history and try again later.
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