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
Rewards breakdownCashback on groceries.
Cashback on gas & electric vehicle charging.
NerdWallet's take
NerdWallet's takeThis cash-back earning secured card offers 1% back on gas and grocery purchases alongside credit monitoring tools and ATM fee reimbursements. Less appealing is its monthly fee that amounts to near $100 annually. Neo says that you may be able to have the monthly fee waived by maintaining a minimum balance in a Neo Everyday or Neo Savings account, though it doesn’t state what the minimum is. For cash-strapped credit-builders on a budget, the cost of this card could be a dealbreaker. Best for: Anyone building their credit who doesn’t mind paying for some nice-to-have extras.
Pros
- Earns 1% cash back on gas and grocery purchases.
- Credit score monitoring and credit building tools.
Cons
- $7.99 monthly fee.
- Purchase interest rates as high as 29.99%.
Card details
Card details- Guaranteed approval and no credit score required to apply
- International IDs accepted
- 1% cashback on groceries
- 1% cashback on gas & electric vehicle charging
- Average of 5% cashback at 10,000 partner locations nation-wide—on top of the base cashback rates
- Start with a security fund of as little as $50
- Can help builds credit history with consistent, on-time payments
- Track your monthly spending with real-time insights
- Instant cashback that can be redeemed anytime
- Pay your bill instantly with Neo's #1 rated financial app
Rewards breakdown
Rewards breakdownPoints per $1 spent at Tim Horton’s restaurants.
Points per $1 spent on groceries, EV charging, gas and transit.
Point per $4 spent on everything else (0.25 points per $1).
NerdWallet's take
NerdWallet's takeThis secured card co-branded by Tim Hortons is sure to entice Timmies enthusiasts who want to skip the credit check. It’s not all double doubles and doughnuts, though. Interest rates can be high and Quebec residents must first apply for the unsecured version, which will trigger a hard credit check. Best for: Timmies lovers who want to build credit and earn rewards.
Pros
- No annual fee.
- 12x points at Tim Horton’s restaurants.
Cons
- Purchase interest rates as high as 26.99%.
- Quebec residents must first apply for the unsecured version and undergo a hard credit check.
Card details
Card details- Earn Tims Rewards Points on everyday purchases with no annual fees.
- The minimum amount you can provide as security funds is $50 and the maximum is $10,000.
- With the Tims Secured Credit Card, you’ll earn points everywhere you shop and get 2 points per $1 on groceries, gas, EV charging, and transit (0.25 points per $1 spent on everything else). Plus, earn 12 points per $1 at Tim Hortons restaurants when you scan for Tims® Rewards.
- Get a $20 digital gift card upon first purchase with a new Tims Mastercard.
- Connect an existing bank account and add a minimum of $50 as security funds.
- Add the card to your Apple Wallet or Google Wallet to start earning points everywhere you shop.
- Turn your Tims Rewards Points into your Tims faves or use them to lower the balance of your current billing cycle—only with a Tims credit card.
- Extend the manufacturer's warranty for most items purchased on your Tims Mastercard for up to one year. Repair, replace or get reimbursed up to $1000 per incident.
- Most items purchased with your Tims Mastercard can be repaired, replaced, or reimbursed up to $1,000 per incident. Protection is valid for 90 days after your purchase.
- Mastercard Zero Liability — protection against unauthorized purchases on your card.
- 24-hour TimBot chat support and live team members available 9 a.m. – 10 p.m. EST.
- Terms and conditions apply.
NerdWallet's take
NerdWallet's takeAs one of the few secured cards with travel coverage, this Capital One offering proves that secured cards can be tools for more than building or establishing credit. That said, you won’t earn rewards, and the ongoing interest rate for non-Quebec residents is extremely high. Best for: Anyone seeking an instant-approval card to build or rehabilitate their credit.
Pros
- No annual fee.
- Has some travel coverage.
Cons
- Doesn’t earn rewards.
- High 29.9% interest rate for non-Quebec residents.
- Maximum credit limit of $2,500.
Card details
Card details- $0 annual fee.
- $75 or $300 minimum security fund deposit is required.
- $2,500 maximum security fund deposit.
- Hard credit checks are made on Capital One Guaranteed Secured Mastercard applications.
- Credit activity, including every payment, is reported to TransUnion and Equifax, the two major consumer credit bureaus in Canada.
- Ability to upgrade to an unsecured credit card.
- Guaranteed approval, as long as you meet eligibility requirements.
- Includes Capital One Price Protection Service, Purchase Assurance, and Extended Warranty coverage that automatically doubles the original manufacturer’s warranty for up to two years on most items.
- Cardholders benefit from Mastercard Global Service, which includes emergency cash advances, and Zero Liability for unauthorized use of the card.
- Access to travel benefits: Common Carrier Travel Accident Insurance (up to $250,000), a Car Rental Collision/Loss Damage Waiver, baggage delay, and travel assistance.
- Preferred rates: 21.90% for purchases and balance transfers, 21.90% for cash advances.
- To be eligible, you must be able to provide security funds and be the age of majority in the province or territory where you live. In addition, you don’t have an existing Capital One account or a pending application for one, haven’t applied for a Capital One account more than once in the last 30 days or had a Capital One account that was not in good standing in the last year.
Why 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
NerdWallet's takeA no-fee prepaid Mastercard linked to Neo Financial’s Everyday high-interest savings account. Cash back rates of up to 3% are on offer, but Neo Everyday account minimums are required to unlock higher rates. Best for: Cardholders with no or low credit who want cash back on everyday purchases.
Pros
- Earn up to 3% cash back on spending.
- No credit check required.
Cons
- Not a credit card, so you can’t build your credit.
- $10,000 Everyday account balance required to unlock the highest cash-back rates.
Card details
Card details- Get high interest on your savings and high cashback when you spend with your Neo Money™ card.
- Depending on your account balance, customers can earn cashback up to 3% on gas, 3% on groceries, and 1% on all other purchases (up to a yearly spend cap).
- Instant access to your balance with no card loading required.
- Free everyday transactions and no monthly fees.
- Withdraw from any ATM worldwide.
- 0.1% interest on every dollar.
- Enable the Auto-Save feature to set up automatic savings and register your email to instantly deposit Interac e-Transfer® requests in your Neo Everyday account.
- Take the pain out of bill pay by setting up automated payments from your Neo Everyday account.
Rewards breakdown
Rewards breakdownCash back on groceries.
Cash back on eating & drinking.
Cash back on transportation.
NerdWallet's take
NerdWallet's takeKOHO’s baseline prepaid tier earns 2% interest on card balances and 1% cash back on eligible dollars spent — no credit check required. But be ready to set up qualifying deposits to unlock the $0 fee; otherwise, you’ll pay to use this card monthly. Best for: Anyone with low or no credit who wants an instant-approval opportunity to earn cash back on everyday purchases.
Pros
- No credit check required.
- 1% cash back on groceries, transportation, food and drink purchases.
- Earns 2% interest on your card balance.
Cons
- Not a credit card, so you can’t build your credit.
- Must maintain at least $1,000 in monthly deposits to waive the card fee.
Card details
Card details- Earn 1% cash back on groceries, eating & drinking, and transportation. Up to 6.5% extra cash back at selected merchants.
- Earn 2% interest on both your spending and savings accounts. Your funds will also be eligible for CDIC insurance.
- Get access to a cash advance of up to $250* at 0% interest with Cover.
- Free Credit Score.
- Send money to 190+ countries with KOHO’s International Money Transfer feature and enjoy the best exchange rates, no hidden fees, and transfers that arrive within 30 minutes*.
- Grow your credit by an average of 31+ points in just 4 months with Credit Building* for $10 / month.
- Grow your credit by paying your rent with your KOHO card. KOHO will report monthly rental payments to Equifax and help grow your credit score.
- Grow your credit by paying your rent with your KOHO card. KOHO will report monthly rental payments to Equifax and help grow your credit score.
- All KOHO plans come with a free 30-day trial so you can see if it suits you.
- $48 annually.
- Get this plan for $0 when you set up a recurring Direct Deposit or deposit $1000 each month into your KOHO account.
- *Terms and conditions apply.
Rewards breakdown
Rewards breakdownCash back on all eligible purchases. You can also choose to earn stock or crypto back instead.
NerdWallet's take
NerdWallet's takeThe Wealthsimple Card offers an impressive 2% cash back on everything, no foreign transaction fees and a suite of travel insurance. While the card’s $20 monthly fee can be waived, you’ll need to have at least $4,000 deposited into a Wealthsimple chequing account monthly to do so. Best for: Wealthsimple customers who spend big abroad.
Pros
- No FX fees.
- High 2% cash-back base rate.
Cons
- Must meet deposit minimums to get monthly fee waived.
- Must have a Wealthsimple chequing account to apply.
Card details
Card details- General fees and features: Wealthsimple does not charge any fees to use the Wealthsimple Card.
- Currency conversion fee: Mastercard will determine the applicable exchange rate from the range of rates available in wholesale currency markets for the applicable processing date, which may vary from the rate Mastercard itself receives.
- ATM withdrawals: Wealthsimple does not charge any fees for withdrawing cash, but you may see a standard ATM withdrawal fee (usually about $3.00) when you make a withdrawal at an ATM. Clients can withdraw up to $3,000 CAD per transaction and $3,000 CAD per day, with a weekly limit of $10,000 CAD.
- Reload methods: Add funds to your card by making a deposit via a linked bank account, a wire transfer, your Visa or Mastercard debit card, or an institutional transfer to move an account from another institution.
- Rewards: Earn 1% cash back on eligible purchases. Cash back rewards can go directly into your Spend account, be added to the cash balance of a stock trading or crypto trading account, or be used to auto-purchase the cryptocurrency of your choice in your crypto trading account. Use the card anywhere Mastercard is accepted — in-store, in apps, or online. Pay bills, use direct deposit, and e-Transfer.
- The Wealthsimple Card is available as part of the everyday spending account, which comes with both a digital and physical card that you can manage right from the Wealthsimple app.
- Use the app to manage your rewards and spending preferences, or lock your card if something happens to it. Your balances are all updated in real-time, too — even if you’re using the physical card.
- Add your Wealthsimple Card to Apple, Samsung or Google Pay digital wallet.
- Use the Wealthsimple Cash app to send and receive payments to anyone else who uses the Cash app without paying fees. You can also send money to people who don’t have the Cash app yet. They will receive a prompt to download the app and claim the money you sent them.
- Your money is protected for up to $1,000,000 through CDIC.
- To be eligible, you must be a Canadian resident with a Social Insurance Number of the age of majority in the province or territory where you live.
Rewards breakdown
Rewards breakdownNerdWallet's take
NerdWallet's takeThe Wise Card is a flexible prepaid card for frequent travellers. You get access to over 40 currencies around the world, as well as two free ATM withdrawals each month (up to $350 per transaction). However, converting currencies within your own account comes with fees and limits, as well as topping up external e-wallets. Best for: Globetrotters who want a prepaid solution that holds multiple currencies.
Pros
- No annual fee.
- No ATM fees (up to two withdrawals a month, under $350).
- Holds over 40 currencies.
Cons
- Fees for ATM withdrawals after limits are reached.
- Fee for converting currencies.
- Fees for topping up e-wallets.
Card details
Card details- Pay online and in stores in over 40 currencies and 160 countries.
- Freeze and unfreeze your card instantly.
- Generate digital cards for extra peace of mind.
- Get notifications for every transaction.
- Wise protects your details through strict standards and 2FA.
- Dedicated support in 14 languages.
- International safeguarding: Your money is held with a group of established financial institutions, separate from Wise’s.
- No annual fee.
Why 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 did we select cards for this roundup?
For this roundup, we focused on products designed for people with poor, fair, limited or rebuilding credit. Our evaluation emphasized:
accessibility signals for lower or thinner credit profiles.
predictable deposits, fees and terms (especially for secured and prepaid products).
whether the product reports to Canadian credit bureaus when credit-building is the goal.
practical usefulness, including everyday features, simplicity, and clear next-step options as your credit improves.
How 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 is a secured credit card?
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 credit 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?
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?
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?
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?
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?
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?
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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