Canadian Cards That Accept Bad Credit Scores for January 2026

A secured credit card requires a cash deposit to open an account. The deposit amount is typically your credit limit. So, if you deposit $500, your credit limit will be $500. It works just like other credit cards — unpaid balances accrue interest, and you must pay at least the minimum amount due each month to keep the card in good standing. If you fail to pay the minimum, the issuer may use your initial security deposit to cover the debt. Issuers of secured credit cards typically report payment activity to the credit bureaus. So, when used responsibly, a secured card can help you build your credit and improve your score. Plus, you’ll get your initial deposit back when you close your account.

Which makes sense for you? Secured vs. Unsecured Credit Cards: How to Choose

A prepaid card is like using cash: you load money onto the card and use it to make purchases.

Unlike a traditional credit card, it won’t help you build credit because your transactions aren’t typically reported to the credit bureaus. However, some prepaid cards offer credit-building services for a fee. A portion of your money is used to pay a small line of credit, which is then reported to the bureaus. The best prepaid cards earn rewards and boast deals and discounts. They don’t require a credit check, which means those with no credit can apply.

Student cards are unsecured cards that often have low or no annual fees and attractive perks, like rewards and insurance coverage. While many entry-level unsecured credit cards may be suitable for students, some issuers specifically offer official student-branded credit cards that have fewer criteria for acceptance. To qualify, you must be the age of majority in your province or territory. You may be asked to demonstrate that you’re a post-secondary student by providing proof of enrollment.

Each of the Big Six banks in Canada — BMO, CIBC, National Bank, RBC, Scotiabank and TD Bank — offer credit cards specifically designed for newcomers.

These cards typically don’t require an established credit history to apply.

Sometimes, proof of status as a Canadian newcomer, like a Canadian Permanent Resident Card, confirmation of Permanent Residence, or a work or study permit, is required.

Be aware that cards for newcomers tend to have lower credit limits — often up to $15,000.

Your credit score is important information that will help you make an informed decision about the card you pursue. With it, you’ll be able to target cards you have a chance of being approved for and avoid an application rejection, which could harm your score. You can get your credit score from your bank or one of the credit bureaus.

Compare perks, annual fees and interest rates when choosing a card. Ideally, you want a card with low fees and rates, so you can pay off balances easily and demonstrate responsible financial habits over a long period of time. Secured and prepaid cards are both viable choices for someone with bad credit. These cards will have different credit limits, interest rates and perks, so weigh your options carefully.

No matter how eager you are to get a credit card, try to limit yourself to a single card application at a time. Card applications impact your credit score, and multiple applications could act as a red flag for providers and hurt your chances of approval.