Best Credit Cards to Rebuild Your Credit in Canada
Your credit score is an important element of your financial health and ability to access various financial products and services. In Canada, and many other countries, having a strong credit score means better interest rates on loans, higher credit limits, and being approved for more loans. However, it is possible that something will occur which reduces our scores making it difficult to get credit.
Rebuilding credit can be done by anyone whether they are new to using credit or have had some financial difficulties in the past. One effective way may be through responsible use of cards designed specifically for people trying to rebuild their history with borrowing money.
In this post we’re going to go over some popular Canadian options for people looking to reestablish themselves financially through getting another card into their wallets!
Credit Cards That Require a Security Deposit
Secured cards are often chosen by those who have limited or poor histories with borrowing because these types require customers make deposits that serve as collateral against any default on repayments.
Frequently you must deposit an amount equal or slightly greater than what will be given as limit but not always; this depends on the particular lender used. When used correctly such actions begin building up positive records about how well an individual handles borrowed funds which eventually raises said person’s overall rating.
Favorite Option: Home Trust Secured Visa
For somebody trying hard at improving his/her rating then applying for Home Trust Secured Visa may greatly assist. It comes with a rate comparable to others in its category, gives limits matching security deposits made plus reports consistently across all three bureaus so you know where things stand each month!
By doing things right here one can establish good habits leading them towards eventually qualifying unsecured cards too.
Low-Interest Credit Cards
High interest can cause problems when a person has less than perfect debt levels; therefore there needs exist ways around high costs associated with these kinds of accounts while still being able build up payment history. Low interest rate credit cards do just that – giving people competitive rates so they can keep track of what’s owed and avoid any unnecessary fee hikes from building up too much debt too fast.
Typically, there are fewer rewards/other features available on such products because their main goal is to help users responsibly rebuild credit.
Pick: MBNA True Line® Gold Mastercard®
MBNA True Line® Gold Mastercard® charges little annually while providing those interested in fixing or re-establishing their borrowing power with an introductory low balance transfer APR offer among other things like allowing consolidation of higher interest card balances at more manageable monthly pace for improved financial well-being.
Those students who are just starting out their career with credit can use credit cards designed for them. These cards have typically a bit more relaxed approval requirements, making it possible for those with little or no credit history to qualify.
By using student credit cards responsibly, students can start building a solid credit history.
Top Pick: BMO SPC CashBack Mastercard
The BMO SPC CashBack Mastercard is highly recommended for students looking to establish or improve their credit rating. There is no annual fee charged on this card and it gives cash back rewards on all purchases made with it.
10 Best Credit Cards that Use Transunion in Canada
On top of that, the card comes with access to the Student Price Card (SPC) which provides discounts at various retailers across Canada.
Credit Cards with Credit Monitoring
If you’re focused on repairing your credit, having access to credit monitoring services can be extremely helpful. Many of these cards offer free monitoring of your credit score so you can keep an eye on how things are progressing while working towards bettering your financial situation.
Regularly keeping track of your credit score will help you identify areas where improvement is needed so that you can adjust your spending and saving habits accordingly.
Top Pick: Refresh Financial Secured Visa
What sets the Refresh Financial Secured Visa apart from other cards is its inclusion of credit monitoring services. Cardholders are provided with free access to their own personal FICO scores as well as any changes made to their reports by creditors which allows them easy monitoring over time as they work towards rebuilding what’s been broken down through bad choices or circumstances beyond their control like job loss etcetera.
In addition there is only minimal yearly cost associated with getting approved for this particular type of secured visa – meaning no large upfront fees required! Rebuilding takes commitment but sometimes having someone watch over us makes us feel safer too right?
Credit Cards Sold at Retail Stores or by Retailers
Another option for rebuilding credit is through retail or store credit cards, especially if you have a limited credit history or no credit at all. You stand a better chance of getting one of these cards from popular merchants since they are usually easier to obtain compared to regular unsecured ones; plus when used responsibly along with making on-time payments each month can help establish positive payment habits leading towards good financial health in future.
Top Pick: Canadian Tire Options® Mastercard®
When it comes down to using shop credits during rebuild process then Canadian Tyre Options® Mastercard® becomes one among those top picks due its wide range points earning opportunities not only within but also outside partner retailers. This implies that as long as we purchase wisely using this type of card our scores shall increase over periods.
Credit Cards With No Annual Fees
People who want to improve their credit must avoid unnecessary expenses. No-fee credit cards eliminate annual fees, so cardholders can concentrate on managing their credit responsibly instead of having additional costs.
Top Pick: Tangerine Money-Back Credit Card
In Canada, reestablishing credit may appear tough initially, but it can become manageable and even enjoyable if you have the right credit card. It will take a while for your work to pay off, but eventually it will lead to a stronger credit score and better financial opportunities. To begin building towards better credit in the years ahead, choose a card that fits with what you need now as well as where you want to be financially down the line.
