Can I get a credit card with bad credit in Canada?

Yes. Secured credit cards like the Home Trust Secured Visa and Neo Secured Mastercard are available to anyone regardless of credit score. You provide a deposit that acts as your credit limit.

How long does it take to rebuild credit?

With responsible use of a secured card, most people see significant improvement in 6-12 months. A bankruptcy stays on your file for 6-7 years but you can start rebuilding immediately.

What credit score is considered bad in Canada?

Below 560 is generally considered poor. Scores of 560-659 are fair. Most premium cards require 660+. Secured cards have no minimum score requirement.

What is the difference between a secured and unsecured credit card?

A secured credit card requires a refundable deposit (typically $200–$500) that becomes your credit limit. An unsecured card has no deposit requirement but requires a credit check for approval. Secured cards are the easiest path to rebuilding credit because the deposit eliminates risk for the issuer.

Can I upgrade from a secured card to a regular card?

Yes. Most issuers review your account after 6–12 months of on-time payments and may offer an upgrade to an unsecured card with your deposit refunded. Some banks like Capital One and BMO have automatic upgrade paths. If your issuer does not offer upgrades, you can apply for a new unsecured card once your score improves to 660+.

Best Credit Cards for Bad Credit in Canada 2026: Secured & Guaranteed Approval Options

Best Credit Cards for Bad Credit 2026

Deposit requirements and fees confirmed as of August 2026 — verify current terms directly with each issuer (hometrust.ca, neofinancial.com, capitalone.ca, refreshfinancial.ca) before applying.

Card	Type	Annual Fee	Deposit	Rewards	Best For
Home Trust Secured Visa	Secured	$0	$500+	1% cash back	Best overall
Neo Secured MC	Secured	$0	$50+	Up to 5% at partners	Low deposit
Capital One Guaranteed MC	Unsecured	$59	None	None	No deposit needed
Refresh Financial Secured Visa	Secured	$12.95/month (~$155/yr)	$200+	None	Low deposit
KOHO Prepaid MC	Prepaid	$0-9/mo	N/A	0.5-2%	Credit building feature

Credit Score Ranges in Canada

Score Range	Rating	Cards Available
760-900	Excellent	All premium cards
725-759	Very Good	Most rewards cards
660-724	Good	Standard cards
560-659	Fair	Basic cards, some restrictions
300-559	Poor	Secured cards only

Top Picks

Best Overall: Home Trust Secured Visa

Feature	Details
Annual fee	$0
Security deposit	$500 minimum (up to $10,000)
Rewards	1% cash back on all purchases
Interest rate	19.99%
Credit bureaus	Reports to Equifax + TransUnion
Approval	Guaranteed with deposit

Why it’s best:

No annual fee — rare for secured cards
1% cash back — most secured cards offer nothing
Reports to both credit bureaus
Deposit is fully refundable when you upgrade

Best Low Deposit: Neo Secured Mastercard

Feature	Details
Annual fee	$0
Security deposit	As low as $50
Rewards	Up to 5% at partner merchants
Interest rate	19.99%
Credit bureaus	Reports to both bureaus
App	Excellent mobile experience

Why it stands out: Only $50 deposit to start building credit. Higher limits available with larger deposits.

Best Without Deposit: Capital One Guaranteed Mastercard

Feature	Details
Annual fee	$59
Security deposit	None
Rewards	None
Interest rate	19.99%
Credit limit	$200-$1,000
Approval	Guaranteed (unsecured)

Best for: People who can’t afford a deposit but need to build credit.

Secured vs Unsecured Cards

Feature	Secured Card	Unsecured (Bad Credit)
Deposit required	Yes ($50-$10,000)	No
Annual fee	Usually $0	$39-79
Credit limit	Equal to deposit	$200-$1,000
Approval odds	Guaranteed	Higher chance of denial
Rewards	Sometimes	Rarely
Best option	Home Trust Secured	Capital One Guaranteed

How Secured Cards Work

Step-by-Step

Step	What Happens
1. Apply	Provide ID and basic info
2. Deposit	Send $500+ to the issuer (held in trust)
3. Receive card	Your credit limit = your deposit
4. Use normally	Swipe anywhere Visa/MC is accepted
5. Pay your bill	Pay in full each month (separate from deposit)
6. Build credit	Card reports to Equifax + TransUnion monthly
7. Upgrade	After 12-18 months, qualify for unsecured card
8. Get deposit back	Full deposit returned when you upgrade

Important: Your deposit is NOT used to pay your balance. You still need to make monthly payments.

Credit Rebuilding Timeline

Month	Action	Expected Result
0	Get secured card	Starting point
1-3	Use for small purchases, pay in full	Card reports to bureaus
3-6	Consistent payment history	Score begins improving
6-12	Score improving significantly	May qualify for basic unsecured cards
12-18	Apply for unsecured card	Good chance of approval
18-24	Close secured card, get deposit back	Transition to rewards card

Tips to Rebuild Credit Faster

Keep utilization below 30% — On a $500 limit, spend less than $150
Pay before the statement date — Lowers reported utilization
Never miss a payment — Set up autopay for minimum at least
Pay the full balance — Avoid interest charges
Don’t apply for multiple cards — Each application is a hard inquiry
Keep the card open — Length of credit history matters
Check your free credit report — Monitor progress at Equifax or TransUnion

After Bankruptcy or Consumer Proposal

Situation	Timeline	Step
During consumer proposal	Immediately	Get secured card
After proposal completion	Day 1 post-discharge	Apply for secured card
After bankruptcy discharge	Day 1 post-discharge	Apply for secured card
2 years post-discharge	Sooner than expected	May qualify for basic unsecured
6+ years post-discharge	Bankruptcy falls off	Most cards available

Key point: Don’t wait to start rebuilding. A secured card during or after a proposal/bankruptcy accelerates recovery.

Common Mistakes When Rebuilding

Mistake	Why It Hurts	Solution
Avoiding credit entirely	No new positive history	Get a secured card immediately
Applying for premium cards	Hard inquiries, rejections	Start with secured/guaranteed
Only making minimum payments	Costly interest, slow paydown	Pay in full every month
Closing old accounts	Shorter credit history	Keep accounts open
Ignoring credit report errors	False negatives hurt score	Dispute errors with bureaus