With no credit history or a thin one, some kinds of card are much easier to be approved for than others. This page ranks them from easiest to hardest, explains what an issuer looks at when you apply, and covers what improves your odds. It is part of our guides to how credit cards work. For a weaker record rather than an empty one, see our cards for bad credit.
The kinds of card, from easiest to hardest
| Ease of approval | Card type | What approval usually rests on |
|---|---|---|
| Easiest | Secured cards | A refundable deposit, which usually sets the limit |
| Very easy | Prepaid cards | Nothing: you spend money you’ve loaded, so there’s no credit check (and no credit limit) |
| Easy | Student cards | Enrolment and a low starting limit rather than a credit history |
| Easy | Newcomer cards | Immigration status and a banking relationship, through bank newcomer programs |
| Moderate | Store and basic no-fee cards | Some credit history or a banking relationship |
| Harder | Standard rewards cards | An established file in good standing |
| Hardest | Premium rewards cards | A strong file plus the card’s published income requirement |
Issuers don’t publish minimum scores for most cards, so the order is a general guide. What a “good” score means is set out in credit score ranges.
Secured cards
A secured card asks for a deposit up front. The Financial Consumer Agency of Canada notes that institutions “normally set your credit limit at an amount that is equal to or higher than your deposit,” and that the deposit “may range from a few hundred to a few thousand dollars.” The card reports to the credit bureaus like any other, so it builds history. Our secured credit card picks compare deposits, fees and rates card by card, and should I get a secured credit card weighs it against the alternatives.
Prepaid cards
A prepaid card spends money you load in advance, so approval is close to automatic. It isn’t credit, though, and spending on it doesn’t build a credit file by itself. Some providers sell a separate credit-building product alongside the card; credit-builder loans explains how those work.
Student cards
Banks sell student cards with low limits and usually no annual fee, approved on enrolment rather than history. Our student credit card picks compare them.
Newcomer cards
The large banks run newcomer programs that approve a first card without Canadian credit history. Eligibility windows and cards vary by bank; credit cards for newcomers and new immigrants covers them and what to bring.
A first unsecured card
Once you have some history, a no-fee card from the bank where you already hold an account is usually the next step. Our first credit card picks list cards aimed at a first application.
How approval works
When you apply, the issuer looks at:
- Your credit report and score, through a hard inquiry; soft vs hard credit checks explains the difference from a pre-approval check.
- Your income, against the card’s requirement if it has one.
- Your existing debts and recent applications. Several applications in a short time can count against you; how long to wait between applications covers the spacing.
- Your relationship with the bank, which can count for something when your file is thin.
What improves your odds
- Applying at a bank where you already have an account.
- Applying for a card whose requirements you meet, rather than starting with a premium card.
- Including all eligible income on the application.
- Using a pre-approval tool, where an issuer offers one, which typically uses a soft check.
- Starting with a low limit, which can be raised later.
If an application is declined, the issuer’s reason usually points to one of the factors above. A recent bankruptcy or consumer proposal generally means starting with a secured card; rebuilding credit after bankruptcy covers that path, and how to build credit from scratch covers starting with no credit history at all.