What are the best credit cards to rebuild credit in Canada? Pull up a chair, we’ve got the only list you need. Even if you have a poor credit score or no credit history, you should know that you can still get a credit card. Obtaining a credit card, instead of using a Visa debit card or even a prepaid credit card has a definite advantage: by paying off your credit card balance each month, you’ll be able to establish a positive credit history that will help improve your credit rating.  This is an attractive solution for immigrants with no credit history, consumers who have previously gone bankrupt, or those with poor credit. It’s not easy to regain control of your financial life, but these cards can help you.

There are two types of credit cards that you can get regardless of your credit rating. The first are guaranteed-approved credit cards that don’t require a security deposit. Usually, your credit limit will be just a few hundred dollars with such cards.

There are also secured credit cards that require a security deposit, which you cannot get back while you hold the credit card. You can only get your deposit back when the card expires or when you cancel it. Although this requires more capital upfront, this type of card will suit those who have to make larger purchases with their credit cards, and therefore need a higher credit limit than what is provided by a guaranteed approval credit card with no security deposit.

To help you choose a credit card to rebuild your credit, we did some research on our credit card comparison tool and identified the 16 best credit cards to rebuild credit in Canada. Here they are:

What is a credit score and how is it calculated?

If you’re reading this article, you’ve probably experienced a financial trauma and need to rebuild your credit score. Before we dig into the different cards on the market that can help you do that, let’s take a quick look at how a credit score works, and easy ways you can increase your credit score right now.

Your credit score is three-digit number on a scale of 300-900 that tells creditors how likely you are to pay back your debts as agreed. The worst score is 300 and the best score is 900. Your credit score is determined by the following: 

  • Payment history: how often you make your payments on time and how often you pay late or miss a payment altogether.
  • Credit Utilization Ratio: How much you owe on your credit cards and lines of credit 
  • Age of credit: How long you have been using credit and how old or new each of your credit accounts are 
  • Inquiries: How many times do creditors, or interested parties, check your credit file 
  • Public records: Any credit accounts that have been sent to collections, if you’ve been sued to monies owed, CRA judgments, and even unpaid child or spousal support

Quick and easy ways to increase your credit score

There are many things that influence your credit score, some would even surprise you. Both Equifax and TransUnion use slightly different scoring models to calculate your score. However, there is some overlap between them, which include the following six behaviours that can quickly boost your credit score:

Check your credit score often

There could be reporting errors or inaccuracies that are dragging down your credit score. Borrowell helps you spot mistakes so you can dispute them and give your credit score a boost. It’s free to use and you can check your credit score as many times as you want without hurting it.

Make your payments on time

Your payment behaviour has the biggest impact on your credit score. Missing a payment could cost you as much as 150 points off your credit score. Making your payments on time everything without fail is the easiest way to give your credit score a boost.

Pay down your debt

The more money you owe on your credit cards and lines of credit, the more it drags down your score. The quickest way to give your credit score a boost is to pay off your credit balances owing. The best way to pay off your debt is with either the snowball or avalanche method. The method that’s right for you will depend on your goals and needs.

Clear up public records

Public records can have a huge negative impact on your credit score. They include things like balances that have been sent to collection agencies, bankruptcies and consumer proposals, and even court judgements against you. If you have something like a credit card or cell phone bill that’s been sent to a collection agency, you need to pay that off as soon as possible.

Keep your credit accounts open

The older your credit accounts are, the better. Try not to close things like your credit cards or lines of credit, even if you don’t use them anymore. Use old accounts once or twice a year to keep them active, and pay the balance off in full.

Stop applying for new accounts

Every time you apply for a credit item like a credit card, loan, or even open a cell phone account, you’ll need to submit to a credit check. That’s called a “hard” credit check and it can damage your credit score if you have too many hard checks close together. If you’re trying to increase your credit score, stop applying for credit unless absolutely necessary.

Best credit cards to rebuild credit in Canada

If you’re ready to start building your credit score back up, there are two different types of credit cards to choose from; secured credit cards and unsecured credit cards. But there is also a third option often overlooked; prepaid cards. Let’s take a look at what each type of card offers so you can make the most of your credit-building journey. 

If you’re getting rejected for credit at every turn because your credit score is particularly poor, or you don’t have any credit history at all,  we are here to throw you a lifeline. Whether you are new to credit, like immigrants and students, or you’ve experienced a financial crisis like a job loss, divorce or critical illness, you have options available to you. Let’s start with the best prepaid cards that offer credit-building resources.

Best Prepaid cards to rebuild credit in Canada

Prepaid cards offer all the perks of a credit card but you don’t have to provide a security deposit or accumulate debt when you use them. Instead, you load the card with the money you already have; money from your chequing or savings account. In the past, prepaid cards wouldn’t impact your credit score, for better or for worse. But times have changed.

There is no credit check required to get a prepaid card and using it will not impact your score either. Having said that, using the prepaid card itself will not help you build or repair your credit score. That’s because you are not borrowing any money from the prepaid card issuer, so nothing reports to the credit bureaus. But prepaid cards have come a long way and some of the leading prepaid card issuers offer exclusive credit-building tools and resources available to you when you sign up for their card. 

If you’re getting rejected for credit at every turn because your credit score is particularly poor, or you don’t have any credit history at all,  we are here to throw you a lifeline. Whether you are new to credit, or you’ve experienced a financial crisis like a job loss, divorce or critical illness, you have options available to you. Let’s start with the best prepaid cards that offer credit-building resources.


Fee: $7 per month 
Rewards: 0.5% cash back on purchases

I don’t have enough good things to say about this card, so here’s the skinny on why we love KOHO. It’s a prepaid card that uses your own money that you already have. That means you can use it for all your regular, day-to-day purchases without going into debt. There is no credit check to sign up and you don’t have to provide a security deposit either. 

KOHO offers 0.5% cashback rewards on all purchases. Now for the best part! If you need to rebuild your credit score you can sign up for their credit building program. This is a monthly subscription service that costs $7 a month. As long as you make that $7 payment on time every month, KOHO will report that payment to the credit bureau each month. All you have to do is open a spendable account, sign up for the credit building program, and make sure there is at least $7 in the account every month. They take all the work and cringeworthy upfront costs out of fixing your credit score.

MOGO Visa Platinum Prepaid Card

Fee: None
Rewards: 2% Bitcoin cash back on purchases

The MOGO Visa Platinum is another prepaid card that uses the money you already have. It’s free to use and doesn’t require a credit check or security deposit. We love MOGO for two reasons. One, the card offers 2% Bitcoin cash back rewards. Bitcoin has been the best performing asset class over last 10 years, with about 250% average annualized returns. That means the value of your rewards can increase dramatically over time without having to spend more. You can cash your Bitcoin out into Canadian dollars anytime time. Two, using this card can actually save the planet! It’s true, check out our MOGO Visa Platinum Prepaid card review to find out how. 

Mogo also offers a free credit monitoring service when you active the Mogo Visa Platinum prepaid card. You won’t build your credit score by using the card, but you can monitor your score or free and check your credit as many times as you want without impacting your credit score. Mogo offers free insider tips on how to improve your score. In fact, Mogo will give a $200 cash bonus to the client with the most improved credit score in one month. According to their website, the average Mogo Visa Platinum Prepaid card use reports saving about $201 dollars a month. Their budgeting app and money management tools can help you save more money and pay down your debt faster, thus increasing your credit score.

Secured credit cards to rebuild credit

A secured credit card is a type of credit card that requires the applicant to submit a cash deposit to “secure” it. That means you give a lump sum of money to the credit card company to keep and apply to any balance owing in the event you default on your payments. Typically, your credit card limit is determined by the size of your security deposit. 

Secured credit cards are available for people with any credit score, good or bad, or even no score at all. As long as you are the qualifying age of majority in your province, you can open a secured credit card. The downside is that you have to provide an upfront security deposit. That can be tough if your budget is tight, or if financial trauma wiped out your savings account.


Fee: $48 per year + $6 per month
Rate: 17.99% 
Welcome offer: 5000 bonus points, interest waived for first 3 months

Our favourite secured credit card also happens to be a fairly new credit card on the market. Why? Plastk is the first secured credit card to offer points rewards on everyday purchases. Card rewards were previously a perk only available on traditional credit cards, often with higher credit scores and income requirements. Those trying to recover from a financial crisis and trying to rebuild their credit scores were often left out of premium rewards programs. Plastk didn’t think that was fair. With this card, you earn points on everyday purchases that you can use towards things like a credit on your balance owing. Or you can apply them towards merchandise, travel, gift cards, events or even charitable donations. 

Right now, if you sign up for Plastk you’ll get 5000 bonus points, which you can redeem after having the card for 3 months. They’ll also waive the interest on your purchases for the first 3 months. Be prepared to fork over $300 to secure your card; that’s the minimum security deposit amount required. The interest rate is 17.99% APR, but Plastk offers a 25-day interest-free grace period for card purchases and 3 days for cash advances. Between the $48 annual card fee plus the $6 per month maintenance fee, you’ll pay a steep $120 per year for this card. But that’s in line with the annual card fees of traditional credit cards that offer premium rewards programs. You’ll also get free credit score monitoring and financial planning tools through the app.

Refresh Financial Secured Visa Card

Fee: $12.95 per year + $3 per month
Rate: 17.99%

This is our second favourite secured credit card simply because it doesn’t offer any rewards. Other than that, this card is our first pick for those on tight budgets. The minimum deposit to secure the card is $200. Between the $12.95 annual fee plus the $3 monthly maintenance fee, you’re only paying $48.95 a year which is quite a bit cheaper than its competitor. The annual interest rate is 17.99%. The card offers a 21-day interest-free grace on card purchases. We don’t advise using the cash advance feature on credit cards, but if you absolutely must, expect a $5 flat fee when you withdraw cash off the card at an ATM. If you end up not using your Refresh Financial secure card, be aware there is a $2 per month inactivity fee. 

The Refresh Financial secured credit card reports to both bureaus, not just one or the other. So you’ll be increasing your score with Canada’s two leading credit reporting agencies every time you use the card. Refresh also gives you access to financial education resources. You won’t just be building up your credit score, but you learn valuable money management skills that will help you build a much brighter, safer, financial future.

Capital One Guaranteed Approval Secured Mastercard

Fee: $59
Rate: 19.8%

As the title suggests, you are sure to be approved when applying for the Guaranteed Approval Secured Mastercard. It has an annual fee of $59, with an interest rate of 19.80%. The required deposit is between $75 and $300, and the maximum credit limit is $2500. It provides several benefits, such as Purchase Protection Insurance, Extended Purchase Warranty, Common Carrier Travel Accident Insurance, and Auto Rental Collision/Damage Insurance.

Capital One Guaranteed Approval Mastercard

Fee: $59
Rate: 19.8%

No matter your credit rating, your approval is guaranteed when you apply for the Capital One Guaranteed Approval Mastercard. It has an annual fee of $59 with a 19.80% interest rate on purchases, balance transfers and cash advances. This card provides several types of insurance and the required deposit is between $75 and $300.

Capital One Low Rate Guaranteed Mastercard

Fee: $79
Rate: 14.9%

The Low Rate Guaranteed Mastercard is a great choice if you want to rebuild your credit while getting a reduced interest rate of 14.90% on purchases and balance transfers. The annual card fee is $79 and the deposit required is between $75 and $300, depending on your current credit rating. We don’t advise carrying a balance on your credit card, but when life happens you definitely want the lowest rate possible.

National Bank MC1 Mastercard

Fee: None
Rate: 20.99%

National Bank’s MCI Mastercard is excellent for people with no credit history. With a $0 annual fee, it has a 20.99% interest rate on purchases and a 22.99% interest rate on cash advances and balance transfers. The minimum credit limit is $500. You won’t get any rewards, but will get purchase protection, extended warranties, and exclusive travel perks with qualified cities.

ATB Financial Alberta Mastercard–Secured

Fee: $49

Rate: 19.99%

This secured card is available only in Alberta, and it has an annual fee of $49 ($25 for each additional card). The Alberta Mastercard-Secured has a 19.90% interest rate on purchases and a 21.90% interest rate on cash advances and balance transfers. The minimum deposit required for this card is $500. You won’t get any rewards, but you can get up to 25% off the cost of a car rental through participating Budget and Avis locations.

Home Trust Secured Visa

Fee: None
Rate: 19.99%

This card helps you improve your credit rating without paying an annual fee. Its interest rate on purchases and cash advances is 19.99%. The Home Trust Secured Visa credit card requires a minimum deposit of $500 and a maximum deposit of $10,000. Since your credit limit matches your deposit, you can get a credit limit of up to $10,000, as long as you have the necessary funds. This card is available everywhere in Canada, except in Quebec.

Home Trust Secured Visa (with an annual fee)

Fee: $59
Rate: 14.9%

This card is the same as the previous one, with two differences. The first is that it has an annual fee of $59 (or $5 per month). Each additional Home Trust Secured Visa card has a fee of $19 per year, or a monthly fee of $2. However, its interest rate on purchases is 14.99% instead of 19.99%. Like the previous card, this card is available in all Canadian provinces except Quebec.

Unsecured credit cards to rebuild credit

An unsecured credit card is a type of credit card that does not require applicants to provide a security deposit. It is the most common type of credit card on the market. Purchases you charge to the credit card are funds you are borrowing from the credit card company. Your credit card limit is determined by your individual or household income as well as your credit score. 

There are almost unless unsecured credit card options to fit almost any credit score. But if you are fresh out of a bankruptcy or consumer proposal, you may find it difficult to get a traditional credit card. Fortunately, there are alternatives you can access if you are finding it difficult to get approval for a traditional credit card.

Neo Mastercard

Fee: None
Rate: Up to 24.99%
Welcome offer: 15% cash back on your first purchase

We love the NEO Mastercard because it’s a real credit card that reports to the credit bureaus. They’re site claims to approve a range of credit scores, with some reviewers claiming they we’re accpeted with scores as low as 600. There is not annual fee yet it still offers incredible cash back rewards up 4% at affiliate retails, and guaranteed 1% cash back rewards on all purchases. They’re current welcome offer provides 15% cash back on your frist purchase at most of their partnered retailers. You also have the to option to subscribe to a higher cash back rate program with a modest monthly fee.

Canadian Tire Triangle Mastercard

Fee: None
Rate: 19.99%
Rewards: Up to 4% cash back

As far as mainstream credit cards go, the Canadian Tire Triangle Mastercard is one of the easiest traditional credit cards to get. In fact, I know someone who was able to get this card less than a year out of bankruptcy. That’s because there is no minimum credit score or income needed to apply for this credit card, making it a great choice for trying to rebuild their credit.

There is no annual fee for the basic Triangle Mastercard, and you can earn up to 4% cash back in Canadian Tire money at all Canadian Tire locations or partner retailers. You’ll get 1.5% cash back on grocery purchases, excluding Walmart and Costco. And you’ll also earn $0.05 of Canadian Tire money per litre of gas at Canadian Tire gas pumps and participating Husky gas stations. You’ll also get access to their buy-now-pay-later plan on purchases over $150 at Canadian Tire stores and their partner retailers. You can even pay bills like your cell phone, utilities, and in some cases even your property taxes online through your credit card account under the payments menu.

PC Financial Mastercard

Fee: None
Rate: 20.97%
Rewards: Up to 30 points per $1

The PC Financial Mastercard is a great card for those with less than stellar credit. While your credit score doesn’t need to be perfect, you do need to have a fair credit score of at least 670. Having said that, some Reddit users have reported getting approved for this card with credit scores as low as 660. This makes it a great choice for those looking to level up their credit score and earn rewards in the process. You’ll get 30 points per liter o fgsa at Esso and Mobile, 25 points per $1 at Shopper’s Drugmart, and 20 points per $1 at all Loblaws owned grocery stores like Superstore and No Frills, to name a few.

Scotiabank Value Visa

Fee: $29
Rate: 12.99%
Welcome offer: 0.99% interest rate on balance transfers for the first 6 months

This card is specially designed for people who have just arrived in the country or who have no credit history. The Scotiabank Value Visa has low annual fee and its 12.99% interest rate is below the market average. It also offers an interest rate for balance transfers as low as 0.99% for the first 6 months. It requires a personal salary of $12,000 per year, and it has a minimum credit limit of $500

RBC RateAdvantage Visa

Fee: None
Rate: Variable

The main advantage of the RBC RateAdvantage Visa, besides the fact that it is free, is that its interest rate varies depending on your credit rating. The lower your credit rating, the higher the interest rate will be, and vice versa. Thus, individuals with poor credit can obtain this card, although approval is not guaranteed. Despite this, its interest rate is generally lower than most credit cards on the market. In fact, the interest rate is based on the Royal Bank’s prime rate, plus between 4.99% and 8.99%. It also offers rewards, such as a 3¢ per liter gas rebate at Petro-Canada and 20% more Petro-Points when making purchases with the card.

None of these cards are right for you?

We understand that maybe a card, credit or otherwise, just isn’t what you need right now. There other ways to rebuild your credit score without plastic.You can still access personal loans to help you on your credit building journey, even if you have bad credit. Let’s take a look.

Refresh Financial secured loan

Have you heard of a credit builder loan? It’s a fairly new product on the market that acts like savings account, but reports to the credit bureaus like a loan. They best way to build credit is to use it credit. But you can’t use credit if the banks all say no. With the Refresh Financial credit builder loan, you choose the amount you would like to “save” and the term. You are guaranteed to be approved and every payment you make is reported to both credit bureaus, improving your credit score month over month. Because it is not a loan, no money is advanced to you sign up. Instead, at the end of the term you have nice little nest egg and polished up credit score. Of course, there are interest and fees involved for this product, as with most financial products.

Consolidation loan

If you need money advanced to you right now because your car broke down and you need it to get to work. Or maybe you have a lot of high interest debt like credit cards or payday loans and can’t seem to make any headway. Fear not, there are alternative lenders who advance loans for people with weaker credit files. Maybe a small consolidation loan, a personal loan used to pay off your high interest debt, might be just what you need. Expect higher interest rates though. These companies take on riskier borrowers so they mitigate that risk with higher interest rates. Use our personal loan comparison tool to find the right lender for your needs. Make sure you read the fine print and run the numbers to make sure this is the right move for you. We love the credit card interest calculator provided by the Government of Canada to help you put your debt into perspective.

This Top 10 of the best credit cards for rebuilding credit in Canada was compiled by Hardbacon, which has created a credit card comparison tool listing hundreds of Canadian credit cards. Hardbacon also helps you save money on savings accounts, chequing accounts, online brokers, robo-advisers, mortgages and personal loans. If you want to take things one step further and take control of your finances, you should download Hardbacon’s mobile app, which links to your banking and investing accounts, helps you plan and budget for your financial goals, and helps you invest better.

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