Credit Cards Best For Rebuilding Credit In Canada in 2022
Credit cards have become an almost indispensable part of life for people around the world, including in Canada. This is also true for people who have financial problems and have had their credit ratings suffer as a result. However, there are some credit cards available in Canada that can help these people.
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While the use and abuse of credit cards can often get someone into money trouble, at the same time the proper use of credit cards can actually help you rebuild your credit. The rub here is that once your credit score has taken a hit, it is difficult finding a credit card that you can be approved for. Thankfully, there are some credit cards available that will not only approve you, but also help you by improving your credit score by properly using them. This is because as you use them and pay your required payments on time, this will be reported to the credit reporting agencies as a positive report. Over time, this will result in your credit score being increased.
These types of credit cards that are discussed below will usually only start you off with a low credit line amount. In order to increase your chances of getting one of these cards and for the highest possible credit limit possible, you should first try to increase your credit score before applying for any of these cards. Listed below are tips to accomplish this, followed by the best credit cards in Canada to rebuild credit.
Tips to Improve Your Credit Score
– Timely payments of your credit card and other bills: Making your payments consistently on time every month without fail, is the easiest and best way to give your credit score a boost. Note that missing payments could cost you as much as a whopping 150 points off your credit score.
– Pay off or reduce existing balances: Decreasing your overall debt will usually give your credit score a nice raise.
– Stop applying for new accounts: This includes not just loans, but also things like a cell phone account. The more you apply for new accounts in a given time, the more it will decrease your credit score.
– Keep your existing credit accounts open and active: After paying off the balance as mentioned above, keep the account and use it a couple of times a year – and pay in full again.
– Check your credit report regularly: Make sure there are no errors on it that is dragging your credit score down.
Neo Mastercard
– Will approve applicants with credit scores as low as 600.
– No upfront or monthly fees.
– Interest rate up to 25%, the better your credit score – the lower the interest.
– Cash back rewards up to 5% at affiliate retailers, 1% cash back rewards on all other purchases.
– Welcome offer of 15% cash back on your first purchase using the card.
Canadian Tire Triangle Mastercard
– Very high and easy to get approval.
– No upfront or monthly / annual fees.
– Interest rate of 20%.
– 1.5% cash back on grocery purchases, excluding Walmart and Costco.
PC Financial Mastercard
– A fair credit score of at least 670 is required.
– No upfront or recurring fees.
– Interest rate of 21%.
– Reward Points: 30 points per liter of gas at Esso and Mobile, 25 points per $1 at Shopper’s Drugmart, and 20 points per $1 at certain grocery stores like Superstore and No Frills.
Scotiabank Value Visa
– No credit history required: Minimum of 12,000 dollars per year income required.
– Minimum credit limit of 500 dollars.
– Annual fee of 29 dollars.
– Low interest rate at 13%.
– Balance transfers as low as 0.99% interest for the first 6 months.
RBC RateAdvantage Visa
– Approval even with poor credit score.
– No upfront or recurring fees.
– Interest rate is variable: Prime rate plus 5 to 9%.
– Cash back reward of 3¢ per liter of gasoline at Petro-Canada.
National Bank MC1 Mastercard
– Approval even with no credit history.
– Minimum credit line of 500 dollars.
– No upfront or recurring fees.
– Interest rate: 21% on purchases, 22.5% on cash advances.
– Perks include purchase protection, extended warranties, and exclusive travel discounts and benefits.
