Canada Credit Builder Cards Make Getting A Credit Card Easier
Credit cards that cater to individuals with bad credit offer a unique opportunity for people with poor or no credit history to obtain a credit card. Some of these cards even make getting a card possible without a credit check. The primary advantage of this kind of card is that it allows users to build or rebuild credit by making on-time payments, helping credit history. However, they often come with higher APRs and fees compared to traditional credit cards. Let's take a look at the best options.
Koho
Koho offers a unique product with its prepaid Mastercard. It functions like a credit card by allowing you to load funds and use the card for purchases. Koho also provides a credit-building service that reports your activity to credit bureaus, helping you improve your credit score over time. This card does not require a credit check, making it an excellent option for those looking to rebuild their credit without the risk of rejection.
Neo
The Neo Secured Credit Card is another strong contender. It requires a security deposit but offers the added benefit of earning cashback on purchases. With no annual fee and guaranteed approval, this card is accessible to many Canadians looking to rebuild their credit. The Neo card also does not require a hard credit check, making it a convenient option for those with bad credit.
Capital One
The Capital One Secured Mastercard is a good option if you have less than perfect credit. It has a low $59 annual fee, and can help you to establish or repair your credit. It requires “security funds” of $75 to $300 to be sent in to Capitol One. Capitol One does require a check, but guarantees approval as long as you meet their age conditions, that you provide security funds, that you haven’t applied for an account with them in the last 30 days, and that you do not have an existing or pending application.
Fortiva
Fortiva Credit Card is another good option for someone looking to build or establish credit. It allows you to pre-qualify for up to a $1,000 credit limit if you have less than perfect credit. You can pre-qualify without impacting your score. They also offer cash back rewards of up to 3% with no limits, which is impressive for such a card. Rewards of 3% are offered on eligible gas, grocery, and recurring bill payments, and then 1% cash back on all other purchases. This card does not require a credit check, making it accessible.
Conclusion
In summary, each of these cards offers unique benefits and drawbacks. Koho and Neo provide no credit check options with opportunities to build credit, while Capital One offers a secured card with guaranteed approval and a low deposit requirement. Fortiva, though unsecured and without a credit check, comes with higher fees. Choosing the right card depends on your specific needs and financial situation, but all these options can help you on the path to better credit.
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