Poor credit can be very stressful. It can be hard to get rid of and shadow your every move, interrupting your work, life and financial security.¹ When it comes to credit cards it can be difficult to know who to trust and reading all the fine print can seem intimidating. However, there are some excellent options in Canada for getting your credit score up with respected, high-quality credit cards that will make your life easier.
The Home Trust Secured Credit Card
This card has several attractive features. One of them is that it lets you put down a security deposit of $500 to $10,000 which then becomes the same amount as your line of credit. This can be increased whenever you put in more money. Its annual percentage rate (APR) is a reasonable 19.9 percent with no annual cost or—second option—a $59 fee per year with a lower 14.9 percent APR. Both options are decent depending on the specifics of your financial situation.²
Unsecured Visa From Credit One Bank
This is a smart card to hop on to if you are having credit score issues. As long as you pay your monthly bill on time this card has numerous benefits, including 1 percent cashback on everything you buy no matter how low your credit score. It also offers quite a low annual cost and generous grace periods in which to pay your bill.³
The Indigo Platinum Mastercard
Mastercard’s Indigo Platinum is an optimal card for rebuilding credit. You can start a line of credit from it without putting in any money and the small annual cost makes it a solid choice for those who are low on funds. The interest rates are also reasonable and stay low as long as your payments go through on time. Another plus on the Indigo Platinum card is that you are not disqualified on the basis of having declared bankruptcy in the past and will still be considered for it if you apply.⁴
Capital One Secured Mastercard
There are many good reasons why the Capital One Secured Mastercard consistently gets top reviews and satisfies those who have it. First of all it boosts credit score and has no yearly fee. Using the Capital One Secured Mastercard for your purchases lets you get back into the good graces of credit scores and you are also helped out by Capital One’s CreditWise service which will inform you of your score and give you valuable information to help keep that score rising.⁵
More Advice To Raise Your Credit Score
There are a number of additional methods to help raise your credit score. Whether you are young with little credit experience, you are coming back from a terrible credit score, or if you’re just trying to improve your score, it is a good idea to have some tricks up your sleeve. One way to improve your credit score is to apply selectively for cards to get the one that you want. This means not sending out all sorts of applications and seeing what sticks.
When credit card companies see that you are getting turned down or trying all over town they will be less likely to grant you a card and may rate you lower.⁶ Knowing what you can afford to pay and making your minimum monthly payments remains the best way to get a positive credit score. Staying within your spending limits is the best way to make sure those payments keep coming in. Researching online to find the best card for you is always a great start to rebuilding a credit score.
[1] https://www.thebalance.com/side-effects-of-bad-credit-960383
[2] https://www.hometrust.ca/credit-cards/secured-visa-card/
[3] https://www.greedyrates.ca/blog/top-credit-cards-for-bad-credit-canada-unsecured-secured-credit-card/
[4] https://www.indigocard.com/
[5] https://www.capitalone.com/credit-cards/reviews/?prodid=securedcard
[6] https://www.creditcards.com/credit-card-news/10-things-not-to-do-before-applying-for-credit-card-1270.php
