Can You Get A Credit Card With A Poor Credit History?

The thing about credit is that you need it to access it; it’s a catch twenty-two. While there are specially designed credit cards for those who are starting to build credit, such as newcomers and students, obtaining a credit card with bad credit is often very difficult. 

Let’s dive into which credit cards you can get with bad credit and what you can do to improve your approval odds. 

Key Points

• You can get a credit card with poor credit, but your options will likely be limited to secured credit cards.
• Retail credit cards may also be an option for borrowers with poor credit.
• Using a secured credit card responsibly can eventually boost your credit score, putting you in a better position to qualify for a traditional credit card in the future.
• Prepaid cards may also be an option for bad credit borrowers, though you can’t use these cards to build credit.

Can You Get A Credit Card With Poor Credit? 

Yes, it is possible to get a credit card with poor credit, however, your options are likely limited to secured credit cards. But, the good news is that secured credit cards work similarly to traditional cards and are a great way to build better credit. 

What About Retail Credit Cards?

Bad credit consumers may have one other option: a retail credit card. For better or for worse, retail credit cards are often quite easy to get. 

Chances are, if you shop regularly at stores like Canadian Tire, Amazon, or Walmart, you’ve been asked to apply for a credit card. Next time this happens, consider applying and see if you get approved. 

Just remember that retail credit cards often have low limits, high rates, and may entice you to spend what you don’t have. 

Take a look at: The Best Store Credit Cards In Canada.

Best Secured Credit Card For Bad Credit

Secured credit cards are a great choice for bad credit borrowers as these cards can help you build credit, and you’re guaranteed approval so long as you can provide the minimum security deposit. 

Moreover, secured credit cards often come with similar perks as a regular unsecured credit card.

Note: Secured credit cards require an upfront deposit, known as the security deposit. This deposit acts as your credit limit and will be used as collateral in the event you default on your payments. 

Best Secured Credit Cards

Neo Secured Card

The Neo Secured Card is a popular choice among Canadians with bad credit as it requires no credit check (hard credit check required in QC), and approval is almost guaranteed. With a security deposit of just $50, you can make purchases and payments, which are reported to both credit bureaus to help you build credit. Moreover, you can earn 1% cashback on groceries and gas.

Upgrade Your Secured Neo Mastercard To Premium

Secured Neo Mastercard holders can upgrade their card to premium and earn even higher cashback rates for $9.99 a month. 

Learn more: Neo Secured Credit Review 2025

Secured Tims® Mastercard

The Secured Tims Mastercard comes in both a secured and unsecured form. It allows users to earn Points that can later be redeemed on items from the Tim Hortons menu or as statement credits. 

You can earn 12x points per $1 on Tim Horton purchases in Canada (with Tims Rewards scan) and 2x Points per $1 on groceries, gas, EV charging, transit, taxis, and rideshares. All other purchases will earn you 1x Point per $4. 

No credit score is required for the Secured Tims Mastercard, only a $50 minimum security deposit. 

Learn more: Tims®  Mastercard Review

Home Trust Secured No Fee Visa

Newcomers to Canada or young adults just starting to work on building credit will find the Home Trust Secured No Fee Visa useful. The card comes with a standard purchase interest rate of 19.99%, and there’s no annual fee. Credit limits range from $500 to $10,000. 

What Credit Score Do You Need To Get An Unsecured Credit Card?

Generally speaking, a credit score of at least 660 —  is considered ‘good’  —  is typically required to get approved for a credit card in Canada. That said, creditors will consider other factors, such as your income and debt-to-income ratio. Plus, the exact score you’ll need to take out a credit card may depend on your credit card issuer. 

Learn more: What Credit Score Do I Need to Get a Credit Card?

Can You Get An Unsecured Credit Card With Bad Credit?

As mentioned, getting a credit card with bad credit can be difficult. Most creditors require good to excellent credit, especially for premium credit cards. That said, you can access certain credit cards by becoming a secondary cardholder/authorized user. 

You can also simply wait a few months and work on building your credit. If you need urgent cash, there are other options available, such as bree and nyble (more info below).

Become An Authorized User (Additional Cardholder)

Becoming an authorized user or additional cardholder on someone else’s credit card allows you to spend on credit without having to get approved for a card on your own merit. While you’ll have your own card, the account will still be in the primary cardholder’s name. That means the primary account holder will still be responsible for making credit card payments. 

As a courtesy, you should use the card responsibly and consider covering the payments you make on the account to help with bill payments.

Learn more: What Is An Authorized User On A Credit Card?

Improve Your Credit

There are several things you can right now to improve your credit score over time:

• Pay Your Bills On Time: Making timely payments is the most important thing you can do for your credit health. By meeting all bill payment due dates every month, you can build good credit over time.
• Keep Your Credit Utilization Ratio Low: A low credit utilization ratio is key to good credit. This ratio measures the amount of credit you use relative to your available credit. Try to use less than 30% of your available credit limit on credit cards and lines of credit.
• Check Your Credit Report: Review your credit report on a regular basis to scan for errors. If you find any, dispute them with the credit bureaus and have them fixed.
• Don’t Close Old Credit Accounts: Keeping old credit accounts open is beneficial for your credit score because older accounts show a longer track record of positive credit management. Plus, you’ll retain more available credit, which can help keep your credit utilization low.

How To Switch From A Secured To An Unsecured Credit Card

If you have successfully improved your credit, you can look into switching your credit card from secured to unsecured. You can choose to switch with your current provider (if they offer unsecured cards) or with a new provider.

If you choose to close your secured credit card account, your provider will return your secured deposit. Keep in mind that closing an account may negatively affect your credit score. Once you have your new unsecured card, use it responsibly to continue building a positive credit profile.

Learn more: Switching From a Secured Credit Card to a Regular Credit Card

Prepaid Credit Cards

If you’re simply looking for the benefits that come with unsecured credit cards, like cash back and travel insurance, consider a prepaid card. 

Prepaid cards come with a credit limit based on the deposit you make on your account. They work like regular credit cards, but rather than purchasing items on credit, you’re spending money you’ve already loaded onto the card.

Best Prepaid Credit Cards

The following prepaid credit cards are worth looking into if you want something that is easy to get approved for and makes everyday purchases easy and convenient.

KOHO Prepaid Mastercard

KOHO offers three accounts which all come with a prepaid credit card. 

Depending on which account you choose, you can earn cash back on most purchases and extra cash back when you shop with KOHO partners. Furthermore, account holders can earn savings interest on their entire KOHO account balance.

With KOHO, you can also build your credit through their Credit Building Program or Flexible Credit Building program.

• Their Credit Building Program has a monthly subscription fee, and you can opt in for as many months as needed. Each payment is reported to the credit bureaus, which can help you build credit.
• Their Flexible Credit Building is a line of credit you can use to help build credit. You’ll need to deposit between $30 and $500 (which can be used to make purchases) and pay a small monthly fee. Each payment is reported to a credit bureau which can help build your credit.

Use code LOANSCANADA when you sign up for a KOHO account and get $40 FREE when you add funds to your account.

Neo Money™ Card

If you’re looking for a prepaid card, but don’t like the idea of having to remember to load funds onto it, check out the Neo MoneyTM card. Neo has solved this common issue with prepaid cards by providing direct access to the full balance with no card loading required. This card offers high cashback on spending and high interest on your account balance 

The Neo Money™ card is a feature of the Neo Everyday account, which is a hybrid of a spending and savings account. When you open an account, you’ll get free access to the Neo Money™  card. 

Ways To Get Cash Quickly

Bree and Nybl are two interest-free options to get cash quickly. 

Additional Reading

How To Build Credit As A College Student?

How To Build Credit Without A Credit Card

Can Your Rent Payments Help You Build Credit?

Bottom Line

Credit cards are generally easy to qualify for, but having bad credit can make it more challenging. Fortunately, there are options available to help rebuild your credit. Once approved, it’s important to use your card responsibly. Always make payments on time and keep your balance under control. With consistent, responsible use, your credit score should improve over time.

Bad Credit Credit Cards FAQs

¹Minimum balance in a Neo Everyday account required to earn the highest rate. Cashback earn subject to monthly maximum spend limits. Cashback may be limited and varies by perks, offer, and partner. There may be monthly limits for boosted cashback offers.