Can You Get A Credit Card With Bad Credit?

Lisa
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Lisa
Lisa Rennie
Senior Contributor at Loans Canada
Lisa has worked as a personal finance writer for over a decade, creating unique content to help educate Canadian consumers. Expertise:
  • Personal finance
  • Real estate
  • Mortgage financing
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Tony
Reviewed By:
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Tony Dong, MSc, CETF
Expert Contributor at Loans Canada
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Updated On: September 12, 2025
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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. However, it isn’t impossible. If you find yourself in need of a credit card but have bad credit, following this guide may be helpful.


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 Bad Credit? 

Yes, it is possible to get a credit card with bad 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, Costco, 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. 

Do You Have Bad Credit?
In Canada, credit scores range from 300 to 900. Depending on where your score falls within this range, it will be difficult or easy to obtain a new credit card. Generally, credit scores below 560 are considered bad or poor.
You can check your credit score for free with Loans Canada Compare Hub.

Best Secured Credit Cards 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

Annual FeePurchase Interest RateMin – Max Deposit
Neo Secured Card$60 ($5/month)19.99% – 29.99% (QC: 19.99% – 24.99%)$50 – $5,000
Tims Secured Card$020.99% – 26.99% (QC: 20.99% – 24.99%)$50 – $10,000
Home Trust Secured No Fee Visa$0 or $5914.90% or 19.99%$500 – $10,000
Neo Mastercard

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 grocery and gas purchases.

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. 

  • Fee: $5/month
  • Interest Rate:
    • Purchase Rate: 19.99%-29.99% (QC: 19.99%-24.99%)
    • Cash Advance Rate: 22.99%-31.99% (QC: 22.99%-25.99%)
  • Perks:
    • Build credit
    • Low minimum security deposit of $50
    • Earn 1% cashback on gas and groceries
    • Earn extra cash back offers at participating stores
    • Upgrade with Neo Premium to earn higher cash back rates and access more perks
  • Eligibility requirements:
    • Be a Canadian resident
    • Be the age of majority
    • Provide the $50 minimum deposit

Learn more: Neo Secured Credit Review

Tim Hortons secured cc

Secured Tims® Mastercard

The Secured Tims Mastercard comes in both a secured and an 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. 

To be eligible for the Secured Tims Mastercard, you must provide a $50 minimum security deposit. No credit score is required.

  • Fee: $0
  • Interest Rate:
    • Purchase Rate: 20.99%–26.99% (QC: 20.99%-24.99%)
    • Cash Advance Rate: 22.99%–27.99% (QC: 22.99%-24.99%)
  • Perks:
    • Earn 2 points per $1 spent on groceries, gas, & transit
    • Earn 12 points per $1 spent at Tim Horton’s
    • Earn 1 point per $4 spent anywhere else
    • Extended warranty
    • Purchase protection
    • Mastercard zero liability
  • Eligibility Requirements: Must be able to provide the $50 minimum deposit

Learn more: Tims®  Mastercard Review

Home Trust Secured

Home Trust Secured No Fee Visa

The Home Trust Secured No Fee Visa is a top choice for those with bad credit because it offers near-guaranteed approval, even for those coming out of bankruptcy or with no credit history. Timely payments are reported monthly to both Equifax and TransUnion, helping you rebuild your credit score.

The card comes with a standard purchase interest rate of 19.99%, with no annual fee. Credit limits range from $500 to $10,000. 

  • Fee: $0 or $59
  • Interest Rate:
    • 19.99% with no annual fee
    • 14.90% with a $59 annual fee
  • Perks:
    • Zero Liability policy
    • Compatible with Apple Pay, Google Pay, & Samsung Pay
  • Eligibility Requirements: Must be able to provide the $500 minimum deposit

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

Generally speaking, a credit score of at least 660 (‘good’ credit)  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 and the type of credit card. 

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 by paying down outstanding loans. 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 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.

Authorized User AllowedAnnual Fee For Authorized User
Tangerine Money-Back Credit Card   Yes $0Learn More
BRIM MastercardYes$0Learn More
TD Aeroplan Visa Infinite Privilege Card Yes$199Learn More

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

Improve Your Credit

There are several things you can do 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 decide 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 into 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.

Annual FeeFeatures
KOHO Prepaid Mastercard$0 – $14.75/month, depending on the account– Earn 1% – 2% cash back on groceries, transportation, and eating out (depending on account type).
– Get up to 50% extra cashback with select merchants.
– Earn savings interest on your entire KOHO account balance.
Neo Money™ Card$0– Up to 3% cashback on gas and groceries, and up to 1% everywhere else
– Earn interest on your account balance

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.

  • Credit Building Program: This 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.
  • Flexible Credit Building: This 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.

Fee:

  • $0* – $14.75/month (depending on account type)
  • Get KOHO Essential for $0 if you set up a direct deposit or contribute $1,000 per month to your account.

Earn Rate:

  • Earn 1% to 2% cash back on groceries, transportation, and dining (depending on plan)
  • 0.25% – 0.50% cash back on all other categories
  • Up to 50% extra cash back with select merchants

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 Money™ card. You don’t need to reload this card manually because it’s connected to your everyday account. As such, it draws funds directly from this account. As long as your account has money, your Money Card is ready to use instantly.

 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. 

Already have a Neo Everyday account? You can get a Neo Money™ card by logging into your account and selecting “card” from the main menu.

  • Fees: No monthly or annual fee and free everyday transactions.
  • Earn Rate:
    • Up to 3% cashback on gas and grocery
    • Up to 1% everywhere else (keep a high balance in your Everyday account and earn more cashback).
  • Extra Features:
    • Earn interest on every dollar in your Neo Everyday account.
    • Withdraw cash from any ATM worldwide.

Ways To Get Cash Quickly

Bree and Nyble are two interest-free options to get cash quickly:

NybleBree
$30 – $250$20 – $500
– Line of credit
– 0% interest
– No late fees
– Monthly subscription fees (optional)
– Build credit with timely payments
– Cash advance
– 0% interest
– No late fees
– Monthly subscription fees (optional)
Learn moreLearn more

How Long Does It Take To Rebuild Credit with A Secured Card?

The amount of time it takes to rebuild credit using a secured credit depends on a few things, including what your score currently is, where you want it to be, and your efforts to repair your score.

That said, consumers typically start to see positive changes in around 3 to 6 months of making consistent, on-time payments. More significant credit score improvements can take longer, upwards of 12 months or more, depending on how bad your score was.


Secured vs. Unsecured vs. Prepaid Cards: What’s The Difference?

The following chart offers a side-by-side comparison of secured cards, unsecured cards, and prepaid cards to help you decide which type is right for you:

Secured Credit CardsUnsecured Credit CardsPrepaid Cards
Credit Check Required?NoYesNo
Builds Credit?YesYesNo (unless with an added credit-builder feature)
Deposit Required?YesNoYes
Credit LimitEqual to your depositBased on creditworthinessEqual to your pre-loaded amount
Best ForBuilding/repairing creditThose with good creditBudgeting & travel

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.


FAQs

Can you build credit with a prepaid card?

While you can build credit using secured credit cards, you can’t build credit with prepaid cards. Prepaid credit card transactions are not reported to the credit bureaus. However, some prepaid cards, for example, KOHO, come with the option to add a credit-building feature (for an extra fee) that can help build credit over time.

What are secured credit cards?

A secured credit card works just like a regular credit card, except it requires a security deposit.  Since the deposit reduces the lender’s risk, secured cards are easier to qualify for. While they are a great tool to help build credit, they often come with fewer perks, such as travel insurance, compared to traditional credit cards. 

How do I choose a secured credit card? 

Not all credit card companies offer secured cards, and not all secured credit cards are created equal, so just like you would with a traditional card, shop around. Finally, make sure the company you choose reports to the credit bureaus; this is extremely important if you’re trying to rebuild your credit score.

Can I get a credit card with a 600 credit score?

If your credit scores fall in the mid-600s, you’ll have more options than someone with credit in the 500s. You may qualify for a traditional credit card, but you may need to work on your credit with a secured card first. 

Can I get a credit card with a credit score of 650? 

Once your credit scores break into the high 600s, you should have significantly less trouble being approved for a traditional credit card. However, to qualify for the higher-tiered credit cards may require even higher credit scores. 

What is the minimum credit score needed to get a credit card in Canada?

Typically, a credit score of 660 will allow you to qualify for an unsecured credit card.

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.

Lisa Rennie avatar on Loans Canada
Lisa Rennie

Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.

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