Wondering what credit score you need to get approved for a credit card? From the lender’s perspective, your credit score represents the likelihood that you’ll be able to repay your debt on time. Understanding the basics of credit score requirements can help you navigate your options. Let’s break down what you need to know about credit score criteria and set you on the path to snagging your next credit card.
Key Points
- Good credit is typically required to get approved for a credit card in Canada.
- A good credit score is generally considered to be at least 660 and above.
- If you have bad credit, there may be other options available, like secured credit cards or retail credit cards.
What Credit Score Is Needed For A Credit Card?
The minimum credit score for a credit card in Canada is generally 660, though this number is more of a rule of thumb than an exact requirement. Creditors will consider a variety of factors when assessing an application.
Ultimately, there is no ‘magic’ credit score needed to be approved for a credit card: it ultimately depends on the specific card provider and their requirements. You may still be able to get approved for a credit card with a lower credit score if you’re a strong borrower otherwise (ie. you have a high household income, liquid assets, etc).
Where Can You Check Your Credit?
It’s recommended that you check your credit score before applying for a credit card, or any other credit product. This will help you gauge the likelihood of getting approved.
You can check your credit score from various sources:
Credit Bureaus
Equifax offers free credit scores and credit reports to Canadians. Equifax credit scores are updated every month. You can access your free Equifax credit score online by creating an Equifax account, or by mailing a completed Consumer Request for Free Credit Report to Equifax.
TransUnion credit scores are offered for free only to residents of Quebec. All other Canadians must pay a subscription fee to access their TransUnion credit scores.
Learn more: How To Get Your Credit Score For Free In Canada
Banks
Canada’s big banks also offer their clients free credit scores. CIBC, RBC, BMO, and Scotiabank are all partnered with TransUnion to provide clients with this bureau’s credit scores, while TD Bank allows its clients to access their Equifax credit scores for free.
Learn more: Banks That Let You See Your Credit Scores
Third-Party Providers
Some online platforms make it easy for Canadians to get their credit scores for free online. Such third-party providers include Borrowell, Credit Karma, and Loans Canada’s CompareHub.
| Cost | Credit Score | Credit Report | ||
 | Free | Yes | Yes | Visit Site |
 | Free | Yes | Yes | Visit Site |
 | Free | Yes | Yes | - |
How Your Credit Scores Affect Your Ability To Get A Credit Card
Your credit score plays a key role in your ability to get approved for a credit card. More specifically, your credit score affects the credit card application process in the following ways:
- Chances Of Approval: A good credit score increases your chances of getting approved for a credit card, as it shows lenders that you’re responsible with your finances.
- Interest Rates: Higher credit scores usually mean lower interest rates, helping you save money in interest.
- Credit Limits: Strong credit can help you secure a higher credit limit, giving you more spending power.
Factors That Affect Your Ability To Get A Credit Card
Credit card issuers will also look at other factors besides your credit scores when reviewing your application.
Income
Income plays a significant role in your ability to secure a credit card because it shows creditors your financial capacity to pay back what you spend on credit. Lenders look at your income to make sure you have enough financial stability to handle credit card payments, including monthly bills and interest charges.
A higher income also reduces the creditor’s risk, which increases your odds of approval and higher credit limits.
| What If You Have Low Income? If your income is on the lower end, consider looking into credit cards for low-income earners. Some of the best products in this category include Tangerine Money-Back Credit Card, Brim Financial Mastercard, and Scotiabank Scene+ Visa Card, among others. |
Employment Status
Credit card providers prefer to offer credit to those who are employed full-time. Students, retirees, part-time workers and self-employed workers may find that they are eligible for lower credit amounts and have limited options in regard to which credit card they qualify for.
Credit Score
As mentioned above, your credit score can impact your ability to get a credit card in a few ways. In addition to your credit score, the lender may specifically look at your:
- Credit Utilization Ratio. Credit card providers will usually consider how you have utilized previous credit accounts and the amount of revolving credit you have versus how much you’ve used.
- Credit History. Many credit card issuers will consider an applicant’s credit history to understand their long-term credit tendencies and whether they’re likely to repay the debt they owe.
Best Credit Cards For Your Credit Score
Certain credit cards are geared for borrowers with excellent credit, while others may be more accessible to those with a weaker credit profile. Be sure to apply for a card that matches your credit health. Here are a few examples:
| Credit Card | Interest | Annual Fee | Credit Score Required |
| BMO Cash Back Mastercard | 21.99% | $0 | Fair to good |
| WestJet RBC World Elite Mastercard | 20.99% | $139 | Good to excellent |
| KOHO Prepaid Mastercard | N/A | $0 | No credit checks |
So, for example, if you have a 620 credit score and $30k income, you’re most likely eligible for a KOHO Prepaid Mastercard. On the other hand, if you have a 700 credit score and earn over $100k, you could qualify for the WestJet RBC World Elite Mastercard.
Consider your credit and financial profile when choosing and applying for a credit card.
What Kind Of Credit Card Can I Get If I Have Bad Credit Or No Credit?
If you have bad credit, qualifying for a credit card can be difficult as many require a credit score of 660 or more. Generally speaking, your credit card options will be limited to secured and prepaid credit cards.
You may be able to secure a retail credit card, as they could sometimes be easier to qualify for, though not always. Credit-granting standards vary quite a bit, and some store cards may still require decent credit or other qualifying criteria.
| Retail Credit Cards | Secured Credit Cards | Prepaid Credit Cards | |
| Credit Check Required? | Yes | No | No |
| Helps Build Credit? | Yes, if reported to bureaus | Yes | No (not a credit product) |
| Best For | Shoppers wanting store rewards or easier approval | People with bad/no credit wanting to build credit | People wanting spending control without affecting credit |
| Approval Difficulty | Moderate | Easy | Easy |
Learn more: Can You Get A Credit Card With Bad Credit?
Retail Credit Cards
Many retailers have partnered with banks or banking networks to provide retail credit cards. Typically, retailers have less stringent requirements, though you’ll still have to meet specific income and credit criteria.
A retail credit card usually offers special discounts and loyalty rewards programs for their store, as long as you keep your account in good standing. However, many retail credit cards come with higher interest rates, which can increase your interest expense if you don’t pay off your account balance each month.
Learn more: Best Store Credit Cards In Canada
Secured Credit Cards
A secured credit card requires a deposit, which becomes the account’s credit limit. If the cardholder fails to make payments, the lender will simply use the deposit to pay off the balance.
Most secured cards don’t offer a rewards system, but the payments you make may help you build credit.
Keep in mom that a regular (unsecured) credit card may still be an option, as other factors are taken in account besides your credit score, including income, debts, etc.
Learn more: Top Secured Credit Cards In Canada
Prepaid Credit Cards
Prepaid credit cards are another alternative for those with low credit scores. These cards require the cardholder to top them up with cash before any purchases can be made.
After funds have been added to the card, it can be used just like any other credit card. While most prepaid cards don’t have a rewards program, there are some providers that do offer cash back rewards and other perks like a credit card.
It’s important to note that a prepaid credit card will not help you build your credit, as it’s not a credit product and payments are not reported to the credit bureaus.
Learn more: Best Prepaid Credit Cards In Canada
How To Build Your Credit In Canada?
If you want to increase your chances of getting approved for a premium credit card, you may want to take some time to give your credit score a boost if required. There are many different ways to build your credit scores, including the following:
- Pay Bills on Time: Making timely bill payments demonstrates reliability and positively impacts your credit score.
- Keep Credit Utilization Low: Don’t use any more than 30% of your available credit to show lenders you can manage credit responsibly.
- Establish a Credit History: Open a credit card or loan to start building your credit profile, even if it’s a secured card.
- Limit New Credit Applications: Avoid applying for multiple credit accounts at once, as each inquiry can temporarily lower your score.
- Regularly Check Your Credit Report: Check your credit report on a regular basis for errors and dispute any mistakes to maintain a healthy credit score.
| What Factors Affect Credit Scores? In Canada, credit scores are calculated based on the following factors: – Payment History – Credit Utilization Ratio – Credit Age – Credit Inquiries – Public Records Learn more: What Actions Can Impact Your Credit Scores? |
Final Thoughts
Your credit score plays an important part in the credit card application process, but it’s not the only deciding factor. As always, it’s important to do some due diligence to figure out what options work best for you, and spend within your means even when approved for credit. And if your credit score is standing in the way of getting a credit card, consider taking steps to boost it.
