Although having a good credit score is one of the easiest ways to open a bank account in Canada, you can still apply for a few credit cards with bad or no credit history. Many of these no-credit-check cards offer instant approval and cash back rewards and have no monthly fees.
This article features the top guaranteed approval credit cards for bad credit in Canada. Discover their benefits and learn how to choose the best card for your needs.
Key Takeaways
- Prepaid Cards are great alternatives to credit cards as they help you rebuild your credit score and enjoy the benefits of credit cards without needing to check your credit history.
- Some of the best no-credit-check credit cards in Canada include the KOHO Easy Prepaid Mastercard, Neo Secured credit card, and EQ Bank Card.
Best No Credit Check Credit Cards With Instant Approval In Canada
1. KOHO Easy Prepaid Mastercard
The KOHO Prepaid Mastercard is not technically a credit card. However, as it provides benefits similar to those of one, it’s a great free alternative for individuals with no or bad credit scores.
Similar to a credit card, the KOHO Easy Prepaid allows you to earn cash back rewards for some purchases. Additionally, through its credit-building service, you can use this card to build or rebuild your credit history.
It offers other benefits you won’t get with a traditional credit card, including earning up to 5% interest on your balance and a free budgeting app.
However, remember that you’ll need to load this card with cash before using it to make payments.
KOHO Prepaid Mastercard
Top prepaid card in Canada
Annual fee: $0* monthly for Essential card.
Rewards: Earn up to 5% unlimited cash back on debit purchases and earn 5% savings interest on your entire balance.
Welcome offer: $40 welcome bonus after your first purchase (use GETCASH promo code when signing up).
Interest rates: 0%
Minimum income requirement: None
Recommended credit score:
None
On KOHO’s website
2. Neo Secured Credit
If you don’t mind putting a security deposit for a credit card, this free secured card from Neo will be one of your best options.
Unlike many secured credit cards that don’t offer cash back or reward points, the Neo Secured Credit Card offers up to 5% unlimited cash back on your eligible purchases. As a welcome bonus for getting the card, you can even enjoy up to 15% cash back rewards on your first spend.
The minimum security deposit for this card is $50, and it offers a 19.99% – 26.99% APR for purchases and 22.99% – 28.99% APR for cash advances.
Neo Secured Credit
Best secured credit card for bad credit
Annual fee: $60
Rewards: Earn up to 5% cash back at partner stores.
Welcome offer: $25 bonus
Interest rates: 19.99%-22.99% for purchases, 22.99%-28.99% for cash advances.
Minimum income requirement: None
Recommended credit score:
None
On Neo Financial’s website
3. EQ Bank Card
The online bank EQ Bank also offers a prepaid Mastercard that works well for those with bad or no credit scores. You can get this card for free by opening an EQ Bank Personal Account, which you can apply for online in just several minutes.
The EQ Bank Card prepaid card allows you to earn cash back on your purchases, withdraw for free, and get liability protection against unauthorized use of your card.
It’s worth mentioning that the EQ Bank Card pays a high interest rate of up to 4% on your balance, which is higher than what other prepaid cards on this list offer. Note: you can only hold a $10,000 maximum on this card, and the maximum daily ATM withdrawal is limited to $500.
EQ Bank Card
Earn up to 3.75%* interest on your balance
0.50% cash back on purchases
No monthly account or FX fees
Free ATM withdrawals
Best Instant Approval Credit Cards For Bad Credit In Canada
4. Capital One Low Rate Guaranteed Mastercard
Among credit cards available for those with no or low credit scores, the Capital One Low Rate Guaranteed Mastercard offers some of the lowest rates. The card has a 14.9% APR for purchases and 21.9% for cash advances.
The Capital One Low Rate Guaranteed Mastercard provides the standard purchase assurance and extended warranty that you can expect from credit cards.
Moreover, it includes insurance coverage for travel expenses and car rental collision/loss, along with Zero Liability Protection that protects you from unauthorized use of your card.
Heads up, though, this card charges an annual fee of $79, which may be considered high compared to other credit cards.
Capital One Low Rate Guaranteed Mastercard
Good low-rate credit card
Annual fee: $79
Rewards: Low-interest credit card.
Welcome offer: N/A
Interest rates: 14.9% for purchases and 21.9% for cash advances
Minimum income requirement: None
Recommended credit score:
Bad to Poor
On Capital One’s website
5. Home Trust Secured Visa Card
Enjoy a credit limit of up to $10,000 by applying for a Home Trust Secured Visa Card. With an annual fee of $59, this credit card lets you enjoy a low APR of 14.90% for purchases and 19.80% for cash advance transactions.
Anyone can apply for this credit card, provided that they have reached the age of majority in their province or territory and are not in bankruptcy. Note, though, that a minimum deposit of $500 is required for you to start using this credit card.
Home Trust Secured Visa
Good credit card for bad credit
Annual fee: $0 or pay $59 for a lower interest rate
Rewards: None
Interest rates: 19.99% for purchases or 14.90% if you pay an annual fee.
Minimum income requirement: None
Recommended credit score:
None
On Home Trust’s website
6. AC Conversion Visa Prepaid Card
Another great alternative to obtaining a no-credit-check credit card is CIBC’s AC Conversion Visa, which is considered one of the best prepaid credit cards in Canada.
The key feature of this Visa card is its ability to hold up to 10 currencies at a time. After all, when you make purchases using any of these currencies, you won’t pay foreign transaction fees, making it very convenient for international transactions.
Getting this Visa card is very easy as CIBC does not conduct a credit check for it, and it’s completely free to order. Note, however, that service fees apply to certain transactions, such as ATM withdrawals outside Canada and card replacements.
CIBC AC Conversion Visa Card
**This card is being discontinued. You can use KOHO Extra instead
Holds 10 currencies at once
No monthly account fees
Enjoy Visa’s Zero Liability
How No Credit Check Credit Cards Work
No-credit-check credit cards do not inquire about an applicant’s credit history (or base their approval on this), allowing those who have no or low credit scores to easily get approved.
These cards are great for building or rebuilding your credit report. However, most of them are secured, meaning you must provide a security deposit, which is equivalent to your credit limit.
No-credit-check credit cards vary in terms of fees, the benefits they provide, and minimum or maximum credit limits. Hence, it’s best to carefully compare and contrast before you proceed with one.
How To Apply For A No Credit Check Credit Card
Applying for a no-credit-check credit card is easier than applying for those that require a hard credit check. In most cases, you can apply for these cards as long as you’re a Canadian resident who’s part of the age of majority in your province or territory.
No credit check credit cards are typically categorized into two types: secured vs unsecured credit cards. There are also prepaid cards. While you may not need to provide proof of income to apply for them, you will be asked to provide a security deposit (for secured cards) or to top up your card (for prepaid cards) before they can be used.
Pros And Cons of Credit Cards With No Credit Check
Pros:
- Most of these cards have instant approvals
- You can apply even if you have a bad or low credit score
- It’s one of the easiest ways to rebuild or build your credit score
- Many of these credit cards also offer cash back or rewards points
Cons:
- An upfront deposit is required
- How much you deposit determines your credit limit
- Interest rates are typically higher for no-credit-check credit cards
How To Choose The Best No Credit Check Credit Card
In order to choose the best credit card for you, you should consider the following factors:
- What benefits do you want to enjoy
- How much annual fee you’re willing to pay
- The minimum and maximum credit limit you want or need
- Whether or not you need purchase protection and an extended warranty
By considering these variables, you can easily choose the credit card that matches all your preferences, budget, and needs.
Of course, though, keep in mind that you may not find a credit card that meets all your expectations. So, be prepared to compromise on some of these factors to prioritize the features you really want your credit card to have.
FAQs
Yes, you can get a $10,000 credit card with no credit check. However, you must deposit the same amount to your secured credit card to do so.
Yes, you can still get a Canadian credit card as a foreigner. Many credit card providers accept applications from newcomers and international students. Just note that you may be offered a secured card instead of an unsecured one, which means you’ll have to deposit the amount you want your credit limit to be.
Yes, you can. Your credit score from your country of origin won’t affect your immigration application to Canada. Hence, as long as you meet the immigration requirements and show proof of funds if needed, you can move to Canada even with bad credit.
The Neo Secured Mastercard is the easiest card to get approved for. It has no income requirements and credit checks, so you can be approved instantly as long as you’re a Canadian resident part of the age of majority.
