Top Best Credit Cards in Canada – Having a good credit card is one of the best things that could ever happen to anyone but this is simply based on your ability to have a good credit score. If you have a bad credit card score, there are some simple and easy steps you can take to rebuild it. If you plan to seek funding for a house, car or new business, then you will be needing a good credit score for that.
Using this article, we will be explaining the different best credit cards you can get in Canada and some of which are also suitable for those with bad credit score.
Types of Credit cards you can get in Canada
Secured Credit Cards
The secured credit card is very easy to get due to the process used in acquiring this credit card. Applying for this credit card requires you to make a down payment to the credit card company. This will help minimize the risk on the part of the financial company interested in giving out credit cards to low credit score individuals. Most people have been able to secure a better credit card using this option. You will still be required to pay up the monthly bill while the initial down payment is held in case you are unable to pay up. The credit limit for such credit card ranges from $200 – $5000 so does the down payment also vary. Please have it in mind that your initial down payment will be released to you only when you close your account without owning any outstanding monthly bill.
Low Interest Credit Cards
The low interested credit cards are backed up by institutions such as the banks, online lenders and credit unions. They offer credits with low interest rate and credit limit ranging from $500-$1000. This is very important and useful for those interested in rebuilding their credit score because the credit institution only charge as much as they you can pay back in a month.
With the help of this strategy, you won’t be needing a huge credit line. The downside of this is that most low interested credit card companies do not report payments to the credit monitoring bureaus Transunion and Equifax. So if you intend building your credit score, be sure the low interest credit card company you are dealing with are reporting your payment to the credit monitoring bureaus.
Store Credit Cards
The store credit cards as the name implies, are credit cards linked to a particular store for example target credit cards. This is also another good way of rebuilding your credit score and still get additional benefits along with it. Using this card will expose you to some additional benefits such as low interest fees and discounts on purchases made at this stores. Mind you, this fees and interest won’t be available to everyone except the store card holders.
Store cards are very good and highly recommended but in an event where you do not pay the balance within the stipulated period, you might be getting an interest rate above average.
The prepaid cards are very useful for those interested in buying things online or paying for some certain bills. They work just like the debit cards and you will be paying from the funds you loaded on them. This cards comes with no monthly bill payment. Funding this cards are very easy, you only need to either make payments at the store or online by transferring from your bank accounts or from another prepaid account.
Lastly this card doesn’t help in building your credit score and it might not be necessary if you already have a bank account and a debit card linked to it.
Credit Cards For Low Credit Score Individuals
No-Fee Scotiabank Value® Visa Card
The no-fee Scotiabank value visa card is a credit card sourced from the bank of novia scotia. It comes with an interest rate of about 3.99% and also allows you to make transfers from a credit card with a much higher rate. More benefits on this card includes, car rental discounts, itemized transactions, supplement cards, zero annual fee and lastly you will be offered a credit limit of about $500 or more.
BMO® Preferred Rate MasterCard®
This card is available to only those people with bad credit scores. But there is an exception in the case where such individual has bankruptcies within the last past seven years. The application for this card requires you to provide an employment and income information report.
The interest rate for this card is about 17% but it also comes with a twenty one day interest free period. Depending on some special factors such as income and credit history, you might also qualify for a special offer of about eleven percent interest.
TD Emerald Visa Card
If you have a family and you wish you share a credit card account with them, you can go for the TD Emerald Visa Card. This account will allow you link up to four different cards. The annoual fee for this card is $25 and it comes with a good interest rate of about 12%.
Additionally, you will be getting trip interruption coverage, car rental discounts and trip cancellation insurance support.
RBC Visa Classic Low Rate
The visa classic card from RBC is another low rate card that is suitable for low credit score individuals. It comes with a low interest rate of about 11.9% and an annual fee of about $20. This card also offers free traveler checks and also travel insurance support. You can also setup the recurring payment feature that lets you make payments automatically.