Name: Summary of the best credit cards to rebuild credit in Canada
Creator: NerdWallet

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While you may need good or excellent credit scores to apply for a traditional credit card, secured cards and prepaid cards are less restrictive. Plus, when used responsibly, these cards can help rebuild your credit.

There are also cards specifically designed for newcomers to Canada. If you’ve just moved to the Great White North and want to rebuild the credit you had in a previous country, these cards can help.

Best credit cards to rebuild credit in Canada

Best secured credit cards

Secured credit cards do not require credit checks. Instead, issuers require a security deposit to guarantee the card, often the same amount as the credit limit. Here are three of the best secured credit cards, according to NerdWallet’s analysis.

Best for: Cash-back rewards

Neo Secured Credit

Annual Fee

$0
Interest Rates

19.99%-29.99% / 22.99%-31.99%

19.99%-29.99% on purchases, 22.99%-31.99% on cash advances.
Min. Deposit

$50
Maximum Deposit

$10,000

Apply Now

Neo Secured Credit is a no-fee card that earns cash back rewards and offers access to high-interest savings.

Pros

A small $50 minimum deposit makes this card accessible to consumers of all budgets.
Earn up to 15% cash back on purchases with select Neo partners.

Cons

Interest rates could be as high as 29.99% for some users.

Build credit history with on-time payments.
Set your credit limit and get started with as little as $50.
Guaranteed approval with no credit score needed to apply.
Earn 1% cashback on all gas and grocery purchases.
0.5% guaranteed monthly minimum cashback.
No monthly or annual fees.
Upgrade to Premium and earn exclusive benefits and boosted rewards, like 3% cashback on all gas and grocery and free credit monitoring.
Personalized Insights AI generates tailored information and recommendations designed specifically for you.

Best for: Homeowners

Home Trust Secured Visa card (No Annual Fee)

Annual Fee

$0

Option to pay an annual fee of $59 for a lower interest rate of 14.90%.
Interest Rates

19.99%

14.90% with $59 annual fee.
Min. Deposit
Maximum Deposit

Why we like it

Security deposits for the Home Trust Secured Visa range from $500 to $10,000, and are protected by the Canada Deposit Insurance Corporation. Plus, for $59 a year, you can secure a lower interest rate of 14.90%.

Pros

Can help establish or rebuild credit.
Low interest rate available (14.90% with $59 annual fee).
Option for no annual fee (19.99% interest rate with $0 annual fee).
Broad security deposit range ($500 to $10,000).

Cons

No rewards or cash back program.
No welcome offer (as of June 2023).
Not available to Québec residents.

No annual fee, unless opting for the lower rate version (annual fee of $59 and 14.90% interest).
$500 minimum security fund deposit required.
$10,000 maximum security fund deposit.
2% foreign transaction fee.
Protection against fraud through Visa’s Zero Liability Policy.
Manage your account and billing online.
Add your Home Trust Secured Visa to your Apple Pay, Google Pay or Samsung Pay digital wallet.
To be eligible, you cannot currently be in bankruptcy. You must be able to provide security funds and be a Canadian resident of the age of majority in the province or territory where you live. The Home Trust Secured Visa card is not available to Québec residents.

Best prepaid card

Activity on prepaid cards isn’t typically reported to the credit bureaus, which means they don’t build credit. However, KOHO offers a credit building service that you can add to its prepaid Mastercard. You can choose from four different plans, ranging in perks and price. It costs $10 a month to add the credit building service to the Easy plan below.

Best for: Prepaid card

KOHO Prepaid Mastercard (Easy Plan)

Annual Fee

$0
Rewards Rate

1%-6%

Up to 5% extra cash back when shopping with partnered merchants. 1% cash back on groceries, and transportation.
Min. Deposit

$0

No minimum purchase amount required.
Maximum Deposit

$200,000

KOHO Maximum Card Balance Limit for KOHO users who have opted into earning interest is $200,000. For users who have not opted into earning interest, the maximum card balance is $40,000.
Intro Offer

N/A

Apply Now

Why we like it

KOHO offers four tiers of prepaid cards: Easy, Essential, Extra and Everything All four combine the benefits of a debit card and a credit card with cash back rewards, limited fees and the ability to build credit. Plus, KOHO doesn’t charge interest — instead, they let you earn interest on every dollar you save in your KOHO account.

Pros

An app that tracks your spending, helps with budgeting, offers free financial coaching, and the ability to earn 0.5% interest on your entire account.
Access to a credit building service that reports your payments for only $10 per month — a rare feature for a prepaid card.

Cons

KOHO is a tech-focused company, so if you’re uncomfortable with digital banking, it may not be the right choice.
KOHO isn’t a credit card, which means you can’t borrow any money. You can only access the funds already in your account.

Up to 5% extra cash back when shopping with partnered merchants.
1% cash back on groceries, and transportation.
Cash back is instantly added to your KOHO account.
$0 annual fee. No hidden fees. No credit check. Instant approval.
Choose from one of four card colours.
Receive both a physical and virtual card. For new users, you can start adding funds and shopping online while you wait for your physical card to arrive in the mail. No need to budge from your couch to make online purchases! Just use your virtual card instead of getting up to find your wallet. Plus, it uses a different card number to help protect your physical card number when you’re shopping or booking services online.
Add your KOHO card to Apple, Samsung or Google Pay.
Automate your savings with Goals and RoundUps. Rounding up every Purchase lets you stash away some savings, while Goals make it easier to save for whatever it is that makes you happy.
Lock in savings with Vault which keeps the funds you don’t want to spend separate from your spendable balance.
Create custom budgets and track your spending habits. Know where you’re at in real-time with instant notifications every time you spend.
To be eligible, you must be a Canadian resident of the age of majority in the province or territory where you live.

Best credit cards for newcomers

You can’t bring your credit history with you when you move to Canada. This can be disappointing if you have excellent credit in your home country. The good news is that there are credit cards open to newcomers, such as the three listed below.

Best for: Travel rewards

BMO AIR MILES®† Mastercard®*

Annual Fee

$0
Interest Rates

20.99% / 22.99%

20.99% on purchases and 22.99% on cash advances (21.99% for Quebec residents).
Rewards Rate

0.04x-0.12x Miles

Earn 3x the Miles for every $25 spent at participating AIR MILES Partners and 2x the Miles for every $25 spent at any eligible grocery store*. Earn 1 Mile for every $25 spent everywhere else.*
Intro Offer

800 Miles

Spend $1,000 in the first three months to earn 800 AIR MILES Bonus Miles (applications must be received by May 31, 2024 to be eligible). New accounts only. Terms and conditions apply.

Apply Now

Why we like it

It’s rare to find a 0.99% balance transfer offer on a dedicated travel rewards credit card, especially with a low 2% balance transfer fee. Sure, the introductory period is only for nine months, but the BBMO AIR MILES®† Mastercard®* makes it worth its while by adding an extra introductory perk: 800 bonus AIR MILES.

Pros

No annual fee.
Ability to earn unlimited rewards.

Cons

The introductory APR period for transfers is only nine months, so make sure you can pay off your balance during that window of time.

Welcome offer: Get 800 AIR MILES Bonus Miles!* That’s enough for $80 towards purchases with AIR MILES Cash.*
Get a 0.99% introductory interest rate on Balance Transfers for 9 months, 2% fee applies to balance amounts transferred.*
Get 3x the Miles for every $25 spent at participating AIR MILES Partners and 2x the Miles for every $25 spent at any eligible grocery store.*
Get 1 Mile for every $25 spent everywhere else.*
Use your BMO AIR MILES Mastercard and AIR MILES Collector Card at an AIR MILES Partner to earn Reward Miles from both.*
No annual fee.*
Receive a discount on car rentals.*
Extended Warranty.*
Purchase Protection.*
*Terms and conditions apply.
BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information.

Best for: Cashback on groceries

BMO CashBack® Mastercard®*

Annual Fee

$0
Interest Rates

20.99% / 22.99%

20.99% on purchases, 22.99% on cash advances (21.99% for Quebec residents).
Rewards Rate

0.5%-5%

5% intro offer. Then earn 3% cash back on grocery purchases, 1% cash back on recurring bill payments and 0.5% unlimited cash back on all other purchases!*
Intro Offer

Up to $125

Earn up to 5% cash back in the first three months on qualified spend up to $2,500. For new cardholders only. Expires on July 31, 2023. Terms and conditions apply.

Apply Now

Why we like it

The BMO CashBack® Mastercard®* offers attractive earn rates on everyday purchases like groceries and utility bills, making it easy to quickly rack up rewards that you can turn into cold hard cash.

Pros

Attractive introductory offer, especially if you’re interested in a balance transfer.
No minimum threshold for redeeming your cash-back rewards. Redeem as little as $1 if you want.

Cons

Accelerated earn rates for groceries and recurring bills are capped at $500 per billing cycle, a ceiling that might be easy to hit if you have a family or higher monthly balances.
Offers fewer travel perks and types of insurance than some other cards.

Welcome offer: Get 5% cash back in your first 3 months.*
Then get 3% cash back on grocery purchases, 1% cash back on recurring bill payments and 0.5% unlimited cash back on all other purchases!*
Now earn the highest cash back on groceries in Canada without paying an annual fee!†
Get a 0.99% introductory interest rate on Balance Transfers for 9 months, 2% fee applies to balance amounts transferred.*
No Annual fee.*
Want to get your cash back ASAP? Now you can redeem your cash back anytime through direct deposit, as a credit on your statement or into your BMO InvestorLine account.*
Extended Warranty.*
Purchase Protection.*
Receive a discount on car rentals.*
*Terms and conditions apply.
†Statement based on a comparison of the non-promotional grocery rewards earn rate on Canadian cash back credit cards as of January 4, 2023.
BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information.

Best for: Cash back welcome offer

Scotia Momentum® No-Fee Visa* card

Annual Fee

$0
Interest Rates

19.99% / 22.99%

19.99% for purchases, 22.99% for cash advances.
Rewards Rate

0.5%-1%

Earn 1% cash back on all eligible gas stations, grocery stores, drug stores purchases and recurring payments. Earn 0.5% cash back on all other eligible purchases.
Intro Offer

Up to $100

Earn 5% cash back on all purchases for the first 3 months (up to $2,000 in total purchases). Must open a new account by October 31, 2023.

Apply Now

Why we like it

The Scotia Momentum No-Fee Visa Card doesn’t provide any bells or whistles, but it also doesn’t charge an annual fee, making it an option for people looking to build credit while earning cash back on everyday purchases.

Pros

No annual fee.
Benefit from a 0.99% introductory interest rate on balance transfers for the first 6 months (22.99% after that).
Earn up to 1% cash back on eligible purchases and recurring bill payments.
Opportunity to earn 5% cash back for a limited time with new cards opened by October 31, 2023.

Cons

No premium perks or benefits.
The balance transfer promotional period cannot be used to transfer a balance from another Scotiabank Account.

Special Offer: Earn 5% cash back on all purchases for the first 3 months (up to $2,000 in total purchases). Plus, get 0.99% introductory interest rate on balance transfers for the first 6 months (22.99% after that; annual fee $0). Offer expires Oct. 31, 2023.
No annual fee.
Earn 1% cash back on all eligible gas stations, grocery stores, drug stores purchases and recurring payments.
Earn 0.5% cash back on all other eligible purchases.
Save up to 25% off base rates at participating AVIS locations and at participating Budget locations in Canada and the U.S.
Preferred rates: 19.99% on purchases, 22.99% on cash advances.
To be eligible, $12,000 (individual) annual income is required. Also, you must have a Canadian credit file and be a Canadian resident that is the age of majority in the province or territory where you live.
Terms and Conditions Apply. Click ‘Apply Now’ for complete details.

Methodology to identify the best cards to rebuild credit

NerdWallet Canada selected the best cards to rebuild credit based on overall consumer value and their suitability for specific kinds of consumers.

Our evaluation is weighted by several factors, which depend on the card type. For unsecured credit cards: 50% rewards value, 25% intro offer, and 25% fees and interest. For secured cards: 50% features specific to secured credit cards, 30% fees and interest, 12% rewards and 8% intro offer. For prepaid cards: 60% features specific to prepaid cards, 15% fees, 15% rewards, and 10% intro offer

Rewards value considers earning rates, rewards structure, promotional rates and spending categories.

The intro offer considers the welcome bonus value, promotional interest rates, and any waived fees.

Fees and interest consider the annual fee, additional costs such as foreign transaction fees, and interest rates for purchases, balance transfers and cash advances.

Features specific to secured credit cards include minimum and maximum deposit, ability to upgrade to an unsecured credit card, credit checks and credit reporting.

Features specific to prepaid cards include minimum and maximum deposit, maximum reload amount in any 24-hour period, ATM access, insurance benefits, digital wallet compatibility, and more.

Only reloadable prepaid cards that are available online and secured credit cards with online applications were considered for this list. We only assessed cards available to consumers in multiple Canadian provinces and territories.

Summary of the best credit cards to rebuild credit in Canada

Card name	Card features	Annual fee
Neo Secured Credit	Best secured card for: Cash-back rewards	$0
Home Trust Secured Visa Card (No Annual Fee)	Best secured card for: Homeowners	$0
KOHO Standard Prepaid Mastercard - Easy - Credit-Building Subscription Plan	Best prepaid card	$0 ($10 a month for the Credit Building feature)
BMO AIR MILES Mastercard	Best newcomers card for: Travel rewards	$0
BMO CashBack Mastercard	Best newcomers card for: Cashback on groceries	$0
Scotia Momentum No-Fee Visa card	Best newcomers card for: Cash back welcome offer	$0

About the Author

Georgia Rose

Georgia Rose is a lead writer on the international team at NerdWallet. Her work has been featured in The Washington Post, The New York Times, The Independent and The Associated…

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