10 Best Credit Cards for Bad Credit in Canada for 2026
Published Jul 16, 2026 8:25 AM • 6 min read
We get it. Building credit can seem impossible when you don't qualify for traditional credit cards. But you're not out of luck. Canada has a great line up prepaid and secured credit cards that accept applicants with poor credit. Powered by deposits, these financial tools are your low-risk ticket to improved credit.
Data-driven rankings of 120+ credit cards using a proprietary algorithm
Comprehensive analysis using 25+ data points including terms and conditions, points programs, and more
Objective editorial approach - we strive for unbiased reviews following our editorial guidelines
FinlyWealth's credit cards content, including rankings and recommendations, is overseen by a team of engineers and writers who specialize in credit cards, banking, and personal finance. Our work has been featured in The Globe and Mail, GoBankingRates, and AOL. Our proprietary analysis systems evaluate product features, terms, and conditions to deliver comprehensive reviews and comparisons while maintaining strict editorial standards for accuracy and integrity.
Best Credit Cards for Bad Credit in Canada
Our choice for: Best Overall
on Neo Financial's website
Welcome Bonus
N/A
Annual Fee
$119.88
$9.99 Paid Monthly
Interest Rates
19.99% - 29.99%□ / 22.99% - 31.99%□
RECOMMENDED CREDIT SCORE
4.8/5
Most secured cards give you very low to no rewards for using your card as you build your score over time. This card, however, offers balanced rewards for everyday purchases. This is a fantastic card to help build your score while you also get to earn solid cash back rates.
Pros
- Instant approval and access
- Credit building tools
- Booster partner cashback
- No credit score requirements
Cons
- Basic insurance coverage
- Spending caps
Rewards
- 2% cash back on grocery purchases up to $1,000 spending per month
- 2% cash back on gas purchases up to $1,000 spending per month
- 2% cash back on recurring purchases up to $500 spending per month
- 0.5% cash back on all other purchases
- Up to 15% boosted cashback at thousands of partners across Canada - on top of base cashback rates
Insurance
Coverage
Purchase Protection
90 days
Extended Warranty
1 year
Mastercard Zero Liability Protection
Yes
Benefits
Details
World Mastercard Benefits
Including discounting with participating partners and DragonPass airport lounge access.
Eligibility
Credit Score
PoorAnnual Income
$50,000 personal or $80,000 household
Our choice for: Top Prepaid
on KOHO's website
Finly Special Offer
Welcome Bonus
New clients can earn 10% cash back* using promo code FW10C26
Annual Fee
$177
Interest Rates
N/A / N/A
RECOMMENDED CREDIT SCORE
4.6/5
The KOHO Everything Mastercard offers a combination of high cash back rewards and a unique 3.5% interest on your balance, along with no foreign transaction fees. While the $177 annual fee is steep for a prepaid card, it could be worth it for those who can maintain a high balance, frequently make purchases in the bonus categories and travel internationally with spend in foreign currencies.
Pros
- High rewards
- No foreign transaction fees
- Interest earned on balance
- No credit check
- Unlimited e-transfers
- Discount on credit building
- Select merchant cashback
Cons
- High annual fee
- Low base earn rate
- No insurance
Rewards
- 2% cash back on groceries, eating & drinking, and transportation
- 0.5% cash back on all other purchases
- Up to 6.5% extra cash back at selected merchants
- 3.5% interest on your entire balance
Benefits
Details
No Foreign Transaction Fees
No more paying 2.5% or more on your foreign purchases
Interest on Balance
3.5% interest on your entire balance
Unlimited e-Transfers
Discount
Discount on Credit Building - only $5/mo
Eligibility
Credit Score
PoorAnnual Income
N/A
Our choice for: Best Accessible Neo
on Neo Financial's website
Welcome Bonus
$25 bonus upon approval for new clients
Annual Fee
$119.88
$9.99 Paid Monthly
Interest Rates
19.99% - 29.99%□ / 22.99% - 31.99%□
RECOMMENDED CREDIT SCORE
4.5/5
If you have a poor credit score and are looking to rebuild it with a secured card, then the Neo Financial Secured Credit Card is the best card to go for. This card offers so much more compared to other secured credit cards on the market, including no monthly fees, a low deposit amount needed to get started, and it is the only credit card that offers some rewards on your purchases!
Awards & Recognition
Best Secured Credit Card
2026
Pros
- Low minimum deposit
- High partner cashback rates
- Instant approval
- Credit-building tools
- No income requirements
- No credit score requirements
Cons
- Potentially high interest rates
- Monthly fee
Rewards
- Up to 15% cash back at thousands of partners across Canada
Eligibility
Credit Score
PoorAnnual Income
N/A
Our choice for: Best Premium Neo
on Neo Financial's website
Welcome Bonus
N/A
Annual Fee
$149
Interest Rates
19.99% - 29.99%□ / 22.99% - 28.99%□
RECOMMENDED CREDIT SCORE
4.4/5
This secured card offers some of the highest cash back rates in Canada for gas, groceries, and recurring purchases, which is pretty hard to beat. While the cash back rates are very high, you need to mind the spend caps set for each category to see if your earning potential is really that high compared to most other credit cards. However, if you're the average person whose spending is generally below $12k per year in groceries, $6k per year in recurring bills and $12k per year in gas, then you'll be doing pretty well, especially with the great insurance and benefit offers.
Pros
- Instant approval and access
- High cashback rates
- Premium insurance
- Airport lounge membership
- Credit building tools
- No credit score requirements
- Boosted partner cashback
Cons
- Annual fee
- High income requirements
- Spending caps
Rewards
- 5% cash back on grocery purchases up to $1,000 spending per month
- 4% cash back on recurring purchases up to $500 spending per month
- 3% cash back on gas purchases up to $1,000 spending per month
- 1% cash back on all other purchases with no spending caps
- Up to 15% boosted cashback at thousands of partners across Canada - on top of base cashback rates
Insurance
Coverage
Travel Medical Insurance (64 & under)
Up to $1,000,000
Trip Cancellation
$1,000
Trip Interruption
$1,000
Flight Delay
$500Baggage Delay
$1,000
Hotel Burglary Insurance
$1,000
Car Rental Accident
$100,000 for cardholder, up to $10,000 per Spouse or Dependent Child.svg)
Car Rental Damage & Theft
Yes.svg)
Car Rental Personal Effects
$1,000Purchase Protection
90 daysExtended Warranty
1 year
Lost or Stolen Baggage
$1,000Mastercard Zero Liability Protection
yes
Benefits
Details
Airport Lounge - Dragon Pass
Pass only - pay $32 USD per visitWorld Mastercard Benefits
Including discounting with participating partners and DragonPass airport lounge access.
Eligibility
Credit Score
PoorAnnual Income
$80,000 personal or $150,000 household
Our choice for: Best Price Protection
on Capital One's website
Welcome Bonus
N/A
Rewards Rate
No Rewards
Annual Fee
$0
Interest Rates
29.9%□ / 29.9%□
RECOMMENDED CREDIT SCORE
4.1/5
Secured cards typically come with no rewards or benefits, even the ones with annual fees. This card has broken the norm and provides many great benefits to secured cardholders without any fees. So, if you are looking to get benefits with a secured card, this card is your best choice. The Capital One Guaranteed Secured Mastercard stands out as one of the better secured credit cards for building credit, particularly for those with limited or poor credit history. The card's biggest strength is its accessibility combined with genuine credit-building features at no annual cost, requiring only a $49-$200 refundable security deposit. What makes this card particularly valuable is Capital One's track record of automatically reviewing accounts for upgrades and credit increases after just six months, plus the "guaranteed" approval aspect that removes application uncertainty. However, this isn't a card for earning rewards or maximizing benefits - it's purely a credit-building tool with a high APR that makes it unsuitable for carrying balances.
Pros
- No annual fee
- Price protection
- Low entry barriers
- Credit building
- credit reporting
- Credit increase account reviews
- Decent insurance
Cons
- High APR
- No rewards
- Low initial credit limits
- Limited additional benefits
Rewards
No Rewards on this card
Insurance
Coverage
Common Carrier Travel Accident Insurance
$250,000Baggage Delay
$100/day up to 3 daysCar Rental Damage & Theft
Up to 31 daysPurchase Protection
120 daysExtended Warranty
double up to 2 years
Benefits
Details
Price Protection
60 days, Up to $100 per item, $500 per year
Eligibility
Credit Score
PoorAnnual Income
N/A
Our choice for: Best Mid-Tier KOHO
on KOHO's website
Finly Special Offer
Welcome Bonus
New clients can earn 10% cash back* using promo code FW10C26
Annual Fee
$144
Interest Rates
N/A / N/A
RECOMMENDED CREDIT SCORE
4.1/5
For those who don't aim to build their credit and are more interested in a prepaid card, this KOHO card is a good option. With benefits like interest on the whole balance, a foreign transaction fee waiver, and unlimited e-transfers, this is a very solid prepaid card. However, if your goal is to build credit, there are better options available to assist with that goal. Additionally, assess whether the monthly fee is worth the benefits you get compared to the basic card.
Pros
- Rewards program
- Select merchant bonus cashback
- No foreign transaction fees
- Interest on balance
- Unlimited e-transfer
- Credit building discount
- Poor credit approval
Cons
- Benefit monthly fees
- Weaker credit building
- High annual fee
- No insurance
Rewards
- 1.5% cash back on groceries, eating & drinking, and transportation
- 0.25% cash back on all other purchases
- Up to 6.5% extra cash back at selected merchants
- 2.5% interest on your entire balance
- No FX fees
Benefits
Details
No Foreign Transaction Fees
No more paying 2.5% or more on your foreign purchasesInterest on Balance
2.5% interest on your entire balanceUnlimited e-Transfers
Discount
Discount on Credit Building - only $7/mo
Eligibility
Credit Score
PoorAnnual Income
N/A
Our choice for: Best No-Fee Prepaid Perks
on EQ Bank's website
RECOMMENDED CREDIT SCORE
4.4/5
The EQ bank card is not a credit card; it's a prepaid card, so you will not be able to get the same level of rewards as when using a credit card and it will not build credit. But if getting a prepaid card is your goal, then this card is, without a doubt, the best choice. Voted the best "Prepaid Card" in Canada, this card offers rewards and benefits that are mostly not offered by other prepaid cards. Earning interest on balance, rewards on purchases, no foreign transaction fee, and especially the unique no ATM fee that no other card provides, makes this card the best among prepaid cards.
Pros
- Best prepaid card
- No ATM fees
- Interest earned on balance
- No foreign transaction fee
- Some purchase cashback
Cons
- No insurance
Rewards
- 0.5% cash back on every purchase
Benefits
Details
No Foreign Transaction Fees
Pay no extra FX fees when making purchases outside of Canada
Free ATM withdrawal
ATM fee reimbursement for Canada onlyInterest on Balance
Base rate of 1.00%*, or 2.75%** bonus rate
Eligibility
Credit Score
N/AAnnual Income
N/A
Our choice for: Best Secured Travel
on Neo Financial's website
Welcome Bonus
Up to 35,000 Asia Miles
Annual Fee
$180
Interest Rates
19.99% - 26.99%* / 22.99% - 28.99%*
RECOMMENDED CREDIT SCORE
4/5
The Cathay World Elite Mastercard is a top choice for frequent travelers to Asia, offering up to 35,000 bonus Asia Miles, high earn rates at Neo retail partners, and exclusive Cathay Pacific benefits like priority check-in and lounge access. With 12 types of insurance coverage, airport lounge access through DragonPass, and the ability to earn up to 15 miles per dollar spent at select partners, this card provides substantial value for those who regularly fly with Cathay Pacific and its partners. However, the card does require a higher income and comes with a $180 annual fee.
Pros
- Guaranteed approval
- Generous welcome bonus
- Discount on flights
- High earn rates
- Cathay Pacific perks
- Comprehensive coverage
- Airport lounge access
Cons
- High income requirements
- Annual fee
- Limited redemption opportunities
Rewards
- Earn 4x Asia Miles per $1 spent on Cathay Pacific flights
- Earn 2x Asia Miles per $1 spent on purchases made in foreign currencies
- Earn 1x Asia Miles per $1 spent in Canada
- Earn an average of 5x the Asia Miles when you spend at thousands of Neo partners nationwide
Insurance
Coverage
Car Rental Personal Effects
$1,000/person, $2,000 combinedCar Rental Accident
$100K for Cardholder, $10K spouse and childCar Rental Damage & Theft
Yes, 48 daysBaggage Delay
$1,000 after 4 hoursLost or Stolen Baggage
$1,000Trip Interruption
$5,000Trip Cancellation
$5,000Travel Medical Insurance (64 & under)
14 daysFlight Delay
$500Hotel Burglary Insurance
$1,000Purchase Protection
90 daysExtended Warranty
1 year
Benefits
Details
Airport Lounge - Dragon Pass
DragonPass only. No Complimentary visits.
Priority Travel
Online priority check-in and extra baggage redemption for Cathay Pacific, and Cathay Pacific Business class lounge redemption accessPriority Travel
Airport Security Fast Track with and professional and punctual airport with Mastercard benefits
Boingo Wi-Fi hotspot
Discount
Save up to 15% off on flights to Asia and beyond when you pay with your Cathay World Elite Mastercard and enter the discount code CXNEO15OFF (valid until Dec 31, 2025)
Eligibility
Credit Score
PoorAnnual Income
$80,000 personal or $150,000 household
Our choice for: Best Prepaid Features
on Wealthsimple's website
Welcome Bonus
$25 Exclusive bonus for new clients (min $1 funding required)
Rewards Rate
N/A
Annual Fee
$0
Interest Rates
N/A / N/A
RECOMMENDED CREDIT SCORE
3.7/5
The Wealthsimple Cash Prepaid Mastercard offers a no-fee, no-FX-fee spending solution that waives ATM fees on withdrawals across the globe and lets you automatically grow your rewards—in a high-interest savings account, investments, or crypto. Its simplicity and flexibility make it ideal for Canadians, though it forgoes traditional credit-card perks and insurance.
Pros
- No annual fee
- No foreign transaction fees
- Instant approval
- ATM fee reimbursement
- High interest on account balance
Cons
- No insurance
- No revolving credit
- Lacks premium perks
Rewards
- The highest-interest rate for a chequing account in Canada (up to 2.25%)2
- No minimums, monthly fees, or overdraft penalties
- No ATM fees or Foreign Transaction (FX) fees4,5
- Access to 60,000 ATMs across the country
- Third-party ATM fee reimbursements4
- Unlimited free Interac e-Transfers®, bill payments, and debit transaction
- 0.5% interest boost (up to 2.25% total) when you set up eligible direct deposits6
- Up to $1 million in CDIC deposit insurance coverage on eligible CAD deposits7
- Up to eight individual and eight joint accounts to help organize your money for different goals like vacations, emergency fund, etc.
Benefits
Details
No Foreign Transaction Fees
Avoid FX fees when you travel abroadFree ATM withdrawal
ATM fee is reimbursed at all ATMs across the globe, no limits
Eligibility
Credit Score
PoorAnnual Income
N/A
From Our Editors: The Full List of Credit Cards for Bad Credit in Canada
Best Overall: Secured Neo World Mastercard – Gas & Grocery
The most highly rated secured credit card on our site is the Secured Neo World Mastercard – Gas & Grocery, one of the best secured credit cards in Canada. Sure, this card comes with an annual fee, but the cost covers an impressive cashback rewards program, boosted by partner purchases. Effectively, cardholders can collect cashback on gas, groceries, recurring payments, and purchases made at thousands of Neo partners. In addition to the annual fee, applicants will also need to meet some income requirements to qualify. Read more in our Secured Neo World Mastercard – Gas & Grocery Review.
Top Prepaid: KOHO Everything Mastercard
Maybe you'd rather apply for a prepaid credit card. If so, the KOHO Everything Mastercard is your top option. This card collects decent cashback on groceries, dining, and transportation. Plus, extra cashback at select merchants. Cardholders also earn interest on their balance, avoid foreign transaction fees, enjoy unlimited e-transfers, and receive a discount on credit building tools. The catch? This contender also comes with an annual fee. Find out more in our KOHO Everything Mastercard Review.
Best Accessible Neo: Neo Secured Mastercard
Intrigued by Neo? Check out the Neo Secured Mastercard for an accessible alternative to the Neo World Mastercard Secured. While the earning potential on this cards is a bit weaker, cardholders can still collect bonus cashback at tons of Neo partners to boost their initial earn rates. While there are no included benefits, members can opt into travel, wellness, and dining perks for a monthly fee. See more in our Neo Secured Mastercard Review.
Best Premium Neo: Secured Neo World Elite Mastercard – Gas & Grocery
You can also apply for a more premium Neo secured contender: the Secured Neo World Elite Mastercard – Gas & Grocery. This contender is identical to the regular Neo World Elite Mastercard – Gas & Grocery, one of the best credit cards in Canada. Similarly, this card earns you the most impressive cashback on groceries, recurring purchases, and gas. Plus, these already amazing rates can be boosted through Neo partner purchases. If that wasn't enough, cardholders can expect comprehensive insurance coverage and an airport lounge Dragon Pass membership. Note, however, that this card comes with a high annual fee and high income requirements. Discover more in our Secured Neo World Elite Mastercard – Gas & Grocery Review.
Best Price Protection: Capital One Guaranteed Secured Mastercard
While this secured card lacks a rewards program, it includes valuable insurance and perks for a no-fee contender. Cardholders can expect coverage like travel accident insurance, baggage delay insurance, and car rental damage and theft insurance. For perks, this card features rare price protection. Read our Capital One Guaranteed Secured Mastercard Review for the full breakdown.
Best Mid-Tier KOHO: KOHO Extra Mastercard
Can't stop thinking about KOHO? Then consider the KOHO Extra Mastercard. This mid-tier prepaid contender offers some cashback on groceries, dining, and transportation, plus additional cashback at select merchants. Added benefits include no foreign transaction fees, interest on your balance, unlimited e-transfers, and a discount on credit building tools. Just mind the annual fee! The full breakdown can be found in our KOHO Extra Mastercard Review.
Best No-Fee Prepaid Perks: EQ Bank Card
For some notable perks for no annual fee, check out the EQ Bank Card. On top of no foreign transaction fees, free ATM withdrawals, and interest on balances, this card also earns cardholders a little bit of cashback on every purchase. Learn more in our EQ Bank Card Review.
Best Secured Travel: Neo Cathay World Elite Mastercard Secured
If your top concern is travel, especially to destinations within Asia, then apply for the Neo Cathay World Elite Mastercard Secured. This card collects solid Asia Miles on Cathay Pacific flights, purchases made in foreign currencies, and bonus points on Neo partner purchases. Alongside extensive travel insurance, expect an airport lounge Dragon Pass membership, priority travel perks, and discounts on flights. To qualify, you'll need to meet some high annual income requirements and you'll need to front a high annual fee. See full details in our Neo Cathay World Elite Mastercard Review.
Best Accessible KOHO: KOHO Essential Mastercard
You can also get your hands on an accessible KOHO prepaid card by applying for the KOHO Essential Mastercard. This contender earns you some cashback on groceries, dining, and transportation, plus bonus cashback at select merchants. For benefits, expect unlimited e-transfers and interest earned on your balance. Read more in our KOHO Essential Mastercard Review.
Best Prepaid Features: Wealthsimple Prepaid Mastercard
Want some commendable prepaid credit card features? Then take a look at the Wealthsimple Prepaid Mastercard. This no-fee prepaid card boasts add-ons like the high interest earned on chequing accounts, interest boosts on eligible direct deposits, access to tons of ATMs and ATM third-party reimbursements, unlimited e-transfers, CDIC deposit insurance, and plenty of joint account opportunities. Cardholders also receive no foreign transaction fees, no monthly fees, no minimums, and no overdraft penalties. Learn more in our Wealthsimple Prepaid Mastercard Review.
Why Credit Scores Matter in Canada
Having a good credit score is essential for your financial future. With a positive score, you can:
- Rent a home
- Get approved for a mortgage
- Receive a car loan
- Apply for high-value credit cards
A good credit score tells lenders that you're trustworthy with your finances, making them more likely to lend money to you.
Prepaid Credit Cards vs Regular Credit Cards
Prepaid credit cards pull money from a prepaid deposit loaded onto the card. Alternatively, credit cards use revolving credit, allowing you spend up to a certain limit, determined by your issuer and your spending habits. Regular credit cards help Canadians build credit, whereas prepaid cards do not. Still, the best prepaid cards in Canada are a good solution for controlled spending.
Read More: Prepaid Cards vs Credit Cards in Canada
Secured Credit Card vs Traditional Credit Cards
Secured credit cards are more closely related to traditional credit cards because they use revolving credit and help Canadians build credit. However, instead of relying on a credit history for approval, secured credit cards require a cash deposit from the cardholder. This deposit acts as collateral and typically determines the card’s credit limit.
Read More: Secured vs Unsecured Credit Cards
How to Apply for a Credit Card for Bad Credit
To apply for any of the cards above designed for those with poor credit, simply click the "Apply Now" button featured below your top contender. Afterwards, you'll be redirected to the issuer's official website to kickstart the application process. Credit card applications typically ask for personal information, like your birthdate, address, and email. They also often ask for financial information, like your annual income.
Frequently Asked Questions
A poor credit score is typically around 300 or below.
Yes. Even if you have poor credit, you can still apply for secured credit cards. You can also consider prepaid credit cards as an alternative, although they don't help you build credit.
You can improve your credit score by implementing positive spending habits while using your card. Good habits include paying off your balance on time and keeping your credit utilization ratio low.
Your credit score can begin to improve within a few months. However, it can take years to move a credit score from poor to good. How long it takes ultimately depends on your spending habits and how consistently you make on-time payments.
About the author
Sara Skodak
Lead Writer
Since graduating from the University of Western Ontario, Sara has built a diverse writing portfolio, covering topics in the travel, business, and wellness sectors. As a self-started freelance content ...
SEE FULL BIOAbout the editor
Kevin Shahnazari
Co-founder
Kevin started FinlyWealth and juggles a bit of everything—digging into data, running our marketing, and keeping the finances on track. Before this, he spent years as a data scientist at tech companies...
SEE FULL BIOAbout the reviewer
Abid Salahi
Co-founder
Abid leads the design and engineering of the FinlyWealth website, making sure everything runs smoothly and looks great. He’s a seasoned software engineer who follows best practices and designs interfa...
SEE FULL BIO