Best Credit Building Credit Cards 2022

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Have you attempted to apply for a credit card but been denied? Most likely, it’s due to a credit history that isn’t up to grade. But how can you create good credit if you don’t have the necessary financial resources?

Fortunately, there are credit cards available for Canadians who have no credit or have a low credit score. By safely using them, you can gradually build up strong credit to the point where you will be eligible for other financial products, including regular unsecured credit cards.

 In the meanwhile, you’ll need to establish your credit, and secured credit cards are an excellent way to do it. Instead of being given a precise credit limit to spend within, you will be required to pay a security deposit, which will essentially serve as your credit limit. 

You’d essentially be spending money that you already have.

It’s critical to double-check that your secured credit card company reports your payments to the credit bureaus.In this manner, you can improve your credit score by utilising it for required costs like recurring monthly bills and making timely payments each billing cycle.

You can eventually grow your credit to the point that you’ll be able to get approved for a vehicle loan, personal loan, unsecured credit card, or mortgage when the time comes.

What are some of the best credit building credit cards for Canadians? 

We’ll give you a rundown in this article to help you decide which product to use. The Top Credit Building Credit Cards were evaluated using the following criteria. Our list of the greatest credit building credit cards was compiled by evaluating each card against a set of criteria, which included the following:

• A minimum security deposit is required.
• Fees charged on an annual basis
• Rewards Perks: Reports to credit bureaus
• Bonus for new customers
• Eligibility

Refresh Financial Secured Card

It’s good to be able to apply for a credit card that assures acceptance regardless of your credit score when you have low credit. With the Refresh Financial Secured Card, you’ll get exactly that. Because the card is secured, you’ll have to put down a security deposit, which will serve as your credit limit. 

You will not be given credit, so any money you spend on the card will be money that you already own. There will be no credit check, and you will receive your credit card quickly after completing a brief application. You’ll also get a 21-day grace period during which you won’t have to pay interest on any outstanding purchases.

• Approval is guaranteed.
• A low credit score is required.
• $0 is the minimum income need.
• $12.95 per year + $3 each month
• 17.99 per cent interest rate
• $200 is the minimum credit limit.
• $10,000 maximum credit limit

Capital One Guaranteed Secured MasterCard 

If you’re just getting started with credit or have a low credit score that you want to raise, the Capital One Guaranteed Secured MasterCard could be a good option. Approval is guaranteed, and interest rates are equivalent to those on regular unsecured credit cards, so you won’t be overpaying. 

You may be able to increase your credit limit and eventually upgrade to the unsecured card version if you continue to make on-time monthly payments.

• Approval is guaranteed.
• A low credit score is required.
• $0 is the minimum income need.
• Rate of interest: 19.8%
• The annual charge is $59
• $300 is the minimum credit limit.
• The credit limit could be increased to $2,500.
• Telephone service is available 24 hours a day, 7 days
• Replacement of a lost or stolen card, as well as a cash advance

Home Trust No-Fee Secured Visa

The Home Trust No-Fee Secured Visa not only makes it easier to get approved for a credit card with bad or no credit, but it also has no annual fees, making it a cost-effective solution for Canadians trying to improve their credit. 

While a credit check is required, the Home Trust No-Fee Secured Visa is granted for the vast majority of applicants. Once you have one, you can use it just like any other unsecured credit card, building your credit with each timely payment you make.

• A credit check will be necessary.
• A low credit score is required.
• $0 is the minimum income need.
• Fees: $0 per year
• Rate of interest: 19.99 per cent
• $500 is the minimum credit limit.
• $10,000 maximum credit limit
• Insures qualified things that have been damaged or stolen.

No-Fee Scotiabank Value Visa 

With no annual charge and a highly reasonable interest rate of 16.99 per cent, the Scotiabank Value Visa can help Canadians save money while establishing credit. Plus, as you grow your credit, you’ll be able to take advantage of exclusive benefits like car rental discounts and card protection. 

You can also take advantage of a special introductory interest rate of 3.99 percent for the first six months if you apply today.

• A good credit score is essential.
• The required minimum income is $12,000.
• There is no annual cost.
• 16.99 per cent annual interest rate
• $500 is the minimum credit limit.
• Participating in automobile rental locations receive a 25% discount.
• In the event of a job loss, disability, or illness, the card provides protection.

Pros and Cons of a Credit Building Credit Card

When it comes to selecting a financial product, there will always be advantages and disadvantages to consider. When evaluating whether or not a credit-building credit card is good for you, keep the following information in mind.

Pros 

• Easy to qualify for with only a little amount of money required
• In many circumstances, a credit score is not required.
• With sensible financial habits, you can establish and improve your credit score.
• Use them in the same way as you would a regular credit card.
• It’s difficult to get into debt.

Cons

• Some credit cards have higher interest rates.
• The spending restrictions are significantly lower than those of traditional unsecured credit cards.

How to Choose the Right Credit Building Credit Card

It can be difficult to choose just one credit card when there are so many to choose from. However, you may make that decision a little easier if you use certain criteria. Keep the following points in mind while looking for a credit-building credit card:

• Payments are reported to the credit bureaus by the creditor.
• Interest rate
• An annual fee is charged.
• Affiliation (income requirements, credit score, etc)
• Each dollar spent earns you rewards or points.
• Security deposit minimums and maximums

The Bottom Line

At Lionsgate, we specialize in helping people get the extra cash they need, obtain funding for private mortgages, as well as for other real estate transactions. If you are looking to buy land in Canada, get a mortgage or apply for a loan, fill out the form below. Or, You can leave us a message and we will try to connect you with local lenders and sources that best meet your needs.

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