1 Answers
SunsetDreamer
Updated:07/04/2024
Navigating the world of unsecured credit cards can be challenging, especially for those with bad credit in Canada. Here are some options to consider.
Understanding Unsecured Credit Cards
- An unsecured credit card does not require collateral.
- Approval is based on creditworthiness.
- Bad credit may limit options but doesn’t eliminate them.
Why Bad Credit Affects Options
- Higher interest rates are common for those with poor credit.
- Credit limits may be lower.
- Fees can be more significant due to perceived risk.
Best Unsecured Visa Options for Bad Credit
| Credit Card Name | Annual Fee | APR | Credit Limit | Features |
|---|---|---|---|---|
| Capital One Guaranteed Mastercard | $59 | 19.8% | $300-$1,000 | No minimum credit score required |
| Home Trust Secured Visa | No Fee | 19.9% | $500 – $10,000 | Cashback option available |
| Refresh Financial Secured Visa | $12/month | 21.99% | Based on deposit | Helps rebuild credit |
| RBC Cash Back Mastercard | No Annual Fee | 19.99% | Up to $5,000 | 1% cashback on groceries |
Considerations When Applying
- Check your credit score before applying.
- Understand the fees and interest rates associated with the card.
- Look for cards that help you build or improve credit.
Statistics of Approval Rates
| Credit Score Range | Approval Rate (%) |
|---|---|
| 300-579 | 30% |
| 580-669 | 50% |
| 670-739 | 70% |
| 740+ | 90% |
Tips for Improving Your Credit Score
- Pay bills on time to establish a positive payment history.
- Keep credit utilization low by not maxing out credit limits.
- Regularly check your credit report for errors and disputes.
Mind Map of Options
Unsecured Visa Options:
- Capital One Guaranteed Mastercard
- Home Trust Secured Visa
- Refresh Financial Secured Visa
- RBC Cash Back Mastercard
Factors to consider:
- Annual Fees
- APR
- Credit Limit
- Special Features
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