How to Get a Credit Card With No Credit History

You can still get a credit card in Canada if you have no credit history, but your options may be more limited.

Secured credit cards are specifically designed for people with little or no credit history, while students and newcomers may also qualify for cards designed for them.

Approval requirements vary by issuer, so it is worth comparing your options before applying.

KOHO Credit Builder

KOHO Credit Builder is designed to help Canadians establish or build their credit history through consistent monthly payments, without relying on a traditional credit card.

With KOHO Credit Builder, you can:

• +74 points average credit score increase seen using our credit building tools*

• Get approved without a hard credit check or minimum deposit

• Pay no interest on the line of credit

• Track your credit score and credit report directly in the KOHO app

• Build your credit history with monthly payments reported to the credit bureaus

Why is it harder to get a credit card with no credit history?

When you apply for a credit card, lenders use your credit history to understand how you have handled borrowed money in the past. If you have never used credit before, there may not be enough information on your credit report for a lender to assess how likely you are to repay what you borrow.

Having no credit history is not the same as having bad credit. It simply means you have little or no borrowing history recorded with Canada's credit bureaus.

What credit cards can you get with no credit history?

There are a few options worth considering.

Secured credit cards

A secured credit card requires you to provide a security deposit to the card issuer. Your credit limit is typically equal to or higher than the amount you deposit.

Because the deposit reduces the lender's risk, secured cards may be easier to qualify for when you have no credit history.

Student credit cards

If you're a student, you may be eligible for a credit card designed specifically for students. These cards often have lower credit limits and may have different eligibility requirements than standard credit cards.

Newcomer credit cards

Some financial institutions offer credit card options specifically for newcomers to Canada who have not yet established Canadian credit history.

A secured credit card can also be an option for newcomers without Canadian credit history.

How can you improve your chances of getting approved?

Before applying, check your credit report with Equifax or TransUnion to see whether you already have any credit history and to make sure there are no errors.

Avoid applying for several credit cards at the same time. Credit card applications can result in hard credit checks, and too many applications close together may negatively affect your credit score.

Instead, compare cards designed for people with limited credit history and apply for the option that best matches your situation.

How do you start building credit once you're approved?

Getting your first credit account is only the beginning. To build a positive credit history:

• Make your payments on time

• Keep your balance well below your credit limit

• Avoid applying for unnecessary credit

• Keep your credit account in good standing over time

Payment history is an important factor in your credit score, and the Financial Consumer Agency of Canada recommends using less than 30% of your available credit when possible.

Building credit takes time, but consistently managing your first credit account responsibly can help establish the credit history you may need to qualify for more financial products in the future.

^{*Based on users with a starting score of 450 or under and who used all of our credit building tools (i.e. Credit Building, Secured Credit Building) for 12+ months with on time payments. Credit building tools we offer are not a credit repair tool and does not guarantee an improvement in credit score. Credit scores are based on complex models involving a variety of factors. Consistent on-time payments help improve scores and missed or late payments may cause credit scores to decrease. Outcomes may vary among users.}