Top Cards for Canadians with Bad Credit

If your credit is banged up, you still have options—you just want ones that won’t make things worse while you rebuild. That usually means:

• Keeping limits small

• Avoiding high fees where you can

• Choosing tools that reward good habits, not punish slip-ups

And for a lot of people, that starts with a prepaid setup instead of another traditional credit card.

A Safer Starting Point: KOHO Essential

Before you add more credit, it can be smarter to get your day-to-day money under control.

KOHO Essential Plan, you load with your own money, then use for everyday spending:

• It has a low monthly plan fee that can be waived when you set up direct deposit or add +$1,000.

• Use a prepaid Mastercard® for groceries, bills, subscriptions, and travel.

• Grow your savings with a 2% interest savings rate on your entire balance.

• Earn 1% cash back on groceries, eating & drinking, and transportation.

• You can subscribe to Credit Building for $10/month, it's an affordable way to build your credit history.

• Enjoy unlimited transactions and free e-transfers (never worry about fees when sending money to someone again).

Other Card Options for Canadians With Bad (or Fair) Credit

Below are some commonly talked-about options. Exact fees, rewards, and eligibility can change, so anyone applying should always double-check details directly with the provider.

1. Home Trust No Fee Preferred Visa

A no annual fee Visa card that’s often used by people who want simple cash back and lower costs:

• No annual fee

• Offers cash back on everyday purchases

• Known for being positioned as a no FX fee and cash back card

• Reports to the credit bureau, so on-time payments can help your credit over time

2. BMO eclipse rise Visa Card*

This is BMO’s “rise” card aimed at people who are building or rebuilding credit:

• Designed for Canadians with limited or damaged credit history

• Unsecured card (no security deposit), subject to approval

• Earns rewards on everyday spending

• Reports to the credit bureaus, helping you build positive history with on-time payments

3. Neo Mastercard

Neo is a fintech credit card with a big focus on cash back and easy online signup:

• Quick digital application and account management through the app

• Cash back at a network of partner merchants, plus a base rate on other purchases

• Designed to be accessible to a wide range of credit profiles, and they also offer a secured version for those who need to put down a deposit

• Reports to the credit bureaus, so it can help with building credit when used responsibly

How to Choose the Right Path With Bad Credit

A simple way to think about it:

• If you’re still worried about overspending or missing payments
  → Start with something like KOHO Essential + Credit Building, where you can’t accidentally rack up a big balance.

Whatever you choose, the cards themselves are just tools. The things that actually fix bad credit are:

• Paying every bill on time

• Keeping balances low relative to your limits

• Avoiding new high-interest debt you don’t really need

Get those right, and the card you pick becomes a helper, not a headache.

^{*Based on users with a starting score of 500 or less and who signed up for credit building in September 2024. Credit Building is 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.}