Top Credit Building Card with No Annual Fee

Building credit doesn't have to come with expensive annual fees.

Here is the best no fee credit building card in Canada designed to help you establish your credit history.

Build Better Credit with KOHO

KOHO's Credit Building offers a safe way to build credit without the risks of traditional credit cards or lenders, helping you achieve the same goal: a stronger credit history.

With KOHO, you could:

• Have better credit in 4 months

• Build credit without a credit card

• See credit scores increase by an average of 31+ points in just 4 months¹.

KOHO reports your payments to Equifax on your behalf so you don't have to worry about it.

Make Essential your no fee account. The plan that gets you more from your everyday spending, fee free².

What Are Secured Credit Cards?

Most no-fee credit building cards are secured cards, meaning you provide a refundable security deposit that serves as your credit limit.

This reduces risk for lenders and makes approval easier for those with poor or no credit history.

How They Work:

1. Pay a security deposit (typically $200-$1,000)

2. Your credit limit equals your deposit

3. Use the card and make on-time payments

4. Your payment history is reported to credit bureaus

5. Get your deposit back when you close the account in good standing

What to Look For in a Credit Building Card

No or Low Annual Fees
Avoid unnecessary costs while building credit. Many starter cards charge high fees.

Reports to Both Credit Bureaus
Ensure the card reports to Equifax and TransUnion so your good payment history helps your score.

Reasonable Interest Rates
While rates are often higher for credit building cards, compare options to find the best deal.

Clear Path to Upgrade
Some issuers offer graduation to unsecured cards after demonstrating responsible use.

Start Building Your Credit Today

No annual fee credit building cards provide an accessible path to establishing or improving your credit score without breaking the bank.

Whether you choose a secured card with a modest deposit or a no fee option designed for beginners, the key is consistent, responsible use.

^{¹Based on users with a starting score of 500 or less and who signed up for credit building in October 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.
²Get Essential for free! Learn more.}