Easiest Credit Cards to Get Approved for in Canada

When it comes to building or rebuilding credit, getting approved for a credit card can often feel like a daunting task. In Canada, the options for easy approval credit cards have grown significantly, allowing more individuals, including those with bad or no credit, to gain access to credit-building tools. This article explores the easiest credit cards to get approved for in Canada, offering valuable insights into options that are suitable for various credit profiles. Whether you're a student, someone new to credit, or someone looking to improve their credit score, there are several choices available that make the process straightforward and less stressful.

1. Understanding Credit Cards for Easy Approval

What Are Easy Approval Credit Cards?

Easy approval credit cards are designed for individuals who may not have a strong credit history or who are starting to build credit from scratch. These cards typically have more relaxed approval criteria compared to traditional credit cards, making them accessible to a broader range of applicants. The key features of easy approval credit cards include:

• Lower credit score requirements: These cards cater to individuals with a low or no credit score, making it easier to qualify.
• Higher interest rates: Due to the higher risk associated with lending to individuals with lower credit scores, these cards often have higher interest rates.
• Low or no annual fees: Many easy approval credit cards come with low or no annual fees, making them affordable options for those looking to establish or rebuild credit.
• Limited credit limits: Initial credit limits tend to be lower, but they may increase with responsible use and timely payments.

2. Types of Easy Approval Credit Cards in Canada

There are various types of credit cards available for those looking for easy approval in Canada. The most common include secured credit cards, student credit cards, and low-income credit cards. Each type has its unique features and benefits, catering to different needs and credit situations.

a. Secured Credit Cards

Secured credit cards are one of the most popular and accessible options for individuals with no credit history or poor credit scores. These cards require a security deposit, which serves as collateral against the credit limit. Key points about secured credit cards:

• Security deposit: Applicants need to provide a refundable security deposit, which typically equals the credit limit. For example, a $500 deposit would secure a $500 credit limit.
• Credit building: By using the card responsibly and making timely payments, cardholders can build or rebuild their credit over time. The credit activity is reported to credit bureaus, which helps in improving the credit score.
• Approval process: Because the security deposit reduces the lender's risk, secured credit cards have a high approval rate, making them ideal for those with bad or no credit.

Popular Secured Credit Cards in Canada:

1. Capital One Guaranteed Secured Mastercard: Requires a minimum security deposit, provides a low credit limit, and reports to major credit bureaus.
2. Home Trust Secured Visa: Offers flexible deposit options ranging from $500 to $10,000, with the deposit equaling the credit limit.
3. Refresh Financial Secured Visa: Provides credit-building programs alongside the secured card, helping users improve their financial literacy and credit scores.

b. Student Credit Cards

Student credit cards are designed specifically for college and university students. These cards typically have low-income requirements and are tailored to help students build their credit history while managing their expenses. Key features of student credit cards:

• Low or no annual fees: Most student credit cards have no annual fees, making them affordable for students.
• Rewards programs: Many student cards offer rewards on everyday purchases, such as groceries and gas.
• Credit building: These cards help students build their credit history, which can be beneficial for future financial endeavors like renting apartments or applying for loans.

Top Student Credit Cards in Canada:

1. Scotiabank SCENE Visa Card: Offers rewards points on purchases that can be redeemed for movies, meals, and more. It has no annual fee and a simple application process.
2. BMO CashBack Mastercard for Students: Provides cash back on purchases, with no annual fee and low-income requirements.
3. RBC Rewards+ Visa Card: Offers rewards points on purchases, no annual fee, and bonus points for signing up.

c. Low-Income Credit Cards

Low-income credit cards cater to individuals with lower income levels. These cards usually have lower credit limits but offer essential features to help users build credit. Key aspects of low-income credit cards:

• Low credit limits: The credit limit is often lower, reducing the risk for lenders and helping users manage their spending.
• Affordable fees: Many low-income credit cards have no annual fee or offer the option to waive it based on specific conditions.
• Easy approval criteria: These cards are easier to qualify for, making them accessible to a broader audience.

Notable Low-Income Credit Cards in Canada:

1. Tangerine Money-Back Credit Card: Offers cash back on everyday purchases, no annual fee, and a simple approval process. It also provides a promotional low interest rate for the first six months.
2. Capital One Low Rate Guaranteed Mastercard: Combines a low interest rate with a guarantee of approval for individuals meeting the minimum income requirements.
3. PC Financial Mastercard: Allows cardholders to earn PC Optimum points on purchases, has no annual fee, and is easy to apply for with minimum income criteria.

3. How to Improve Approval Odds

Getting approved for a credit card, even one with easy approval, may require some preparation. Here are some steps to increase your chances of approval:

• Check your credit score: Before applying, check your credit score to understand where you stand. Knowing your score can help you choose a card that fits your credit profile.
• Review your credit report: Ensure there are no errors on your credit report that could negatively impact your credit score. Correct any inaccuracies before applying.
• Limit applications: Applying for multiple credit cards in a short period can negatively affect your credit score. Choose one or two cards that best suit your needs and apply for those.
• Provide accurate information: Ensure all the information on your application is accurate and complete. Inaccurate information can lead to a rejection.
• Consider a co-signer: If your credit score is very low, consider applying with a co-signer who has a good credit history. This can improve your chances of approval.

4. Benefits of Easy Approval Credit Cards

Easy approval credit cards offer numerous benefits, especially for individuals looking to establish or rebuild their credit. Some of the main advantages include:

• Credit building: By using the card responsibly, cardholders can build a positive credit history, which is essential for future financial opportunities.
• Financial flexibility: Having a credit card provides financial flexibility in managing unexpected expenses or emergencies.
• Rewards and perks: Many easy approval credit cards offer rewards and perks, such as cashback, points, or discounts, which can provide additional value to cardholders.
• Improved credit score: Regular use and timely payments can lead to an improved credit score, which can open doors to better credit products and lower interest rates in the future.

5. Things to Watch Out For

While easy approval credit cards can be beneficial, it's important to be aware of potential pitfalls. Here are some things to watch out for:

• High interest rates: Many of these cards come with high interest rates. It's crucial to pay off the balance in full each month to avoid costly interest charges.
• Low credit limits: The initial credit limit may be low, which can impact your credit utilization ratio if not managed carefully.
• Hidden fees: Be aware of any hidden fees, such as cash advance fees, foreign transaction fees, or late payment fees. Reading the terms and conditions carefully can help avoid surprises.
• Credit impact: Applying for too many credit cards in a short period can negatively impact your credit score. Choose wisely and apply only when necessary.

6. Conclusion

Easy approval credit cards in Canada offer a valuable opportunity for individuals to build or rebuild their credit. Whether through secured credit cards, student credit cards, or low-income credit cards, there are options available to suit different needs and credit situations. By choosing the right card and using it responsibly, individuals can take control of their credit journey, build a positive credit history, and improve their financial future.

Remember, the key to success with any credit card is responsible use. Paying off the balance in full each month, making payments on time, and staying within the credit limit can help you make the most of your credit card and set the foundation for a strong credit profile.