For people with no credit or poor credit, getting a credit card can be a challenge. If you’re tired of filling out credit card applications only to be denied, it might be time to consider a guaranteed approval credit card.
By submitting a deposit, you secure access to the card (and the deposit becomes your credit limit). Your credit card issuer reports regular payments you make to the credit monitoring bureaus, which can improve your credit score over time.
If you’re ready to learn more, read up on the best guaranteed approval credit cards available right now.
Key Takeaways
- You can qualify for a guaranteed approval card if you’re a permanent resident, not in bankruptcy, and can pay a security deposit.
- Guaranteed approval credit cards are a great way to help you build credit.
- The Secured Tims Mastercard is our #1 guaranteed approval credit card.
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Guaranteed approval credit cards in Canada
You might be surprised at how few guaranteed approval credit cards are available. This is because they’re designed for people with low credit scores who might not qualify for unsecured credit cards.
As such, guaranteed approval credit cards offer few rewards, perks, and benefits, and exist solely to help you improve your credit.
Remember, you also have to provide a security deposit. This is the bank's fallback in case you fail to make a payment. The minimum amount you'll have to provide varies by bank, but this deposit becomes your credit limit.
Let's take a look at 3 of the few guaranteed approval credit cards available in Canada.
| Credit card | Annual fee | Deposit limits | Special features |
|---|---|---|---|
| Secured Tims Mastercard | $0 | * Minimum: $50 * Maximum: $10,000 | * Earn up to 2 Tims Rewards points per $1 in purchases |
| Neo Secured Credit | $95.88 | * Minimum: $50 * Maximum: $10,000 | * Earn rewards on purchases |
| Home Trust Secured Visa Card | $0 | * Minimum: $500 * Maximum: $10,000 | * Lower 2% foreign exchange fee |
Best guaranteed approval credit card
The
Best for rewards
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If you want to up your rewards, you can upgrade to the Premium card, which offers 3% cash back on gas and groceries, 0.5% on all other purchases, and up to 6% in all the categories mentioned above.
Best for foreign purchases
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Pro Tip: If you tend to carry a balance on your credit card, opt for the Home Trust Secured Visa (Low Rate). It has an annual fee of $59 but offers a lower interest rate of 14.9%.
What are guaranteed approval credit cards?
Unlike standard credit cards that have credit score and income requirements, guaranteed approval credit cards are easy to get with few requirements. Typically, you must be the age of majority, a permanent resident or citizen, and not be in bankruptcy. You must also be able to pay a security deposit from a Canadian bank account in your name.
With few exceptions, guaranteed approval credit cards in Canada are simply secured credit cards. To get a secured credit card, you put down a security deposit that becomes your credit limit.
Instant approval vs. guaranteed approval credit cards
Do a quick search for guaranteed approval credit cards and tons of results for instant approval cards might pop up, but be aware – instant approval credit cards are not the same as guaranteed approval cards.
Instant approval cards just mean that you receive a credit card application decision within a few minutes of applying online. In no way are you guaranteed to get the card.
Guaranteed approval credit cards, on the other hand, have different eligibility requirements and if you meet them, you’re nearly guaranteed to get the card.
Prepaid credit card options
Calling prepaid credit cards is a bit of a misnomer since they’re not actually credit products. That said, prepaid cards have guaranteed approval and you can use them like credit cards.
Here’s how they work: apply for a prepaid credit card, load money into your card’s account, and then make purchases with the card.
Prepaid cards won’t help you build credit but since you’re spending your own money, you won’t be charged interest (and you might even earn rewards).
| Prepaid credit card | Annual fee | Earn rates | Special features |
|---|---|---|---|
| KOHO Extra Mastercard | $144 | * 1.5% cash back on groceries, restaurants, and transportation * 0.25% cash back on all other purchases | * Bonus rewards at select KOHO retail partners * Interest on your entire balance with KOHO Earn Interest * No foreign transaction fees |
| Wealthsimple Prepaid Mastercard | $0 | * None | * No foreign exchange fees |
FAQ
Is there a credit card that approves everyone?
Secured credit cards are virtually guaranteed approval in Canada. If you have bad credit and need a way to improve your credit score, a secured credit card is one of the best ways to get started.
What credit score do you need to get approved for most credit cards?
If you’d like approval odds of at least 50% to 60%, our study found you would need a credit score of between 660 and 724. Keep in mind that if your score is lower than this, you’ll still have credit card options, but it might prove a little trickier.
What credit card can I get with a 500 credit score?
If you’ve got fair or poor credit, you’ll probably want to check out a secured or prepaid credit card. Once you’ve improved your credit score, you’ll be more likely to be approved for a standard credit card.
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