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Are you negative and therefore believe that there is no way to get a card anymore? Know that this thinking is wrong. There are excellent options for credit cards for bad credit.
It is common for us to go through difficulties and therefore not be able to pay the bills. Fortunately, there are good credit cards for bad credit, which offer benefits that you do not expect to have access to when being negative.
These cards can be the key to helping you rebuild your score and, at the same time, relieve your pocket, by making everyday purchases easier. But, how to choose the best one? Keep reading, learn about the alternatives and choose credit cards for bad credit.
What are credit cards for bad credit?
Credit cards for bad credit are for those with a credit score of less than 650.
If you’ve been through a financial crisis or accumulated debt, these options are more flexible and offer the chance to improve your score.
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With these cards, you can start rebuilding your credit history, using them for small monthly purchases and, of course, paying bills on time.
10 Best Credit Cards for Bad Credit Holders
Now, let’s go to the best options available for those who are trying to rebuild their credit.
Remember that the choice of card depends on your needs and the ability to pay monthly. In addition, of course, to the benefits.
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1. MBNA True Line® Mastercard (Credit cards for bad credit)
The MBNA True Line® Mastercard is one of the best options for those looking for a credit card with good balance transfer conditions and low interest rates.
It will have a promotional interest rate of 0% for 12 months on balance transfers. Thus allowing you to eliminate high-interest card debt.
The balance transfer fee is 3%, which is common in this type of product, but still quite advantageous considering the benefits of the promotion.
Best of all, this card does not require a minimum income and has a 90-day window to make the transfer.
2. BMO® Preferred Rate Mastercard®
The BMO® Preferred Rate Mastercard® is an alternative for those who need to pay off a debt more affordably, with a low interest rate.
With 0.99% interest for 9 months on balance transfers, this card offers a good promotion for those who need a shorter time to pay off debt.
Additionally, the balance transfer fee is 2%, which is reasonable within the market, and the CA$29 annuity is waived for the first year, which can be an extra relief for those trying to rearrange their finances.
3. Tangerine Money-Back Mastercard®
The Tangerine Money-Back Mastercard® is for those looking for a card with a 1% balance transfer fee and a reduced interest period of 6 months.
This is an excellent option for those who have a smaller amount to transfer and need a shorter promotion to pay off the debt.
The minimum income required is CA$12,000, which makes it affordable for many people, even those with bad credit.
4. Scotiabank Value® Visa (Credit cards for bad credit)
The Scotiabank Value® Visa charges a promotional fee of 0.99% on balance transfers for 9 months, making it one of the most interesting options for those who need a moderate term to pay off their debt.
With a balance transfer fee of 1% or 0%, depending on the promotion, this card can be a very advantageous option.
The annual fee is CA$29, but it is waived for the first year.
Additionally, Scotiabank offers extra benefits such as discounts at car rental companies, which can be helpful for those who travel frequently.
5. CIBC Select Visa
If you are looking for a card with a 0% promotion for 10 months, the CIBC Select Visa may be the right choice.
This card offers a 1% balance transfer fee and the annual fee is CA$29. Which is waived for the first year.
It is important to consider that, after the promotional period, the interest rate returns to 13.99%. This is a challenge for those who are unable to pay off the debt on time.
6. RBC Visa Classic Low Rate Option
The RBC Visa Classic Low Rate Option is another interesting option. It will have a fixed rate of 12.99%, it offers stable financial control, with no surprises of interest rate increases.
Although it does not offer a balance transfer promotion with a 0% fee. It stands out for not charging high fees, maintaining a fixed fee that can be advantageous in the long run.
7. TD Low Rate Visa (Credit cards for bad credit)
The TD Low Rate Visa has low interest rates and a 0% promotion on purchases for the first 6 months.
This is useful for those who are planning to use the card to make purchase. And pay over time without being penalized by high interest.
The flat rate of 12.90% after the promotional period is competitive and offers financial stability. Especially for those who have good spending control.
Although the annual fee is CA$25, the card has additional benefits such as discounts at car rental companies and a rewards program at Starbucks.
8. PC Financial World Elite Mastercard
PC Financial World Elite Mastercard has a promotion of 0.97% interest for 90 days. Making this a good option for those looking to pay off debts quickly at a low cost.
The advantage of this card is that it does not charge an annual fee, which is rare among credit cards with balance transfer promotions.
Another positive point is that it offers access to rewards for those who already use the PC Financial account.
9. Scotiabank Momentum® No-Fee Visa
The Scotiabank Momentum® No-Fee Visa is for those who want cashback benefits without paying an annual fee.
In it, you will have a balance transfer rate of 0% interest for 6 months. After this time, it rises to 2%.
Additionally, the minimum income requirement is CA$12,000, making it affordable for many people.
Although the interest rate after the promotional period is 19.99%, the card has cashback rewards for every purchase made.
10. Scotiabank Value® Visa (Credit cards for bad credit)
At first, at Scotiabank Value® Visa the low interest rate and a good payment period.
With a promotion of 0.99% interest on balance transfers for 9 months. It offers an excellent opportunity for those who have accumulated debts and need time to pay them off.
Also, the balance transfer fee of 1% is quite reasonable considering the low-interest promotion.
The annual fee is CA$29, but waived in the first year, which can be a good advantage for those who are reorganizing their finances.
The minimum threshold of CA$500 makes the card affordable, but the minimum required income of CA$12,000 can be a challenge for those with more restricted credit.
Conclusion (Credit cards for bad credit)
Choosing the right credit card is the first step to making a financial turnaround.
With options like the MBNA True Line® Mastercard® and the BMO® Preferred Rate Mastercard®, you can take the pressure off high-interest rates, with balance transfer promotions that offer a 0% rate for a period.
However, the options offer a chance to rebuild credit, they come with their requirements, such as transfer fees and income requirements.
Here’s the tip! Don’t forget to compare rates and pay attention to the expiration dates of promotions so you don’t fall into high-interest traps.
Combined with the credit card for bad credit, we recommend that you take one of the free online finance courses. In this way, you will learn to use the card strategically so that it helps you regularize your financial life.