Best Credit Cards In Canada For No Credit In November 2024

When determining a rating for individual credit cards, the Forbes Advisor Canada editorial team factors in an exhaustive list of data points. With best credit cards for no credit, the scoring model used takes into account factors such as, but not limited to, cash- back rates and categories, fees, welcome bonuses, and other rewards and features. Keep in mind, what may be best for some people might not be right for you. Conduct informed research before deciding which cards will best help you achieve your financial goals.

Neo Secured Mastercard®

This secured card charges a $5 per month fee and earns competitive returns while rebuilding credit.

Rewards: Earn up to 4% cashback on gas and grocery and up to 1% everywhere else

Welcome Offer: Up to 15% cashback on first-time purchases

Annual Fee: $5 per month

Other Benefits and Drawbacks: An attainable secured credit card with a low security deposit of $50. It has an included Insights dashboard that helps track spending and links to their other financial products, which could be especially helpful for those just getting started on their financial journey.

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Home Trust Secured Visa Card

The Home Trust Secured Visa Card is a great secured credit card thanks partly, to its lower interest rates.

Rewards: None

Welcome Offer: None

Annual Fee: $59

Other Benefits and Drawbacks: This card charges only 14.90%, compared to the typical 19.99% on other secured cards. That said, it offers no rewards program, making it less appealing than other cards on this list.

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Home Trust Secured Visa Card (No-Fee Option)

The Home Trust Secured Visa Card (No-Fee Option) has no annual fees but standard interest rates.

Rewards: None

Welcome Offer: None

Annual Fee: $0

Other Benefits and Drawbacks: This card has no annual fee and comes with a Visa Zero Liability Policy for purchases you didn’t make. Interest rates are on the high side, so this card is only ideal for those who pay off their balance in full. There’s also no reward structure, purchase protection, or travel insurance included with this card.

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BMO Air Miles Mastercard

This credit card earns Air Miles and offers some useful perks, like car rental discounts.

Rewards: Earn 3 miles for every $25 spent at participating Air Miles Reward Partners, 2 miles for every $12 spent at eligible grocery stores and 1 mile for every $25 spent on all other eligible purchases.

Welcome Offer: Earn 1,500 AIR MILES after spending $1,000 in the first three months(up to $2,500). Offer valid till December 31st 2024.

Annual Fee: $0

Other Benefits and Drawbacks: This card earns Air Miles with every purchase and gets a 25% discount at National Car Rental and Alamo Rent-A-Car locations. That said, there’s no travel insurance coverage.

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Capital One Guaranteed Secured Mastercard®

The Capital One Guaranteed Secured Mastercard offers a few good perks, such as built-in purchase security and travel insurance for rental cars and baggage delays.

Rewards: None

Welcome Offer: None

Annual Fee: $59

Other Benefits and Drawbacks: This card offers purchase and warranty coverage, plus price protection. You’ll also get an interest-free grace period and basic travel insurance. That said, it still doesn’t offer any rewards.

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Wealthsimple Cash

This card earns cash back and interest on your purchases, but you can invest your earnings too.

Rewards: Earn 1% on all spending (1.5% if you have a Wealthsimple Save account).

Welcome Offer: None

Annual Fee: $0

Other Benefits and Drawbacks: The Wealthsimple Cash card lets you earn your cash back in the form of one of 40 cryptocurrency types (though you can also opt for cash or stock rewards) and earn interest on your balance. That said, since it’s a prepaid card, it won’t help you build your credit.

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EQ Bank Card

This prepaid card charges no fees whatsoever, including interest and FX fees. Plus, you get 0.5% cash back on every purchase you make while giving you 2.5% interest on your balance.

Rewards: Earn 0.5% on all spending and 2.5% interest on your money.

Welcome Offer: None

Annual Fee: $0

Other Benefits and Drawbacks: This card offers rewards but charges no fees, including foreign exchange fees. However, you need to open an EQ Bank Savings Account to use it, which won’t help build your credit.

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Neo Money™ card

This prepaid card earns 0.10% interest on the money held on the card, free daily transactions, and no monthly or annual fee.

Rewards: Earn up to 3% cashback on gas and grocery and up to 1% everywhere else.

Welcome Offer: Up to 15% cashback on first-time purchases

Annual Fee: $0

Other Benefits and Drawbacks: This card earns cash back and interest on your money. That said, it doesn’t disclose upfront which retailers earn the most cash back, they don’t disclose upfront which retailers earn the most cash back and it won’t help you build your credit.

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JA Money Card

This card is aimed at youth and functions like a prepaid card, allowing cardholders to get a handle on how spending on a card works while earning cash back at restaurants and other retailers.

Rewards: Earn an average of 5% cashback at select restaurants and through delivery platforms like Uber Eats. Earn 2% cash back at select clothing stores, including Dynamite, JD Sports and Simons. Earn 2% cash back shopping at bookstores like Chapters or Indigo or buying books online through Kobo. Earn 2% cash back shopping for gaming items and accessories through companies such as Nintendo, Playstation and Steam. Earn 2% cash back on purchases made at fitness locations like GoodLife Fitness or YMCA.

Welcome Offer: None

Annual Fee: $0

Other Benefits and Drawbacks: This card earns cash back and functions as a way for youth to practice good spending habits. However, it doesn’t outline all the retailers that earn the high cash-back rates, and it doesn’t guarantee a base cash-back rate either.

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KOHO Extra Prepaid Mastercard

This prepaid card earns cash-back rewards, credit-building and in-app credit score updates, budgeting insights and financial coaching.

Rewards: Earn 1.5% cash back on groceries, transportation, food and drink, up to 5% extra cash back at selected merchants and earn 0.25% cash back on all other purchases.

Welcome Offer: Earn a $40 cash bonus when you sign up for a KOHO account with code (PLEASE INCLUDE RELEVANT CODE) and make your first $20 purchase within 30 days of registration.

Annual Fee: $9 per month or $108 per year.

Other Benefits and Drawbacks: This card has no foreign transaction fees and offers three credit-building options, including a line of credit, a secured line of credit between $30 to $500 or both, which starts at $7 per month for up to six months. You can also subscribe to KOHO Cover interest-free overdraft protection for an additional fee. That said, this card has an annual fee and the credit-building options come at an extra cost.

When considering credit, know credit scores in Canada that go from 300 to 900. Within that, you can have a poor, fair, good, very good or excellent credit score.

What Is No Credit?

If you have no credit history—good or bad—you fall into having no credit. This can often be because you’re a young adult, are a newcomer to Canada or simply have chosen not to use a credit card for personal reasons.

The Importance of Credit History

Credit history is an important part of raising your credit score. The highest your credit score, the more financial products you can qualify for, including credit cards, lines of credit and mortgages. Also, the higher your credit, the more favourable the terms of those products, such as interest rate and term length. It can also help you qualify for things like apartment rentals.

Credit Scores Vs. No Credit

Having a credit score that ranges from poor to excellent is different than having no credit. While having a poor credit score is bad, you have a credit history – and that is better, in terms of obtaining credit, than having none at all.

When choosing your first credit card, there are a number of things to consider.

Secured Vs. Unsecured Credit Cards

First, figure out if you qualify for a secured card or an unsecured card. Secured cards can still help you build your credit and function similarly to a regular credit card, the only catch being that they require a security deposit. This will correspond to the limit on the card (for example, a $500 deposit is equal to a $500 limit). If you qualify for one, an unsecured card is the better option, since it won’t require funds up front.

Evaluating Card Features

You’ll also want to evaluate the card’s features and decide whether they suit your spending habits and lifestyle. Consider the following:

• Rewards or cash-back earn rates
• Rewards or cash-back purchase categories
• Annual fees
• Interest rates
• Built-in features like travel insurance and consumer insurance
• Travel and entertainment perks
• Discounts

Understanding APR and Fees

Credit cards come with interest rates on your balance, expressed as a percentage (APR). Most credit cards have an APR of around 19.99% for purchases and 22.99% for cash advances. It’s important to know that carrying a balance on a credit card can quickly snowball, and avoiding interest charges is the best way to make the most of your credit card.

Credit cards can come with annual fees. These fees and the APR can quickly eclipse any rewards earned from your card, so it’s important to consider how much you’ll use the card and your estimated rewards before signing up for a card with an annual fee.

To build a healthy credit profile from scratch, there are a few steps you can take, including the following:

Making Timely Payments

Avoid making late payments, not only to avoid unnecessary fees and interest but to avoid a negative impact on your credit.

Maintaining Low Credit Utilization

Keep your credit utilization low, as this helps build your credit score. The ideal credit utilization rate is under 30%.

Managing Your Credit Card Responsibly

To build a good credit score, you must consistently practice responsible credit card habits.

Monitoring Purchases and Spending

Monitor your purchases to keep track of your spending, but also to make sure your card isn’t being used fraudulently.

Avoiding Common Credit Pitfalls

Common credit pitfalls including overspending, late payments and applying for too many credit cards.

When looking for a credit card, there are other features to consider that can add value.

No Annual Fee Cards

No-annual-fee cards are a surefire way to ensure that your credit card rewards are all profit, so long as you don’t pay interest on your purchases.

Cards with Introductory Offers

Some cards have introductory offers, including generous welcome bonuses and waiving or rebating annual fees in the first year.

Credit Cards with No Foreign Transaction Fees

If you frequent travel or shop at foreign stores online, these cards waive the typically 2.5% foreign transaction fee.

If you’ve had bad credit in the past, for whatever reason, there are ways to rebuild your credit.

Secured Credit Cards as a Rebuilding Tool

Secured cards, which require a deposit that becomes your credit limit, can help you rebuild your credit history. These cards offer security to lenders while reporting to one (or both) credit bureaus, which helps improve your credit history.

The Path to Unsecured Cards

Using a secured card to build your credit can put you on the fast track to having an unsecured credit card once again. Often, the bank or financial institution that issued your unsecured card will transition your secured card to an unsecured one, releasing the funds to you once you’ve established good enough credit.