Your credit score is a numerical representation of your creditworthiness, the higher your credit score, the better chance you will have of being approved for credit cards and loans. Make sure you do your research and compare personalized credit card offers for bad credit before making an application.
Here is our roundup of top tips to help to get your application approved:
1. Don’t apply for too many cards at once
Every time you apply for a credit card, it will be recorded on your credit rating, if you apply for too many cards at once, it doesn’t look good to lenders. It is better, therefore, to take your time and find the card that’s right for you before you apply.
2. Know your credit report
You can obtain your credit reports once a year at each of the three major credit-reporting bureaus, Experian, Equifax, and TransUnion, which can help you stay on top of your credit history. Make sure you check the accuracy of the report, when you apply for a card, as any errors that haven’t been corrected could delay or prevent your approval. If you do spot an error, file a dispute with the credit-reporting company straight away.
3. Apply for cards that fit your credit score
It’s better to apply for cards that match your current score and build it from there. You can find out your credit score by paying a small fee when you look into your credit history.
4. Pay your bills on time
To show that you have a good track record, it is important that you try and pay your bills on time. This will show a lender that you are likely to keep up with your credit card payments. Create a budget plan and stick to it, you need to look at how much money you have per month and create a budget that accounts for your regular bills, as well as any purchases that you may make with your new credit card so you can pay the balance on time each month.
5. Try a secured card to build a credit history
A secured credit card is a type of credit card that is backed by a cash deposit, which serves as collateral should you default on payments. The collateral acts as a form of protection for the lender. Secured credit cards can be used in the same way as any other credit card. Over time, using a secured credit card will help to improve your credit scores and establish a credit history.
6. Find a co-signer
Finding a co-signer will mean that someone else will be responsible for your debt if you can’t make the payments. A co-signer should increase the likelihood of you being approved, as long as they have a history of good credit.
7. Apply at your bank or credit union
You’re more likely to get approval if you apply for a credit card at the bank or credit union where you have a checking or savings account.
Best Credit Cards for Bad Credit 2021 in Canada
- Home Trust Secured Visa (No Fee)
- Plastk Secured Visa
- Capital One Low Rate Gold Mastercard
- Refresh Financial Secured Visa Card
- Capital One Guaranteed Approval Mastercard
- Scotiabank No-minima Visa
- RBC RateAdvantage Visa
- National Bank MC1 Mastercard
- ATB Financial Alberta Mastercard–Secured
Once you have been approved for a credit card, it is important to try and stay on top of your payments and do not spend more than you can afford.
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