The Best Credit Cards for Rebuilding Your Credit

Finances aren’t easy, and it can be difficult to find balance with busy modern lifestyles. Currently, many of us feel strain on our pocketbooks, and when combined with financial instruments such as unsecured credit cards, this can lead to a spiral of debt and even worse.

If you’ve made mistakes in the past and are trying to repair your credit history, then you’ve come to the right place. In this article, I’d like to offer folks who might be getting back into using credit responsibly some excellent credit card options.

Even if you have a less-than-stellar credit report from TransUnion or Equifax, there are still some tools available to you to help rebuild your credit score.

Why Get a Credit Rebuilding Card?

Everyone is on a financial journey. If you stumbled enough to affect your negatively, don’t fret. You can better this situation, and the good news is that second-chance lenders in Canada are often the furthest thing from second-rate.

If you find yourself in need of a lending product from a more forgiving creditor, do yourself a favour and know the types of products you’re looking at to begin with.

There are two options for you to consider: secured credit cards and unsecured credit cards. The former requires you to put up a security deposit, while the latter are products from lenders such as Capital One who are known to specialize in looking past financial mistakes, but don’t require a security deposit.

This first type of product, secured credit cards, will require a security deposit beginning from as low as $50, but usually starting around the $200–500 range. This is done to make sure you don’t abscond with the bank’s money.

The second category, unsecured credit cards, usually requires you to have a slightly higher credit score. This creates a longer distance between you and any bankruptcies, consumer proposals, or missed or late payments.

In either case, the act of having a credit card should report your responsible spending to the credit bureaus, TransUnion and Equifax. When you pay your balance down on time and in full, and refrain from overleveraging your available credit, then you’ll see your credit score, and thus your access to credit, increase over time.

Just remember you can’t get a credit card if you’re in the midst of a bankruptcy or consumer proposal – only…