Best Visa Cards for Fair Credit in Canada Explained

If you're looking for a visa card in Canada but have fair credit, you're not out of luck. There are several options available that can help you rebuild your credit score while still offering rewards and benefits.

One option is the Home Trust Classic Visa Card, which offers a 1% cashback reward on all purchases. This card also reports your payment history to the credit bureaus, which can help improve your credit score over time.

The Home Trust Classic Visa Card has a relatively low credit limit of $500, but this can be a good thing if you're trying to avoid overspending. With a low limit, you'll be less likely to accumulate debt and hurt your credit score further.

The credit card application process for fair credit is often more streamlined than for those with excellent credit, so you may find it easier to get approved for a card with fair credit.

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Credit scores range from 300 to 850, with higher scores indicating better credit health.

Having a fair credit score can make it easier to get approved for a visa card, but it's essential to understand that credit scores are not the only factor considered.

A fair credit score typically falls between 600 and 749, which can still qualify you for a visa card with reasonable terms.

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ESL Federal Credit Union offers a Visa credit card with some attractive features. You can save money on balance transfers with a 0% intro APR for 12 months, then 12.50% - 17.99% variable APR.

The ESL Visa credit card doesn't charge a balance transfer fee, which can save you $30 to $50 on a $1,000 balance transfer. This is a significant savings, especially compared to balance transfer fees ranging from 3% to 5%.

To take advantage of this credit card, you'll need to join ESL Federal Credit Union. However, there are workarounds if you don't meet the general eligibility requirements.

Here are some of the credit card's features:

You can try negotiating a lower APR with your credit card issuer, although there's no guarantee they'll agree. A LendingTree study found that 76% of requests to lower credit card interest rates were granted.

It's worth asking, as you might be pleasantly surprised. If your credit card issuer does agree to lower your APR, it could save you a significant amount of money in interest over time.

Some credit cards, like the ESL Visa Credit Card, have a low ongoing APR of 12.75%-17.99%. This is a relatively low rate compared to others on the market.

If you're not satisfied with your credit card's APR, don't be afraid to ask your issuer for a lower rate. You might be surprised at how often they agree to a reduction.

The ESL Visa Credit Card also offers a 0% intro APR for 12 months on balance transfers, which can save you money on interest. However, after the intro period ends, the APR jumps to 12.50% - 17.99%.

Here are some key APRs to keep in mind:

Keep in mind that these APRs are subject to change, and you should always check with your credit card issuer for the most up-to-date information.

Credit scores in Canada range from 300 to 900 points. A score higher than 660 is considered good, while anything under 660 is considered fair or poor.

The magic number for a good credit score is around 660. A fair credit score sits just below the good credit range, starting at around 560 and going up to 659.

A fair credit score means you pose a medium level of risk to banks and other lenders. This can affect how much money you'll be able to qualify for.

In Canada, a credit score is a crucial factor in determining your creditworthiness. It's essential to maintain your score and take measures to improve your ranking where possible.

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A good credit score is a vital aspect of your financial health. According to FICO, a good credit score ranges from 670 to 739.

FICO's definition of a good credit score is a bit narrow, but it's a good starting point. Any number higher than 739 is considered excellent.

The VantageScore, on the other hand, has a slightly broader definition of a good credit score, ranging from 661 to 780.

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If you have fair credit, which is typically a credit score between 580 and 669, you'll be looking for balance transfer credit cards that can help you save money on interest charges.

There are good cards that offer below-average APRs on balance transfers, which can help you pay off debt faster and save money in the long run.

While you might not qualify for a 0% intro APR on balance transfer credit cards, you can still find cards that offer lower APRs.

You might be wondering what the benefits of balance transfers are, so let's take a look:

However, it's essential to be aware of the potential downsides of balance transfers:

Improving your credit score is crucial to getting approved for a visa card, even if you have fair credit. Paying your bills on time and in full each month is the most important factor, making up 35% of your credit score.

Paying down high balances is also essential, as it keeps your credit utilization ratio below 30%. For example, if you have a credit card limit of $1,000, you should not let your balance exceed $300.

Only apply for new credit when it's really necessary, as each application generates a hard inquiry that lowers your credit score by a few points.

Having a credit card that reports to the credit bureaus, such as Equifax, Experian, and TransUnion, is also important for improving your credit score.

Here are some key tips to keep in mind:

Making payments on time is the easiest way to improve your credit score, accounting for roughly 35% of your total score.

If you're looking for alternative Visa cards for fair credit, consider the RBC Cash Back Mastercard, which offers a no-fee option with cash back rewards.

The Neo Credit Mastercard is another option, offering cash back rewards without an annual fee. It's worth noting that eligibility requirements vary between providers, so be sure to check the minimum age and income requirements.

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To compare your options, aim to review at least 3-4 credit cards to find the one that offers the best rewards and perks for the lowest fee. Look for cards with low interest rates and no annual fees.

Here's a comparison of some popular Visa cards for fair credit:

If you're having trouble getting a regular credit card due to fair credit in Canada, there are still options available to you. Consider getting a prepaid card for non-cash purchases.

Prepaid cards are similar to debit cards, where you must deposit funds to use them, and you can only spend what you have.

Prepaid cards are not reported to credit bureaus, so they won't help improve your credit score.

A more viable option is a secured credit card, which also requires a deposit, but this deposit becomes your credit limit and is used as collateral in case you miss repayments.

Secured credit card payments are reported to credit bureaus, so these cards can be used to increase your credit score over time.

If you're considering these alternatives, here are your options:

When choosing the best credit card for fair credit, it's essential to compare your options. Aim to compare at least 3-4 credit cards to see which one will give you a high return on rewards, as well as perks, for the lowest fee.

You can find no-fee credit cards that offer decent rewards, such as the RBC Cash Back Mastercard, which is the best no-fee credit card for cash back and fair credit.

To find the best credit card for your needs, consider factors like rewards points, cashback, and other basic perks like extended warranties and purchase protection. The Neo Credit Mastercard is a great option for those looking for a cash back credit card with fair credit.

If you're looking for a credit card with no annual fee, the Scotia Momentum No-Fee Visa Card is a great choice. However, make sure to check the eligibility requirements, including minimum age and income requirements.

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Here are some of the best credit cards for fair credit in Canada:

Remember to always check the interest rates and fees associated with each credit card before making a decision. Opt for a low interest rate if you think you'll carry a balance on your card.

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If you're looking to earn rewards for your entertainment expenses, the Scotiabank SCENE+ Visa Card is a great option. It has no annual fee, which means you can use it without worrying about extra costs.

You can earn up to 7,500 Scene+ points in the first 3 months, which is a nice welcome offer. To take advantage of this, you need to apply by March 2, 2025.

The card offers 2 Scene+ points on every $1 you spend at Cineplex theatres, cineplex.com, Home Hardware, and participating grocery stores like Sobeys, Safeway, FreshCo, and Foodland & Participating Co-ops. You can also earn 1 Scene+ point per $1 spent on all other eligible purchases.

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Here are the key features of the card:

One thing to keep in mind is that you can only earn SCENE points at participating grocers, which might limit your options. Additionally, there's a foreign conversion fee of 2.5% on purchases made in foreign currencies.

If you have fair credit, you can apply for a credit card with a manageable fee and interest rate. FICO scores for fair credit typically range from 620 to 680.

To improve your credit score, try to use no more than 25-30% of your allowed limit each month. This will look better on your credit report and may lead to a higher credit limit in the future.

The Scotia Momentum No-Fee Visa Card is a good option for those with fair credit, with no annual fee and a 0% introductory interest rate on balance transfers for the first 6 months. This card also offers cashback rewards on eligible purchases.

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The Scotia Momentum No-Fee Visa Card has a low return on other purchases, with only 0.5% cashback on most spending categories. However, it does offer discounts on car rentals and a signup bonus.

Here is a summary of the Scotia Momentum No-Fee Visa Card's key features: