Once you have bad credit, it can be hard to get a lease, car loan, or mortgage, etc. That’s why it’s crucial to maintain a good score. Nonetheless, if you have bad credit, rebuilding it is difficult, but far from impossible thanks to a number of Canadian credit card companies that offer cards ideal for people with a limited credit history or low scores.
How Do I Fix A Bad Credit Score?
Using a credit card properly is the best way to build a good credit score and rebuild a bad one. After all, 35% of your credit score is down to your payment history.  Another 30% of your credit score is calculated based on credit utilization. Simply put, if you’re taking out less credit, you’re score will be better. New credit cards increase credit limits and thus decrease credit utilization.
Difference Between Secured Credit Cards and Guaranteed Credit Cards
Many people with bad credit won’t be able to sign-up for a regular credit card, but they can choose a secured or guaranteed credit card.
To activate a secured card, you will need a security deposit,  which in most cases is as much as the credit limit. Deposits start out at around $200 and go up to $1000 or higher, and the deposited amount is returned once you pay off your balance and close your credit card.
If you can’t get anything else, you will almost always be approved for a guaranteed credit card.  Many companies offer a questionnaire to see if you qualify before having to take a hit to your credit score due to a hard inquiry.
Best Credit Cards to Fix Bad Credit Score
1. BMO Secured Credit Card
This reloadable MasterCard from BMO has a security deposit range from $100 to $10,000 which equals your available credit.  Applying for the card takes only a few minutes and can be done online, while the annual fee is just $6.95 with no interest rate added to purchases.
2. Home Trust Secured Credit Card
With the Home Trust Secured Credit Card  you can deposit anywhere from $500 to $10,000, which equals your credit line, but you can increase it with additional deposits. APR comes out at 19.99% without an annual fee or 14.9% with a $59 fee per year.
3. Refresh Financial Guaranteed Credit Card
To get a secured credit card  from Refresh Financial, you will need a Canadian ID, minimum monthly income, and an open bank account, but they don’t ask for a credit check before approval. Credit limits depend on deposit size and can range from $200 up to $10,000, while the APR is 17.99% and with an annual fee of $12.95.
4. Capital One Guaranteed Credit Card
Getting a Capital One Guaranteed Credit Card  but you need to fulfill the following conditions:
- Be of legal age in your territory or province
- Not be a current holder of a Capital One card
- Not have owned an account in bad standing in the last year
- Not have applied more than once in the last month for a Capital One card
- Capital One offers an unsecured or secured card based on credit history and credit limits in the range of $300 to $7,000 with an APR of 19.8% and $59 in annual fees.