Canada 16 May 2022

Credit Cards Without Credit Check: An Easy Guide

Looking for a credit card you can use right away? Do you want to find a credit card provider who offers credit cards without credit check? Read through our guide and find the right credit card for your needs!

In an ever-increasing cashless world, a credit card is the easiest way to pay bills and coordinate your daily purchase.

Getting a Credit card can prove to be an uphill task especially if you don’t know how to go about it. There are different types of credit cards that offer different kinds of credit options and spending limits. When choosing a credit card, it’s important to go for the credit card that suits your need and is easy to use. This article sheds light on the easiest ways to get a credit card in Canada.

Instant Approval Credit Cards.

1. What is Instant Approval Credit Cards?

Instant credit cards give you an instant reply after you apply. The Bank will immediately let you know if your application has been approved or if you will have to wait for a manual review.

If you’re looking for a time saving and stress-free credit card, an instant credit card is the best option for you. The card is practically Instant and cuts out the waiting period.
An instant approval credit card allows you to carry out online transactions before receiving your physical credit card.

2. Types of Instant Approval Credit Card

There are different types of Instant credit cards with different features and services. While they all cut out the delay and are instantly approved, Instant credit cards differ from Bank to Bank.

These are the Instant approval credit cards in Canada:

  • Best Instant Approval Credit Card— Instant approval credit card is approved upon application. You can begin using the credit card upon approval without having to wait for activation or getting your physical credit card.

The TRIANGLE MasterCard is one of the best instant approval credit cards. It is widely accepted in major Canadian Malls and retailers. Triangle MasterCard supports the use of google pay and apple pay for purchases pending when you receive your physical credit card.

You don’t need any credit score to apply for an instant approval credit card such as Triangle MasterCard. You also stand to enjoy additional benefits that include a 1.5% discount on the first $12,000 spent on groceries per calendar year in select Canadian Malls. You also get a 0.5% discount on every other purchase on the credit card.

  • Best Reward Credit Card— Reward credit cards are reward-based credit card that gives incentives for spending. When you use a reward credit card, you earn points which you can use in different exciting ways.

The AMERICAN EXPRESS COBALT is one of the best reward credit cards in Canada. Similar to popular streaming platforms such as Spotify and Netflix, American Express Cobalt charges $10 monthly for card use. The card is perfect for you if you’re frequently out with friends or you’re mostly on the road.

You earn 5 points per $1 on purchase and food delivery from eligible restaurants, Bars, and Cafes in Canada. You earn 2 points per $1 when you purchase gas from eligible partners in Canada. And 1 point per $1 on every other purchase.

The Additional benefits you get to enjoy from this credit card include medical coverage, baggage delay insurance, car rental theft, and damage insurance. You will also get an invitation to American Express exclusive events.

  • Best No Fee Reward Credit Card— this is an instant approval credit card that is popular for its flexibility and limitless points-earning and rewards payout frequency.

The TANGERINE MONEY-BACK Credit Card is one of the best no-fee reward credit cards. You can opt for the monthly subscription instead of the annual subscription.

Tangerine Money-back Credit Card offers you 2% money back on two categories of your choosing which includes but is not limited to groceries, gas, hotels, or entertainment. You also get 0.5% on the other purchase. You can optimize your no fee reward credit card by switching your money back category before making a purchase. For example, you can switch to car repairs before taking your car to the mechanic.

Your spending points are automatically earned and paid monthly to your statement balance. Or you can receive your bonus by opening a Tangerine Savings Account. This way, you get to unlock a third 2% money-back category.

No fee back reward credit card has no cashback limit. You can get to maximize your reward and increase your point by choosing a category you spend the most.

Unlike some Instant approval credit cards which don’t require a certain credit score, Tangerine Money-back Credit Card requires an income of $12,000.

  • Best Cash Back Credit Card

If you’re looking for a credit card that allows you to earn as much as you spend, the cashback credit card is the right option for you.

The SCOTIABANK MOMENTUM VISA INFINITE card has a $120 annual subscription. You get to earn up to 4% on groceries, recurring bills, and subscription services. You also get to earn 2% on gas, when you use public transportation and ridesharing services, and 1% on all other purchases. The additional bonus you get to enjoy on a cashback credit card includes comprehensive travel insurance, car rental insurance from damage and theft, and new device insurance.

Scotiabank Momentum Visa Infinite requires an income of $60,000 or $100,000 for a house hold.

  • Best Low-Interest Credit Card— If you’re looking to cut costs on the interest rate, the BMO PREFERRED RATE MasterCard is the choice for you. This is a $20 a year MasterCard from the Bank of Montreal. You get refunded for the first year for the annual fee. BMO preferred rate MasterCard offers you a market competitive less than the average interest rate of 12.99% on purchases. This allows you to minimize interest on balances and new purchases.

Additionally, you get a 3.99% welcome interest rate on balance transfers for 9 months with a 1% fee on the amount you transfer to the new card. You are not required to meet any income benchmark to qualify for the BMO preferred MasterCard.

  • Best Credit Card With No Credit Check

If you have a low credit score and you’re finding a way to escape the scrutiny of a credit check, you should go for the REFRESH FINANCIAL SECURED VISA.

The card is secured hence you will need to provide a deposit and also, the application process may take some extra process, unlike Unsecured credit cards.

Refresh Financial Secured Visa has a low 17.99% interest rate. This way, you can manage your expenses while you improve your credit score until you can apply for an improved card with more options and rewards.
This card charges an annual fee of $12.95 and a monthly maintenance fee of $3. You get an additional benefit of earning up to $100 when you refer a friend and there’s no referral limit.

  • Best Credit Card With Guaranteed Approval— if you’re looking for a credit card to grow your credit rating, the CAPITAL ONE LOW RATE

GUARANTEED MasterCard is an option you should consider. Guaranteed approval is reserved for persons who have a weak credit score but not weak enough to qualify for a secured credit card. However, if you don’t meet the criteria for a Guaranteed approval, your application will be automatically redirected to the Guaranteed Secured MasterCard.

Both the Guaranteed Secured MasterCard and the Capital One Low Guaranteed MasterCard both report your credit history. Hence using the card responsibly will help you improve your credit score.

Capital One’s Low Rate Guaranteed MasterCard has an annual fee of $79 and an interest rate of 14.9% on purchases and balance transfers. The additional benefits you get to enjoy include Price protection service, purchase assurance, carrier travel accident insurance, car rental insurance from damage and theft, baggage delay, and travel assistance.

There’s no specified income to qualify for the Capital One Low Rate Guaranteed MasterCard.

3. What Are The Criteria You Need To Fulfill Before You Can Get An Instant Credit Card?

To qualify for an instant credit card you need to fulfill some requirements. These requirements prove your creditworthiness or ability and cover your expenses.

  • You have to be a permanent resident or Canadian citizen. Your application will likely take longer if you aren’t a Canadian citizen.
  • You must be an adult. I.e it might be 18 or 19 and older, depending on the province.
  • To qualify for an unsecured credit card, you must not have a history of bankruptcy.
  • A decent credit score will increase your chances of being approved.

Instant approval applications require that you fill in all your information accurately. Your details will be used to carry out a background check to determine if your application will be approved or not.

Secured and Unsecured Credit Cards?

1. What is a Secured Credit Card?

A secured credit card is an application that requires you to deposit a certain amount of money as insurance on defaulting on the payment. Secured credit card is usually given to persons with low creditworthiness as a way to improve their creditworthiness.

2. Which Banks Offer Secured Credit Cards?

Different Banks in Canada offer Secured Credit cards with different charges and interest rates.

  • PEOPLES’ TRUST SECURED CREDIT CARD— This card charges an annual fee of $70, an interest rate of 12.99% on purchases, and 24.5% on cash advance fees.

The minimum advance deposit is $500.

  • HOME TRUST SECURED NO ANNUAL FEE VISA— this card charges no annual fee. It has an interest charge of 19.99% and a Minimum required deposit: $500.

You can add another authorized user to this card with a credit limit of as much as $10,000.

  • HOME TRUST SECURED LOW-INTEREST VISA— this second Home Trust secured credit card charges an annual fee of $59 and an Interest: 14.9% The minimum required deposit is $500.

  • CAPITAL ONE GUARANTEED SECURED MasterCard— this card charges an annual fee of $59 and an Interest rate of 19.8%. This card has a lower deposit requirement of $75. However, it carries a higher interest rate compared to other secured credit cards.

  • VANCITY ENVIRO SECURED VISA— this card carries no annual fee. However, it carries a high-interest rate of 19.5%. The minimum required deposit is $500.

This card has a system of reward-points for spending that allows you to earn points on the likes of travels, donations to charity, and purchases.

  • ROYAL BANK OF CANADA (RBC) SECURED CREDIT CARD— the RBC secured credit card charges a $20 annual fee and 11.99% interest on purchases and cash advances. The minimum required deposit is $500.

The RBC secured credit card charges fees of $3.50 for a cash advance and $5 if you’re out of the country. The over-limit fee is $29 per statement period if your balance goes above your credit limit.

  • BANK OF MONTREAL (BMO) PREPAID CREDIT CARD— this card is interest-free with an annual fee of $6.95. BMO prepaid credit card offers you the flexibility to avoid paying the $500 deposit by not allowing you to spend more than you have on the card or to take cash advances.

  • TORONTO-DOMINION (TD) SECURED CREDIT CARD— this card charges an annual fee of $29 and an interest rate of 19.9%. The minimum required deposit is $500. You will have to apply for this credit card in person as the application can’t be done online.

  • CANADIAN IMPERIAL BANK OF COMMERCE (CIBC) SECURED CREDIT CARD— this card carries an annual fee of $29 and a 19.9% interest rate. The minimum required deposit is $500. Similar to the TD Secured Credit Card, the application has to be in person.

  • SCOTIABANK SECURED CREDIT CARD— this card has no annual fee and no balance transfer fee.

The interest rate is 16.99% and the minimum is $500.

3. How Do You Qualify For A Secured Credit Card?

  • You are qualified to apply for a secured credit card whether you have a low, average, or stellar credit score.
  • You must be a Canadian citizen or resident in Canada.
  • You must be of eligible age of the majority of the province you reside.
  • When applying, you’re required to provide information on your monthly payment, loans, mortgages, and other financial information. This information will determine the product you will be offered.
  • Most financial institutions and Banks requires that you must have a verifiable source of income and a verifiable address in Canada.

4. What Is An Unsecured Credit Card?

An unsecured credit card is not secured by any deposit that the issuer can keep as collateral in a situation of default on payment.

5. Which Banks Offer Unsecured Credit Card?

All Banks Offer Unsecured Credit cards. You can contact your local banker or walk into a branch of an issuer to inquire about the unsecured credit card option available to you.

The product you get will depend on your credit score and financial capacity.

6. What Are The Eligibility For Unsecured Credit Card?

  • To be eligible for an unsecured credit card you must be a citizen of Canada or a resident in Canada.
  • You must be an adult. I.e it might be 18 or 19 and older, depending on the province.
  • To qualify for an unsecured credit card, you must not have a history of bankruptcy.
  • A decent credit score will increase your chances of being approved.

7. Can a Secure Credit Card Turn Into An Unsecured Credit Card?

A secured credit card can change to an unsecured credit card after a period of using the secured credit card. By using your secured credit card responsibly, you can change it into an unsecured credit card.

These are the following ways to build your credit score with your secured credit card.

  • You should ensure you use the card regularly. Try to put a couple of purchases on it each month.
  • You should keep your balance low. Try not to exceed 30% of your credit limit. Of possible, stay under 10%. Your ability to use your credit card without using all your credit is a way to build your credit score.
  • Ensure you pay early and in full. Your payment history is the biggest influencer of your credit score. Paying on time helps you to avoid interest and also help build your credit score.
  • Try to practice a positive bill-paying habit. Accumulated bills will reflect badly on your credit report, so avoid it as much as possible. After building your credit score rises into a fair or average range which is generally between 630 to 689, you stand a better chance of getting your secured credit card changed to an unsecured card.

How To Get A Credit Card Without A Credit Check.

Not everyone has a perfect score. If you find yourself on the lower side of the score range, you will be eager to avoid a credit check. You don’t have to worry as many banks issue credit cards without conducting a credit check. However, you will have to opt for a Secured Credit Card if you’re trying to avoid a credit check.

1. Best Credit Card That Doesn’t Require Credit Check.

The credit cards that don’t require credit check include.

  • Home Trust Secured Visa— this card has no annual fee and a 19.99% interest rate on purchases. The credit limit is determined by the amount of security deposit which is between $500-$10,000.

  • Home Trust Secured Annual Fee Visa— this is a low-interest rate annual fee of $59 and a low-interest rate of 14.9%. The credit limit is set by a security deposit set between $500-$10,000.

  • Plastk Secured Visa: This is a reward card that carries an annual fee of $48, a $6 monthly maintenance fee, and a 17.99% interest rate on purchases. The credit limit is set by a deposit which is between the amount of $300-$10,000.

  • Refresh Secured Visa: this card carries an annual fee of $48 and a 17.99% interest rate on purchases. The credit limit is set by a security deposit that ranges between $200-$10,000.

2. What Requirements Do You Need To Fulfill To Be Eligible For Credit Card With Zero or Bad Credit?

To eligible for a credit card with poor credit you have to fulfill the following:

  • You must be a citizen of Canada or you must be resident in Canada.
  • You must be an adult. I.e it might be 18 or 19 and older, depending on the province.
  • You must have a verifiable source of income.
  • You have to pay a specified deposit to qualify for a secured credit card.

Features and Payment Structure of Different Types Of Credit Cards.

The payment structure and features of credit cards are determined by the product and the type of credit card.

1. Tangerine Money-Back Card

The features of this card are:

  • Monthly Money-back rewards
  • Unlimited Money-back rewards
  • Personalized Category.

This card carries no annual fee and an interest rate of 19.95%. Additionally, you stand to enjoy up to a 2% reward on all purchases.

To qualify for this card you must have a gross annual income of $12,000. You must be the age of majority in your province or territory. You have to be a citizen of Canada or be a permanent resident. You must not have declared bankruptcies over the past 7 years.

2. Capital One Low Rate Guaranteed MasterCard

The features of this credit card are:

  • Annual Fee: $79
  • Purchases and Balance Transfers of up to 14.9%.
  • Cash Advances of up to 21.9%. You’re eligible for a Capital One Low Rate Guaranteed MasterCard if you satisfy the following requirements:
  • You must be the age of majority in your province or territory of residence
  • You don’t have an existing Capital One account or a pending application.
  • You must not have applied for a Capital One account more than once in the last 30 days
  • You haven’t had a Capital One account that was not in good standing in the last year.

3. Refresh Financial Secured Visa

This is a refresh financial secure Visa is the credit for you if you have a low credit score.

It has a guaranteed approval as long as you can fulfill the following requirements:

  • You have to be the age of the majority in your province.
  • You have to pay a security deposit, starting at $200.
  • You mustn’t have an existing Refresh credit card or a pending application. Refresh Financial Secured Visa has an annual fee of $12.95. You’re also required to pay a monthly fee of $3, for a total annual cost of $48.95.

4. Marriot Bonvoy American Express Card

This credit card attracts an annual fee of $120 and an annual interest rate of 19.99% on purchases and 21.99% on funds advances.

You can earn up to 50,000 welcome bonus points when you spend $1500 in your first three months. You can upgrade to the elite membership card when you spend up to $30,000 in purchases annually.

You can also receive bonus points of up to 10,000 when you refer a friend.

5. BMO Rewards Master Card

This is a $20 a year MasterCard from the Bank of Montreal. You get refunded for the first year for the annual fee. BMO preferred rate MasterCard offers you a market competitive less than the average interest rate of 12.99% on purchases. This allows you to minimize interest on balances and new purchases.

Additionally, you get a 3.99% welcome interest rate on balance transfers for 9 months with a 1% fee on the amount you transfer to the new card.

6. HomeTrust Secured Visa

This card has no annual fee and a 19.99% interest rate on purchases. The credit limit is determined by the amount of security deposit which is between $500-$10,000.

7. Capital One Secured MasterCard

This card charges an annual fee of $59 and an Interest rate of 19.8%. This card has a lower deposit requirement of $75. However, it carries a higher interest rate compared to other secured credit cards.