The Top Unsecured Credit Card For Bad Credit in Canada!
IMPORTANT NOTICE! Affirm Financial Services has temporarily suspended issuing new credit cards. This is the message showing on their website:
“As we continue to find progressive ways to support the credit needs of Canadians, Affirm Financial Services has temporarily suspended issuing new credit cards, loans and all credit limit increases.
We are working hard to ensure that we bring you the credit products you need as soon as we can. We sincerely apologize for any inconvenience this may cause you. Existing Affirm Mastercard customers may continue to use the card in accordance with the terms of the cardholder agreement.”
Has your bank turned you down for credit? Have your financial plans not worked out the way you imagined? For people looking to improve or re-establish their credit, Affirm Financial’s credit card is the ultimate credit card for bad credit in Canada – no security deposit required with lines as high as $3,000.
Whether your credit score has fallen into the 500’s, your accounts have been sent to collections, you’ve recently completed your bankruptcy or consumer proposal or are close to doing so, Affirm Financial is your next logical choice, before applying for a secured credit card.
We’ve reviewed other Canadian credit cards for bad credit from CapitalOne, Home Trust, People’s Trust, the Big 5 Banks and of course infamous pay day loans. They either require a security deposit, huge fees, or egregious interest rates, upwards of 599%! None beat Affirm Financial’s unsecured credit card offer, making it our number one ranked credit card for bad credit in Canada.
A Credit Card for Bad Credit: Why We Like It
- Easy Approval: Just because you’ve been declined by your bank, doesn’t mean you don’t deserve credit. Affirm Financial says they are looking for financially responsible adults who may have fallen on hard times. Your credit score may be as low as 550, or you could be coming out of bankruptcy or consumer proposal, or a debt management plan. Affirm specializes in providing unsecured credit to people in your situation.
- Unsecured Credit: Affirm does not require a security deposit. You will get a completely unsecured credit line. Most other credit cards for bad credit in Canada require a minimum security deposit of $300-$500, and your credit line will only be as large as your deposit. Also, remember, some secured credit card issuers will flag the report to the credit bureaus as a secured card – such a flag could make it more difficult to rebuild credit quickly.
- Frequent Reporting To Credit Bureaus: Not all credit reporting is equal. In order for you to re-establish your credit, your credit card company has to report your history of repayments to Equifax and TransUnion. The more history of on-time payments you have, the faster your score will improve. To help you re-establish your credit history more quickly, Affirm reports to the bureaus every month – you’d be surprised, but not every bank does it as frequently.
- Easy To Make Payments: While some credit card companies make it difficult to make payments, Affirm makes it exceedingly simple in our opinion. You can set up automatic bill payments through online banking directly from your personal chequing account, visit a Western Union location to pay with a WUQC, pay online using TelPay or mail your payments. To have a secured credit card, you’ll have to have a bank account.
Who Gets Approved For The Affirm MasterCard
In order to get approved for the Affirm MasterCard you should:
- Have a credit score >500 if you’ve declared bankruptcy or been in consumer proposal, otherwise;
- Have a credit score >600
- Have an annual income >$10,000
- Not have a payday loan inquiry (lenders view that as a bad sign of your ability to repay)
- Not have a major derogatory like a delinquency, or judgement in the last 6 months
The Affirm MasterCard® Credit Card
- True credit – no security deposit required
- Credit limit up to $3,000
- Use it anywhere MasterCard® cards are accepted
- Fixed interest rate – 29.99% for homeowners and 34.99% for non-homeowners
- Reports to credit bureaus every month
- Minimum monthly payment – the greater of $30 or 4%
- Reports to credit bureaus every month under Affirm Card/BC
Our conclusion? If you’re looking to re-establish your credit, or get access to a credit card, despite being turned down by a bank, Affirm’s unsecured MasterCard is the best in Canada. It’s clear, convenient, reasonably priced, and gives you the opportunity to improve your credit history faster than just about any other card.
Check out this article on Canada’s top credit cards for bad credit, that include unsecured cards, if you’d like to explore secured alternatives.