Best Canadian Credit Cards for Fair/Average Credit Scores

Your credit score might be average—but your lifestyle doesn’t have to be. Canadians with average (or ‘fair’) credit scores can nonetheless qualify for Canadian credit cards for fair credit that offer big sign-up bonuses, high cash back and rewards rates, and low interest charged on purchases and balance transfers.

Don’t settle for a credit card with so-so benefits! We’ve winnowed out the mediocre offers so that you can focus on the credit cards that provide the best value possible while you keep up your credit score climb.

Our Recommendations: 

What Is Fair or Average Credit?

The range of Canadian credit scores is from 300 to 900. Although it’s difficult to accurately determine what exactly the average among all Canadians is, an oft-cited ‘magic number’ for credit scores in Canada is 650. Some banks use this as a threshold for whether or not applicants are eligible to be approved for products like unsecured credit cards. In contrast, others consider applicants with credit scores on the lower end of the average range.

Individuals who have undergone bankruptcy or a consumer proposal will need to work hard to build their credit back to a fair/average credit score. Someone who typically has good credit might temporarily dip into this level if they are delinquent on bills, make a series of late payments, or run their balance up to the limit of their available credit.

With the wide range of factors affecting credit scores, keeping it in great shape is challenging. To find your credit score, navigate to TransUnion or Equifax and sign up for their free reports. If you have reviewed your score but find it does not meet the minimum to be considered “fair”, check out the articles here and here to learn how to improve it.

What Can I Do with Fair Credit?

With fair credit, you gain access to a wider range of financial tools that grant more freedom to spend and save. It can take hard work to reach this threshold, and if this is you – congratulations! Credit is an indicator of your personal financial diligence, and a fair score gives you the option to take on more responsibility. Whereas those with poor credit may experience more limited access to financing, fair credit can be used to take out a bank loan, open a line of credit, or benefit from cards with more favorable terms.

Best Credit Cards for People with Fair Credit

#1 BMO CashBack® Mastercard®*

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The BMO CashBack® Mastercard®* is unusually generous for credit cards available to those with average credit scores because it offers a solid regular earn rate on all spending and a great introductory promotion. Get up to 5% cash back in your first 3 months, plus a $50 cash back bonus (when you spend $6,000) in your first year – that’s up to $175 cash back in your first year!* After that you’ll get 0.5-3% back on everything depending on the purchase category*. Most cashback cards for people with average credit will either charge an annual fee for earn rates at that level or charge no annual fee but will offer low earn rates and no sign-up bonus to speak of. The BMO CashBack® Mastercard®* offers the best of both worlds.

• $0 annual fee
• Get up to 5% cash back in your first 3 months, plus a $50 cash back bonus (when you spend $6,000) in your first year – that’s up to $175 cash back in your first year!*
• 0.5-3% cash back on all eligible purchases after the promotion ends* (maximums apply)
• 0.99% introductory interest rate on Balance Transfers for 9 months, 2% fee applies to balance amounts transferred*

Click here to apply or learn more by reading our complete BMO CashBack® Mastercard®* review.

*Terms and conditions apply.

#2 The Home Trust Preferred Visa

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The Home Trust Preferred Visa is one of the few Canadian credit cards available to those with average/fair credit scores that doesn’t charge a foreign transaction fee, the 2.5% surcharge that most Canadian credit cards levy when you purchase in a foreign currency. This makes it a great asset for those who frequently travel overseas and/or make a lot of online purchases from sites that don’t offer checkout in CA$. Aside from that amazing feature, it also gives the cardholder 1% cash back on all eligible domestic purchases. Unfortunately, purchases in currencies other than CA$ don’t earn cash back.

• $0 annual fee
• No foreign transaction fees
• 1% unlimited cash back on all eligible purchases in CA$

The feedback we’ve gotten about the Home Trust Preferred Visa indicates that applicants accepted for the card tend to have credit scores in the average to above-average range. Therefore if you’re interested in this card, we encourage you to check your credit score and ensure that it is 650 or more before applying.

Click here to apply or learn more by reading our complete Home Trust Preferred Visa review.

#3 MBNA Rewards Platinum Plus® Mastercard®

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Credit cards with a big welcome offer and appealing rewards rates on everyday spending are usually available only to applicants with good-to-excellent credit scores and a high annual income. But the MBNA Rewards Platinum Plus® Mastercard® packs a substantial amount of value in an accessible package. New cardholders can earn up to 10,000 points^†† when they spend $500 on eligible purchases (5K points^††) with the card and when they sign up for e-statements (another 5K points^††) within the first 90 days of opening their account. Plus, they can earn 4 points^†† per $1 spent on eligible grocery, restaurant, membership, digital media, and household utility purchases made within that same 90-day period. When the welcome period ends, purchases in those categories earn 2 points‡ per $1 spent up to a maximum annual spending limit of $10,000 in the applicable category. After crossing the $10,000 annual limit in a given category, further purchases in that category will earn 1 point‡ per $1 spent for the remainder of the year, the same rate for purchases made in any category outside of groceries, restaurants, memberships, digital media, and household utilities.

MBNA Rewards points can be redeemed for a variety of rewards, including travel, cash back, gift cards, and merchandise, but they have the highest value when redeemed for travel, where they’re worth $0.01 per point.

• No annual fee
• 4 points^†† per $1 spent on eligible groceries, restaurants, digital media, memberships, and household utilities within the first 90 days of opening your account; 2 points‡ per $1 spent in those categories after the welcome period ends (up to $10,000 spent annually in the applicable category)
• 1 point‡ per $1 spent on all other purchases
• Earn up to 10,000 additional points^†† during the 90-day welcome period
• 19.99% interest on purchases; 24.99% interest on cash advances; 22.99%✪ interest on balance transfers

Click here to apply or learn more by reading our complete MBNA Rewards Platinum Plus® Mastercard® review.

‡, ††, ✪, ***, Terms and Conditions apply

This offer is not available for residents of Quebec. For residents of Quebec, please click here.

Sponsored advertising. MBNA is a division of The Toronto-Dominion Bank (TD) and TD is not responsible for the contents of this site including any editorials or reviews that may appear on this site. For complete information on this MBNA credit card, please click on the “Apply Now” button.

The Toronto-Dominion Bank is the issuer of this credit card. MBNA is a division of The Toronto-Dominion Bank. ®MBNA and other-trademarks are the property of The Toronto-Dominion Bank.

#4 BMO Preferred Rate Mastercard®*

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Even if your credit score is not quite perfect, you can still get an excellent rate on purchases and balance transfers with the BMO Preferred Rate Mastercard®*. You do need a credit score of at least 650 to apply, but the low-interest rate is extremely competitive for a card that is available to those with ‘only’ average credit. The card’s key features are:

• $20 annual fee (waived the first year)*
• 12.99% interest rate on purchases and 15.99% on cash advances
• 0.99% introductory interest rate on balance transfers for the first 9 months, 2% transfer fee applies*
• 12.99% interest rate on balance transfers after 9 months
• Extended warranty and purchase protection on eligible purchases*

Click here to apply for the BMO Preferred Rate Mastercard®*

*Terms and conditions apply

#5 MBNA Smart Cash Platinum Plus® Mastercard®

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If you spend a lot of your hard-earned funds on gas and groceries, but you recoil at the thought of paying an annual fee for a credit card, the MBNA Smart Cash Platinum Plus® Mastercard® might be the perfect fit for you. It starts with one of the most attractive welcome offers among credit cards with no annual fee, doling out 5% cash back^†† on gas and groceries for the first six months. This is reduced to 2%‡ after the six-month promotional period ends, which is still a relatively high cash back rate. All purchases outside the gas and grocery categories earn 0.5%‡ cash back.

Take note that you can only earn at the 5%^†† and 2%‡ cash back rates up to a monthly total of $500 in combined grocery and gas spending; after you cross that limit, you’ll earn at the base 0.5%‡ rate in those two spending categories until a new month begins. These limits are admittedly a bit of a letdown. However, the card still offers solid value, particularly for singles and couples who are less likely to exceed $500 in combined grocery/gas spending within a month compared to, say, larger families.

• No annual fee
• 5% introductory cash back rate^†† on gas and groceries for the first 6 months ($500 monthly spending cap)
• 2% standard cash back rate‡ on gas and groceries after the first 6 months ($500 monthly spending cap)
• 0.5% cash back‡ on all other purchases
• Other benefits like purchase assurance, extended warranty, and discounts at select car rental companies
• 19.99% interest on purchases; 24.99% interest on cash advances; 22.99%✪ interest on balance transfers

Click here to apply for the MBNA Smart Cash Platinum Plus® Mastercard®.

‡, ††, ✪, Terms and Conditions apply

This offer is not available for residents of Quebec. For residents of Quebec, please click here.

Sponsored advertising. MBNA is a division of The Toronto-Dominion Bank (TD) and TD is not responsible for the contents of this site including any editorials or reviews that may appear on this site. For complete information on this MBNA credit card, please click on the “Apply Now” button.

The Toronto-Dominion Bank is the issuer of this credit card. MBNA is a division of The Toronto-Dominion Bank. ®MBNA and other-trademarks are the property of The Toronto-Dominion Bank.

A Fair Credit Score Opens Financial Doors

Keep in mind that although the credit cards featured on this page are very worthwhile, there’s a significant drop-off in value when you slide down the credit score scale and look at the cards available to those with no credit or poor credit. Those who are just starting out their credit journey in Canada, like immigrants and young adults, might be wise to make reaching the average credit score range one of their foremost personal financial goals.

*This post was not sponsored. The views and opinions expressed in this review are purely my own.