Personal Finance

Bad credit credit cards with rewards?

  • Last Updated:
  • Feb 13th, 2014 4:04 pm
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Newbie
Aug 2, 2010
88 posts
2 upvotes

Bad credit credit cards with rewards?

Past mistakes have put me in a position with bad credit. I'm a lot more mature now and I'd like to start rebuilding it and I'm thinking my best way would be one of those bad credit credit cards. I've found a few online that are pre-approved (with deposit) but I was wondering if anyone knows of any that offer any kind of rewards? Something like airmiles would be great?

I'm also wondering if anyone knows if its better (credit building wise) to have a positive balance on the card? Say I deposit $300 a week from my paycheck onto the card then use it for day to day spending. Or is it better to just go into a negative balance then pay it off fully at the end of the month? Also assuming I'm spending $1000-$1500 and paying off fully a month how long would it realistically take for the bank to offer a better cc assuming there arn't any pre-approval ones with rewards? I'm thinking 6 months to a year depending on how bad my credit actually is?
4 replies
Sr. Member
Aug 3, 2006
764 posts
141 upvotes
Toronto
Look up Capital One Vibe MasterCard. 1% cash back aand comes with nice benefits like purchase security, purchase price protection, extended warranty along with car rental insurance, etc. No annual fee.
Deal Addict
Oct 4, 2009
3590 posts
2953 upvotes
Montreal
RBC offers their regular cards(with corresponding benefits) in secured versions whereby you purchase a guaranteed investment with them to secure the card limit.
Deal Fanatic
User avatar
Nov 23, 2005
9005 posts
5728 upvotes
CapOne would be your best bet when it comes to a secured card.

If you’re approved for a Secured MasterCard that means:

Your card comes with Standard MasterCard benefits
You’ll need to provide security funds through your bank’s online banking site or by cheque/money order (between $75 and $300 – we’ll tell you the amount after you’ve applied)
You’ll get the same rate and annual fee as the Gold card
Your security funds are fully refunded if you ever decide to close your account and your balance is paid in full
Deal Addict
User avatar
Aug 1, 2009
1291 posts
90 upvotes
I would highly recommend if you want to improve your credit, go with a secured card from a major bank like TD. After 1-2 years, you can request to have your security funds back.

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