Lifestyle   Money
By Consumer Team | 18 May 2022

Easy Approval Credit Cards: Guaranteed Approval & No Credit Checks

Looking for a new credit card with a fast and easy application? What about a credit card with no credit checks or no annual fees? Check out our credit card guide below.

Instant Approval Credit Cards

What is an Instant Approval Card?

As the name goes, an instant approval card is when your credit card application is treated urgently. Decisions on approval or a decline are taken within minutes. If your application for an instant approval card is granted, you should receive your new card within 5-7 working days.

How Do I Get an Instant Approval Card?

As easy and quick as getting an instant approval card is, a lot of factors determine whether your application will be granted or declined. Good or excellent credit history is required before an application for an instant card can be granted. This is to show to the card issuer that you are creditworthy and have control over your finances. If your credit history is limited or low, you might want to consider other forms of credit cards (read further below).

It’s also advisable to compare offers from different card issuers when applying for an instant card. Comparing the different terms on offers helps you to choose a card and payment plan that works for you. While you may check-in at your bank or a card issuer’s office, you can also apply for an instant approval card through the card issuer’s website (by submitting your personal and financial information online) for convenience.

You can increase your chances of being granted an instant approval card by maintaining a good credit score. This can be done by avoiding default payments on other cards and using your current credit card frequently if you have one.

How Long Does it Take to Get an Instant Approval Card?

The duration or period it takes to get an “instant approval credit card” may vary from one card issuer to another, but the whole process usually takes no longer than between 5-7 days. While a decision is made on your application within minutes of submission, you should not expect to go home with your new credit card immediately. Your card and its accompanying regulations should arrive within 5-7 office days.

What are Secured and Unsecured Credit Cards?

Secured Credit Cards (Best option if you have bad credit)

A secured credit card is one where you make periodic deposits that serve as a credit cap for you. What this means is that the amount of credit you’ll be entitled to will be equal to the deposit amount you make. The deposit you make is a refundable risk cushion for the card issuer in a situation where you don’t meet your credit demands.

It is usually issued to people with low credit scores. The initial deposit is the same amount that you’ll be entitled to on your debit card. For instance, if you deposit $500 when opening the account, the total amount of money available on your credit card will be $500. It’s like setting aside money for rainy day expenses. Secured credit cards also offer the advantage of helping to build your credit score and eligibility for an unsecured card.

Unsecured Credit Cards (Best if you have good credit)

Unsecured credit cards are the direct opposite of secured credit cards. Unlike secured credit cards, they don’t require the cardholder to make a deposit that sets them a credit limit.

With an unsecured credit card, the card issuer does not demand collateral that could offset the undertaken risk should you default on your payments. As a result, the credit limit on an unsecured card could be higher than that on a secured card. However, your credit score and previous payment history play a huge role in getting this type of credit card.

Getting a Credit Card with Bad Credits or without a Credit Check

You may be wondering if it’s possible to get a credit card with bad credits or without a credit check. The answer to the above is yes. So if you’re a new resident or have had issues building up your credit history due to the defaulting payments on previous cards, you can still get a credit card in Canada by applying for a Secured credit card.

Applications for an unsecured credit card are usually rejected based on low credit scores. This is because the card issuer can only predict your creditworthiness through your previous financial behaviour, this makes you ineligible for an Unsecured credit card if you have bad credits. To get a credit card with bad credits or without the scrutiny of a credit check, you’ll have to apply for a Secured credit card.

This type of credit card requires the payment of a deposit that serves as a collateral or insurance to the card issuer if you don’t meet your payment obligations. The deposit made is the same amount of money that will be placed on your credit card. So, if you have a bad credit score or are looking to evade the possible damage a credit check can do, your best bet is a secured credit card.

Best Credit Cards in Canada

The following is an overview of some of our top choices for credit cards for people with all types of credit history.

Tangerine Money-Back Card

The Tangerine Money-Back Card is a popular credit card in Canada due to its monthly 2% money-back guarantee on categories chosen by the cardholder. With no annual fees, it’s no wonder this credit card is at the top of our list.

Important note: the minimum income required is $12,000 and you must have a credit score of at least 700 (good to excellent) to get this card. Earned rewards are automatically credited to your Tangerine savings account or placed on your card. The money-back options available also include a 0.5% cashback on all purchases.

Capital One Low Rate Guaranteed Mastercard

If you’re looking to increase a low credit score or build up from scratch, this is the right card for you. The Capital One Low Rate card offers you a guaranteed credit card approval as long as you haven’t held one before or defaulted payments on a prior Capital One Card.

With an annual fee of $79, this low-rate card helps to increase your credit score by reporting credit card activities to relevant agencies monthly. All you have to do is make use of your credit card and ensure you stay within your credit limits.

Refresh Financial Secured Visa

Secured cards offer a great option for individuals with bad or no credit scores to get a credit card and build up their credit scores. The Refresh Financial Secured credit card requires a minimum deposit of $200 and a maximum of $10,000. The deposited fund will be the credit limit available for use on your credit card.

The annual fee and purchase interest rates of the Refresh card are highly competitive at $48.95 and 17.99% respectively. The low-cost nature of this card makes it ideal for anyone with a bad credit score (between 0-579) to build up their creditworthiness. It may also be alluring to purchase only customers or those looking to spend on a specified budget.

Marriott Bonvoy American Express Card

The Marriott Bonvpy credit card offers you bonus points and rewards on every payment made at a Marriott Bonvoy property (6X Marriott Bonvoy points or free passes at select hotels). Also, you get 2X Marriott Bonvoy points for all other purchases outside Marriott Bonvoy properties. It has an annual fee of $95, which is waived for the first year and does not charge you for making payments or transactions in foreign currencies.

BMO Rewards Mastercard

The BMO Rewards Mastercard is another credit card without annual fees. It offers a 19.99% purchase interest and a bonus point reward for every dollar spent. Cardholders are entitled to 25% discounts at select car rental offices countrywide and 15% off admission rates to Cirque du Soleil tours in Canada. One of the most alluring features of this card is that there is no minimum income requirement to qualify.

Home Trust Secured Visa

As with all secured cards, the Home Trust credit card requires a deposit which doubles as the credit limit for the cardholder. This card has a minimum security deposit amount of $1,000 and a maximum amount of $10,000. This deposit amount earns an interest rate of 2%. A purchase interest fee of 19.5% and an annual fee of $90 is charged on this card. However, anyone may apply regardless of credit standing as long as they can pay the security deposit.

Capital One Guaranteed Secured Mastercard

This credit card offers you a guaranteed approval whether you’re looking to repair a bad credit score or you’re a new resident with no credit score at all. Your credit limit may be increased at any time by upping the security deposit paid to the card issuer. It has a maximum credit limit of $2,500 and comes with an annual fee of $59. The annual purchase interest charged is at 19.8% but you should have no worries as long as you don’t default on payments. The minimum security deposit allowed is $75.

While all of the above credit cards offer you a great experience, it’s advisable to read through on their offers to determine which is best for your needs. If your focus in on building a good credit score, the Secured Credit Card is best suited to those needs.