Royal Bank of Canada
$165
60,000 miles
$587
Good (660 - 724)
Finding the best air miles credit cards with bad credit in Canada can be challenging, but it’s not impossible. These specialized credit cards are designed to help individuals with less-than-perfect credit scores earn rewards while rebuilding their credit history. In this guide, we will explore the top options available, the key features to consider, and tips on how to maximize your benefits even with bad credit.
Air miles credit cards are a type of rewards card that allows you to earn points or miles on your purchases, which can later be redeemed for flights, hotel stays, car rentals, and other travel-related expenses. For individuals with bad credit, selecting the right air miles credit card can offer not only the potential to earn valuable rewards but also the opportunity to improve their credit score through responsible use.
The Capital One Guaranteed Mastercard is an excellent option for those with bad credit looking to earn air miles. This card requires a security deposit, which acts as your credit limit and lowers the risk for the issuer. Benefits include earning miles on everyday purchases, no annual fee, and access to improved credit reporting to help rebuild your credit score.
The Refresh Financial Secured Visa is another suitable choice for individuals with bad credit. By providing a refundable security deposit, you can qualify for a credit line that allows you to earn air miles on your spending. This card offers competitive interest rates and regular credit line reviews, providing a pathway to transition to an unsecured air miles credit card once your credit improves.
The Home Trust Secured Visa is tailored for those with bad credit who wish to earn air miles. It offers the ability to set your own credit limit with a security deposit and provides rewards on eligible purchases. The card also reports to major credit bureaus, ensuring that responsible use contributes positively to your credit history.
The Security Service Visa is another secured credit card option that can help you earn air miles while working on your credit. With a low security deposit requirement and the ability to earn rewards on everyday spending, this card is designed to support users in rebuilding their credit scores while enjoying the benefits of air miles.
Most air miles credit cards designed for bad credit require a security deposit. The amount of this deposit typically influences your credit limit. It’s important to choose a card with a deposit that you can comfortably afford while maximizing your available credit.
When selecting the best air miles credit card with bad credit, consider the earning rate of miles per dollar spent. Higher earning rates mean you can accumulate rewards faster, making the card more beneficial even with a limited credit score.
While some air miles credit cards for bad credit come with no annual fees, others may charge a modest fee. Additionally, understanding the interest rates is crucial, especially if you plan to carry a balance. Look for cards that offer competitive rates to minimize costs while you build your credit.
Ensure that the credit card issuer reports to all major credit bureaus. This reporting is essential for rebuilding your credit score, as timely payments and responsible credit use will positively impact your credit history.
Consistently making on-time payments is one of the most effective ways to improve your credit score. Set up automatic payments or reminders to ensure you never miss a due date, which will enhance your creditworthiness over time.
Maintain a low credit utilization ratio by keeping your outstanding balances to less than 30% of your credit limit. This demonstrates responsible credit management and positively impacts your credit score.
Regularly using your air miles credit card for everyday purchases helps you earn rewards faster. Just ensure that you can pay off the balance each month to avoid interest charges and maintain a healthy credit profile.
Regularly check your credit score to track your progress. Many credit card issuers offer free credit score monitoring tools, allowing you to stay informed about your credit status and make informed financial decisions.
Air miles credit cards for bad credit not only provide a pathway to earning travel rewards but also serve as a tool for rebuilding your credit score. By demonstrating responsible credit usage—such as making timely payments and maintaining low balances—you can gradually improve your creditworthiness. Over time, this can open doors to more lucrative air miles credit card options with better rewards and benefits.
Securing the best air miles credit card with bad credit in Canada requires careful consideration of your financial situation and the available card features. By choosing a suitable secured credit card, understanding the key elements that impact your rewards and credit score, and following best practices for credit management, you can effectively earn air miles while working towards a stronger financial future. Remember, patience and consistency are key to maximizing the benefits of your air miles credit card and rebuilding your credit health.
