Credit cards for bad credit in Canada: what you can get, and what works at Costco

Credit cards for bad credit in Canada mostly means a secured card: you put down a deposit, from $50 at Neo, which sets your limit, and your payments are reported to the credit bureaus. For Costco it must be a Mastercard, since warehouses don't take Visa: Capital One's Guaranteed Secured Mastercard and the Neo Mastercard with a secured limit both work there.

What credit cards can you get with bad credit?

Two kinds: secured cards, where a deposit covers the lender, and unsecured cards with lower requirements, which still depend on approval. From each issuer's page:

Capital One and Home Trust terms are from our secured card guide, checked October 4, 2026; Neo, MBNA and Tangerine were checked October 27.

How does a secured card work?

You send a deposit, and the issuer gives you a limit tied to it: at Neo the limit equals your deposit, raised in $50 steps. You use it like any credit card and get a monthly bill. The issuer reports your payments to the credit bureaus (Neo reports to both TransUnion and Equifax), which is what rebuilds your score.

Which cards for bad credit work at Costco?

The Mastercards: Capital One's Guaranteed Secured, the Neo Mastercard, MBNA True Line and Tangerine. Canadian Costco warehouses and gas stations take Mastercard as their only credit card, so the Home Trust Secured Visa works only on Costco.ca. If you can't get any credit card yet, Costco takes debit everywhere; see paying with debit at Costco.

How do you move up to the CIBC Costco Mastercard?

CIBC asks for $15,000 of income, a good credit score, no bankruptcy in the past 7 years and an active Costco membership. Use the secured card for small, regular purchases, pay the full balance every month, and give it time. Each application adds a hard inquiry to your credit report, so apply for the CIBC Costco Mastercard once your score has recovered rather than repeatedly. The requirements are in our application guide. If you're carrying a balance while you rebuild, a low interest Mastercard costs less than a 29.9% secured card. New to credit rather than rebuilding it? A student card may suit you better.

What should you watch out for?

• Interest: 29.9% at Capital One and up to 29.99% at Neo. Carrying a balance on a rebuilding card undoes the point of it.
• Paid extras: Neo sells an optional Build membership to help grow your score; check its current price before signing up.
• "Guaranteed" wording: Capital One's card name says guaranteed, but its page talks about checking if you'd be pre-approved; read the terms before applying.
• Visa secured cards: they rebuild credit just as well, but won't work in a Costco warehouse.