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So your credit score isn’t perfect. Join the club. Half of Canadians have fair credit (560-659), not because they’re financially irresponsible, but because life happens. Divorce, job loss, medical bills, or just being young and stupid with your first credit card. Whatever got you here, you still need a credit card that doesn’t treat you like a second-class citizen.
Here’s the good news. Fair credit doesn’t mean settling for secured cards with $300 limits or prepaid cards that don’t build credit. There are legitimate rewards cards available that actually respect you while helping rebuild your score. You just need to know where to look.
The Entertainment Winner: Scotiabank SCENE+ Visa Card
Forget everything you think you know about “starter” credit cards. The Scotiabank SCENE+ Visa Card doesn’t care that your credit score starts with a 6 instead of a 7.
Zero annual fee. Let that sink in. While other banks charge you $120 just for the privilege of having mediocre credit, Scotia says “nah, we’re good.” The income requirement? $12,000. That’s basically minimum wage. They’re not asking for your firstborn or a co-signer from someone with perfect credit.
But here’s where it gets interesting. You earn 2x Scene+ points at Cineplex theatres, Home Hardware, and grocery stores like Sobeys and Safeway. Regular spending at real places, not some obscure category you’ll never use. Everything else earns 1x points. Not amazing, but for a fair credit card? It’s practically revolutionary.
The welcome bonus of 5,000 Scene+ points might not sound huge, but that’s five free movies or $50 off groceries. For a card with no fee and minimal requirements, they’re basically paying you to rebuild your credit.
Who wins with this card? Young Canadians starting their credit journey. People rebuilding after financial setbacks. Anyone who wants rewards without jumping through hoops or paying fees they can’t afford.
The Hidden Gems for Fair Credit
Not every bank advertises their fair credit options. They’d rather sell you their premium cards. But dig deeper and you’ll find surprisingly decent options.
The BMO CashBack Mastercard technically requires “good” credit, but BMO’s definition is looser than others. They’ll often approve 630+ scores, especially if you bank with them. No annual fee, 3% on groceries, 1% on everything else. It’s not marketed as a fair credit card, but it works like one.
TD Cash Back Visa Card follows similar logic. They say good credit required, but existing TD customers with 640+ scores often get approved. 2% on groceries and gas, 1% elsewhere. The key? Having a relationship with the bank matters more than your score sometimes.
The Newcomer Advantage
Here’s a loophole most people miss. Newcomer credit cards don’t check Canadian credit history because you don’t have one. But once you’re approved, they report to credit bureaus just like any other card.
Been in Canada less than three years? Even with fair credit, you might qualify for newcomer programs. CIBC offers the Dividend Visa Card to newcomers with no credit check. 2% cash back on everything up to $20,000 annually. That’s better than most regular cards.
RBC’s newcomer program includes access to their Cash Back Mastercard. Scotia has similar offerings. You need proof you arrived in Canada recently, but if you qualify, it’s a backdoor to better cards than your credit score would normally allow.
The No-Fee Champions
Annual fees are kryptonite when you’re rebuilding credit. Every dollar counts, and paying $120 for a credit card feels like punishment for past mistakes.
The Tangerine Money-Back Credit Card has no fee, no income requirement, and approves fair credit regularly. You pick two categories for 2% cash back, everything else earns 0.5%. It’s not charity, they make money on interest if you carry a balance. But if you pay in full monthly, you’re getting free rewards while rebuilding credit.
PC Financial Mastercard works similarly. No fee, earn PC Optimum points at Loblaws stores. They’re more lenient with credit scores because they want you shopping at their stores. Fair credit? No problem if you buy groceries.
Student Cards: The Secret Weapon
Student credit cards have lower approval requirements because banks know students have limited credit history. But here’s the thing: you don’t always need to be a full-time student.
Part-time courses at community college count. Online certifications sometimes work. Some banks don’t even verify enrollment thoroughly. BMO’s Student CashBack Mastercard approves fair credit regularly. Same rewards as their regular cashback card, easier approval.
The catch? These are gateway drugs to brand loyalty. Banks bet you’ll stick with them after graduation. Let them. Use the card, build credit, then upgrade or switch when your score improves.
The Secured Card Last Resort
Nobody wants a secured credit card. Paying a deposit to borrow your own money feels degrading. But sometimes it’s the only option, and that’s okay.
Capital One Guaranteed Secured Mastercard approves everyone. Your deposit becomes your credit limit. Use it for six months, pay on time, and they’ll often graduate you to an unsecured card. It’s credit rehab, not a permanent situation.
Home Trust Secured Visa works similarly but reports to both credit bureaus (Equifax and TransUnion). Some secured cards only report to one. Double reporting means faster credit improvement.
The key with secured cards? Treat them as temporary tools, not permanent solutions. Six to twelve months of perfect payment history, then apply for better cards.
Credit Building Strategy That Works
Having fair credit isn’t about getting one card and hoping for the best. It’s about strategic rebuilding.
Start with what you can get approved for. SCENE+ Visa, a secured card, whatever. Use it for regular expenses you’d pay anyway. Pay in full, on time, every time. No exceptions.
After six months of perfect payments, apply for a second card. Different bank, slightly better terms. Now you have two trade lines reporting positive payment history. Your credit score starts climbing.
Keep utilization below 30%. If your limit is $1,000, never carry more than $300 balance, even if you pay it off monthly. Credit scoring algorithms care about peak utilization, not just whether you pay on time.
Request credit limit increases every six months. Higher limits mean lower utilization percentages. Same spending, better credit score. It’s math, not magic.
The Interest Rate Reality
Fair credit means higher interest rates. The SCENE+ Visa charges 19.99%. Some fair credit cards hit 24.99% or higher. This is the price of admission when your credit isn’t perfect.
But here’s the secret: interest rates don’t matter if you never carry a balance. Pay in full monthly and that 24.99% rate costs you exactly zero dollars. The bank hopes you’ll slip up and carry a balance. Don’t give them the satisfaction.
If you must carry a balance, get a separate low-interest card for that purpose. Use rewards cards for purchases you’ll pay off immediately. Use low-interest cards for planned expenses you’ll pay over time.
Warning Signs to Avoid
Not every “fair credit” card is worth having. Watch for these red flags:
Activation fees. Legitimate cards don’t charge you to activate them. If they want $95 upfront just to send you a card, run.
Monthly maintenance fees. Different from annual fees. Some predatory cards charge $9.95 monthly “account maintenance.” That’s $120 yearly for nothing.
Credit limit increases fees. Real banks don’t charge you to raise your limit. If they want $50 to increase your limit by $100, it’s a scam.
Application fees. Banks pay to acquire customers, not the other way around. Never pay to apply for a credit card.
The Graduation Timeline
Fair credit isn’t forever. With the right strategy, you can reach good credit (660+) in 12-18 months.
Months 1-6: Establish payment history with starter cards. Perfect payments, low utilization.
Months 6-12: Add a second card, request limit increases. Credit mix and available credit improve.
Months 12-18: Credit score breaks 660. Suddenly you qualify for real rewards cards with actual benefits.
Month 18+: Choose whether to keep starter cards (for credit history length) or upgrade to better options within the same bank.
The Emotional Side
Having fair credit feels embarrassing. Like wearing a sign that says “I messed up financially.” Credit card companies know this and some exploit that shame.
Don’t let them. Fair credit is a temporary state, not a permanent identity. Half of Canadians have been where you are. The other half just haven’t had their crisis yet.
Take the SCENE+ Visa or whatever card approves you. Use it responsibly. Build your score methodically. In a year, you’ll qualify for cards that reject you today. In two years, you’ll wonder why you stressed so much.
Making the Choice
The best fair credit credit card is the one that approves you today and helps you build toward tomorrow.
For most people, that’s the Scotiabank SCENE+ Visa Card. No fee, decent rewards, reasonable requirements. It’s designed for people in your exact situation.
Can’t get approved? Try newcomer programs if eligible. Still no luck? Secured cards aren’t shameful, they’re strategic.
The worst thing you can do is nothing. Every month without positive credit history is a month delayed in rebuilding. Apply for something today, even if it’s not perfect. Perfect credit cards are for people with perfect credit. You’ll get there, but not by waiting for it to happen magically.
Fair credit doesn’t mean fair treatment from banks. But cards like the SCENE+ Visa prove some banks understand that everyone deserves a second chance. Or a first chance. Or just a chance, period.
Take it.
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