Top Credit Cards to Rebuild Credit During a Consumer Proposal in Canada

If you’re in a consumer proposal—or you’ve recently completed one—using the right credit card can be a practical way to rebuild your credit profile in Canada. The key is choosing products designed for damaged credit, using them responsibly, and avoiding high-cost mistakes that can undo your progress. This guide explains how consumer proposals affect credit, why secured credit cards often work best, and the top options Canadians consider when starting fresh.

Consumer proposal basics

A consumer proposal is a legally binding agreement that lets you settle unsecured debts for less than you owe, with affordable monthly payments over a set period. It’s administered by a Licensed Insolvency Trustee and is a common alternative to bankruptcy. Because proposals are recorded on your credit files, your score typically declines at first, then gradually improves as you make payments on time and use new credit responsibly.

For a deeper look at how proposals interact with your credit, see our guide on how consumer proposals impact credit scores and future borrowing.

How credit cards help rebuild credit

Credit cards—especially secured cards—can be powerful credit-rebuilding tools because they report monthly data to Equifax and TransUnion. Positive behaviours begin showing on your file within one to two billing cycles:

• On-time payments build a positive payment history (the single most important factor in most scoring models).
• Low balances relative to your limit improve credit utilization (aim for under 30%—under 10% is even better).
• Consistent activity can gradually strengthen your score and help you qualify for better products later.

Always confirm that a card reports to both major bureaus. The Government of Canada encourages Canadians to check credit reports regularly and dispute inaccuracies—an easy win when rebuilding.

Top credit cards for consumer proposals

Below are widely used options Canadians consider when rebuilding credit during or after a consumer proposal. Terms can change, so always review the issuer’s latest eligibility, fees, and rate disclosures before applying.

Home Trust Secured Visa

The Home Trust Secured Visa is a popular choice for credit rebuilding. You provide a refundable security deposit (typically starting in the low hundreds), and your credit limit usually equals your deposit. Many applicants with damaged credit histories are accepted, and the card reports monthly to the major bureaus in Canada.

• Best for: Canadians who want a straightforward, widely recognized secured card with flexible deposit options.
• Watch for: Any annual fees or account maintenance requirements; confirm current policies around credit checks.

Refresh Financial Secured Visa

Refresh Financial historically offered a secured Visa focused on credit rebuilding and monthly bureau reporting. Its appeal has been simplicity: a refundable deposit, predictable costs, and an emphasis on building payment history. Availability and terms evolve, so double-check current issuer details before applying.

• Best for: Rebuilders who value predictable reporting and a simple path to establishing new credit.
• Watch for: Updated fee structures, deposit rules, and any rebranding or program changes.

Capital One Guaranteed Mastercard

Capital One’s Guaranteed Mastercard aims to help those with thin or damaged credit profiles. You may be approved for a secured version requiring a refundable deposit, or an unsecured version if you meet the issuer’s criteria. Either way, regular reporting to the bureaus supports rebuilding.

• Best for: Applicants seeking a clear upgrade path from secured to unsecured as credit improves.
• Watch for: Potential annual fees and differences between secured and unsecured terms.

Plastk Secured Credit Card

Plastk offers a secured Visa with a rewards program, which is relatively uncommon in the secured-card space. Rewards can be a nice perk, but the real value is monthly bureau reporting and a structure designed for credit rebuilders.

• Best for: Rebuilders who want to earn points while re-establishing a positive payment history.
• Watch for: Membership fees, interest charges, and terms that differ from plain-vanilla secured cards.

Other secured and credit-building options

Beyond the cards above, Canadians often look at newer secured cards and credit-building programs. Some prepaid and hybrid products include a credit-building feature, and certain fintechs offer secured cards with app-based tools to help track utilization and payment history. As with any product:

• Confirm the card or program reports monthly to Equifax and TransUnion.
• Compare total cost of ownership (annual fees, monthly fees, interest, and incidental charges).
• Check for a clear upgrade path to unsecured credit after 12–18 months of on-time payments.

For a broader roundup, explore our overview of credit card options during a consumer proposal and our guide to the best credit cards after a consumer proposal.

How to choose the right card

When selecting a credit card during or after a consumer proposal, consider these criteria:

• Reporting: Must report to Equifax and TransUnion. Without reporting, you won’t build a score.
• Deposit & limits: Choose a deposit you can afford while keeping your target utilization under 30%.
• Fees & interest: Compare annual and monthly fees carefully. If you pay in full each month, interest may be less relevant—still, avoid products with excessive charges.
• Upgrade path: Look for issuers that review your account periodically and may convert your card to unsecured after consistent on-time payments.
• Digital tools: Apps that send payment reminders, show utilization, and alert you to due dates reduce the risk of late payments.

According to Statistics Canada, broader consumer credit trends can move over time as interest rates and household finances shift; that’s all the more reason to control what you can—fees, on-time payments, and careful utilization.

Step-by-step application strategy

1. Pull your credit reports from both bureaus and review for errors. The Government of Canada offers consumer guidance on checking and protecting your credit.
2. Start with one secured card. Fund a deposit that gives you a reasonable limit without stretching your budget.
3. Turn on autopay for at least the statement balance (or, at minimum, the minimum payment) to avoid late fees and delinquencies.
4. Keep utilization low. If your limit is $1,000, try not to carry more than $300 between statements. Pay multiple times a month if needed.
5. Monitor monthly. Track score changes, payment history, and utilization in the issuer’s app and your credit reports.
6. Evaluate after 12 months. If you’ve paid on time and kept balances low, consider asking your issuer for a review or applying for an unsecured card with modest credit criteria.

For practical next steps beyond the card itself, see our step-by-step guide to rebuilding credit after a consumer proposal.

Smart usage tips

• Automate payments: Autopay plus calendar reminders can prevent the single most damaging error—late payments.
• Avoid cash advances: They typically carry higher fees and interest from day one.
• Use micropayments: Pay down purchases in small chunks throughout the month to keep utilization low.
• Keep it simple: One card is enough at first. Adding a second card can help utilization later, but only if you’re confident in your budgeting.
• Protect your income: During financial transitions, steady on-time payments matter more than chasing rewards.

The Employment and Social Development Canada provides resources on financial literacy and budgeting that can complement your credit rebuilding plan.

Common mistakes to avoid

• Applying for multiple cards at once: Each hard inquiry can dent your score and multiple denials can be discouraging.
• Ignoring fees: A lower annual fee can be worth more than a small rewards rate, especially if you never carry a balance.
• Letting balances linger: Carrying balances month to month reduces your utilization headroom and increases interest costs.
• Skipping monthly monitoring: Catching reporting mistakes or unnoticed late fees early prevents bigger setbacks.

Beyond credit cards: strengthening your overall plan

Credit cards are one piece of the puzzle. If you’re juggling high-interest balances, consider complementary strategies:

• Debt consolidation: Learn how consolidation works, the pros and cons, and safe alternatives in our guide to top credit cards for debt consolidation.
• Credit repair and accuracy checks: If you find errors on your report, our overview of credit repair services in Canada explains how legitimate providers can help you dispute inaccuracies.
• Understand proposal impacts: Get clarity on how a consumer proposal affects credit so you can set realistic milestones.
• Plan recovery steps: Follow our detailed credit rebuilding roadmap after a proposal for practical, month-by-month actions.

These steps help you stay focused on long-term stability, reducing the chance of future setbacks as you rebuild.

Conclusion

During or after a consumer proposal, secured credit cards—and a disciplined plan—can help you re-establish a strong credit profile. Look for products that report monthly, keep fees reasonable, and offer a path to unsecured credit once your payment history improves. Combine smart card usage with low utilization, automated payments, and regular credit-file monitoring. With patience and consistency, you’ll see your score trend upward and your financial options expand over time.