Having bad credit in Canada does not mean you cannot access banking services. Several financial institutions and fintech companies offer accounts with no credit checks, and some even help you rebuild your credit history. Here are the best banking options for Canadians with poor credit in 2025.
Best Banks for Bad Credit in Canada 2025
| Institution | Credit Check? | Monthly Fee | Credit Builder? | Best For |
|---|---|---|---|---|
| KOHO | No hard check | $0 | Yes (optional) | Overall best for bad credit |
| EQ Bank | No hard check | $0 | No | Best savings rate |
| Tangerine | Soft check | $0 | No | No-fee chequing |
| Peoples Bank | No | $0 | No | Basic savings |
| Capital One Secured | Soft check | $0 | Yes | Secured credit card |
| Home Trust Secured | Soft check | $0–$59/yr | Yes | Secured Visa |
KOHO — Best Overall for Bad Credit
KOHO does not perform a hard credit check to open an account. It is a prepaid Visa card with optional credit building features. You can add the KOHO Credit Building feature for $10/month, which reports on-time payments to Equifax and helps build your credit score over time. The base account has a 3.0% savings rate and zero monthly fees.
EQ Bank — Best Savings Rate Without Credit Check
EQ Bank offers a 3.75% HISA with no monthly fees and no credit check to open. It does not offer a credit card or credit building, but it is the best place to park savings at Canada's highest no-fee rate while you rebuild credit with other products.
Secured Credit Cards for Bad Credit
A secured credit card requires a deposit (typically $200–$2,500) as collateral. It works like a regular credit card and reports to the credit bureaus, helping you build credit. Top options include Capital One Secured Mastercard and Home Trust Secured Visa.
Your Rights: Banking with Bad Credit in Canada
- Canadian banks must open a basic chequing account for anyone with valid government-issued ID
- A bank cannot refuse you solely because of bad credit or bankruptcy history (for basic accounts)
- If a bank refuses you, you can file a complaint with FCAC (Financial Consumer Agency of Canada)
Frequently Asked Questions
Yes. Canadian banks are required to open basic accounts for anyone with valid ID. KOHO, EQ Bank, and Tangerine all accept customers without credit checks for their standard accounts.
A secured credit card requires a cash deposit as security. The deposit typically equals your credit limit. The card works like a regular credit card and reports to credit bureaus, helping you build credit history. After 12–18 months of responsible use, many issuers upgrade you to an unsecured card.
Rebuilding credit from poor (560 or below) to good (660+) typically takes 12–24 months of consistent responsible credit behaviour — paying on time, keeping utilization low, and avoiding new negative items. Using KOHO's credit builder and a secured card simultaneously can accelerate the process.
No. After bankruptcy, you are still entitled to a basic bank account in Canada. You may not qualify for credit products initially, but chequing and savings accounts must be made available. KOHO and EQ Bank are especially accommodating for Canadians rebuilding after bankruptcy.
Get $100 Cash — Best No-Fee Bank in Canada
KOHO offers a 3.0% savings rate, zero monthly fees, and a $100 welcome bonus with code 45ET55JSYA.
Referral code: 45ET55JSYA • Works everywhere in Canada
Disclosure: Bremo may earn a referral commission if you open a KOHO account using our link. Not financial advice.