The best instant approval credit cards in Canada

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The approval process for a new credit card can feel punishing—especially if you have to wait several days for confirmation and for your card to be mailed to your home. Luckily, many credit cards now offer instant approval, making the application process much quicker and much less stressful. After filling out an application with details on your personal background, the card provider’s website runs its checks and lets you know within minutes if your application has been approved or rejected. 

If you’re approved with the information you’ve provided, your application is expedited for credit checks, card printing and mailing. And you can expect to receive a welcome package containing your card in five to seven business days. 

As a safeguard against fraud, at times an application may go under manual review, in which case the file gets forwarded for verification, sometimes taking an additional two to three business days before a final decision is made. 

As banking processes become increasingly digital, more credit-card applications are moving online, and more issuers are offering cards with applications that can be quickly approved.

Here are the best instant-approval credit cards you can apply for right now. 

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Best instant-approval credit cards in Canada:

• Canadian Tire Triangle Mastercard — Use instantly after approval
• PC Financial Mastercard — Best no-fee rewards card
• American Express Cobalt — Best overall rewards credit card
• American Express SimplyCash Preferred; CIBC Dividend Visa Infinite —  Best cash-back card
• BMO Preferred Rate Mastercard — Best low-interest credit card
• Refresh Financial Secured Visa — Approval with no credit check required
• Capital One Low Rate Guaranteed Mastercard — Guaranteed approval
• Koho Premium Visa – Honourable mention (prepaid card)

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What is an instant-approval credit card?

Instant-approval credit cards are cards with an expedited approval process through a streamlined—practically instant—application and approval process that will help to save you time and stress. Rather than applying and waiting for the final decision to come through, the issuer will let you know immediately whether you’ve been approved or if there needs to be a manual review. 

Canadian Tire’s Triangle Mastercard allows newly approved cardholders to make purchases on their card via Apple Pay or Google Pay before they receive their physical credit card in the mail.

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What do you need to get instantly approved for a credit card?

• You must be a permanent resident or Canadian citizen (although some cards offer a longer application if you’re not a permanent resident of Canada)
• You must be the age of majority (18 or 19 and older, depending on the province you reside in)
• You must not have a history of bankruptcy if you’re applying for an unsecured credit card (that’s most rewards and low-interest credit card options)
• A good credit score will increase your chances of being approved, whether you’re applying for a secured or an unsecured card

Instant-approval applications require accurate information that matches any previous background information the provider or bank may already have on file (if you have another card from that provider or you bank with that institution already), your social insurance number, employment and income information, and other optional information. The more information you provide, the more effectively the approval process can verify that you are indeed… well, you! 

If you’re approved instantly, the system will expedite your application for proper credit checks, though you may still be contacted for further confirmation of other details. Shortly after, your card will be printed and mailed to the address you’ve indicated. All cards require a credit check or score pull, with the exception of applications where you already have an established history with the institution, or when the credit card you’ve applied for is secured, meaning you would have provided a security deposit. 

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Best instant-approval credit cards in Canada

Instant approval is available through a growing range of credit card providers, in a number of different categories. We’ve rounded up the best to help you choose the right instant-approval credit card for your needs.

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Card you can use instantly after approval 

Canadian Tire Triangle Mastercard*

The Canadian Tire Triangle Mastercard is a great option if you shop regularly at Canadian Tire, as well as CT Gas+, Sport Chek, Mark’s, and a variety of other retailers in the Canadian Tire family. If you apply in a Canadian Tire store and are approved, you may use the card immediately, rather than waiting for it in the mail. Or, if you apply online for instant credit and are approved right away, you’ll be able to proceed to checkout, where your card details will be pre-filled in the payments section—so you can start earning 4% back on qualifying purchases immediately. You can also use your card through the Apple Pay or Google Pay apps to make purchases before you receive your physical card in the mail.

• Annual fee: $0
• Rewards at partner locations: 4% in Canadian Tire Money on purchases at Canadian Tire and partner stores, and $0.05 back at Gas+ and participating Husky stations
• Rewards on everything else: 1.5% on the first $12,000 spent on groceries per calendar year (excluding Costco and Walmart); 0.5% on everything else
• Income requirement: None
• Additional benefits: Personalized offers and exclusive bonuses; member-only events; extended warranty
• Purchase interest rate: 19.99%

Get more details about the Triangle Mastercard*

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Best no-fee rewards card

PC Financial Mastercard*

PC Financial offers one of the strongest no-fee rewards credit cards for everyday essentials. Given the wide range of stores under the President’s Choice/Loblaw Inc. umbrella—including Loblaws, No Frills, Fortinos, Real Canadian Superstore, Shoppers Drug Mart and Joe Fresh—this Mastercard is great for frequent shoppers favouring premium earning rates from grocery and pharmacy, as well as gas fill-ups at Esso and Mobil stations. You can earn at least 25 PC Optimum points per $1 at Shoppers Drug Mart, 30 points per $10 at Esso and Mobil stations, and 10 points per $1 everywhere else. And redeeming points is dead simple: 10,000 points equals a $10 store credit (equivalent 10 points for 1% in rewards) at PC-affiliated stores. Enriched by the PC Optimum program, this card allows you to take advantage of weekly points offers to earn more. 

Within minutes of submitting your online application, you should receive an approval decision. And since it’s a store card, eligibility is often more lenient than with traditional bank credit cards. PC Financial also reviews your income as consideration for the PC Financial World Mastercard ($60,000 personal or $100,000 household) and World Elite Mastercard ($80,000 personal or $150,000 household) credit cards. (Each gives bonus points for everyday purchases at PC-affiliated retailers.)  

• Annual fee: $0
• Earn rates: At least 25 points per $1 at Shoppers Drug Mart; 30 points per $1 at Esso and Mobil gas stations; and 10 points per $1 everywhere else
• Income requirement: None
• Additional benefits: Works with the PC Optimum program’s weekly offers; fraud detection with data encryption; proactive monitoring
• Purchase interest rate: 20.97%

Get more details about the PC Financial Mastercard*

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Best rewards credit card 

American Express Cobalt Card*

The American Express Cobalt follows in the footsteps of Netflix, Spotify and other subscription services by charging a $10 monthly fee to use the card, as opposed to an annual fee of $120. Combined with a generous earn rate of 5 points per $1 on eligible restaurants, bars, cafés and food delivery in Canada, this card is definitely aimed at busy millennials who are out and about town with friends, as well as frequent travellers. On travel, you’ll earn 2 points per $1 on eligible transit and gas purchases in Canada, as well as travel purchases like flights and hotel, and 1 point per $1 on all other purchases. 

Points are collected under American Express’s Membership Rewards Select program, so you can’t transfer points to Aeroplan or partner airline programs like you can with other Amex cards, but you may redeem for travel directly on the American Express Travel portal under the “fixed” and “flexible” points redemption schedules. Additionally, you may transfer points to select hotel programs like Marriott Bonvoy or Hilton Honors, or even redeem points for cash back on your statement. 

• Annual fee: $120, billed $10 every month
• Earn rate: 5 points for every $1 spent on eligible restaurants, bars, cafés and food delivery in Canada; 2 points per $1 spent on eligible transit and gas purchases in Canada, as well as travel purchases like flights and hotel; 1 point per $1 on all other purchases
• Welcome bonus: Up to 30,000 points (2,500 Membership Rewards points for each monthly billing period in which you spend $500 in net purchases, for your first year)
• Additional perks: Emergency medical coverage; flight and baggage delay insurance; car rental theft and damage insurance; purchase protection; access to American Express Invites and Front of the Line by American Express
• Income required: None specified

Get more details about the American Express Cobalt*

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Best cash-back credit card 

American Express SimplyCash Preferred*

If you’re looking for a straightforward cash-back card, look no further. The SimplyCash Preferred Card from American Express offers an easy-to-understand system of 2% cash back on everything you buy—groceries, gas, pharmacy, travel, online splurges, and everything between.

At a below-average annual fee of $99, this American Express card offers an edge over Visa or Mastercard cards in the similar rank, as it has no specific income requirements. (Competitor cards often require a minimum annual income requirement of $60,000 or $80,000.) There’s no earn or redemption chart to figure out, as you’re automatically redeemed 2% cash back annually (on your September statement). 

Finally, there’s a generous 10% cash back for your first three months of card membership (up to $400), and it’s free to add additional authorized cardholders. If you shop at retailers that primarily accept American Express cards, this is a worthwhile choice. 

• Annual fee: $99
• Welcome bonus: 10% cash back for the first three months, up to $400 
• Earn rates: 2% on everything, redeemed as cash back annually on September statements
• Income requirement: None
• Additional benefits: American Express Front of the Line access; car rental theft and damage insurance; comprehensive travel insurance benefits 
• Purchase interest rate: 19.99%

Get more details about the American Express SimplyCash Preferred*

Also consider: CIBC Dividend Visa Infinite

• Annual fee: $120
• Welcome bonus: First-year annual fee rebated; 10% cash back for all purchases up to $2,000 in the first 4 months
• Earn rate: 4% back on groceries and gas; 2% back on dining, recurring bills and daily transit; 1% on all other purchases
• Additional perks: Emergency medical and accident coverage; car rental collision and damage coverage; mobile device insurance; purchase security and mobile device insurance
• Income required: $60,000 or $100,000 as a household

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Best low-interest credit card 

BMO Preferred Rate Mastercard*

For those looking to minimize debt, this $20-a-year Preferred Rate Mastercard from Bank of Montreal is our pick for the best low-interest credit card. The annual fee is refunded in the first year, and a lower-than-average interest rate of 12.99% means you can minimize interest on balances and new purchases. Plus, get a 3.99% introductory interest rate on balance transfers for nine months (note that you’ll be charged a 1% fee on the amount you transfer to the new card). 

• Annual fee: $20 (refunded in the first year)
• Interest rate: 12.99% for purchases and cash advances
• Welcome offer: 3.99% introductory interest rate on balance transfers for 9 months, with a 1% transfer fee
• Additional perks: Purchase protection and extended warranty 
• Income required: None specified

Get more details about the BMO Preferred Rate Mastercard*

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Approval with no credit check card

Refresh Secured Visa*

If your credit score is lower than you would like and you’re looking to rebuild it, this secured Visa card from Refresh Financial could be for you. As the card is secured, you’ll need to provide a deposit, and the application process may take a few extra steps compared with unsecured card applications. A low annual fee and lower-than-average 17.99% interest rate help you responsibly manage your credit while you work on your credit score, ideally building you to where you can apply for a different card with more generous rewards. 

• Annual fee: $12.95, plus a monthly maintenance fee of $3
• Interest rate: 17.99%
• Additional perks: Earn $100 cash each time you refer a friend or family member, with no limits on number of referrals
• Income required: None specified

Get more details about the Refresh Secured Visa*

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Guaranteed approval card

Capital One Low Rate Guaranteed Mastercard

Capital One’s Low Rate Guaranteed Mastercard offers guaranteed approval for those who are looking to build or improve their credit. However, if, based on your application result and credit score, you don’t meet the requirements of the Low Rate Guaranteed card, you’ll automatically be directed to the Guaranteed Secured Mastercard, which requires you to submit security funds as a deposit. Whichever option you end up with, both cards do report your credit history, so by using your card responsibly, you’ll ultimately raise your credit score.

• Annual fee: $79
• Interest rate: 14.9% on purchases and balance transfers
• Additional perks: Price protection service; purchase assurance; extended warranty; common carrier travel accident insurance; car rental collision/loss damage waiver; baggage delay and travel assistance
• Income required: None specified

Honourable mention

Koho Visa*

This prepaid card allows you to use your own money, similar to how you would with a debit card, but with the universal convenience of a Visa. Since you’re using your own funded account, there’s no credit check required. Additionally, you won’t be charged interest and there’s no annual fee. You can even earn rewards comparable to those of some entry-level no-fee credit cards, with 0.5% cash back on all purchases. It has an additional opt-in feature (for $7 per month) to help build a credit score, plus other money-management tools through its corresponding app.

Get more details about the Koho Visa*

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The difference between instant approval and guaranteed approval

Applying online has made credit card approvals more immediate, but that doesn’t mean an approval is guaranteed. Cards with “instant approval” often have defined eligibility requirements. Instant approval means your application is adjudicated upon in minutes through the institution’s algorithmic technology and defined parameters. For example, Visa Infinite cards typically have a minimum income requirement of $60,000. Failing to meet that will result in a quick denial. Comparatively, “guaranteed approval” is a subset of credit card types also known as “secured” credit cards. These cards work well for those looking to build up a low credit score, whether because they don’t have a card or are repairing a bad credit history. 

To obtain a secured credit card, you make a deposit to secure the limit on the card, which is why it’s called “secured.” This is done in case you default on payments. Unsecured cards, on the other hand, are approved on the merit of a wide combination of factors, including but not limited to credit score, a relationship with the financial institution and payment history. Guaranteed approvals are typically simple and are often associated with secured credit cards. 

Tips for applying for an instant-approval credit card

If you’re applying for an instant-approval credit card, the below tips can increase your chances of success:

• Know your credit score: Depending on the card you’re applying for, where your credit score sits will help determine if you get instantly approved. If you have a fair credit score (600 to 649), along with other factors like payment history and relationship with the issuer, consider retail and store credit cards. For scores 650 and up, look into applying for a reward-based card, like a cash-back credit card. If your score is 700 and higher, you have options for a more premium card, like a Visa Platinum/Infinite or Mastercard World/World Elite card. However, if your score is below 600, you should consider a secured card with a deposit requirement.

• Strategize your card applications: Each time you apply for a card, the issuer may perform a hard credit pull, which can temporarily and negatively impact your score. These reviews determine your credit history and eligibility, but too many applications at once are flagged as “risky.” Space out your applications for a more favourable credit score and history.

• Review the card’s minimum-income requirements before applying: Income requirements are often set by the credit card networks (think Visa and Mastercard). For example, Visa Infinite cards require a minimum annual income of $60,000, while the Visa Infinite Privilege requires a minimum of $150,000 for an individual or $200,000 for a household. Failure to meet the income requirements will result in an immediate denial.

• Review present credit card debts: If you already owe money on one or more credit cards—either over 30% of your total credit limit or more than 40% of your income—banks will be less likely to approve your application. Address your debt first by paying back a significant portion. 

• Report all of your income: This includes everything from your regular paycheque to side hustles and part-time jobs. Never lie about your income, but do use all of your income to your advantage. Additionally, if you’re part of a household (i.e. you live with a partner), some financial institutions will let you report a total household income instead of your own income alone.

• Regularly review your credit file: It’s a good idea to pull your full credit report to see what’s factored into your score. These reports are a major factor in how an issuer reviews your eligibility, so if anything appears inaccurate, you may want to address it before applying for a new card.

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MORE ON CANADA’S BEST CREDIT CARDS:

• Best credit cards in Canada for people with bad credit
• Canada’s best credit cards for grocery purchases

The post The best instant approval credit cards in Canada appeared first on MoneySense.

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