Bad credit is not a life ender. It's possible to continue to live a normal financial life even if you are afflicted with low credit. Traditionally, those with bad credit are not eligible for loans or monetary conveniences like credit cards. However, in recent years, certain financial institutions in Canada have begun to offer such traditional services specifically for people with bad credit.

First, there are several important facts consumers must know about credit cards for bad credit. They often come with far higher interest rates than traditional credit cards because the borrowers are considered high risk financially. Therefore, consumers must carefully weigh their options and only apply for a credit card for bad credit if it's absolutely necessary, and if there's a sufficient source of income to pay the credit card bills. Here is a list of legitimate credit cards for bad credit in Canada:

Capital One Guaranteed MasterCard

This is one of the easiest credit cards to obtain, no matter how bad the applicant's current credit is. The card charges an annual fee of C$59, and has a purchase interest rate of 19.8% (may change without notice). This card also allows those with bad credit to improve their scores. Capital One Guaranteed MasterCard is not recommended for borrowers who owe more than C$3,000 per month, and households with more than C$50,000 income. National Bank of Canada MasterCard MC1 Credit Card

This is an excellent card for borrowers with bad credit since it requires no annual fee. Purchase interest rate is at 19.5 %, and recommended credit limit is C$500 per month. Cardholders will have easy access to funds from anywhere in the world. Protections against theft, unauthorized use and purchase insurance are included.

Home Trust Visa

This credit card for bad credit comes with two options: a 'low rate' option with C$59 annual fee and 14.9% interest on purchases, and a 'no fee' option with 19.99% interest on purchases but no annual fee. Both options have a $10,000 maximum credit limit and have a 21-day interest-free grace period.

Alternatives to Credit Cards for Bad Credit

Because credit cards for bad credit often have high interest rates as mentioned above, borrowers should ideally consider some of the alternative means mentioned below in advance:

Secured Credit Cards

These are credit cards with collateral involved, and because of that, even borrowers with bad credit are considered seriously. Basically, an applicant must offer a certain amount of money as a security deposit, which becomes collateral in case the borrower fails to pay the monthly bills. Secured credit cards have better interest rates than cards for bad credit, and are excellent options for those who want to improve their credit.

Borrowing on Home Equity Line of Credit

Home equity loans are colloquially known as second mortgages. They allow homeowners to borrow a certain amount of money based on the value (equity) of their property. One of the ways to obtain a home equity loan is through a process called home-equity line of credit (HELOC). HELOCs are very similar to credit cards. Borrowers are approved for a monthly spending limit, can make withdrawals with a card or a check, and have to repay the amount borrowed plus interest each month. HELOCs, however, have a set term like a fixed-rate loan. Before you sign up for a credit card for bad credit, carefully consider the above alternatives first. In case you do end up with a credit card for bad credit, make sure you understand the terms and conditions properly. Do not sign a contract unless you can meet the monthly payment requirements.

Additional Reading

Small Business Ideas for Canadians

Are you looking to start a business but you just can't think of a decent idea? What if your startup fails, what if you can't find the funds, what if your idea doesn't appeal to the public and so forth? These are questions that every single person starting a business asked themselves at one point in time. We live in the digital age which makes starting a business easier than it's ever been. Sure, there's a lot of competition out there but that's beauty of it. You can enter the fray as competition easily with the popularity of social media platforms.

Then, there's some crowdfunding options and lending options to those who qualify for them. With the growing demands for technology and the current trends, here's some solid business ideas to help you get your business started.

#1 – Instagram Consultant

If you would have told me 10 years ago that a simple website where people share filtered pictures would become a huge hit, I would've called you a liar. The simplicity of this website somehow latched onto the public and then was acquired by the social media giant Facebook. That's good news for you, because companies, entertainers and models have flocked to Instagram for marketing purposes. Some companies even have marketing teams that focus solely on Instagram. In 2015 alone, the site had 400 million users.

The problem is, many people have no clue what they're doing on the app or how to market themselves. This is where you come in. Being an Instagram consultant and teaching people how to better market themselves could be a very prosperous business for you.

#2 – Med Technician

Have you ever felt a need to help people and to make money at the same time? Medical technicians are essentially just glorified idea guys that invent and produce medical devices. The best part is, these can be produced right there in the comfort of your own home with 3D printing technology. 3D printing isn't as expensive as it was a couple of years ago and is becoming affordable to just about anyone.

Do you have any ideas on how to better treat a disease? Do you know of a way that a medical procedure could be done more efficiently? If you do, you should get on it now, because sales for medical devices are expected to reach $230 billion by the end of this year.

#3 – Cloud Salesman

As the internet grows, the overall size of websites get bigger and the risk of hackers grows even larger, there's an ever growing need for the cloud. The cloud is not a centralized hosting server like today's traditional server. The most common type of server today for a website is known as a shared server. The problem with this is, you share space with a metric ton of other websites and if that server gets attacked or hit with something as common as a DDoS, every single website could go down.

Cloud servers eliminate that risk and perform better. The cost associated with cloud servers are much higher but knowing your website is safe from hackers and that your performance will improve is worth the cost. There's millions upon millions of people still using slow and unstable shared hosting servers. Now is the perfect time to become an affiliate for cloud servers or start your own cloud based computing company.

#4 – Elderly Care

This isn't a job for everyone and it requires someone with a lot of patience but why not start your own elderly care business? Instead of putting someone in a nursing home, you can provide a service that allows people to live in their home without the fear of something happening to them with no one around to help. You would provide the cleaning and assistance of elderly individuals when their family can't or won't.