Getting A New Credit Card

After filing a bankruptcy or consumer proposal, many people ask the same question: “Should I get a credit card—and if so, which one?”

A credit card can be useful after insolvency, but only if you understand why you need one, when to apply, and what type of card makes sense for your situation.

Should I Get A Credit Card?

If you don’t need a credit card, don’t get one. However, we get it.  Credit cards are necessary and you also want to begin to rebuild your credit after filing a bankruptcy or proposal. 

First Question: Do You Need a Credit Card Right Now?

A credit card is not required for everyday life. You can pay rent, utilities, groceries, and most bills without one.

However, you may need a credit card for:

  • Online purchases where Visa Debit or Interac e-Transfer isn’t accepted
  • Booking hotels or rental cars
  • Certain subscriptions or travel bookings

If you don’t have a practical need, there may be no urgency to apply.

Can You Pay the Balance in Full Every Month?

This is a critical decision point.

If you cannot reliably pay the balance in full:

  • A credit card may create new financial stress
  • Interest costs can undo progress made through insolvency
  • A credit card should support stability—not reintroduce risk

Consider Alternatives to Credit Cards

A traditional credit card is not the only way to pay for things like online purchases, subscriptions, or travel bookings. In many cases, an alternative can meet your needs until you need or qualify for a new credit card.

These options provide payment access, but do not involve debt:

  • Visa Debit and Debt Mastercard – Some bank accounts come with a debit card that also works where almost anywhere Visa or Mastercard is accepted. Purchases are taken directly from your bank account. There is no borrowing, interest, or credit approval required
  • Prepaid Cards – These look and act like credit cards, but must be loaded with your own money before use. The advantage is they can be used online or anywhere a credit card can be used, you only spend money you’ve added and no credit check is required.

When Should I Get A Credit Card To Rebuild My Credit?

We generally recommend waiting until your bankruptcy or consumer proposal is complete before applying for any credit-rebuilding products, including an unsecured credit card. Even if you qualify for a card during your insolvency, it is unlikely to significantly improve your credit score until after you are discharged. If you can, use alternatives like a reloadable prepaid credit card, Visa debit or Mastercard Debit during your insolvency. We especially recommend avoiding credit products that charge monthly or annual fees while you are still in your insolvency, as the cost usually outweighs any potential benefit.

Please review our dedicated section on rebuilding credit to learn the best way to rebuild after insolvency.

Credit Card Products

DISCLAIMER: We do not recommend any credit card. The information on this page is based on our experience and research and is provided for general information only. It is not necessarily a complete list, but ones we know clients have used successfully.

All links open in a new tab and the list is updated as of February, 2026.

Reloadable Prepaid Credit Cards

Visa Debit Cards

Mastercard Debit Cards

Secured Credit Cards

Unsecured Credit Cards

Capital One Unsecured Mastercard

You may qualify for a Capital One Unsecured Mastercard immediately after filing a consumer proposal or bankruptcy. Limit your applications as too many applications and too many credit cards will lower your credit score. Set your limit low to avoid the temptation of racking up new credit card debt. If you didn’t owe money to Capital One when you filed your bankruptcy or consumer proposal, you may qualify for a Capital One unsecured Mastercard. Again, use this card wisely and pay all balances in full each month.

Traditional Credit Cards

Regular credit cards are difficult to get and may only be available after your discharge.