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3 Steps to (re)build your credit with a Capital One card.

Rebuilding your credit takes time and effort – but you can do it and it’s so, so worth it!

Take it from Brendan Carpenter, an Ontario-based content creator, runner, and coach who used his Capital One card to improve his credit and overall financial well-being. Brendan started with the Guaranteed Mastercard to rebuild his credit before graduating to Capital One’s Smart Rewards card.

No matter what point you’re starting from, Capital One offers a range of credit card options to help you improve your credit score and make steady strides towards your bigger financial goals.

How to rebuild your credit with a credit card

Using a credit card can be an effective way to build or rebuild credit. If your credit score needs some work before you qualify for an unsecured credit card, you might be offered a secured card instead.

Unlike an unsecured card, a secured credit card requires a certain amount of money upfront. This money acts as security funds, and you’ll get it back if you decide to close the credit card account and its balance is paid off. If you improve your credit score by using your card responsibly over the long term, you may be able to qualify for an unsecured card.

Step 1: Choose the right Capital One card

Which card is right for you will depend on a combination of your credit history, how you plan to use your credit and your own personal preference and goals. Among the many card options Capital One offers, these two are perfect for Canadians looking to build credit:

  • The Guaranteed Mastercard® can help you establish or repair your credit. It comes with no annual fee and you get Zero Liability protection, so you won’t be held responsible for unauthorized use of your card.

  • The Guaranteed Secured Mastercard® allows you to secure your access to credit with no annual fee. Like the Guaranteed Mastercard®, it offers Zero Liability protection and can help you establish or repair your credit. However, security funds are required.

Find out if you’ll be pre-approved for a Capital One credit card with Quick Check®. It’s quick and easy – you’ll get a response in seconds. And don’t worry, Quick Check won’t impact your credit score.

Step 2: Use credit responsibly

Rebuilding credit takes time, and everybody’s situation is different. One thing that’s universal is the importance of practicing responsible credit habits. Use the following tips to make steady progress towards your financial goals:

  • Pay your bills on time. Late credit card payments could incur late fees and interest rate increases. Worse yet, lenders will report any missed payments to credit reporting agencies, which could stay on your credit reports for years. Ensuring your payments are consistent and on time shows responsible credit card use and may help you improve your credit.

  • Use only the credit you need. Your credit score may be affected by how much available credit you’re using, which is known as your credit utilization rate. Financial experts say to aim for 30 per cent, and if your utilization rate is too high, you may be at risk of damaging your score. Since credit reporting agencies will compare the amount of debt you have to how much credit you have available, try to make more than the minimum payment each month, or pay off your balance in full (if you can) before the payment due date.

  • Stay on top of your finances. If you find it hard to remember when recurring bills are coming due, you might want to set up automatic payments for things like your phone, internet, utilities and streaming services. If you have a Capital One credit card, you can set up alerts for what you care about most – think purchase approvals, payment reminders and a heads up when your statement is available.

“As a runner on a personal fitness journey, I always say, you never know what you can accomplish until you put your mind to it,” says Carpenter. “Thanks to Capital One’s credit card products and helpful online resources, I have not only made many strides in my fitness journey but also hit new personal bests with my credit health.”

Step 3: Monitor your progress

Whether it’s developing in your career, making gains at the gym or making progress with your credit, sometimes nothing is more motivating or inspiring than seeing the strides you’ve made and how far you’ve come.

If you’re interested in knowing how your hard work is paying off over time, Credit Keeper® from Capital One gives you quick access to your credit score for free. It has no impact on your credit score – no matter how often you want to check it.

Checking your credit regularly and keeping an eye out for any unusual activity can also help you spot identity theft and scams or dispute any errors or inaccuracies.

While rebuilding one’s credit is no easy task, you can do it and keep doing it! By choosing the right Capital One credit card, using credit responsibly and actively monitoring your progress, you can take proactive steps toward improving your credit health and achieving your financial goals with confidence.


* If Quick Check pre-approves a card, you can be sure we’ll approve your application, except in limited circumstances. Some of the reasons we may not approve your application, among others, include:

a. There’s been a change in your credit file information, personal information or financial status from the time you receive your Quick Check results to the time you apply for one of our credit cards.

b. You’re not at least the age of majority in the province or territory you live in.

c. Your application is flagged for fraud prevention.

d. You have an existing Capital One account.

e. You’ve applied for a Capital One account in the last 30 days or had an account with us that was not in good standing in the last year. In good standing means not past due, over limit, fraudulent, restricted, or part of a consumer credit counselling program or bankruptcy.

In some cases, we may not be able to open an account for you even though your application was approved. This can happen if we’re unable to verify your identity, or you don’t provide the required security funds if you’re approved for a Secured Mastercard®.