Best Prepaid Credit Cards in Canada for November 2024
What You Should Know
- Prepaid credit cards have perks similar to credit cards, but they work like debit cards.
- Prepaid credit cards can be reloadable and non-reloadable. Non-reloadable cards can be loaded only once, while reloadable can be topped up unlimited times.
- You can find non-reloadable prepaid credit cards in stores and gas stations among gift cards, while you can order reloadable cards from a financial company or a bank.
- Prepaid cards have different fees and rewards, making them helpful in collecting bonus points and cashback.
Best Prepaid Credit Cards in Canada
Best prepaid cards are reloadable because they usually come with rewards that can match the perks and rewards of some credit cards. Our top picks include the best prepaid credit cards for day-to-day use and specific activities such as travel and saving.
$0.00
Purchase: 0.00%
No Income Required.
No Minimum
Credit Score.
Cash Back
- 15% Cashback for each $1 spent on: select merchants.
- 6% Cashback for each $1 spent on: restaurants.
- 2% Cashback for each $1 spent on: gas and grocery.
$0.00*
Purchase: 0.00%
No Income Required.
No Minimum
Credit Score.
Cash Back
- 5% Cashback for each $1 spent on: select merchants.
- 1% Cashback for each $1 spent on: grocery, transit, restaurants and food delivery.
- 0.25% Cashback for each $1 spent on: everything else.
Other Perks
- 5% Interest on Your Entire Balance.
- Credit Building: $10/month.
- Free Credit Score.
- Unlimited e-Transfers.
- Up to $100K of your money is protected by CDIC.
Neo Financial Vs KOHO Prepaid Essential
| Category | Neo Financial Money | KOHO Prepaid Essential |
|---|---|---|
| Cash Back | Higher Cash Back | More Categories Covered |
| Credit Score Monitoring | Included, free | Included, free |
| Savings Account | 4% Interest | 5% Interest |
| Credit Building | No Program offered. | Credit Building Program for $10/month. |
What Is a Prepaid Credit Card?
A prepaid credit card works similarly to debit cards but often offers rewards like credit cards. You can use a prepaid credit card only if you have money loaded, just like debit cards. On the other hand, many reloadable prepaid credit cards offer cashback on purchases, just like credit cards. Some cards in this category even offer a generous interest rate on the dollar amount kept in the account. Many prepaid credit cards allow the owner to pay for hotels, rent a car, and make other transactions typically available only to credit card holders.
A prepaid credit card may be a good alternative for people who cannot get a credit card. For example, a person who does not have a good credit score may not be able to get approved for a credit card, but they can quickly get a prepaid credit card and enjoy similar benefits. Getting a prepaid credit card is easy even for a person with poor or no credit history because no funds get loaned with a prepaid credit card. Since no lending process is involved, there is no need to do a hard inquiry on your credit score.
Where to Buy Prepaid Credit Cards
Prepaid credit cards can be reloadable and non-reloadable. You can purchase non-reloadable prepaid credit cards in stores, gas stations, and convenience stores. They are usually sold with gift cards because non-reloadable credit cards are mainly used as gift cards.
Most prepaid credit cards with valuable rewards are reloadable. Depending on the prepaid credit card provider, you may receive your card by mail or in person. You can find prepaid credit cards in the following places across Canada:
- Banks (e.g., BMO)
- Fintech Companies (e.g., KOHO)
- Canada Post Branches
- Gas Stations
- Large Grocery Stores
- Large Construction Stores
Which Prepaid Credit Card Is Best in Canada?
The best prepaid credit card for you depends on how you plan to use it. There is no ultimate best prepaid credit card because every card has unique fees and rewards. Some offer deposit protection while others provide other perks like a multi-currency wallet. You should decide what you plan to use your prepaid credit card for and see which card fits your goals the most.
Best Prepaid Gift Cards
Non-reloadable prepaid credit cards, such as Vanilla Prepaid Cards, are generally used as gift cards. You can easily find these cards in stores such as Walmart, 7-Eleven, and Giant Tiger.
$0.00
Purchase: 0.00%
No Income Required.
No Minimum
Credit Score.
Cash Back
- 5% Cashback for each $1 spent on: select merchants.
$0.00
Purchase: 0.00%
No Income Required.
No Minimum
Credit Score.
Cash Back
- 5% Cashback for each $1 spent on: select merchants.
$0.00
Purchase: 0.00%
No Income Required.
No Minimum
Credit Score.
$0.00
Purchase: 0.00%
No Income Required.
No Minimum
Credit Score.
Usually, non-reloadable prepaid credit cards don’t have any benefits. Still, they are a convenient payment option since most retailers and online stores accept them.
Frequently Asked Questions
Does a Prepaid Card Hurt Your Credit?
A prepaid credit card does not hurt your credit score. Since you are not borrowing money when you use a prepaid credit card, the card provider does not do a hard credit check.
Sometimes, a prepaid credit card can even help you build your credit. Some prepaid card providers offer a credit-building service. This service turns your prepaid credit card into a secured credit card for a monthly fee. Secured credit cards are usually used as credit cards for bad credit to build a credit history.
What Are the Downsides of Using a Prepaid Card?
Prepaid cards can be expensive and don’t have the same protection as credit cards.
Most prepaid credit cards with rewards have monthly or annual fees that may be higher than credit card fees. It is possible to find prepaid credit cards with no fees, but they will likely have no rewards and other hidden costs such as withdrawal and reload fees.
Credit card companies usually protect their users from unauthorized purchases. For example, if a credit card is stolen and used for purchases by anyone other than the account holder, the bank will reimburse the stolen amount. This type of protection provides peace of mind to the account holder. Unfortunately, prepaid credit cards do not have this protection.
How to Activate Vanilla Prepaid Card?
There are two ways you can activate your vanilla prepaid card.
1. Activate at the Purchase Location
When you purchase your vanilla prepaid card at one of the stores, you have to pay the dollar amount you want your card to have. Once purchased, you can use the card as a regular credit card. No additional activation is required.
2. Activate via Customer Service Representative
If your card is not activated, you can also find the customer service number on the back and reach a customer service representative. A customer service representative will ask for your card number, expiry date, and CVV code to complete the activation process.
To reach a Customer Care Representative for Vanilla Mastercard
- For cards beginning with 520356, call 1-833-502-6535.
- For cards beginning with 533621, call 1-800-652-9174.
To reach a Customer Care Representative for Vanilla Visa cards:
- For cards beginning with 485097, call 1-833-502-6535.
- For cards beginning with 426370, call 1-844-864-6951.
How to Check Vanilla Prepaid Card Balance?
You can check your vanilla prepaid card balance online or over the phone. Keeping track of your Vanilla card balance is important because it will get declined if you don’t have enough funds on the card. Luckily, it is pretty easy to check your Vanilla card balance if you have a phone with you.
1. Check Vanilla Prepaid Card Balance Online
The easiest way to check your Vanilla card balance is on VanillaPrepaid websites, depending on what card you have. You simply provide your card number, expiration date, and CVV code to see your card’s information.
2. Check Vanilla Prepaid Card Balance Over the Call
You can also call the customer service number and inquire about your balance. You can always find the customer service number on the back of your card. You will have to provide your card number, expiration date, and CVV code to the customer service representative to verify the card.
To reach a Customer Care Representative for Vanilla Mastercard
- For cards beginning with 520356, call 1-833-502-6535.
- For cards beginning with 533621, call 1-800-652-9174.
To reach a Customer Care Representative for Vanilla Visa cards:
- For cards beginning with 485097, call 1-833-502-6535.
- For cards beginning with 426370, call 1-844-864-6951.
Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
- Financial institutions and brokerages may compensate us for connecting customers to them through payments for advertisements, clicks, and leads.
- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.