What are Credit Cards?
Credit is a financial term, which is described as an arrangement in which you buy any service or goods but have to repay back after some time with interest value. There are different types of credit available in the shape of a loan, mortgage, overdrafts, and credit cards.
Your credit card comes with a credit limit and you have to spend money within the limit only. Monthly payments on the amount you credited should be paid, and if payments are not made then you are charged with the interest on the left amount you have in your credit cards.
Application and Criteria
You have to be 18 years old and have your national identity card in order to apply for credit card in Canada. If you are applying for the first time, you must sign some legal agreements, which have to be followed in any case. Always make sure to be honest when signing the agreement and when using the credit cards.
How to get a Credit Card in Canada?
To get a credit card in Canada the most important factor is a clean credit history. Equifax and TransUnion are the two companies, which keep your record from day to day basis. Every credit card provider checks your credit score; if your score ranges from 300-900, then you are eligible to apply. A good credit score is also beneficial because it lets you have a larger credit limit.
To apply for a Credit card, you need to provide some personal information to the bank but you
have to be honest and completely transparent about your records and information.
These details are required:
1. Name and date of birth according to legal documents.
2. Home address, email Id, and Phone numbers, which you use.
3. Information about your current and previous work.
4. Annual Income report and its statistics
5. Social Insurance Number (SIN)
6. Information about other credit cards you hold.
7. Information about your credit history.
You can apply for credit cards through three widely known options:
- On phone
- In person
If you are new to Canada, follow these tips to qualify for a credit card:
Step #1. Make a security deposit in your bank, usually in form of cash.
Step #2. Apply for a joint credit card with a friend or family who lets you use the card and you both have to repay the amount. This will let you build your credit history/credit score.
Step #3. Take a loan and try to pay it off very quickly! This will boost your credit score.
Step #4. Join credit union at your work or in the community, you live.
Obtaining a credit Card has become very crucial these days. Every person is required to have their personal credit card for their day-to-day tasks and purchases. The only drawback of a credit card is the high-interest rate with which it comes; otherwise, it is very beneficial.