There are numerous articles and informative resources that contain tips and advice regarding secured cards in the United States, but what about those consumers who need a Canadian secured credit card? Are there secured card options for Canadian cardholders? The truth is out there, and we are getting to the bottom of it. If you want information about secured credit cards in Canada, this is what you have been looking for...
They Do Exist!
Yes, my friends, you can indeed get a Canadian secured credit card -- if, of course, you meet some basic requirements. First and foremost, you need to live in the country of Canada. You cannot really get a Canadian secured credit card if you live in a different country. In addition to residency requirements, you will probably also need to meet some income requirements and you will definitely need to supply a security deposit for the card.
The Security Deposit Factor
A security deposit for a Canadian secured credit card is not much different than the security deposits required for US-based cards. Security deposit minimums are usually around $300 and your deposit will likely earn an interest rate of around 2 percent annually.
The Fees
Like other secured cards, there are going to be fees associated with a Canadian secured credit card. You can expect an annual fee of $50 or more depending on your specific credit history. There might even be processing fees depending on the card you apply for and monthly fees are also a possibility. Of course, interest is something you will have to pay no matter what card you go with, and rates can vary drastically from card to card.
Try to keep your fees to a minimum, applying for cards with the lowest fees first. If you do not qualify for those cards, you might have to settle for a Canadian secured credit card, and they may have higher fees and higher finance charges as well. Handle With Care
When you do get your credit card, make sure you manage it wisely. If you pay your bill on time each and every month you'll eventually be able to transition to an unsecured line of credit.
While a Canadian secured credit card may be more expensive and less prestigious than the card of your dreams, it's a practical way of establishing the credit history you need for the credit you want in the future.
