How to Get Your First Credit Card in Canada?
Application for a credit card in Canada
is a relatively straightforward process: you either go to the local branch of your bank or apply online on the bank’s website. You will get a response within 7-10 workdays. Before you get on with the application, however, you should be aware of a few general conditions arising from your legal status and credit history:
You Are a Newcomer to Canada with no Canadian Credit History
In this case, most Canadian banks
will not give you a regular (unsecured) credit card. Still, if you have a good international credit history, you can try filling in an application
- take all relevant documentation that proves your credit history and arrange a meeting with an official at your bank. Regulations on the issue of credit cards tend to vary from bank to bank and from one year to another. Don’t get disappointed if you are denied a credit card with one bank. Keep shopping around at see what the banking market has to offer.
In case you are denied a regular credit card, you can use one of the following options:
• You can get a secured credit card
(i.e. one with a spending limit) by making a security deposit with a bank of your choice. Typically, you will deposit cash, but some banks will also accept furniture or some other forms of collateral. Bear in mind that initially, you will not be able to spend sums that exceed your deposit;
• Alternatively, you can apply for a joint card with a friend or family member. All bills paid with the card will be shared by you and your partner, so make sure that he or she is a responsible person.
• You can also find a co-signer who will be held responsible if your fail to pay your credit card obligations.
You Are a Canadian Citizen with No Credit History
If you have not had a credit card before and have just began to work, most banks will allow you to obtain a credit card with a low credit limit. If you prove a conscientious payer, soon you will be entitled to a regular card with unlimited credit. On the average, it will take up to a year before you obtain an unsecured credit card. Check with a representative of you bank on whether you can speed up the process.
If you are underage, you will not be allowed to receive a regular credit card. However, you can still do one of the following things: apply for a secured credit card or ask a parent or guardian to get a credit card on their account with your name on it. In this way, you will start building the good credit record
prerequisite for a regular credit card.
You Have Good Credit History in Canada
If you have already owned a credit card and have duly paid your bills, you should not have any problems getting a new regular credit card.