Different secured and unsecured cards are offered by Canadian banks and credit card companies. There are different ways to apply for a card, including online and at the local branch.

Canadian issuers request financial, employment, and personal information, including your credit score, authorized users, and types of accounts owned, i.e. savings, checking, high interest, money market, and others. Banks are unlikely to approve your application if you have late payments. While unsecured cards require good to excellent credit, secured and prepaid cards are offered to applicants with poor and fair credit. Some banks require a minimum annual income of $20,000 while others require a total income, including spousal and own income of $60,000 or higher. There are issuers that offer additional cards for a small annual fee or at no added cost. people (2)Banks offer Visa and MasterCard products to applicants, but the perks and rewards programs that go with them are usually reserved for creditworthy customers. Applicants for a student card provide information such as whether they are domestic or international students, if they are landed immigrants or citizens, etc. Issuers that offer student cards also request information such as family member or alternative contact information, and financial details such as outstanding loans and balances, types of accounts held, additional income, annual wages and salary, and monthly rent or mortgage payments. The type of information banks request depends on the credit report, card of choice, and other details.

Issuers also offer secured and unsecured Canadian credit cards to businesses as an alternative to LOCs and small business loans. Business owners also provide personal financial information such as residential status and country of nationality. The application must be filled by an authorized officer or the business owner. Authorized officers fill in a separate section. Many issuers are also interested in whether the company is non-profit or for-profit and if it is publicly traded. Specify the legal structure of the company as well – unincorporated association, sole proprietor, limited partnership, general partnership, LLC, C corporation, or S corporation. If applying for a balance transfer card, there are financial establishments that allow up to 3 transfers. With some banks, customers are asked to specify whether they apply for a card with the maximum credit limit. Once approved, it takes between 7 and 30 days for the card to arrive.

Bank clients can choose from different products, including travel, charge, and bad credit cards. Financial institutions take into account your credit mix and utilization. Look at factors such as minimums, expiry dates, billing cycles, and others.

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Using a Secured Loan or Credit Card to Rebuild Credit

by John Stevenson on September 5, 2014

Secured loans and credit cards are offered to persons with less-than-perfect credit, and they are easier to obtain. Borrowers with poor credit have a better chance of getting approved for a secured loan if they offer collateral to the lender. Thus, risk is less of a factor. People who apply for a secured credit card deposit money with the credit card company. The issuer can seize the deposit if the borrower is unable to keep up with payments.

Credit history is based on two different factors: revolving credit, such as credit cards, and installment loans, like personal loans. To build or rebuild credit, borrowers need to have a good record with both revolving credit and instalment loans. The problem is that borrowers who experience financial problems and build up a couple of negative transactions find it difficult to dig their way up. Borrowers with poor credit are usually offered outrageous interest rates or are turned down by financial institutions because of their poor credit history. That is why borrowers resort to secured loans. Those who have some valuable asset to offer against the loan stand a better chance of having their loan application approved. Moreover, they are often offered a more reasonable interest rate, thus saving money on interest. Lower interest charges make payments more manageable and thus, borrowers find it easier to keep up with their monthly payments. Regular payments, on the other hand, help rebuild credit.

Using a prepaid card or a secured credit card is another way to rebuild credit. Secured credit cards are offered by mainstream banks, many credit unions, credit card companies, and other financial institutions. Not all banks offer secured credit cards, and there is a trend is the banking sector toward unsecured credit cards. Many banks started offering unsecured credit cards with higher fees and interest rates and lower limits. Still, it pays to shop around because using a secured credit card is a good way to rebuild credit. Secured credit cards are intended for people who seek to establish or rebuild credit after some major event, for example, serious illness, loss of job, or divorce. To this, borrowers are advised to make sure the card issuer reports to all credit reporting agencies. If they do not report, the borrower has lost a key benefit. As a rule, if you start getting offers for unsecured credit cards after having made on-time payments for several months, you will know that the card issuer is reporting. Inquire whether the bank flags the report as a prepaid or secured credit card because this will be a deterrent to establishing or rebuilding credit. How long does it take before borrowers are offered an unsecured credit card? Banks and credit card companies want to keep their customers and will qualify them for an unsecured credit card after making regular payments over a certain period of time. On average, it takes about a year to build credit and qualify for an unsecured card.

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Airline Freebies and Discounts Offered with Rewards Cards

August 17, 2014

Airmiles and rewards credit cards feature plenty of added benefits to attract more customers. Some issuers offer low introductory interest rates and annual fees while others feature freebies and discounts, including bonus points toward flights, access to entertainment, and more. Added Benefits In addition to complimentary bonus points and attractive redemption plans, rewards cards offer […]

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How to Get a Secured Card with a High Limit

August 1, 2014

The easiest way to obtain a secured credit cards to rebuild credit with a high limit is to deposit a large sum of money to serve as a guarantee for prompt and timely payment. The limit offered also depends on the bank of choice, with some institutions offering credit limits that can be as high […]

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Business Loans for Major Purchases and Expansion

July 11, 2014

Business loans are offered to start-ups, entrepreneurs, corporations, and new and small businesses. Borrowers can choose from different financial solutions such as commercial and business term loans, cash flow finance, business loans and lines of credit, and others. Types of Financing There are different financing options, including angel investors, small business loans, equipment leasing and […]

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CreditCardReview.ca Launches a New Section for Flawless Shopping Experience

June 9, 2014

The new section by CreditCardReview.ca presents important credit card details to simplify comparison shopping and decision making. (PRWEB) June 09, 2014 CreditCardReview.ca announces the publication of a credit card section (http://hbc-credit-card.creditcardreview.ca/) that presents an overview of the features of the rewards credit card offered by HBC. The goal is to help visitors make an informed […]

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Weighing the Benefits and Downsides of Mutual and Hedge Funds

May 7, 2014

Mutual and hedge funds offer multiple benefits, but the risk must be carefully assessed as well. Mutual funds offer benefits such as fair pricing and dividend reinvestment, but there are downsides such as higher sales charges, hidden fees, and others. Hedge funds also offer benefits such as comparatively lower leverage and higher liquidity, but there […]

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Consolidation Loans and Balance Transfers

May 1, 2014

Consolidation is one option for borrowers with excessive debt. It is crucial to make timely payments because late or missed payments will affect your credit score. Balance Transfer Cards and Consolidation Loans One of the benefits for borrowers is that they are offered a single loan to pay off multiple debts. Borrowers make one payment […]

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Do Your Homework Before Heading to the Dealership

April 23, 2014

Financial institutions advertise auto loans with affordable monthly payments, flexible repayment terms, and competitive interest rates. There are different options for customers, including leasing and buying a vehicle Bank customers are offered financing for the purchase of motor homes, sports vehicles, cars, campers, and RVs. Customers who want to secure a lower interest rate apply […]

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Credit Cards for Borrowers with Poor Credit and Customers with Solid Payment History

April 21, 2014

Banks, credit unions, online banks, and other financial institutions offer different types of credit cards to business owners and individual customers. Clients can choose from rewards, airmiles, no annual fee, student, and other types of cards. Options for Customers with Good Credit As a rule, customers with excellent and very good credit have plenty of […]

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