4 Reasons why Canadian secured credit cards are good.
1. Canadian secured credit card are an assured acceptance. You will have peace of mind knowing that applying for this card means you are certain to be accepted. There are many Canadian citizens who do not have credit for varying reasons. New Immigrants to Canada, students, and people with bad credit.
When people have bad credit, they tend to apply for many different credit cards all at once. The problem with this is that every time a credit card company takes your application they get a credit report from Equifax Canada and/or TransUnion Canada. Every time a credit card company accesses your credit report, it costs you approximately 6 points off your credit score in Canada.
2. Use a Canadian secured credit card to help establish a credit history. Those who are just starting out in life, or who have never owned a credit card, often find that they are denied credit. When they question this, future creditors tell them that they have no credit history showing how they can handle credit which prevents them from obtaining credit.
3. Getting credit with Canadian secured credit cards help immigrants and students. Many students while in school, university, and/or college have part time jobs. While this is good, it does not necessarily build your credit history. Most students are just starting off financially. A secured credit card helps in this area. Also, once 18, you can then get your own and first credit card.
Students can getting a secured credit card on their own with out having their parents or friends co sign for it.
What is not commonly known to many immigrants (and those that actually live here) is that TransUnion Canada and Equifax Canada keeps a separate database of consumers for each country. So for immigrants wanting to start a credit history, this might prove difficult. The best way for them to create a history for themselves, would be get a secured credit card for their new country.
4. Canadian secured credit cards help people with bad credit. A secured credit card in Canada shortens the time it takes to reestablish your credit. Upon acceptance and usage of this credit card, the credit card company immediately starts to report your good credit to Equifax Canada and Transunion Canada giving you positive credit reporting in as little as a month’s time.
December 8th, 2007 at 10:48 am
It can be hard to get a hold of credit cards with a history of bad credit or a low credit score but there are lending companies that provide such services. Online financial services of this kind seem ubiquitous nowadays, so credit cards are much more accessible. Thanks for the info!