Canadian secured credit cards are good - Four reasons why
1. Canadian secured credit card means guaranteed acceptance. This is a nice feature as it gives you the peace of mind to know that if you apply for this card, you’ll be accepted for this card. There are many people who do not have credit in Canada such as people with bad credit, students, and new immigrants to Canada.
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. Canadian secured credit cards help students and immigrants get credit. University and college students in Canada are usually starting off financially and haven’t got that necessary credit history started. Students may have a part time job while working on their studies. Once you turn 18, it’s the first time that you can get a credit card on your own. It’s a pretty exciting time.
Parents will love the fact that their children can get a secured credit card without them having to co-sign for it.
With immigrants it’s difficult to start your credit. Even if you’re moving in from the United States or other country. It’s not commonly known that Equifax Canada and TransUnion Canada keep a separate database of consumers for each country. A secured credit card helps them get a credit rating started in 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.
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