Getting a Credit Card
Getting a credit card can be difficult if you have had debt issues or filed for bankruptcy in the past. If you are unable to qualify for a credit card, you will need to apply for a secure credit card from your bank or financial institution. Obtaining a secure credit card can help you fix your credit while still giving you the convenience of being able to access credit if you need it.
What is a secure credit card?
A secure credit card is one that is secured by funds you have deposited with the bank or credit union. For example, if you deposit $1,000, you will be given a $1,000 borrowing limit on your credit card. This deposit acts as collateral before you can receive your credit card and begin using it.
There are many Canadian financial institutions that offer secure credit cards and which are linked directly below:
How do you choose the right credit card?
Each new card application will appear on your credit rating so be sure to only apply for one or two cards at a time. Once you obtain a secure credit card you will need to ensure that you pay the credit card balance on time. This will help you rebuild your credit rating and can help you increase the balance of your secure credit card. Once you are able to re-establish good credit, you will have more options when it comes to choosing a credit card.
Please visit the Financial Consumer Agency of Canada online to learn more about how to choose the right credit card. This is an excellent resource that provides information about:
- What you need to know before you start looking for a new card
- Interest rates and credit cards
- Additional fees and costs
- Rewards and benefits with particular cards
- Specialized cards, including secure credit cards
If you’re unsure how to pay off your credit card debt, we can help. As bankruptcy trustees, we are able to provide you with free debt and credit counselling services. Contact us today to learn more about our services.