Applying for a credit card can be a big decision. Almost every credit card offers different features that offer different benefits, depending on individual goals. This can be daunting for long-term credit users and new-credit users, as being bombarded with endless information on credit can be overwhelming.
However, Plastk wants to help make your journey applying for a credit card easier. Our team has broken down the pros and cons of various credit cards, to make the process of choosing the right card simple for you!
While we can’t explain every detail about the credit cards listed or explore every type of credit card available in Canada; this article will help to break down some of the basic information about popular credit cards in Canada.
Secured vs Unsecured
Before reading about which credit card is right for you, we are going to explain the key differences between secured and unsecured credit cards.
Secured Credit Card FAQ’s
Secured credit cards can be used to build your credit. They are also the best credit cards to have if you’re looking to build your credit score. Secured credit cards can also be perfect for newcomers to Canada, looking to build their credit with a Canadian credit card company.
Most secured credit cards also have easier approval processes than unsecured credit cards. This means they are credit cards that offer approval, for all individuals regardless of credit history or credit score.
Unsecured Credit cards FAQ
These credit cards are more traditional than secured credit cards. Many require minimum incomes, credit scores or history with the banking institution you are looking to lend from.
Pros
Cons
Plastk's Secured Credit Card is perfect for consumers who want to build their credit and get rewarded for it! Unlike some of the competitors in this list, Plastk offers cash back, rewards points and an app that gives its users the ability to check their credit score!
Plastk’s Quick Take:
Consider this credit card if you are looking for a simple way to build your credit, earn cash back points, earn rewards points and have access to your free credit score!
Tangerine Money-Back Credit Card
Pros
Cons
Plastk’s Quick Take:
Consider this credit card if you’re looking for a cash back credit card with a low income requirement.
Consider another option if you’re looking for a credit card that doesn't require a minimum credit score or a credit score with a low interest rate.
BMO CashBack World Elite Mastercard
Pros
Cons
Plastk’s Quick Take:
Consider this if you’re looking for a credit card with cash back.
Consider another option if you’re looking for a credit card with an easy approval and no monthly minimum.
BMO CashBack Mastercard For Students
Pros
Cons
Plastk’s Quick Take:
Consider this if you’re a student looking for a no-fee credit card or a cash back credit card.
Consider another option if you are not a student or looking for a credit card that offers more rewards. This credit card has varying reward rates for different types of purchases.
Home Trust Secured No-fee Visa
Pros
Cons
Plastk’s Quick Take:
Consider this if you’re looking for an easy approval credit card with a moderately priced required deposit.
Consider another option if you’re looking for a secured credit card that offers a lower interest rate and rewards system.
Pros
Cons
Plastk’s Quick Take:
Consider this card if you’re looking for a credit card with a low interest rate.
Consider another option if you are looking for a credit card that offers premium rewards, like cash back or travel rewards.
Refresh Financial Secured Card
Pros
Cons
Plastk’s Quick Take:
Consider this card if you’re interested in a basic secured credit card.
Consider another option if you’re looking for a credit card that offers rewards or cash back for its members.
Pros
Cons
Plastk's Quick Take:
Consider this if you are looking for a bank card that is more like a debit card, without the monthly fees.
Consider another option if you are looking for a credit card that offers more features associated with building credit history.
Capital One Guaranteed Secured Mastercard
Pros
Cons
Plastk's Quick Take:
Consider this card if you are looking for a secured mastercard that offers travel rewards.
Consider another option if you are looking for a credit card with a low annual fee and low interest rate.
Choosing the right credit card is not an easy task. Without countless different credit card options in Canada, it can be difficult to decide which card is best for you. Something important to remember is that in order to decide which credit card is best for you, you must weigh the pros and cons.
For example, some credit cards may have higher annual fees, but make up for this by offering cash back, rewards, lower interest rates or even mobile apps that make managing your finances more accessible!
Disclaimer: The content provided on the Plastk Financial Inc. Blog is information to help Canadians become financially literate and learn about credit. Plastk is not responsible for building or ruining an individual's credit score or credit rating. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment, credit inquiries, and all other decisions should be made, as appropriate, only with guidance from a qualified professional.
*Visa International and Digital Commerce Bank do not provide any of the services or benefits related to the Plastk rewards program. The terms and conditions applicable to these services or benefits are contained in the agreement between you and Plastk Financial & Rewards Inc.All credit Issued by Plastk Financial & Rewards Inc. This card is owned and issued by Digital Commerce Bank, pursuant to license from Visa International. Use of the card is governed by the agreement under which it is issued. The Visa Brand is a registered trademark of *Visa International.