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Applying for a credit card is dreadful for people with bad credit.
● Good credit history
● Clear Equifax credit report
● Stable income
● Excellent Equifax credit score
Ah, there are so many requirements one has to fulfill in order to qualify for a top
credit card in Canada.
Are you struggling with it too? Then, We Have Got A News For You!
Getting a secured credit card in Canada is hands down the best pick for all the
Canadians who can’t seem to get a card due to their bad credit and financial
status.
Let’s find out how you can get one despite your poor credit history!
How To Get A Secured Credit Card In Canada?
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Not everybody has good financial knowledge right from the start.
Instead, most of us make mistakes and learn from them as time passes. Your
credit profile surely falls in the same category.
However, the mistakes of the past can sometimes be obstacles to the future.
Most high-end credit cards (precisely, unsecured ones) demand consumers to
have:
● More than 650 credit score
● A stellar credit history with no negative marks
● A long list of assets and savings accounts
But, with the rising inflation, it has become more difficult than ever to meet these
standards.
The reason why experts advise choosing a consumer-friendly credit card!
So, here’s how you can get a secured credit card in Canada to quickly build your
credit score:
1. Apply For The Card
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The first step to getting a secured credit card in Canada is applying for one!
Of course, that’s simple and kind of understood. But, there’s more to the story.
Hear us out!
Applying for the card can be categorized into 1. Choosing the card 2. Choosing the
application process!
● Whichever credit card you choose will decide your financial stability and
credit debt handling in the near future!
● Also, you can’t forget the benefits, bonuses, and all the extra perks that
come with it.
So, once you have decided on the best credit card suited for your situation, you
can then proceed to apply directly on their website.
● Apply Online: The most convenient way to apply for the card is by filling
out the application form on the company’s website.
● Apply In Person: You can decide to visit the branch, talk to a customer
representative, and then apply for the card.
● Send In Your Documents: You can also apply for the card by emailing your
documents, application, and necessary details. However, it might take
longer than the usual process.
This is all there is to the step of getting a credit card.
Of course, you might have to provide basic and additional information for the
application, which we’ll discuss in the next step.
2. Open Your Account
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Once you’ve applied, you might hear from the company about the confirmation
within a few seconds to a few days.
However, remind you this is not the confirmation of your account but the
application.
The company will ask you for the following details to review your application:
● Legal full name
● Contact
● Address
● Date of birth
● Email address
● Employer information
● Annual income
● SSN
● Data of your previous cards
The company won’t ask you about your credit history or details when you're
applying for a secured credit account.
The reason why it’s ideal for rebuilding your bad credit score.
If your application was submitted online, you might open your account quickly
compared to other ways.
Opening a secured credit card is usually easy and convenient as the company
mostly provides guaranteed approval to all consumers.
Of course, unless you have some legal lawsuits and endless debt situations.
However, still, it’s the best option for all bad credit scorers.
Bonus: Click to read a study on consumer credit debts and analyze whether you
are eligible for the card or not.
3. Fund Your Account
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The last step of getting a secured credit card in Canada is to clear the funding
process.
As the name suggests, a secured credit card is backed up by a security deposit
which works as collateral for the lender.
The reason why it has a higher approval rate for bad credit Canadians - Experian
● After your application is approved, the last step is to provide the funds
(deposit).
● The service provider might ask for your bank information for the security
deposit.
● Or, you might have to open a savings account to input the needed amount.
After the final screening of the account funds, you’ll probably have to wait for the
final thing: getting the card in your mail.
As simple as that!
Now the question arises, how much security deposit should you pay? And, does it
really matter?
If you’re a beginner and want to do something about your bad credit profile, you
must choose a secured credit card that provides you with enough perks.
● For instance, if you are struggling financially, the minimum security deposit
should be as low as possible (say: $300).
● As the credit utilization has to be low to improve your credit score, the low
deposit might help you manage the money.
It might urge you to spend less and use the credit you can afford to repay
because, generally, the credit limit is equivalent to your security deposit.
See: How Secured Credit Card Deposit Works!
What To Do If Your Secure Credit Application Was Rejected?
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Although it’s highly unlikely to happen, the service provider has the authority to
reject your application for several reasons.
● Wrong personal data
● Inaccurate income details
● False bank statements
● Fraudulent activities
These are a few explanations for why a credit card issuer might deny your request
for a card. So, what can you do? How can you fix your application?
Let’s find out!
1. Recheck Your Application
There might be a fault in the information you provided, so the first thing you
should check is the application you submitted.
● You can review your credit report for errors you were unaware of.
● Read through your application to find any wrong information.
● Analyze your form to see if you meet all the required requirements.
● Check if you have deposited the security amount needed by the company.
If you still don’t understand what went wrong, try the next step!
2. Talk To Customer Representative
Call the provided helpline number or email the company with your complaint or
request. Ask the representative or support team why your application was
rejected.
You can also set a time to meet the customer service person and discuss
everything you can do to meet their requirements.
3. Change The Service Provider
Even after all that effort, you can’t find why your application was rejected or if
there’s something the company could do about it.
The best solution is to change your card service provider!
There are numerous companies out there that are ready to help struggling
consumers; all you have to do is find them.
See: Why To Use Plastic Credit Card To Build Credit Profile!
● Ask your family, friends, or colleagues for recommendations.
● Talk to a legal expert and get their opinion on which company is best suited
for you.
● Search online and compare services of credit cards you like.
Getting rejected for a credit card is not the end of your journey. Instead, it’s the
start because now you know there’s something you need to fix!
Can A Secured Credit Card Help You Rebuild Score?
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There’s a reason why top credit experts pick secured credit cards for credit
rebuilding. Let’s discuss some of them:
1. It can help the consumer stay on the financial track through instant
approval!
2. The low requirement standard assures the applicant that there’s still hope
to fix things!
3. Often, secured credit card companies provide financial literacy services to
make the consumer understand how credit score and report works!
4. It’s a light pathway for Canadians who can’t afford high-interest rates of
unsecured credit cards but want to continue building their scores!
5. Some companies also offer daily free credit points to motivate their
customers to continue improving their credit scores!
Mark Cuban, a credit expert, and top entrepreneur says as long as you keep
clearing your credit bills, it can always work in favor of your credit profile.
Final thoughts
Applying for a credit card always comes with fear and anxiety of rejection.
However, the case is different for a secured credit card.
Wondering why?
It is built especially for you and all the Canadians battling poor credit profiles!
Of course, you still must follow certain standards (explained above).
But, getting accepted for a secured credit card is usually easier than a typical
credit card.
Hence, you should consider getting a secured credit card in Canada if you’re
struggling with credit debt, poor credit history, negative checks, and all that sad
stuff.
