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Getting a Plastk secured credit card in Canada is probably your best choice.
And there are many reasons for it:
You name it; our secure card has it!
However, even if you are familiar with the secured card, there can be endless confusion you might want to clear.
Good news! This guide is curated to do that. So, let’s read out answers to 10 of your frequently asked questions:
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Yes, applying for a secured card Canada service is the ideal way to increase your credit score quickly.
It is a credit card secured by the deposit you make that is used as collateral if you fail to clear payments.
However, it's best to raise your credit score as it reports your positive results to top bureaus:
And you never know; your credit score might increase by 50 to 100 points after a few months.
Related Article: How A Secured Card Can Build Your Credit?
As we explained above, a secure card account requires a deposit to open. So it's like settlement money for the lender if you don't repay.
In fact, that's also the reason why it's best for people with a poor credit score.
Yes, they can still get a card to work on their bad history.
Note:
Moreover, your security deposit usually works as your credit limit.
Don’t worry, it will work as default, and the lender will only use it when you continuously make no repayments.
A secured credit card works like any other typical credit card.
So, yes, you can ask for a credit limit increase on your credit card by adding more money to your security deposit.
You can ask online via web chat on the company's website or call the provided number to follow through the steps.
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There’s a chance you can withdraw money from your secured card.
However, it’s not usually an easier process as the deposit works as collateral for the lender.
Furthermore, you must pay all the outstanding balances, fees, or additional charges to close your account.
Only then can you withdraw the money.
A secured credit card can hurt your score if you decide to close it.
Like any other card, closing a credit account may cause a temporary drop in your Equifax credit score.
However, it can rise again when you get a card and make timely payments.
Here watch a video to understand better:
Yes! Absolutely!
A secured card helps credit if the consumer pays the bill monthly on time every time!
The reason is that the company will send the credit profile report every 1 to 3 months to top credit bureaus.
So, if you make timely payments and proceed with good money habits, you can expect to see a rise in your score after 3 to 6 months of using your secured credit card.
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A secure credit card is good for the credit score as it is an easy-to-manage credit card.
Also, one doesn’t need any good credit score, history, or reporting to get it. So here are some advantage for your credit:
Your credit can be built or rebuilt with the use of a secured credit card in Canada.
Paying on time and controlling your balance helps raise your credit score because payments are recorded and then reported to credit agencies.
Furthermore, you can be eligible for a standard (unsecured) credit card after improving your credit score.
Using a secured card not only allows credit rebuilding but also gives a chance to Canadians to enjoy the little credit perks.
You name it, they have it. You can surely get it from a secure card lender (Like Plastk :p).
In fact, as you start to build your score and history, you might also get a chance to use your good credit profile to transform your secured card into an unsecured card.
Note: You have to confirm with your lender if they have an option. Otherwise, you can always get a new card.
Here’s the basic difference between the two:
There’s so much good about using a secured credit card. It builds and rebuilds your score; you make timely payments to raise your score, and so much more.
However, it’s not always a bed of roses. Yes, it also has some downfalls. Let’s discuss some:
It’s unavoidable to charge consumers some sort of card fee.
In fact, they are obliged to pay a maintenance fee if they have opened an account with a bank or lender - says Stephanie Colestock
Some companies charge an annual fee, while others charge an annual and monthly fee. Of course, the fee depends on the service they provide.
Note: The charged amount is usually payable and is not much if considering all the rewards and bonuses the card comes with.
You might notice secured credit cards usually have a high-interest rate as they don’t demand any credit score or history from their consumer.
It’s only understandable that they want some guarantee other than the deposit.
Good News! Plastk offers 17.99% interest rates to all its customers. Hand down the lowest rate you can find!
The deposit you make becomes the credit limit you’ll have.
That’s the common rule of a secured credit card. Yes, it’s great you only deposit to open your secured account.
However, it’s also bad if you need a higher limit; you need to submit a higher deposit.
Still, you can always clear your monthly payments and withdraw all the money when closing the account. So, all good! :)
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The process is simple.
Once you are satisfied with your credit-rebuilding journey and have a decent credit score and a good credit report, you can always move on.
Now you can keep your secured credit card account open (to use it responsibly). Or, you can close it and get your deposited money back.
Anyone with a bad credit score and no credit history!
The reason is that secured card providers usually offer services to consumers struggling to build credit.
In fact, it is also perfect for students who are beginners to the financial world and have no idea how credit works but want a card to start their credit building.
Are you in search of your first Canadian credit card?
Are you working on your bad credit history?
Are you a student looking for an easy-to-manage card to start building your history?
Do you want to increase your credit fast?
Getting a secured credit card is the right answer.
Of course, it requires patience and time, but a card like Plastk will only help you understand your credit journey better.