Canadian Secured Credit Card
If you’re living in Canada with bad,new credit or you’ve declared bankruptcy or declared some form of insolvency and you’ve been dischargedn and you would like to rebuild your credit a good place to start would be to get a secured credit card.
What Is a Secured Credit Card
A secured credit card is a credit card that is backed by real money. Your real money. It protects the lender from you defaulting on any payments and also helps you build or rebuild your credit because secured credit cards report to all major credit bureaus. A secured credit card is NOT a pay as you credit card and it is not a visa or master card gift card. Although the may seem simular they have major differences.
The biggest difference is Pay as go and gift card credit cards do not report to major credit bureaus and will not help you establish any real credit in anyway. Also most pay as you go credit cards are not excepted online and tend have loading fees meaning anytime you add money to your pay as you go or gift credit card you will charged a fee.
On the other hand a secured credit card works differently. when you are approved for a secured credit card you will be required to send the issuer a deposit of around $300 – $1000. This is the issuers protection against any loss so if you default on payments the the lender can just take your deposit money and the loss for the lender won’t be as large as it have been had he given you an unsecured credit card.
Canadian Secured Credit Card Lenders
Many major Canadian banks have secured credit cards, other notable Canadian Credit card lenders are the Home Trust Visa, and also Capital One which i think as lowest deposit fee.
The one downside to secure master cards is the annual fee which can range from $39 – $200 depending on the lender Capital one annual fee i believe is $59 per year. But they do report to the credit agencies and your credit does start to build back. So buying that home or Car can become a reality. If you have any questions leave them below.