Canadian Student Credit Cards

Student credit cards in Canada are different from what you might find in America if you are a student going north of the border. There are some common traits that you will have to have whether you are in Canada or America. It is important that you establish good credit. The best thing you can do is build your credit. If you have none then there are some things that you can do to improve your situation.

First of all you can open a saving account and a checking account before you apply for student credit cards. These are great ways to get the ball rolling. This isn’t going to solve everything, but it will help start off on a good note. You can start paying your bills in college such as rent and utilities on this fund. This will allow for credit bureaus to see that you are good on paying your bills. Then it is good if you can get a store credit card from a clothing outlet that will allow you to build more value with credit bureaus. This is all in vain if you don’t pay your bills on time. That is the biggest thing you can do.

For Canadian students to get a credit card it will probably require an annual fee of some kind. The limits are usually around $750 and the interest rates are similar to those of American credit cards. They are usually around 15% or so. This is a good way for you to build a credit history during school. This can help you to eventually lower your interest rates and then be able to raise your credit limits higher. If you are struggling to get a card then you might have to get a cosigner. This is fine and can be a good way to make sure that you are taking care of that card because someone else is responsible with you. I would also ask advice from this person as to how to properly spend wisely with a credit card.

If you are having issues getting a credit card and you can’t get a cosigner then it would probably be good to go after a secured line of credit. This can be a good option for students that are struggling to get a credit history establish and are easier to come by. You will probably have to make an initial deposit equal to the amount of money you want to have as a credit limit. Whatever type of card you are able to get, build a first initial impression with the credit bureaus and your creditor so that they are able to offer your better rates in the future.

Secured Capital One Credit Cards

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One of the best ways for any person to restore their credit is by getting a secured credit card from a reputable bank. I have to say that one of the best issuers out there is Capital One. There are some concerns that critics have brought up about secured Capital One credit cards, but there are plenty of people out there that have strong relationships with Capital One. They are definitely worth your time to take a look at.

Capital One is a Virginia-based bank founded in 1988 by Richard Fairbank and Nigel Morris. They are well known for their innovative strategies with their products. They are the fourth largest customer of the United States Postal Service. They recently merged with North Fork Bank for $14.6 billion dollars. They have moved up quickly because of their diversity with specializing in many different forms of consumer lending such as credit cards, home loans, auto loans, banking, and savings products. Their diversity has paid off well, as well as their impressively catchy commercials. Many people recognize their slogan, “What’s in your wallet.” Capital One continues to go against the trend by being a “monoline” lender (only consumer lending) and then going into retail banking.

There are some concerns with Capital One about that even though they have been very successful. Their stock has been flat for the past half decade and there is speculation that they will be bought up by larger company. This shouldn’t hold you back from getting a secured Capital One credit card because even if it is bought up, that shouldn’t hurt your credit or your contract. Sometimes that might result in better rates and fees.

Whether you are getting Capital One secured credit cards in Canada, America, or wherever they are often criticized for offering multiple cards to people with poor to no credit and that can be a huge problem with numerous maxed lines of credit and late payment fees escalating. Some consumer advocates consider this to be predatory, but obviously you have to decide how you spend your credit cards. Capital One and no other bank will force you to spend your card, so that point tends to be less valid to me.

A point that is more valid to me is that Capital One will not disclose their customer’s total credit limits to credit bureaus, but they will mention the spending habits of customers and what they do with the cards. This is unfortunate because the FICO score is determined by the limits extended to a credit card consumer compared to the amount of credit used. In turn this can hurt your FICO score. So that is a concern that you should pay attention to.

So look at other options that you may have, but be willing to get secured Capital One credit cards if you are looking for nice small limits that you can use to temper your expenditures. This might be a good initial step and if you do get a Capital One card then look at another big bank like JP Morgan Chase to get a card that will be more easily recognized for your FICO score.

Secured Credit Cards in Canada

We share the same language, the same name for our currency, we even share a few professional hockey and basketball teams. Why wouldn’t we share similar financial problems and solutions?

After a tough financial stretch, people are just as likely to be looking for secured credit cards in Canada as they are here in the US. Canada has similar bankruptcy laws to those of the US and the same credit bureaus monitor a person’s management of their debts. That being the case, a secured credit card in Canada will be just as useful for improving credit rating up there as down here.

Here is a short list of companies in Canada that provide secured credit cards:

1. Capital One Bank

The capital one website doesn’t say much about its terms other than the fact that your credit limit will be determined based on your credit score. No mention of interest paid on the security deposit, so I doubt they pay any.

2.CIBC

CIBC seems to offer similar terms as the others with one exception. They only let you apply for a secured credit card at a local branch of the bank.
3. Home Trust Bank

Requires a minimum deposit of $1000, but can go up to $10,000. They pay no interest on your security deposit, and charge a $7.50 monthly fee. I looked over their terms and conditions and these guys seem a little steep on their fee structure.

4. Horizon Plus

This card requires a minimum deposit of $500 and pays 2% annually on that deposit. They also charge a monthly fee of $5.95 to keep your account open.

These companies will have a fairly simple application process and you’re highly likely to get approved. After all, why wouldn’t they approve you when they have your cash securing the line of credit they gave you? In fact, getting secured credit cards in Canada for people with bad credit is pretty easy. You can get a credit line of up to $10,000 (if you’re willing to put down a $10,000 deposit).

The game is the same in Canada as it is in the US – open a couple of secured credit cards, and put a balance on them every month. Make sure it’s an amount you can manage and pay off before the payment is due. The credit bureaus on both sides of the border need to see you use the credit card intelligently. That means no late payments! Don’t risk making your credit score even worse!