We do not own any credit cards with annual fees.<\/p>\n
- \n
- President’s Choice World Elite MasterCard for PC Optimum Points<\/strong><\/li>\n
- Canadian Tire Triangle MasterCard for CT Money<\/strong><\/li>\n
- Costco Capital One Credit Card for CashBack<\/strong><\/li>\n
- TD Visa for CashBack<\/strong><\/li>\n<\/ul>\n
Determining Your Credit Card Needs<\/h2>\n
What do you want a credit card for?<\/strong><\/p>\n
Make a list of what you’d like from your ideal credit card.<\/p>\n
Perhaps you travel and would benefit from a travel rewards credit card<\/strong>.<\/p>\n
If you’re like us you may want a credit card that offers rewards points to put towards your groceries and health and beauty needs.<\/p>\n
Also, if cashback is a plus for you there are ample credit cards who offer this type of incentive.<\/p>\n
What you will want to do is apply for the credit card that you will use the most and will meet your overall financial needs.<\/p>\n
Related: How to apply and compare credit cards in Canada<\/a><\/strong><\/p>\n
Elite Status<\/h2>\n
Another credit card need you may want to examine is:<\/p>\n
How fast you can reach elite status with your credit card company.<\/p>\n
When you start with a credit card you may get the basic credit card but as time goes on you may be able to move up.<\/p>\n
However, if you meet the requirements of their top credit card you can walk your way into that without a hitch.<\/p>\n
Some companies will bump you to a new shiny credit card that offers holders more perks<\/p>\n
Rewards Expiry or Restrictions:<\/h2>\n
Also, keep in mind whether the credit card you are applying for has any restrictions on their perks or rewards.<\/p>\n
Always find out whether these rewards, points or perks have expiration dates so you don’t find out you’ve come to lose what you worked hard to earn.<\/p>\n
Costco Capital One Credit Card vs. Canadian Tire Triangle MasterCard<\/h2>\n
Once you find the credit card that you want to apply for you may also find they offer a sign-up bonus to new cardholders.<\/p>\n
At Costco, we received $10 off our credit card bill when we spent $50 on one order. (like that was hard)<\/p>\n
Our Capital One MasterCard with Costco also offered us cash back virtually everywhere we shop and not just at Costco.<\/span><\/span><\/p>\n
The CT MasterCard I have is great if you want to shop at Canadian Tire but we get more bang for our buck with groceries and membership fees with Costco and President’s Choice. <\/span><\/span><\/p>\n
At Costco, for example, we earn 3% on restaurant purchases, 2% on gas purchases, 0.5% on the first $3,000 spent annually on all other purchases, and 1% after that. No annual fee<\/strong>. It also doubles as our Costco<\/b> membership card.<\/span><\/span><\/p>\n
Our Canadian Tire MasterCard offers us 4% back in CT money<\/strong> and we can redeem points at SportChek, Atmosphere, and Mark’s Work Wearhouse.<\/p>\n
We also get 5 cents back a litre in CT money<\/strong> when we fill up at local Husky gas stations although I mainly fill up at Costco as it’s the cheapest.<\/p>\n
Teaching Teenagers About Credit Cards<\/h2>\n
If you have teenagers at home going through the credit card application with them is a solid plan for education.<\/p>\n
Not only will they learn about how to apply for their first credit card but what happens when you pay it on time and in full.<\/p>\n
You’ll also have them explore the dark side of credit cards by allowing them to understand what will occur if they only pay the minimum balance.<\/p>\n
When the time comes that your child is ready for their first credit card they will feel confident they are making an informed decision.<\/p>\n
As an immigrant to Canada, you’ll certainly want to pay attention to building your credit score and the secured credit card application process.<\/p>\n
\u00a0Credit Card Application Variety<\/h2>\n
Before you being searching for your perfect credit card you may want to consider 3 things.<\/p>\n
When you get your credit card statement there is a date on that you must pay it by and this timeline is interest-free.<\/p>\n
Even if you pay the credit card late by one day you’ll still get done for interest.<\/p>\n
Always understand what the interest-free period is on the credit card you are applying for and the implications of late fees.<\/p>\n
- \n
- Late Payment Fees<\/strong><\/li>\n
- Annual Fee<\/strong><\/li>\n
- Foreign Transaction Fees<\/strong><\/li>\n<\/ol>\n
There are many amazing credit cards on the market and some of them come with annual fees.<\/p>\n
This is a fee you pay to have that credit card but it comes with perks that other credit cards do not.<\/p>\n
If you are a traveller you’ll want to make sure you understand the fees involved when you use your credit card out of the country.<\/p>\n
For example, if you go to Cuba and use your credit card at the corner store you’ll pay for the exchange and a transaction fee or FX Fee.<\/p>\n
Some Canadian credit cards offer no transaction fees however you must do your research and qualify for the credit card.<\/p>\n
Otherwise, be prepared to pay an FX fee<\/strong> when your transaction passes through non-Canadian banks.<\/p>\n
Credit Card Qualification Requirements<\/h2>\n
Every credit card company has certain qualifications that they measure new applications by.<\/p>\n
It’s important to keep all of your documents organized when filling out an application many of which are online.<\/p>\n
Credit card companies may ask for supporting documents such as:<\/p>\n
- \n
- Passport or Permanent Resident Card or Residential status in Canada<\/strong><\/li>\n
- Full legal name and date of birth<\/strong><\/li>\n
- Home address and phone number<\/strong><\/li>\n
- Pay Cheque Stubs or information about your current and past employers<\/strong><\/li>\n
- Income tax returns<\/strong><\/li>\n
- Driver’s Licence<\/strong><\/li>\n
- Social Insurance Number (optional)<\/strong><\/li>\n
- Gross annual income<\/strong><\/li>\n<\/ul>\n
Canadian Credit Card Application Age Requirements<\/h2>\n
How old do you have to be to fill out a credit card application?<\/p>\n
![\"Canadian-Credit-Card-Application-Age-Requirements\"](\"https:\/\/digitalskyweb.co\/canadianbudgetbinder.com\/wp-content\/uploads\/2020\/05\/Canadian-Credit-Card-Application-Age-Requirements.webp\")
<\/p>\nCompare Canadian Credit Cards Before Applying<\/h2>\n
Selecting the right Canadian credit card is a process that you should review as it should meet your needs.<\/p>\n
For example, there are many types of Canadian credit cards available with different interest rates, annual fees, rewards, and cashback.<\/p>\n
First off, take a few moments to write down why you are applying for a credit card and what you’d like from it.<\/p>\n
- \n
- Are you willing to pay annual fees for a credit card?<\/strong><\/li>\n
- How often will you use the credit card?<\/strong><\/li>\n
- Are you able to pay the credit card statement in full each month?<\/strong><\/li>\n
- Am I reliable with money?<\/strong><\/li>\n
- Do I meet the requirements of the credit card I choose?<\/strong><\/li>\n<\/ul>\n
Don’t waste your time applying for the wrong credit card especially if you don’t qualify to do so.<\/p>\n
The more people that browse our credit history the more it impacts your overall credit score.<\/p>\n
For example, the PC World Elite MasterCard that we currently use requires a household income of $80,000 to $150,000<\/strong> just to apply.<\/p>\n
Best Ways To Get Your Credit Card Application Approved<\/h2>\n
If you want to speed up the process of applying for a credit card there are ways you can prepare yourself ahead of time.<\/p>\n
Walking blindly into a credit card application can hurt you especially if you get denied and you’re not sure why.<\/p>\n
Below are some tips to help get your credit card application approved all of which I’ve applied during my finance journey.<\/p>\n
Related:<\/strong> How credit card tracking can save you from overspending (free budget binder printable)<\/strong><\/a><\/p>\n
1. Improve Your Credit Utilization Ratio<\/h2>\n
![\"How-To-Calculate-Your-Credit-Utilization-Ratio\"](\"https:\/\/digitalskyweb.co\/canadianbudgetbinder.com\/wp-content\/uploads\/2020\/05\/How-To-Calculate-Your-Credit-Utilization-Ratio.webp\")
<\/p>\nLower Your credit utilization ratio<\/strong> also known as a credit utilization rate.<\/strong><\/p>\n
Your credit card utilization ratio makes up 30% (top score) of your credit score where the rest is your payment history.<\/p>\n
To simplify this it equates to the amount of credit you are using divided by the amount of credit you have available.<\/p>\n
So, if you have a credit card debt of $1000 and the availability of $5000 on all credit cards in your name you have a 20% credit utilization ratio.<\/p>\n
If you’re not sure what credit and the debt you have you can order your credit plus round up all of your credit card statements.<\/p>\n
Every credit card statement will tell you how much money is owing on the credit card, interest rate, and how much available credit you have.<\/p>\n
The credit bureau when determining your credit score looks at individual credit as well as overall credit available to you.<\/p>\n
If you aren’t using your available credit that means they can’t give creditors and accurate picture of the way you pay your bills.<\/p>\n
This is why it’s important to use your credit cards or other credit available to you to build a credit history.<\/p>\n
You don’t have to be perfect in the eyes of the credit bureau or a creditor you just need to be reliable.<\/p>\n
2. Understanding Revolving Credit<\/h2>\n
Revolving credit means there is no end to the availability of credit once you pay your bill and the amount of credit used revolves back into itself.<\/p>\n
For example, if you have a $500 limit on a credit card and use $100 you have $400 of credit left on the card.<\/p>\n
The amount of money you owe has no end date as a mortgage would.<\/p>\n
When you pay that $100 in full that amount revolves back into the credit availability.<\/p>\n
On the other hand, if you only pay the minimum balance what’s left carries over into the next month.<\/p>\n
You’ll also have interest tacked on to what you don’t pay which only prolongs the process of paying it off in full.<\/p>\n
It’s like in one door out the other and back again and sometimes extra sneaks in on top (interest).<\/p>\n
As long as you meet the minimum requirements and don’t reach your credit limit there’s no end date.<\/p>\n
Your credit utilization rate<\/strong> will come from your revolving credit that makes up your credit score.<\/p>\n
Loan Installments<\/h2>\n
With a car loan, mortgage, or other bank loans, for example, this is different as they present with loan installments.<\/p>\n
Your mortgage, for example, must be paid weekly, bi-weekly or monthly and you know how much you MUST pay.<\/p>\n
These types of loans are called installment loans where you don’t get a minimum payment.<\/p>\n
You get a payment and you better pay it. Catch my drift?<\/p>\n
These types of loans are based on your debt to income ratio<\/strong><\/a> which calculates how much debt you have in comparison to your gross income.<\/p>\n
3. Tell The Truth On A Credit Card Application<\/h2>\n
If you’ve ever considered lying on a credit card application don’t bother as it doesn’t do you any good.<\/p>\n
Whether you get approved or not will be based on provided documentation and a credit history investigation.<\/p>\n
You will only delay the process or potentially risk getting denied for the credit card.<\/p>\n
If you have too much dent, can’t pay back credit card debt ask yourself if you need another.<\/p>\n
When you find that you are struggling to pay back existing debt consider a balance transfer credit card<\/a><\/strong> option.<\/p>\n
4. Apply For A Credit Card Where You Bank<\/h2>\n
One of the fastest and probably easiest ways to secure a credit card in Canada is to apply where you bank.<\/p>\n
They will already know who you are and have a background in your credit history.<\/p>\n
If you’ve already built a relationship with your bank and have other services with them that might help get you approved.<\/p>\n
Related: 5 Ways To Save Money With A Credit Card<\/a><\/strong><\/p>\n
5. Credit Score And The Credit Card Application<\/h2>\n
![\"Canada's](\"https:\/\/digitalskyweb.co\/canadianbudgetbinder.com\/wp-content\/uploads\/2020\/10\/Canadas-Credit-Score-Range-1.webp\")
<\/p>\nIf your credit score is not at a place that you are comfortable with then work on improving it.<\/p>\n
Again, you don’t need to be perfect just prove to creditors that you are worth their time lending you money or credit.<\/p>\n
First of all, if you find any errors in your credit report you need to address them immediately.<\/p>\n
Start by paying all of your credit card debt off in full and stop accruing any further debt unless it’s paid in full.<\/p>\n
If you have a credit card for example and you pay it off charge something to it again but pay it in full.<\/p>\n
Continuing to do so will build your credit and repayment history with that particular credit card company.<\/p>\n
This information will show on your credit report where creditors will decide whether they want to approve you or not.<\/p>\n
If your credit score is not up to snuff you may want to consider holding off with that credit card application.<\/p>\n
Applying for credit cards and other loans too much where your credit report is accessed may lower your credit score.<\/p>\n
In other words, the less the better that companies have to browse your history.<\/p>\n
Building Credit In Canada<\/h2>\n
You may be a student, new immigrant or working on rebuilding your credit where a secured credit card may work for you.<\/p>\n
If you are like I once was both a student in Canada and a new permanent resident with no credit history it can be tough to get approved.<\/p>\n
The process of building my credit in Canada<\/strong> <\/a>meant that I needed to show creditors I was reliable.<\/p>\n
My first credit card was a secured card via my wife’s President’s Choice Bank (now Simplii Financial) where she was responsible for the card while I would be building credit under my name.<\/p>\n
She opened her PF Financial MasterCard about 20 years ago and now have theblack PC World Elite MasterCard<\/strong><\/a>.<\/p>\n
Secondly, I was able to get a $500 secured credit card<\/strong> from Sears Canada (no longer around) which I used as much as I could.<\/p>\n
Basically, I had to give Sears $500 cash that they held just in case I didn’t pay my credit card bill.<\/p>\n
I made sure to put every purchase I could on my credit cards and paid then in full each month.<\/p>\n
- How often will you use the credit card?<\/strong><\/li>\n
- Full legal name and date of birth<\/strong><\/li>\n
- Annual Fee<\/strong><\/li>\n
- Canadian Tire Triangle MasterCard for CT Money<\/strong><\/li>\n