One of the most important things you can do for your finances is to build good credit. However, if you have made mistakes in the past, or if you don't have an established credit history, you might have difficulty getting access to a Canadian credit card that can help you build credit.
In such cases, it can help to turn to a guaranteed card. A secured credit card can help you establish your credit, since you can easily get approved. Once you have the card, your good habits will mean a better credit history. Eventually, you won't need a secured credit card anymore, and you can begin applying for the best Canadian credit cards. One of the ways you can begin building credit is by using the Capital One Low Rate Guaranteed Secured MasterCard.
Capital One Low Rate Guaranteed Secured MasterCard
Like most secured credit cards, you can get the Capital One Low Rate Guaranteed Secured MasterCard even if you don't have a credit history, or if your credit score is poor. However, you will have to provide security funds as collateral. It is important to note, though, that this is not a reloadable debit card. You don't have to keep reloading money onto the card, and your payment activity will be reported to the credit bureaus.
If you pay your credit card bill on time, your credit score will improve, and you will begin building -- or rebuilding -- your credit history. One of the bonuses of this card is that it comes with a 14.90% interest rate. Most secured Canadian credit cards have an interest rate of 19.80%. You can see where this lower rate might be of help.
Just about anyone can be approved for this card, which has no annual fee and comes with fraud protection. It is important to note that you will not have access to rewards with this credit card. Instead, the benefit comes in being able to gain approval, when you might not qualify for other credit cards, and in having a lower interest rate with no annual fee. This is a card meant to help you recover or build your credit score, not provide rewards.
This post was included in Canadian Finance Carnival 55 at Canadian Finance Blog.
