Secured Credit Cards

Need to build or repair your credit?

Have you recently moved to Canada, started college, or found yourself with a not so impressive credit score and would like to apply for a credit card? If so, you will find that most credit card companies will deny your application since they see you as a high risk customer due to your low credit score, lack of credit, or residency history. So how do you build or repair your credit when no one will give you credit?

Solving the credit card conundrum

Avoid applying for numerous cards in hopes of getting that magical approval. Not only will multiple denials be hard on the ego, they'll also hurt your credit score. Instead, in exchange for a security deposit, credit card companies will give you the opportunity to use a credit card so you can show them just how responsible you are with your finances. In order to show your responsibility, it is extremely important that you make your payments on time. Insert an automatic reminder in your phone or electronic calendar to remind you to pay your bill.

Paying for the privilege

Since individuals with no credit or bad credit are seen as high risk customers, you'll unfortunately have to pay a bit more for the privilege to use a credit card if you fall into those categories. Secured cards generally have higher annual fees and can have high interest rates as well, in addition to requiring a security deposit. When comparing cards, look for additional services like fraud liability or payment planning tools.