How to Apply for Secured Credit Card

Credit cards have literally made it easier for us to spend money as we like, despite being tight on budget. As credit cards relieve us of paying in cash for the services we acquire on daily basis like in a restaurant, shopping mall, gas station etc. What we need to do is simply clear our bills at the end of the month. However, many credit cards cannot be availed by Canadians with bad credit history, students and immigrants in Canada.

However, there is still a ray of hope for all these Canadians who fall in any of the above mentioned categories. Well, if you want to get any benefits from credit cards, apply for secured credit cards. These secured credit cards have a number of advantages. But before discussing the advantages, let’s have a look what exactly does this term ‘secured CC’ mean.

Secured credit cards basically are a form of credit cards which work like any other credit cards, but what distinguishes them form others is the fact that they have a fixed amount deposited on them. This means that you can deposit an amount according to your needs with the bank or financial institution that you are getting this credit card issued from, and you can spend only that much amount. It may sound rather inconvenient; however, it is helpful for a lot of purposes

First of all, these types of credit cards are inevitable in case you are serious about rebuilding your credit score. If you have a bad credit history or no credit history, the lenders will not give you credit, and banks will also not issue you credit cards. So in such a situation, if you get a credit card which could help you in redeeming your credit history, you should go for it. These credit cards will actually start reporting to Equifax Canada and TransUnion right after you get such a card issued. Now since these cards are unlikely to get you into a debt you will be getting good ratings from these authorities.

Moreover, for immigrants in Canada, it often gets difficult to get a credit card and unless you get a credit card, you can not apply for different types of loans, which seems really necessary in these tough times. Immigrants in Canada need to start afresh, which means they have to build their credit score from scratch and for this purpose the credit cards which are secured seems most appropriate.

Apart from this, nearly anyone can avail these cards without much hassle. However, be sure to read the fine print of the company you are getting this card from. Plus, see if the interest rates are reasonable or not and ensure there are no extra fees and charges.