Having a poor credit score doesn’t mean that one can never get a credit card in Canada. So, if you have a lower credit score, no need to worry at all. There are many credit cards that are intentionally created for the people who have bad credit in Canada. Also, we know, with bad credit financial life becomes frustrating. We are here to boost your morale. You will be happier to know because to get a credit card despite having bad credits.
We know banks always analyze the history of the aspirant and take all possible assurances. The credit score becomes poor because of certain reasons like:
3 Reasons for Poor Credit Score
- Ignoring timely payments of the bills
- Getting many credit cards at the same time
- Bankruptcy in the previous financial record
SEE ALSO:: How to Get Credit Cards after Bankruptcy?
These kinds of activities lead you towards the list of defaulters. Sometimes it happens by mistake and we understand the pain through which one passes. Hence here we are suggesting some solutions through which you can get your credit card as well as improve the score.
Banks are offering two kinds of cards to people having poor or bad credit scores. The first is Guaranteed Credit Cards and the second one is secured credit cards. These cards are specially designed for people having no or poor credit scores. Also, by using these cards with on-time payments, gradually your score will also be increased.
2 Things to Keep in Mind to Get Credit Cards in Canada
1. Make Sure to Understand Interest Rates and Working of Credit Cards
As we know credit cards are there to support us financially. In one line we can say that credit card avails funds for us in advance and we have to pay it back to the bank in the given time otherwise interest will be imposed. Every credit card has some fixed limit and you should know it.
We have seen many Canadians who do not have knowledge about the interest rate. The applicant should be aware of the interest amount as well. We recommend paying bills on time if you are a defaulter. It helps in maintaining your reputation and builds trust as well.
SEE ALSO:: How to Know Fair Credit Score in Credit Cards?
2. Acknowledge Consolidation of Debt
As per the report of the year 2019 the delinquency rate has climbed in Canada. Also, in Canada, ignoring paying online credit card bills is very common and that is why they get a lower credit score. But if you are serious about the credit card and willing not to repeat the same mistake, always consolidate all your debts in one loan amount only. Consolidation of the entire amount with a personal loan will help you in getting the credit card.
So, if you are a defaulter in Canada with a credit card, you can still get it but you need to put some security in the form of fixed deposit or property etc… Based on any fixed asset you will be able to get either a guaranteed or secured credit card in Canada.
