Secured Canadian Credit CardsPosted on March 8th, 2011 | admin
Featured Secured Canadian Credit Card Offer
People in Canada with bad credit simply won’t qualify for an unsecured credit card especially in today’s economic conditions, financial institutions are using more caution when issuing credit cards so if you’re credit is bad then you’ll need to apply for only secured Canadian credit cards.
It’s important to note the reason I am saying you should only apply for secured Canadian credit cards because if you try to apply for an unsecured credit card offer that each and every time you apply for credit it adversely impacts your credit bureau report.
The fact is, if you’ve got bad credit and credit card companies see that you’ve been applying for card offers and personal loans that you don’t qualify for and keep getting your application rejected, financial institutions will be even less likely to issue a line of credit to you because, like I’ve already mentioned, each time you apply it impacts your credit score however financial institutions have what I call a “herd mentality” and if all the other banks aren’t lending to you then they don’t want to lend to you either.
So if you’ve got bad credit you need to focus on applying for secured Canadian credit cards and the good news is there are offers that offer guaranteed instant approval. Financial institutions can give guaranteed approval because a security deposit, usually equal to the amount of the line of credit, is required so there’s zero risk to the credit card company because if you default on your credit card they’ve got the security deposit to payout the credit card.
You need to know however that the security deposit is not there as a method to pay your bills, if you don’t pay your secured credit card bill then the issuing company will close your account and use the security deposit to pay off the outstanding balance and should that happen your credit score will take a serious nose dive.
Here is more info about the best Canadian credit cards for bad credit, and our top pick for the best secured Canadian credit card for 2011