If you’re just moved to Canada as an immigrant, perhaps you may be thinking about opening a new credit card account. Why not consider a Canadian credit card? Whether you’re in Canada to work or to study, having a credit card on hand would surely come in handy.
Why Apply for a Canadian Credit Card?
Having a credit card is surely a more convenient way to make purchases whether from regular shops or from the internet. Instead of bringing cash, using a card is a lot simpler and safer. In case your credit card gets misplaced or stolen, you can easily call your issuer and have your account blocked. Thus, a credit card that has a fraud liability protection will give you more peace of mind.
A Canadian credit card is also a valuable tool in building your personal credit history. Remember to choose a card that provides credit reporting to the three major credit bureaus in Canada (Experian, Equifax, TransUnion). As you use your card, stay true to your payment obligations and always observe timely payment.
Choosing Your Canadian Credit Card
In Canada, there are also a wide variety of credit card issuers to choose from. Remember, your choice should depend not just on the card’s popularity, but on your needs, lifestyle and purpose. Since different cards are designed for varying purposes, you should do your own research to find the one that complements your needs.
However, with so many cards to choose from, choosing can prove to be confusing. What can you do to simplify your task of choosing the right credit card? You can check out websites that offer reviews and links on credit cards for Canadians. This way, you can see all your possible choices in one page and easily pick out the ones that you’re most likely to go with.
Online credit card review sites often provide links that would direct you straight to the credit card’s Terms & Conditions page. After narrowing down your choices, you can go back to each card to further review what each has to offer.
Comparing Credit Cards for Canadians
The first thing you’ll want to check is the rate of interest especially if you plan to defer your payments. A card with a low rate will save you significantly if you need to carry over your balances from month to month. See to it that you understand how your interest rate is calculated. Does your card impose a fixed-rate or variable-rate system?
Aside from the interest, check the rest of the fees associated with your card. Annual fees, balance transfer costs, late penalty charges – are just some of the fees that could add up to your monthly bill. Make sure that your chosen card requires reasonable fees.
Lastly, choose a card that offers the most important provisions or features such as sufficient grace period, fraud liability protection, credit reporting, emergency card replacement, 24/7 customer service, etc.
Do I need to provide my Social Security Number or Social Insurance Number?
No. Under the Canadian law, financial institutions should not require applicants to provide their SSN or SIN. The only institutions that are allowed to ask for these private numbers are the Human Resources and Social Development Canada, Revenue Canada, and your employer.
Allison May is a credit consultant and a writer for
Credit Creators. The resource provides consumers with valuable advice and information on credit cards for bad credit,credit cards for good credit and other credit-related issues. Its main objective is to help people
build good credit.
