What do you need to get a credit card?
Getting your first credit card is an exciting time. It’s also a responsibility. Here’s everything you need to know about getting your first credit card.
It’s pretty simple to get a credit card in Canada, as long as you meet the basic requirements. The first thing you need is a Canadian bank account and you’ll also need to be at least 18 years old (although some banks may require you to be 19 depending on your province or territory).
You also need to have some kind of income to be eligible for a credit card. This could be from a job, pension, or other sources. You’ll need to present proof of income with recent pay stubs or other documents to the bank or financial institution providing the credit card.
A credit score is also a very important factor in determining whether you will be approved for a credit card or not. Your credit score is a number that measures your creditworthiness and is based on your credit history. You won’t be eligible for certain credit cards if you have a low credit score. Generally, the higher your credit score, the more credit products (including credit cards) you’ll qualify for.
You’ll also need to provide a valid piece of government-issued identification, such as a driver’s license or passport. This is to verify your identity and help protect you from potential fraud.
You can start applying for credit cards once you meet all of these requirements. Y
ou can choose from a variety of cards, including rewards cards, cash back cards, and low-interest cards. Different cards offer different benefits. It’s important to compare the options and choose the one that best suits your needs.
It’s also important to understand the terms and conditions of the card and the fees associated with it when applying.
How long does it take to get a credit card?
In Canada, obtaining a credit card can take just a few minutes or several weeks. Everything relies on the kind of card you're applying for and your creditworthiness rating.
If you have a good credit history and are applying for a secured card, you’ll probably be approved quickly and receive your card in a few minutes. Secured cards require you to put down a deposit, the amount of which will be the same as your credit limit. The deposit is held in a secure account and refundable after your account is closed.
The process may take a bit longer if you are applying for an unsecured card. That’s because the bank or credit union will need to review your credit history and other financial information. The length of time usually depends on your creditworthiness and it can take up to two weeks.
In some cases, you may be able to apply for an instant approval credit card if you need a credit card right away. These cards are typically easier to get approved for and you will receive a decision in just a few minutes. However, the credit limit is usually lower the interest rate may be higher compared with other cards.
It’s important to remember that you should only apply if you have a good credit score and can afford to make the payments on time regardless of the type of credit card you apply for. You’ll be able to get a card more quickly and with better terms if you have a good credit history.