How to Apply for a Credit Card Online in Canada

Applying for a credit card online has never been easier, but if you're new to the process, it can feel overwhelming. Where do you start? What information do you need? How long does it take? The good news is that most credit card applications can be completed in just a few minutes from the comfort of your home.

Most major banks and credit card companies offer secure online applications that provide instant decisions. Whether you're getting your first credit card or adding another one to your wallet, this guide will walk you through everything you need to know.

Not ready for a traditional credit card yet? Consider starting with KOHO's prepaid Mastercard to manage your spending without the risk of debt or credit checks. It's a secure, affordable way to build your credit history.

Eligibility requirements to apply for a credit card online

Before you start filling out applications, make sure you meet the basic requirements. In Canada, you'll need to satisfy these criteria:

Age Requirements: You must be the age of majority in your province – that's 18 in most provinces (Alberta, Ontario, Quebec, etc.) but 19 in British Columbia, New Brunswick, Newfoundland, Northwest Territories, Nova Scotia, Nunavut, and Yukon.

Canadian Residency: You need to be a Canadian citizen or permanent resident. If you're new to Canada, some banks offer newcomer programs that may have different requirements, so don't assume you're automatically disqualified.

Minimum Credit Score: Some credit cards require a credit score of at least 600-700, though some cards for building credit may accept lower scores. If you're new to Canada or have never had credit, KOHO's Credit Builder Loan offers a safe way to build credit without the risks of traditional credit cards or lenders.

Income Requirements: You'll need to demonstrate sufficient income to make payments. There's no universal minimum, but having steady employment or income helps significantly.

Social Insurance Number: Most applications require a SIN, though some newcomer programs may have alternatives for those who don't have one yet.

Documents you'll need before applying

Having your information ready speeds up the application process and reduces the chance of errors. Gather these documents before you start:

Personal Information: Full legal name, current address, date of birth, phone number, and email address.

Financial Information: Annual income (before taxes), monthly housing costs (rent/mortgage), and any other significant monthly expenses.

Banking Information: Your primary bank's name and branch information where you have your main accounts.

Identification: While you might not need to upload documents immediately, have a government-issued photo ID ready in case additional verification is needed.

For Newcomers: Passport, work permit or permanent residency documents, and any banking history from your home country if available.

How to apply for a credit card online, by phone, or in-Branch

You have three main options for applying, each with its own advantages:

Online Applications are the fastest and most convenient option. You can apply 24/7, get instant decisions in many cases, and easily compare different cards on the same website. The application usually takes 5-10 minutes to complete.

Phone Applications work well if you have questions about the card or your financial situation is complicated. A representative can guide you through the process and help you understand which card might be best for your needs. This typically takes 15-20 minutes.

In-Branch Applications are recommended for newcomers to Canada or people with complex financial situations. Bank representatives can review your documents in person and help you understand your options. This gives you the most personalized service but requires scheduling an appointment and visiting during business hours.

For most people, applying online is the best choice – it's fast, secure, and you get an answer quickly.

What to expect after you apply for a credit card

Once you submit your application, here's what typically happens:

Instant Decision (Under 60 seconds): Many applicants get approved, declined, or asked for more information immediately. If approved instantly, you'll usually receive your card details right away and can often add it to your digital wallet for immediate use.

Manual Review (2-10 business days): If the system can't make an automatic decision, your application goes to a human reviewer. This might happen if you're new to Canada, have limited credit history, or your financial situation needs additional assessment.

Card Delivery: Physical cards typically arrive by mail within 7-10 business days. Some issuers offer expedited shipping for a fee if you need the card faster.

Digital Access: Many card companies now provide virtual card numbers immediately upon approval, letting you start using your card for online purchases right away.

Credit Limit: Your initial credit limit will be based on your income, credit score, and the card issuer's policies. You can often request increases after several months of responsible use.

Understanding terms and fees

Before accepting any credit card offer, make sure you understand what you're agreeing to:

Annual Percentage Rate (APR): This is the yearly interest rate charged on balances you don't pay in full. Purchase APRs typically range from 12.99% to 24.99%. Look for cards with lower APRs if you might carry a balance.

Annual Fees: Some cards charge yearly fees ranging from $0 to $500+. Premium cards with better rewards often have higher fees, but make sure the benefits outweigh the costs.

Foreign Transaction Fees: Many cards charge 2.5% on purchases made outside Canada. If you travel frequently, look for cards without foreign transaction fees.

Grace Period: This is how long you have to pay your full balance before interest starts accumulating, typically 21 days from your statement date.

Other Fees: Watch out for cash advance fees, overlimit fees, late payment fees, and balance transfer fees. Understanding these upfront prevents surprises later.

Quick tips to improve your approval odds

Check Your Credit Score First: In Canada you can check your free credit score from many financial institutions, including KOHO, or directly from credit bureaus.

Pay Down Existing Debts: Lower your credit utilization ratio (the amount of credit you're using versus your limits) before applying. Aim for under 30%, ideally under 10%.

Limit Recent Credit Applications: Multiple credit applications in a short time can hurt your score and make lenders nervous. Space out applications by at least 3-6 months.

Apply for Appropriate Cards: Don't apply for premium cards requiring excellent credit if your score is just fair. Start with cards designed for your credit level.

Provide Accurate Information: Double-check all information before submitting. Errors can delay approval or lead to rejection.

Consider Your Bank First: If you have a good relationship with your current bank, they might be more likely to approve you since they know your banking history.

Ready to apply?

Applying for a credit card online is straightforward when you're prepared. Take time to research different cards, understand the terms, and make sure you meet the requirements before applying.

Remember, getting approved is just the first step – using your card responsibly by making payments on time and keeping balances low is what builds strong credit over time.