A new immigrant who has just landed does not mean that he can get a credit card anytime he wants to apply. When he comes to a new place, he needs to establish a credit history to apply for a credit card.
1. Prepaid Credit Card
In many stores, one can see prepaid Mastercard or Visa as gifts. If new immigrants do not have time to apply for a credit card but still plan to use online shopping, they can go to Shoppers Drug Mart pharmacies or supermarkets to buy Prepaid Mastercard or Visa cards which cost $50 to 200. One can use the card to shop online conveniently. This kind of rechargeable credit card can solve small purchases’ needs and will not help improve credit history. If one plan to stay in Canada for a long time, applying for a credit card at the bank becomes very important and a top priority.
2. Apply for a credit card for the first time
Many new immigrants who have just landed and opened an account in a bank will soon go through the procedure of applying for a credit card here. This procedure generally requires a bank’s consultant to open an account, like opening an ordinary deposit account. Because the user does not have a credit history, sometimes the bank will ask the user to deposit 500-1000 dollars into the credit card, and the credit card usage will not exceed the pre-deposited amount. Until the user has established some credit history, the bank will not consider opening up credit cards in the mode of borrowing money. This practice is common among international students and new immigrants who do not have a job. There were cases where international students charged up their credit cards and left in the past. Now banks will not just issue cards to new customers.
3. Types of credit cards
Once one has developed some credit history, one can go to a bank or other financial company to apply for a credit card. Credit card type: Mastercard or Visa. There is not much difference between the two card types from consumers’ perspectives. However, because the service fee of Visa is a bit higher for merchants, very few individual stores will not accept Visa to pay.
4. The upper limit of the credit limit
In the beginning, the credit limit generally ranges from 1000 to 5000 dollars, and this is entirely based on personal needs. Consumers can calculate how much they spend in a month and then set an upper limit on their credit cards. The goal of a bank or a financial company is to encourage consumers to use their cards to make more purchases. Therefore, timely repayment and users with good credit may receive notices that the upper limit can be increased from time to time. It is recommended to keep the upper limit according to one’s own needs: Even if one spends too much money in a month, one can transfer money to repay the number of cards at any time without increasing the upper limit. Everyone’s goal is to have a good spending habit. If the upper limit is too high, there will be a risk that one may not repay the money in time at the end of the month. If the information is stolen and much money is spent in one go, the bank may not recover it immediately.
5. Companies that provide credit card services
The five largest Canadian banks are Toronto Dominion Bank, Royal Bank of Canada, Canadian Imperial Bank of Commerce, Bank of Montreal, Scotia Bank. Other types of Canadian banks such as HSBC (HSBC), National Bank of Canada, Tangerine Bank, MBNA; other financial companies Such as Capital One, President Choice, Walmart, Canadian Tire, HBC. Credit Union (Credit Union) such as First Ontario Credit Union, Meridian. Non-banking companies’ credit card applications have a higher chance of successfully applying for the first time. Some stores will have representatives of credit card companies. For example, one can see President Choice representatives at No Frills from time to time. Canadian Tire will arrange a corner for their representatives to reside in; Walmart will ask consumers at checkout if they want to apply for a credit card.
6. Credit card rewards
Most credit card rewards are cash rebates or points. Cash Rebate is usually displayed in the account at the end of the year. Points are reward points based on the setting of the credit card company. For example, President Choice will give points for consumers to discount shopping in Loblaw supermarkets; some companies will not give any points. Some credit cards are also aimed at specific groups, such as people who like to travel. Credit card companies will give out air tickets or hotel discounts. One can consult the bank to find credit card points or cash rebates that meet one needs for specific content.
7. Annual credit card fee
Most credit cards, especially with better rewards, will charge an annual fee, while junior credit cards are free. Credit cards that are free of annual fees and have incentive policies have higher application thresholds. For example, consumers need to prove their income and credit history. If it is too low, they will not necessarily get approved even if they apply. All banks will have junior credit cards with no annual fees. In this regard, one can go to the bank to apply. The more common credit cards with good preferential policies include MBNA Rewards Platinum Plus, Brim Mastercard, Triangle Mastercard, Tangerine Money-Back Credit Card, BMO CashBack Mastercard-Student (student card) and PC Financial World Elite Mastercard.