Canadian Credit Cards

Credit cards are a device used to get the consumer credit at the time of purchasing a product. Canadian Credit cards may be issued by a business firm in Canada, such as a department store or an oil company, to make it easier for consumers to buy their products especially if the person is a Canadian living in all provinces of Canada. Otherwise credit cards may be issued by third parties, such as a bank or a financial services company, and used by consumers to purchase goods and services from other companies.

When a person goes into bankruptcy he has to hand in all his credit cards to the trustee. After that person has been discharged from bankruptcy, he or she is often a good credit risk, since that person has no debt. Even though, a discharged bankrupt often has a difficult time getting a new credit card. An option is to acquire a secured Canadian credit card.

A secured Canadian credit card is a card backed-up or secured by funds that he have deposited with the financial institution. The card looks like a credit card, and acts like a credit card but will have a limit depending on the amount of money that secures the card. A Canadian credit card is a product where the security deposit user has provided is equal to the credit limit of his credit card. The deposit amount will be held in an interest bearing account with interest and paid to the user annually on the anniversary of the opening of the security deposit account.

The Government of Canada maintains a database of the Canadian Credit cards fees, features, interest rates and reward programs of all the credit cards available in Canada. This database is updated on a quarterly basis with the information supplied by the Canadian credit card issuing companies. Information in the database is published in every four months on the website of the Financial Consumer Agency of Canada (FCAC).

The database also feeds into an interactive tool on the FCAC website. The interactive tool uses several interview-type questions to build a profile of the user's credit card usage habits and needs, eliminating unsuitable choices based on the profile, so that the user is presented with a small number of credit cards and the ability to carry out detailed comparisons of features, reward programs, interest rates.

Credit history remains an important factor in qualifying for an unsecured Canadian Credit Card. In case one has a good Canadian Credit Card rating along with suitable income levels can easily obtain a Canadian credit card.

Canadian credit card is approved almost definite, in case one is a Canadian citizen or a permanent Canadian citizen, above 19 years having a Social Insurance Number. Besides, he should be having a permanent resident in Canada, should not be a bankrupt.

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