Canadian financial institutions offer different types of Canadian credit cards based on credit rating. Banks usually run a credit check to ensure that they deal with creditworthy customers.
Financial institutions in Canada accept applications by residents and citizens of the age of majority. Customers are asked whether their payment history is clear of negative events such as delinquent accounts. While unsecured cards require good to excellent credit, secured and prepaid cards are offered to applicants with poor and fair credit. Some banks require a minimum annual income of $20,000 while others require a total income, including spousal and own income of $70,000 or higher. There are issuers that offer additional cards for a small annual fee or at no added cost. Banks offer Visa and MasterCard products to applicants, but the perks and rewards programs that go with them are usually reserved for creditworthy customers. Applicants for a student card provide information such as whether they are domestic or international students, if they are landed immigrants or citizens, etc. Financial institutions also require work-related information such as occupation, income before taxes, and name of employer. The type of information banks request depends on the credit report, card of choice, and other details.
How to Choose from Different Personal and Business Cards
Businesses can choose from low interest, rewards, no annual fee, and other cards. Most issuers require financial information such as average turnover, gross annual income, and full business name. The application must be filled by an authorized officer or the business owner. Banks ask whether the applicant has a savings or checking account with them. To fill in your application, the first step is to verify your identity. Specify the legal structure of the company as well – unincorporated association, sole proprietor, limited partnership, general partnership, LLC, C corporation, or S corporation. Applicants are also asked whether employees will be added to the card account. With some banks, customers are asked to specify whether they apply for a card with the maximum credit limit. Once approved, it takes between 7 and 30 days for the card to arrive.
Customers are offered personal and business credit cards with airmiles and rewards points, zero balance transfer rates, and double and triple points on select items. Your FICO score is an important factor that shows whether you handle credit responsibly. Other factors include loan amounts and new credit.