Kitchens by Riland

Getting a credit card for a person with a bad credit history is very difficult in this world and Canada is no exception to this. The following are some of the facts relating to credit cards for bad credit in Canada:

1. Most of the applicants for new credit card with bad credit history are basically rejected by banks in Canada. The banks do not want to risk their business by giving cards to these people because the credit performance of these people has been proved in the past.

2. These people with bad credit history can opt for cards like unsecured credit cards, secured credit cards and debit cards. Let us have a look at each of them in the following paragraphs.

a. Unsecured credit cards: Most of these credit cards that are available in the market fall within this category. Such credit cards are not issued to people with bad credit history but there are still some banks which have been giving such credit cards to these bad credit history people. The only bias that is against these bad credit card history applicants is that they are given this card with a much lower credit limit and moreover they are charged a higher rate of interest. There are also some small banks or relatively new banks which try to give credit cards to bad credit applicants and exploit their plight and most of the people who give credit cards to such applicants are the relatively new banks.

b. Secured credit cards: Secured credit cards are apt of the bad credit applicants and it requires them to also hold a parallel savings account with the credit card issuing bank. The other stipulation that comes with the unsecured credit cards is that the credit limit for the card varies and is dependent on the cash left in the savings account. If there is no cash left in the savings account, then the credit card holder cannot make use of the credit card. And the amount of deposits required for the savings account is quite huge at times.

c. Debit cards: Debit cards are usually given by the banks to the person who creates a savings account in their bank and it is very much similar to secured credit cards. It looks like a credit card and can be used the way how a credit card is being used. The only difference between a debit card and credit card is that the money is debited from the account immediately after the purchase has been made.