Credit cards have become a must-have for one's financial well-being. Given its importance, applying for one has also become easier. However, if you're still unsure about how to apply for a credit card online in Canada, then you have come to the right place. Let's discuss the process in detail and some of the best credit cards to help you get started.
Find out your credit score
Your credit score determines your creditworthiness. A credit card issuer will approve or reject your application based on your credit score and a few other factors. If you are unaware of your score, you can use one of Canada's two major credit-reporting bureaus, namely Equifax and TransUnion. Alternatively, a card issuer may help you find out your score. Once you know your credit score, you can find out which card companies are willing to issue a card to you.
Determine the type of card you need
There are hundreds of credit cards out there, all providing various offers, fee structures, and reward programs. So, it's crucial to decide which type of card will fit your needs. People are more likely to choose a 0% APR card, a rewards card, and a low-interest card.
We've listed the best cards in each category to help make selection easier:
- MBNA Platinum Plus MasterCard ( Best 0% intro APR card) -
With this card, you can get a 0% annual interest rate for the first 12 months. Other benefits include travel accident insurance and trip interruption insurance. - American Express CobaltTM Credit Card ( Best rewards card) -
This American Express card is extremely rewarding; it helps you earn fixed points for every dollar you spend on eligible restaurants, groceries, streaming subscriptions, and travel and transit purchases.
- BMO Preferred Rate MasterCard ( Best low-interest card) -
This credit card has an interest rate of 12.99% on purchases and cash advances. The company is currently offering a 3.99% introductory interest rate on balance transfers for the first nine months with a 1% transfer fee. Plus, the issuer will waive the $20 annual fee for the first year.
Consider pre-approval
It's best to see if you can be pre-approved or pre-qualified for a credit card before applying for one online. This way, you can avoid a hard credit inquiry that comes with every credit card application. The pre-approval process only involves a soft credit inquiry, which will not affect your credit score. However, note that getting pre-approved doesn't mean you'll surely get a credit card; it only means you've met lenders' criteria and your chances of receiving a card are higher.
Gather all the necessary information
Most credit card applications will require your basic personal information, along with your Social Insurance Number (SIN) and annual income. However, some issuers may want additional details, like how long you have been at your current address and whether you own or rent the house you live in. It's essential to ensure all your data is up-to-date and accurate to avoid getting rejected.
Send in your application
When you're ready to submit your credit card application, apply for a credit card online via the issuer's website. The best part about applying for a credit card online is that you get approvals or rejections quickly. In many cases, people receive responses within a few days. However, some issuers may take as long as a week or more to reply. Also, note that it may take around two weeks to receive the card.
