Getting a Credit Card in Canada

Credit is one of the powerful tools in personal finance that gives you access to funds when you don’t have them with you in reality. It is a debt offered to you for which you need to pay a fee called interest along with the principal repayments.

One of the types of credit facilities is "credit card". It is basically a plastic rectangular card that aids you in making transactions both physically and online, and the highlight is that the money you use is not yours, but is the credit lent by your lender.

The three main factors that are scrutinized in Canada to determine your eligibility in Canada are – age, your income and your credit score.

However, there may be instances where you are a first-time borrower and you don’t have any credit history. In that case, you might be intrigued as to how to apply and get a credit card. Let us explore.

How can I get a first time credit card with no credit history in Canada?

You can get the following types of credit card in Canada, if you don’t have a credit history:

Student Credit Card

They are specifically designed for students who have reached the age of majority and have enrolled themselves in college or university. This type of credit card does not require a good credit score or a credit history. However, these cards are generally offered at a higher interest rate than standard cards. Students can wisely use this card to build their credit history from a young age. We have listed some well-known student credit cards in Canada:

• RBC Cash Back Mastercard

• TD Cash Back Visa

• CIBC Classic Visa Card for Students

• Scene+ Visa Card for Students

Secured Credit Card

If you are not a student, yet do not have a credit history, a secured credit card is the best way to borrow money. In order to obtain this card, you are required to provide a security deposit against the credit you receive. The security deposit can be cash or any other assets. In case you default on paying back the debt, the ownership of the security deposit will shift to your lender. We have listed some well-known secured credit cards in Canada:

• Neo Secured Credit Card

• Home Trust Secured Visa Card

• Plastk Secured Visa Rewards Credit Card

Credit Cards Canada - Alternative ways

Joint Credit Card

You can jointly apply with a friend or a family member who has a good credit score to obtain the card and take ownership of paying back the bills.

Co-signing

You can take the help of your friend or a family member who can co-sign for you and they will be responsible in case you default in making repayments.

First time credit card with no credit history in Canada

Thus, there are limitations in getting a credit card if you don’t have a credit history, but getting one is not impossible. Given that you are a first time credit card holder with no credit history, it is important that you diligently make repayments as it sets base on building your credit score.