Newcomers to Canada can have a very difficult time getting a credit card because they don’t have a credit history.
Building up a positive credit history is a good idea because it will make it easier to get a line of credit, a loan, or a mortgage later on.One way to do that is with a secured credit card as long as you understand how it works.
Here are a few tings to remember about a secured card:
- You will be required to leave a security deposit with the credit card company.
- Your credit card limit is typically the same or more than the value of your deposit.
- If you don’t make the credit card payments, the credit issuer can take the money you owe from your deposit.
- Use the card responsibly – that means not exceeding your limit and paying the bills on time. That will help you build up a positive history and eventually you will be able to get a regular credit card with a higher limit.