A secured credit card can be very helpful!
Have you been denied by a bank for a regular credit card? It may be due to a result of not having established credit or blemished credit.
Secured credit cards can also help you rebuild your credit in order to become a candidate for the best mortgage rates in Canada.
If you are looking for a mortgage, a credit card, or an auto loan, expect to have your lender review your credit. The rule of thumb, lower rates for better credit.
A secured credit card reports to credit reporting agencies such as Equifax and Transunion. Therefore, when used responsibly with payments made on time, a secured credit card may help your credit score.
In fact, secured credit cards can be helpful if you have recently discharged from a bankruptcy or a consumer proposal.
Re-establishing credit is a way to show a lender that you can be a responsible borrower.
In order to qualify for the best mortgage and loan rates possible after an insolvency, you have to re-establish your credit.
If you’re looking to purchase real estate with a down payment between 5% and 19.99%, here’s news – it’s possible! CMHC requires a minimum of 2 years post-bankruptcy or consumer proposal discharge. In addition, 2 tradelines must report without any payment issues.
We also work with lenders who approve clients in as little as 1 day to 1-year post-discharge. We have options for you.
Furthermore, we have been able to arrange financing for clients with an active consumer proposal and bankruptcy. Our lenders typically wish to verify the balance owing, and a permission letter from the trustee.
You’re probably wanting to know more about a secured credit?
Similar to how a mortgage uses real estate as security, a secured credit card is backed by a deposit. For instance, if you pledge $3,000 towards the secured credit card, this amount will which act as the credit limit. If and when you close the account will be when you receive your deposit back.
Recently, over a 12-month period, we’ve had 2 clients’ Equifax credit scores increasing from 604 to 694, and 544 to 661 respectively. A secured credit card can be very helpful when used responsibly.