How to Get Approved for a Credit Card in Canada

If you’re looking for a credit card in Canada, you may be wondering how to get approved. It can be tricky to get your application approved, but there are a few things you can do to improve your chances. 

Our guide takes a look at the factors that lenders look at when approving credit card applications, and we will give you some tips on how to improve your chances of being approved.

Let’s get started!

How to Get Approved for a Credit Card  in Canada

There are a few things you can do to improve your credit card approval odds in Canada. Take a look at our expert tips:

Check your credit score 

Your credit score is one of the most important factors that lenders look at when approving a credit card application. Make sure you know your credit score and try to improve it if needed. You can get your credit score for free from websites like Credit Karma or Borrowell.

Think about what you need from a credit card 

When you apply for credit cards, it’s important to think about what you need from a credit card. Is this your first credit card? Do you want one with cashback rewards or travel perks? 

There are many different types of credit cards out there and choosing the right one can help improve your chances of being approved. It’s also important to consider how much you will be spending on the credit card and what your repayment plan is.

See if you can get pre-approved 

Some credit card issuers allow you to be pre-approved for a credit card before you even apply. This can give you an idea of what your chances are of being approved and it also saves you time by not having to go through the credit card application process.

Improve your credit utilization 

If you’re using a high percentage of your available credit, it can negatively affect your credit score and make it harder to get approval for a credit card. Try to keep your credit utilization below 30% to improve your chances of being approved.

Compare several offers 

It’s important to compare several offers. This will help you find the best card for your needs and it can also show the lender that you’re serious about getting a credit card.

Include all your income in the application 

If you’re self-employed or have a variable income, make sure to include all of your income in the application. This will give the lender a better idea of your creditworthiness so you can easily get approved for a credit card.

Don’t apply for too many cards at once 

Applying for too many cards at once can negatively affect your credit score and make it harder to be approved for any of them. Try to wait at least six months between applying for new cards so that the lender has time to process your application and give you feedback on why it was denied.

Get a co-signer 

If you’re under 21 years old or don’t have enough income to meet the credit card requirements, you can get a co-signer. 

A co-signer is someone who agrees to pay your debt if you’re not able to do so yourself (for example, if you lose your job or become disabled). They must meet all of the credit card qualifications that would normally apply when applying for a credit card on their own.

Apply for a secured credit card 

If you’re having trouble getting approved for a traditional credit card, try applying for a secured credit card. A secured credit card requires you to put down a deposit as collateral against the amount of money borrowed. This means that if you don’t pay back your bill, the credit card issuer can take the money you deposited.

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How to Qualify for a Credit Card

When it comes to opening a credit card, you’ll need some personal and financial information. This includes your name, address, date of birth, and Social Insurance Number. 

You’ll also need to provide information about your income and employment status. If you’re self-employed or have a variable income, make sure to include all of your income in the application.

Additionally, you might be asked for information about any assets you own (like a car or house), debts that are owed to you (like student loans), and any other information that could affect your ability to pay off debt.

If you’re applying online, it’s important that you double-check all of the requirements for credit card approval before submitting your application. Make sure everything is correct and accurate so there are no surprises later down the road. It will also help speed up the process if any errors need fixing on their end too!

Where do you Apply for a Credit Card?

Applying for a credit card can be done in a few different ways: 

Through the issuer’s website 

The best way to apply for a credit card is through the issuer’s website. This is the easiest way and it also allows you to compare different offers before making your decision. You’ll need some basic information about yourself, including your address and Social Insurance Number (SIN). If approved, you may receive an offer in as little as 24 hours.

In-person at a bank or credit union 

You can also apply for a credit card in person at a bank or credit union. This might be a good option if you’re looking for a specific type of card that’s not offered online. You’ll likely need to provide some financial information, like your income and employment status, as well as your address and date of birth to determine your credit card eligibility.

Over the phone 

Some issuers also allow you to apply for a credit card over the phone. This is a good option if you’re not comfortable filling out an application online. You’ll need to provide some personal and financial information, like your name, address, date of birth, and Social Insurance Number. You might also be asked about your income and employment status.

By mail 

If you’re not comfortable applying online or in person, you can also apply for a credit card by mail. This might take a little longer as the application will need to be processed manually. You’ll need to provide some personal and financial information, like your name, address, date of birth, and Social Insurance Number. 

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Can you Reapply for a Credit Card?

So, what happens if you get denied for a credit card? Reasons a credit card application might be rejected include: 

-You don’t meet the credit score requirement 

-You have too much debt or not enough income 

-You haven’t been using credit long enough 

If your application is denied, the issuer will likely send you a letter explaining why. You can also contact the issuer to find out more about why your application was rejected. If you think the decision was unfair, you can contact the credit bureau to dispute the decision.

However, there are a few things you can do to improve your chances of being approved. 

First, make sure you meet the requirements for that particular card. If you don’t meet the minimum credit score to get a credit card or haven’t been using credit long enough, try applying for another card with different requirements. 

Second, make sure you provide accurate and complete information on the application. If there are any errors or missing information, it could lead to a denial. 

Third, consider asking a friend or family member with good credit to co-sign on the card. This will help improve your chances of being approved and could also lead to lower interest rates and better perks. 

Finally, consider using a credit counseling service to help improve your credit score and get approved for a credit card in the future.

Final Thoughts

A credit card can be a powerful financial tool when used responsibly. The key to getting approval for a credit card is understanding the process and gathering the right information. Follow our tips, and you’ll be on your way to enjoying all the benefits that come with having a credit card.

FAQ

What credit score do you need to get a credit card?

Typically, you’ll need a credit score of at least 670 to get approved for a credit card. However, some cards may require higher scores or allow applicants with lower scores. 

How long does it take to get approved for a credit card?

You should hear back about your credit card application within 30 days. However, you may be able to get instant approval if you’re applying for a secured credit card or one with simple requirements. 

What happens if I don't meet the minimum credit score requirement?

Even if you apply online and are approved for a credit card in minutes, the card may take up to 14 days to arrive in the mail. If you applied by mail or over the phone, your application may take longer to be accepted.

How to get approved for a credit card?

There are a few things you can do to improve your chances of being approved for a credit card. Nevertheless, what’s most important is to make sure you meet the requirements for that particular card. If you don’t have a good credit score or haven’t been using credit long enough, try applying for another card with different requirements.

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