Credit card after bankruptcy, Canada
Q: How can I get a credit card after declaring bankruptcy in Canada? I did it 2 months ago. Since I live in Prince Edward, I was told I have very limited options
A: You have several options in Canada, and getting a secured credit card shouldn't be that hard, even in Prince Edward Island. One is Capital One Low Rate Guaranteed Secured MasterCard designed specifically for Canadian consumer who needs to establish credit history with a low, money-saving long term rate and yes, filed for bankruptcy.
To get this card you need to provide security funds, which could be as little as C$75. Capital One will report your payment information to the credit bureaus so you start rebuilding your credit history. In a nutshell, you need to put a minimum security deposit between C$75 to C$300 and pay C$69 annual fee. The annual interest rate is 14.9% for both purchases and balance transfers while cash advance carries a steep 19.8% rate. Getting this credit card after bankruptcy in Canada helps you not only establish credit history anew but also enjoy all the benefits of having a credit card, like being able to buy things online or rent a car, etc. Capital One also provides all the usual little but important perks like $0 fraud liability for unauthorized use, 24/7 customer service online or by phone, Master RoadAssist and MasterCard Global Service. Grace period is a minimum of 25 days without a finance charge on new purchases if your total New Balance is paid in full each month by the payment due date. Cash advance transactions will not receive an interest-free grace period. Three important limitations are
- not having an existing Capital One account
- not having applied for a Capital One account within the last 65 business days
- not having a Capital One account that wasn't in good standing within the last 12 months before applying
Apply here and while there are seemingly no any over-the-top fees and fines, just your typical ones, read the Important Disclosures in the end, above green 'Continue' button.
Another credit card after bankruptcy - Canada very own is secured MasterCard by Peoples Trust. It has a bit worse terms. Again you must put a security deposit that sets your credit limit. The minimum is $500. This card however has 19.5% interest on purchases that is charged from the date the purchase posted to you account until payment is made in full. You do have grace period of at least 25 days from the Statement Date. But if the outstanding balance is not paid in full before the end of the grace period, interest is charged from the date the purchase is posted until it is paid in full. The annual percentage rate on cash advances is 24.5%, and is charged from the date of posting similar to that on purchases. Then there are one time Application and Set-up fee of C$49 and some ridiculous C$5.95 Monthly Maintenance fee for each billing cycle that your account is open and available. Plus other potential and guaranteed small fees that will add up. Apply here but do read all the small print and features carefully.
So if I were looking to open a credit card after bankruptcy in Canada, the Capital One would be my first choice. This card however isn't available for residents of Quebec, Northwest Territories, Yukon and Nunavut.
Fri Aug 28, 2009 12:08AM by Tony | More in Credit Repair | Comments (0)
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