Credit cards for Canadian Card Applicants with Bad Credit

These credit cards and prepaid cards are purposely intended for people with less than perfect credit. If you have a poor credit history, limited credit history, or no credit history at all, you can pick a suitable card for your needs. These kinds of credit cards can help you build, rebuild or reestablish your credit history if you keep all your balances lower than your credit limits and make your minimum payments on time.

Improve your credit rating with credit cards for people with bad credit

Whenever you apply for credit, a lender will utilize a credit reference agency to check your financial history and evaluate the risks involved. If you have a history of late or missed payment, they are recorded on your credit report and may affect your credit rating. Similarly, when you pay on time, it will have a positive effect on your credit rating. People with no known credit history may also be categorized under the high risk class for the reason that the credit reference agencies cannot provide any information on them.

Fortunately, if you use your credit card responsibly by making payments on time and staying within your credit limit, it will surely help in contributing to a better credit rating. By just following the right approach, you could improve your credit rating in as little as six months.

Maintaining a Good Credit History is Essential

Having a good credit history will allow you to acquire credit easily when you are applying. When you apply for credit, the card issuer will review your credit score through a credit reference agency. Your credit score will be based on your known credit history and presents how you have repaid your credit in the past. This will indicate how you will repay your credit in the future.

If you have a good credit history and evaluated as less risky for the card companies, you are easily given with the credit. You are more likely to be given with a credit that you might need is its finest rates. A good credit history would entail you to have better access on the various credit products. A poor credit history will limit your opportunities, but can be improved eventually.

Ways in Improving my Credit Rating?

The first thing you should do is get a copy of your credit report. This is to ascertain your current credit record status. The most effective way of improving your credit rating and keep away from getting too much debt is by paying off your bills on time and using your credit within reasonable limits. Your rating could improve for just a span of six months.

Begin managing your finances more effectively. At the start, you need to put wise and attainable goals. Make concrete notes of your cashflow. You must prioritize the important things like mortgage payments or rent, council tax, utility bills, food shopping and travel to work. Furthermore, try to lessen unnecessary outgoings and make more savings than expenditures. Finally, find a way in which you can earn and increase your income or earnings.

With that, you will be pleased to know that having the credit card helped you managed your account responsibly. It also aids you in paying off your balances every month and spending within your set credit limit. All of these will lead to an improve credit rating.

See Also

Best Credit Cards Canada

Best Cash Back Credit Cards Canada

Best Capital One Credit Cards Canada

Best MasterCard Credit Cards Canada

Best MBNA Credit Cards Canada

Best Visa Credit Cards Canada

Best Secured Credit Cards Canada

Travel Credit Cards Canada

Balance Transfer Credit Cards Canada

Credit cards for Canadian Card Applicants with Bad CrediS

Article Created: 2010-09-10
Article Updated: 2013-09-26