A Summary of Credit Options for Professional’s Arriving From India
- Secured Credit Cards
- Unsecured Credit Cards
- Credit Cards for Students
- Retail Store Credit Cards
- Choosing the Right Credit Card
Moving from India to Canada can be a life defining experience, but it can also be overwhelming, particularly when it comes to financial matters. For many new immigrants, obtaining a credit card is an important step towards building a credit history in Canada, which is essential for accessing loans, mortgages, and other financial products. In this article, we’ll explore the credit card options available to someone moving from India to Canada.
Secured Credit Cards
One of the most common credit card options for newcomers to Canada is a secured credit card. This type of credit card requires a security deposit, which serves as collateral for the credit limit. The amount of the security deposit is typically equal to the credit limit and can range from $500 to $10,000 or more. If the cardholder fails to make payments on time or defaults on the card, the security deposit will be used to cover the outstanding balance.
Secured credit cards are often the easiest type of credit card to obtain for newcomers to Canada because they do not require a Canadian credit history. Instead, the security deposit serves as a guarantee to the lender that the cardholder will repay the balance. As long as the cardholder makes payments on time and maintains a low balance, a secured credit card can be an effective tool for building credit in Canada.
Unsecured Credit Cards
Unsecured credit cards are another option for newcomers to Canada, but they can be more difficult to obtain than secured credit cards. Unsecured credit cards do not require a security deposit, but they do require a Canadian credit history, which many newcomers will not have. Without a credit history, it can be difficult to be approved for an unsecured credit card, and the credit limit may be lower than with a secured credit card.
However, there are some unsecured credit cards available specifically for newcomers to Canada. These cards are designed for people who are new to the country and do not have a Canadian credit history. They may have higher interest rates and lower credit limits than other unsecured credit cards, but they can be a good option for building credit in Canada.
Credit Cards for Students
If you’re a student moving from India to Canada, there are credit card options available specifically for students. These cards are designed for people who are enrolled in post-secondary education and often come with benefits like cashback rewards, low interest rates, and no annual fees. They may also have lower credit limits than other credit cards, but they can be a good option for building credit while studying in Canada.
Retail Store Credit Cards
Retail store credit cards are another option for newcomers to Canada. These cards are often easier to obtain than other credit cards because they are tied to a specific store or brand. They may offer rewards or discounts for purchases made at the store, but they often have higher interest rates than other credit cards. It’s important to carefully review the terms and conditions of retail store credit cards before applying for one.
Choosing the Right Credit Card
When choosing a credit card as a newcomer to Canada, it’s important to consider the following factors:
Interest rates: Credit cards often come with high interest rates, so it’s important to choose a card with a low interest rate to avoid paying too much in interest charges.
Fees: Some credit cards come with annual fees or other fees, so it’s important to review the fees before applying for a card.
Rewards: Some credit cards offer rewards such as cashback or points for purchases made with the card. It’s important to consider whether the rewards are worth any potential fees or interest charges.
Credit limit: The credit limit is the maximum amount that can be charged to the card. It’s important to choose a credit card with a limit that is appropriate for your needs and ability to make payments.
Credit history: If you have a Canadian credit history, you have a huge advantage however this is seldom the case. New emerging technologies to translate credit scores are sprouting up.