Options for Individual Customers

by admin on October 8, 2014

Financial institutions in Canada accept applications by residents and citizens of the age of majority. Banks are unlikely to approve your application if you have late payments. The interest rate offered depends on your credit rating. Some banks require a minimum annual income of $20,000 while others require a total income, including spousal and own income of $60,000 or higher. Some issuers also allow holders to add up to 2 – 5 authorized users. Some cards go with exclusive rewards and experiences and are offered to customers with solid credit. Different cards are offered to students, and issuers request contact and personal information as well as school information such as class year, enrollment status (part- or full-time), and school name, city, and state. Issuers that offer student cards also request information such as family member or alternative contact information, and financial details such as outstanding loans and balances, types of accounts held, additional income, annual wages and salary, and monthly rent or mortgage payments. If you need an additional card, you will be asked whether it is for your child, partner or spouse, or another party.  cr-ca

Banks offer rewards, airmiles, cashback, and other cards to business owners. As a rule, Canadian issuers request financial information such as occupation, business phone number, tax identification number, name of business, and others. Financial institutions require information such as monthly housing payments, social insurance number, and other details. Banks ask whether the applicant has a savings or checking account with them. Many issuers are also interested in whether the company is non-profit or for-profit and if it is publicly traded. Some banks allow more than 1 balance transfer. Many issuers require that the owner or authorized officer specifies their country of citizenship and residency, monthly housing payment, and occupation. Some financial institutions allow businesses to add between 1 and 9 employees. The application also includes details such as interest on convenience checks, international transactions and quasi cash, overdraft protection, and penalty fees.

There is a wide array of cards offered by Chase, Laurentian, Canadian Tire, and other establishments. The choice of card depends on many factors, for example, whether you meet the minimum or pay the full balance. Look at factors such as minimums, expiry dates, billing cycles, and others.

Related Articles: http://canadian-credit-cards.creditcardreview.ca/

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Types of Debt Instruments

by admin on September 20, 2014

People who have gone through some major event such as loss of job, prolonged illness, or divorce usually apply for a secured credit card. To this, borrowers are advised to make sure the card issuer reports to all credit reporting agencies. If they do not report, the borrower has lost a key benefit. As a rule, if you start getting offers for unsecured credit cards after having made on-time payments for several months, you will know that the card issuer is reporting. Make sure the credit card issuer does not flag the report as secured or prepaid credit card because you will find it difficult to rebuild credit this way. How long does it take before financial institutions offer you an unsecured credit card? Banks and credit card companies want to keep their customers and will qualify them for an unsecured credit card after making regular payments over a certain period of time. On average, it takes about a year to build credit and qualify for an unsecured card. Two types of debt instruments are taken into account when assessing the borrower’s credit history – personal loans and revolving credit such as personal lines of credit. Borrowers who have bad credit are often required to offer collateral as an additional guarantee. Thus, risk is less of a factor. People who apply for a secured credit card deposit money with the credit card company. The issuer can seize the deposit if the borrower is unable to keep up with payments.

To build or rebuild credit, borrowers need to have a good record with both revolving credit and installment loans. At the same time, borrowers with credit problems and histories of late or missed payments are viewed as high risk. They are either turned down by mainstream lenders or are offered unfavorable terms and hefty interest rates. That is why borrowers resort to Canadian secured loans. Those who have some valuable asset to offer against the loan stand a better chance of having their loan application approved. Many financial institutions are willing to offer a lower interest rate to borrowers who offer collateral. Borrowers find their monthly payments more manageable, and it is easier for them to budget. Regular payments, on the other hand, help rebuild credit.

Using a prepaid card or a secured credit card is another way to rebuild credit. Secured credit cards are offered by mainstream banks, many credit unions, credit card companies, and other financial institutions. Some banks offer unsecured credit cards only. Many banks started offering unsecured credit cards with higher fees and interest rates and lower limits. Still, it pays to shop around because using a secured credit card is a good way to rebuild credit.

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What Financial Institutions Look into

August 9, 2014

Finance companies and banks look at a number of factors, including retail accounts, mortgage and consumer loans, and others. Other factors that financial institutions take into consideration include the applicant’s debt-to-income ratio and repayment history. Customers with a history of delinquencies and excessive debt are often turned down. These factors tell banks whether applicants have […]

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How to Find a Rewards Card with Attractive Features and Benefits

August 3, 2014

Airmiles and rewards credit cards feature plenty of added benefits to attract more customers. Different banks and credit unions offer rewards cards, along with supplementary cards and other perks. In addition to complimentary bonus points and attractive redemption plans, rewards cards offer many benefits such as exclusive offers and store discounts. Cardholders enjoy added security […]

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Other Types of Business Loans and Alternatives

July 22, 2014

Business loans are offered to start-ups, entrepreneurs, corporations, and new and small businesses. Many businesses apply for government financing because of the longer payback period. Types of Financing Applicants for business funding can choose from disaster and real estate loans, micro-loans, and others. Private lenders are also a source of funding, offering lines of credit, […]

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Products for Creditworthy Customers

April 29, 2014

The selection of credit cards includes secured, balance transfer, and specialty cards with insurance policies, promos, concierge services, and other perks. Clients with good credit can choose from different products, including low-interest loans and credit cards. There are different options to choose from depending on your lifestyle and payment habits. One option to consider is […]

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Mutual and Hedge Funds Investing

April 25, 2014

The main benefits of hedge funds include portfolio diversification, capital preservation and growth, and reduced risk of losses. Hedge funds offer downside protection meaning that they help improve the customer’s return and risk profile. One problem to bear in mind is that these funds charge a lot of money in performance and management fees. Another […]

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Alternatives to Debt Consolidation

April 23, 2014

Many borrowers look for different ways to lower their monthly payments and become debt-free faster. Consolidation loans come with longer repayment terms which is why payments are more affordable. Weighing the Pros and Cons A secured loan is one option for borrowers, and they are usually offered a lower interest rate and a longer repayment […]

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Personal Loan to Pay Tuition

April 16, 2014

Applying for a personal loan is one way to finance the purchase of big-ticket items, go on vacation, pay tuition, and more. Banks offer loans to help borrowers with their home improvement projects, extensions, and recurrent expenses. Customers are offered travel loans with different repayment schedules that suits their budget. Borrowers can use the funds […]

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Options for Borrowers with Poor Credit

April 15, 2014

Consumers can choose from different types of loans, including secured and unsecured. Traditional and online banks and finance companies offer unsecured loans. Loans are reserved for creditworthy customers with solid income. There are different types of unsecured loans, including used and new car loans, consumer, and student loans. Banks and car dealerships offer auto financing […]

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