What is a unsecured credit card?

Credit Card Canada offers a broad choice to the citizens to choose if they desire to have a secured credit card or an unsecured credit card which directly depends on the personís financial status. The credit scores of a Canadian citizen are taken into account to issue an unsecured credit card to the person. A Canadian with bad credit scores can apply for a credit card too, but there are conditions such that the person having bad credit will be charged interest rates that will be inversely proportional to the credit score. Say for instance the person has the least of credit score, without doubt he or she will be charged the highest interest rate. Unsecured credit cards are tougher to be sanctioned and take considerably long period of time to be issued simply because the procedures are not so easy to undergo.

An unsecured credit card can be defined as the one that is granted to a citizen with a bad credit mostly, provided the debtor will agree to make repayments without having any back up or support of a collateral security. There is absolutely no security that is given to an unsecured credit card, where the security can be in the form of any deposit or any amount of money. The eligibility of the Canadian citizens to be issued an unsecured credit card will be determined only by keenly looking into the credit history or the credit report of the person recorded in Canada strictly. There are a lot of agencies and banks that extend help to people with bad credits to obtain their unsecured credit cards.

The procedure for obtaining an unsecured credit card is comparatively tougher in Canada. The people who immigrate to Canada are mostly refused to be issued with unsecured credit cards. Though there cannot be any generalisations, it can be said that most of the banks or the financial agencies deny the issue of such credit cards to immigrants, for their credit reports will not be good enough to leave way for a decision of eligibility and worthiness of the citizen. Though the immigrants will possess the records of their credits, it would have been recorded back at the country where the person has immigrated from and as a result of which the credit history cannot be evaluated with respect to Canada.

Unsecured credit cards are generally applied by those people in Canada who have negative credits, such as delaying of paying bills or having records of not having paid some bills at all. The average range of the credit score of a Canadian citizen is 300 to 850, and good credit score is said to be above 700 though the ones with credit scores worse than this range can also apply to obtain a credit card, possibly only the secured credit card. However the procedure to apply for an unsecured credit card is easy though the procedures a person undergoes to have it issued is tough. It can be of course applied online and the obtaining of secured credit cards is clearly easier by all means!

Add Your Comments:
Fields with * are required
Your Comment Below:
Enter Above Code
Note: Comments are moderated - Spam will be deleted

HOME | Contact | Disclaimer | About Us | Faqs | Discussion |