Secured Credit Card
If you have never had credit or you have had some credit issues in the past, you need to establish (or re-established) your credit history. The best and easiest way to do this is by getting a secured credit card. Secured credit cards are just like regular credit cards except for the fact that they are secured by a deposit you give to the lender which they hold while you have the card. These cards then start to report on your credit history (Equifax and Transunion), and start building your score again which is imperative if you are going to qualify for a mortgage.
The great thing about secured credit cards is nearly everyone qualifies (except those currently in bankruptcy). The biggest obstacle to building your credit is actually getting new credit, lenders can make this very difficult. So let us help you get started today by arranging a secured credit card, as mentioned, this is step one toward qualifying for a mortgage if it can not happen for you right now. Here are just a few of the finer points you may want to know:
1) What is the minimum limit I can get?
$500 is the minimum you can qualify for.
2) How much of a deposit do you have to give to the lender to hold for your card?
Whatever the limit is, that is how much you need to put on deposit.
3) Do I have to pay it off every month?
No, just make a minimum of 3% repayment every month.
4) Are secured credit cards the same as pre-paid?
No, pre paid cards do not establish your credit. Secured credit cards are the same as regular credit cards, they require repayment and they report to the credit agencies.
5) What other costs are there for the card?
There is a fee of $99 to set up your card and an annual fee of $49 to keep in active.
6) Do I get my deposit back?
Yes, once you have established your credit and been able to qualify for unsecured credit, you can close the card down and you will get your deposit back.
So in order to get your new secured card today, please contact us by e-mail and request an application. Or fill out an online application and simply write 'secured visa' in the notes and we will start the process for you.
Call a mortgage broker today, or apply online for a Free Pre-Approval today.
