Applying for a credit card after multiple unsuccessful attempts with other providers can be stressful. When you’re having trouble obtaining a credit card, you may end up quickly losing hope. This Home Trust Secured Visa card review is here to show you that things don’t have to be so bleak; believe it or not, there’s a credit card out there that you can get just by putting down a deposit.
Apply now for a credit card that you’re almost certain to get, no matter what your income or credit history.
|You Are Interested If||You’re having trouble getting a credit card the usual way, but have a little money that you’re willing to use as a collateral deposit toward one.|
|Brief Description||The Home Trust Secured Visa card is a credit option that allows non-traditional applicants and those with no or poor credit to build up a credit profile.|
|Main Requirements||All you really need to get this card (as we’ll emphasize repeatedly in this Home Trust Secured Visa Card Review) is enough money to put up a deposit of at least $500 and to be of age in your province (usually at least 19 years old).|
|Card Type||This is a secured credit card intended to help customers rebuild faulty credit safely and effectively.|
Fees and Interest
|Purchase Interest Rate||There are two different card options here with different purchase rates. If you pay a $59 annual fee, your usual interest will be 14.90%; if you opt for the free version, it will be 19.99% instead.|
|Cash Advance||Again, two different rates apply on cash advances; paying customers will be charged a slightly lower 19.80%, while free customers will pay 19.99%.|
|Balance Transfer||This card is not eligible for balance transfers.|
|Income Requirements||Since you are required to put down a lump sum as collateral in order to get this card (more details to come later in this Home Trust Visa card review), there are no specific income requirements here.|
|Household Income Requirements||Household income is not considered separately from individual income in this case.|
|Annual Fee||You may choose the version of this card with no fee, or you may pay $59 a year to access the version with lower interest rates.|
|Welcome Bonus||There is no welcome bonus available for new applicants for this card since it is meant to be used by people in need and not as a real alternative to other cards.|
|How To Earn Points||This card does not use a points system or offer rewards of any kind.|
|Benefits||Other than Visa’s usual purchase protection, the main benefit you’ll receive from this card is the simple opportunity to rebuild your credit.|
About Home Trust Secured Visa Card
For some, getting a credit card is as easy as choosing one and filling out the proper forms; for others, it can be nearly impossible. The trouble with credit cards is that you have to have a positive credit history in order to qualify for them, and this leaves people who have had difficulties with debt in the past or who are without established credit struggling to be approved. Young people are especially susceptible to this problem, and more and more of them are choosing to opt out of the credit market altogether.
While having a credit card might seem like an unnecessary luxury, that isn’t the case for many people. If you can’t find a credit card company willing to give you a chance as a client, you could end up locked in this cycle for far too long, wasting time you could have spent building or rebuilding your credit and slowly working your way into good standing. This could end up severely damaging your financial prospects over time, particularly in terms of your ability to do things like buy a house or a car. It’s not just a matter of convenience – it’s an important step toward a better future.
Secured credit cards are a good way around this typical dilemma, and as we’ll cover in the rest of this Home Trust Secured Visa card review, this card is a particularly great option if you’re specifically looking for one of those. A secured card uses different criteria to determine whether or not an applicant will be approved. Instead of depending on credit scores or incomes as a way of determining creditworthiness, institutions offering these cards instead ask you to turn over a sum of money to them as collateral to secure your credit (hence the name). Your credit limit will then be equal to that amount for the entire length of time in which you hold that card, unless you choose to increase it by adding to your deposit amount.
Some potential applicants might worry about whether or not they will get that deposit back at some point, especially if they chose to lay out a large sum in order to keep their credit limit high. There is no cause for concern on this point; Home Trust will refund you your entire deposit amount whenever you choose to close your account with them, provided that you have paid off any amount you owe them in full by that point. The only time they will refuse to do so is if you have failed to live up to your debt obligations and they are left with no other recourse in order to settle your account. This means that if you are a responsible credit user (which you should certainly be aiming to be with this card – you won’t get your credit improvements otherwise!), we can assure you in this Home Trust Secured Visa card review that you have nothing to fear.
What sets this card apart from others like it is its two-tiered system for interest rates and annual fees. The base version of this card is free and charges 19.99% interest on purchases. This is precisely in line with the standard rate in Canadian markets, so it’s already nothing to complain about. However, cardholders have the opportunity to qualify for an even lower interest rate of 14.90% if they pay an annual fee of $59. This kind of flexibility is unusually user-friendly and allows you to tailor your credit card terms according to what you most need from a card at this point in your life. Do you think you’ll be paying a bit in interest fees while using this card and want to minimize that fees you’ll be paying? If so, the paid version might be for you. If you’re reasonably confident that you will be able to make your payments in full at least most of the time, the free version with higher rates is there for you to take advantage of instead.
Which is better for you? In hopes of making this Home Trust Secured Visa card review just a little more useful to you, we’ve done a bit of the math for you. As it turns out, the free option is indeed the best bet for most consumers. You would need to carry a standard balance of about $1200 for an entire year without making a single payment on it to accrue enough interest to make the $59 fee worthwhile. While some can certainly anticipate the possibility that something like that might happen to them, most will be fine opting for the free version.
As we’ve previously stated in this Home Trust Secured Visa card review, this card is somewhat unique in comparison to its competition. It’s an easily accessible card that does not seek to take advantage of people in vulnerable credit situations, and in fact offers them the chance to access a lower-than-average interest rate if they’re interested in that. Not everyone will be happy with such a basic card, but those people are not part of the core demographic that Home Trust is aiming for here. For a secured card, this option is more than reasonable.
About Home Trust
While it may not have the brand recognition of some of the bigger Canadian banking institutions, Home Trust has actually been around since 1977 and is a federally regulated institution. They choose to focus primarily on serving Canadians who may not always have the easiest time dealing with other financial institutions, such as those with poor credit and the self-employed. After more than 40 years of experience in helping people just like you, they are very well-equipped to help you get where you want to be in your financial life.
What We Think
As you may have guessed from reading the rest of this Home Trust Secured Visa card review, we really like this credit card option. It’s not the most exciting of cards, and if you have adequate credit to qualify for something else, you really should consider applying for one of those other options instead. Where this card shines is when you don’t have many other options and just need a credit card company to agree to take you on. As long as you can afford to put down the initial deposit amount, the Home Trust Secured Visa card will almost certainly be granted to you, and you can move on to bigger and better things in the credit card world after you have successfully done business with them for a while. We can confidently say as part of our Home Trust Secured Visa card review that this is one of the best secured credit card options available in Canada right now, and if that type of product is something you need, we urge you to consider it.