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Deposit For a Secured Credit Card Canada
13 Feb 2019

How to Come Up With a Deposit For a Secured Credit Card Canada

A secured credit card Canada can be a great way to get your credit back in useful condition; the only trouble is that getting one isn’t as simple as just applying for it. It’s called a secured card because it’s backed by some collateral, so you need to submit a deposit in cash in order to be approved. Most cards require a deposit amount of at least $500, and most people simply do not have this much money lying around. That doesn’t mean your secured card is out of reach, but it does present a problem that you’ll have to solve before you can get it. This article will cover four things you could do to try to come up with the money you’ll need.

Use Your Tax Return

There aren’t many occasions in life where you can expect to receive a fairly large chunk of money without doing anything at all for it, but for some people, tax season is one of them. Tax returns often amount to hundreds of dollars, and since that’s money that you typically aren’t accounting for in your day-to-day budget, it won’t hurt you at all to take that sum and use it to cover your deposit obligations. That’s why it’s probably the easiest of these four strategies.

Of course, this method is only viable if you know you will be getting a tax return in the first place. If you don’t have many deductions or other credits to put to use when you file, you won’t have much money coming back to you, if any at all. In those cases, you should not attempt to fund your deposit this way – at least, not entirely. You could potentially take the smaller sum and add it to what you’d get through another method, though.

Save Up

The second way you can get your secured credit card deposit is to save a small portion of your monthly income. Even if you don’t currently have much leeway in your budget, you can get more by making smart choices about small things that can be cut without you missing them too much. The quintessential example is the daily coffee that you may be buying each morning getting replaced with a homemade cup that costs a fraction of the price, but you can also do things like set a stricter grocery budget or skip one night out per month.

It doesn’t take much scrimping to make a big difference. As little as $50 a month can, if set aside, add up to a $600 deposit by the end of the year. That’s more than enough to meet the usual minimum, leaving you ready to get started on rebuilding your credit in the next year. This is only a little harder to do than just using your tax return as your starting funds, and it will be the most realistic option for most people.

Sell Things

Everyone has things lying around their house that they don’t really use anymore. Instead of letting those things sit around and collect dust, why not get some money for them? Whether it’s an old collection of dolls or some household items that you bought and forgot to ever use, someone out there is sure to want them, and some items can fetch a surprisingly high price.

A full garage sale can easily bring in $500 in revenue if it’s big enough, but you can also sell just a few individual things online if you don’t think you have the volume of stuff you would need to justify running your own full event. If you do go that route, though, be sure to price your items by looking at the going rate for similar items on your site of choice; when it’s so easy to compare prices, people expect some level of consistency. No matter which type of sales you end up doing, if you end up falling a little short of your funding goal, you can always top up that amount by using other methods listed here.

Get a Side Hustle

The final option on this list is one that anyone can do, but it also requires more effort than the others. You can take up a second job, or a ‘side hustle’ as they are now often called. This is a very common working arrangement for Canadians right now, and it’s possibly the most reliable way to get your hands on some extra money.

If you’re not feeling particularly excited about the prospect of waiting tables or scrubbing toilets, you’ll be happy to hear that this doesn’t have to be a traditionally structured job. There are lots of things you can do on your own to rustle up a little more money depending on your resources and talents. If you own a shovel or a lawn mower, you can shovel snow and mow lawns in your community. If you can sew, you can open up a shop on Etsy. If you can draw, you can take commissions online. Anyone who is responsible and committed can sell their services as a babysitter. All it takes is some time and effort and eventually you’ll make it to your goal for your secured credit card Canada deposit.

Get Help Choosing Your Secured Credit Card Canada

With these tips, you’re sure to be able to scrape up enough money to make your security deposit. Once that’s done, though, you’ll still need to choose a secured credit card, and you may not know where to start. That’s where Bonsai Finance can help you out. With our sophisticated online interface to help you out, you’ll be able to find a secured credit card Canada that meets your needs and helps you feel good about the big step you’re taking. There’s no need to go it alone – we’re happy to help bring you the best experience possible.