According to the Canadian Bankers Association, 95% of Canadian adults have access to a credit card, but what if you aren’t one of them? With poor credit (or even no credit), it can be hard to convince an institution to trust you with a card. We’ve got the perfect solution for you: a guaranteed credit card. These cards break down all the usual credit barriers and let anyone get started on the road to brighter credit prospects.
The Credit Problem
Getting a credit card can be much trickier than it needs to be if your existing credit score isn’t exactly what lenders want to see. You can’t get credit without already having had a good credit track record, but if for whatever reason you don’t have that already, most lenders won’t give you the chance to try to build it. How are you supposed to please everyone in this scenario? It’s a paradox that keeps many Canadians stuck in a bad financial spot for far too long.
Changing the Game with a Guaranteed Credit Card
Guaranteed credit cards are the ultimate financial equalizer. No matter how much money you have or how risky your credit makes you look from a lending perspective, they give you the opportunity to show that you can responsibly handle any credit that is extended to you. That’s incredibly useful for your future credit applications, and will make it much easier for you to obtain a standard credit card or other financial products in the future.
Unlike a mere loan, a guaranteed credit card is always instantly accessible once it’s in your possession, making it far easier to put to use. It’s also more beneficial to your credit score to make many smaller payments over a longer period of time, as a credit card requires you to do, than it is to make just a few larger payments on a lump sum loan. This makes these cards one of the most useful tools a person can have on their journey to a higher credit score.
How the Guarantee Works
So, why are these cards so easily accessible? It all comes down to risk. If you’ve been turned away from other credit cards, you probably already know that most lenders want you to have an established positive credit history already before doing business with their company. Since they have no other way of knowing whether they can trust you to hold up your end of the credit bargain and make your minimum payments on time, this is a smart and necessary thing for them to do.
However, some lenders are a little more creative when it comes to finding a way for you to prove your creditworthiness. Instead of looking for past proof that you can pay your debts, they ask you to put up some money up-front as collateral for your credit. That way, there’s very little financial risk to them, but you can still be granted credit and have a chance to show other lenders how you handle that privilege. If you consistently make your payments on time, you’ll be able to upgrade to a regular credit card in no time – and when you do, you’ll have your entire deposit returned to you.
Interested? Here’s How to Get One
It’s easier than you might think to get a guaranteed credit card of your own – at least, it is if you let Bonsai Finance help you out. It’s our mission to help make financial products accessible to everyone with an Internet connection. With our curated listings of trusted lenders, you’ll be able to find multiple card options without any tedious searching on your part.