A credit card is a key that can open many doors. If used wisely, it can help you build or improve your credit history, control your daily expenses, unlock rewards, and provide emergency cash advances. In fact, a recent survey states that as many as 83% of Canadians use their credit cards for various financial operations at least once a day.
But, where do you start this quest for a more convenient future? If you wonder how to get a credit card, whether you qualify for one, and how to proceed if your initial request gets denied, you’re in the right spot. Let’s get started!
Key Takeaways
When applying for a credit card, you have to provide a fair share of personal information, including, but not limited to, contact details and income status.
You can choose the way you want to apply for a credit card. It is possible to complete the process online, at one of our advice centres, or by phone.
You can speed up the application process by addressing pre-existing financial issues.
If you are denied by the credit card company, you can review and improve the situation and reapply later with a higher chance of success.
What Information Do I Need to Apply for a Credit Card?
The credit card application process is usually swift and straightforward. You will be asked to provide a few personal details to the credit card company to prove your eligibility. These include:
Legal name: Use the full name and surname stated on any of your official documents, such as an ID or driver’s license.
Date of birth: Enter the day, month, and year of birth.
Contact details: Provide your current address, active phone number, and email address so that the company can get in touch with you should any questions arise.
Income details: State your primary and secondary sources of steady income, including current employment information. To approve your application, the credit card issuer needs to understand your current financial situation.
Social Insurance Number: This information may be optional, depending on the application option of your choice. For instance, at Innovation, providing your SIN when applying online is optional.
Additional credit: Share the information on any other credit that you may have, whether it is another card or a loan/mortgage in your name.
Ways to Apply for a Credit Card
Applying for a credit card is not only simple, but it is also quite flexible. You can choose to apply online, in-person, or over the phone.
Online
If you are looking for a quick and convenient way to apply, try applying online. As you remain in the comfort of your home, you can browse available options at your own pace and make a decision when you are ready.
In-Person
If the credit card issuer has a local branch or advice centre in the vicinity, you can apply there. Visiting a brick-and-mortar office provides the perks of professional human interaction that an online process may lack. You can ask any questions you have and receive all-encompassing, expert answers that will help you finalize the process.
By Phone
You can also call the card issuer and let a skilled agent help you understand available credit card options, guide you through the application process, and provide any information that you seek.
How to Qualify for a Credit Card
Even after you’ve gathered all the required pieces of information available for a successful application and chosen a way to apply for it, there’s one more thing to do — confirm your eligibility. A good credit score will be helpful, but first, there are a few essential conditions to comply with to qualify for a credit card with us. They include the following:
Age: You have to be of legal age to qualify for a card. In Canada, eligible applicants must be at least 18 years old. A person under 18 isn’t allowed to sign a financial contract. Be ready to provide a government-approved official document as proof of age.
Residence: You must be a Canadian resident to receive a credit card. Any official correspondence, such as a lease agreement, bank statements, or mortgage papers, as well as identification documents, such as your driver’s license, can serve as proof of residence in Canada.
Membership: You must be an active member of Innovation Federal Credit Union to apply for a credit card with us. We recommend our No-Fee Bank Account, where you’ll pay $0 bank fees. Applying online is fast and easy.
How to Speed Up the Application Process
Although the credit card application process is often fast and effortless, the approval may take some time. However, there are a few simple ways to cut the ‘wait line’ and get your card in no time. Here’s what you may want to do before applying.
Check Your Credit Score
Your score is a reflection of how well you deal with paying back existing debts and loans. The higher the score, the higher your chances of getting approved. We require a score starting from 541 and up. You can ask Equifax or TransUnion to send you a copy of your credit report to make sure that yours meets the requirements.
Lower Your Credit Utilization Ratio
Your credit utilization is the portion of your available or approved credit that you are using. The higher the utilization ratio, the lower the credit score. You can improve the ratio by paying off your balances. It may also be possible to increase your credit limit to achieve the desired ratio. 30% is often deemed as the optimal utilization ratio in Canada.
Reduce Outstanding Debt
You need to prove your trustworthiness for a credit card issuer to give you a credit card. That is why you should review your current debt or loan history. Some people, who have multiple loans, often try to pay off high-interest debts first. However, you can also start by paying off smaller debt amounts using the so-called 'snowball' method. The more managed and timely your payments are, the better your chances of a successful application.
What Should I Do If My Application Is Denied?
Don’t worry if your initial credit card application gets denied. There are still some steps you can take to ensure your next application is successful, including determining why your application wasn’t approved.
1. Read Through the Adverse Action Notice
Although credit card issuers aren’t required to send an official notice explaining why the application has been denied, most issuers do. The notice will contain a direct answer as to why your request has been rejected. Incorrect or insufficient information, poor credit history, insufficient income, or high utilization ratio are often among the most frequent causes.
2. Initiate a Reconsideration Process
In case some of the provided details are incorrect, you can reach out to customer service at the credit card company and ask them what to do to fix the problem.
3. Work on Your Credit Score
If a low credit score is the primary culprit of the rejection, the easiest way to fix the matter is to improve your score before reapplying for a different card. You may want to postpone applying for other loans or credits and build a positive payment history while reducing your debt to boost your score.
4. Send a Re-Application Request
You may want to reapply for a credit card the moment you receive the rejection notice. However, it is best to take a moment and reflect on the primary reason for rejection, fix the issue, and potentially consider applying for another card that is better suited to your current situation.
Conclusion
A credit card can be a convenient addition to your life. It can shape your spending habits, improve your credit history, and make everyday purchases twice as pleasant. All a successful application takes is assessing your financial situation, enhancing it if needed, and applying for a card from a trusted institution!
Have any further questions on the application process, our offers, or credit card fees? Give us a call! Our experts will guide you through our range of credit cards and requirements to help you find a solution that works for you.