Getting a new credit card can be exhausting, especially if you have to wait a long time before it is approved, printed, and sent to you. There are a lot of factors to consider when getting a new credit card in Canada. Therefore, applying for the right card and getting approved right away is a big win.
Luckily, tons of financial institutions notify you of your credit card application status on the spot. Some credit cards are easy to get in Canada, making the wait shorter and more manageable. In this article, you will find some of the most accessible credit cards you can get in Canada in no time at all.
Instant Approval Credit Cards
Usually, getting approval for a credit card can take a long time. The duration is generally used to evaluate your records. Sometimes, your application may be reviewed manually before a decision is made. Thanks to the digitalization of banking processes, the approval process can be instant, and your credit card will be instantly approved.
These types of cards are called instant approval credit cards. That is cards with faster approval processes. Rather than make you wait, you will be notified of your approval immediately. If there is any need for a manual review, you will also be notified immediately. In Canada, several credit card providers issue instant approval cards.
Requirement for an Instant Approval Credit Card
To qualify for an instant approval credit card, you need to meet the following requirements;
- You must be a permanent resident in Canada or a Canadian citizen – some cards offer a longer application process if you’re not a permanent resident of Canada.
- You must be 18 or 19 and older, depending on your province
- You must not have a history of bankruptcy when applying for an unsecured credit card
- A good credit score – to better your chances of getting an approval
Instant approval cards require correct and accurate information. The more information you provide, the higher your chance of a faster verification process.
Once your information has been verified, your application will go through a proper credit check.
All cards require credit checks, except you have an established history with the issuing institution, or you have applied for a secured card (you have provided a security deposit). Once your credit check is done, your credit card will be printed and mailed to you.
Easiest Credit Cards in Canada
Below are 5 of the easiest credit cards you can get in Canada;
1. Canadian Tire Triangle MasterCard
Although quite specific in use, this card allows newly approved cardholders to make purchases using Apple pay or Google Pay before receiving their physical credit card via mail. It doesn’t only get approved fast; you can also use it once it is approved.
Some perks come with shopping with this card at the Canadian Tire shop or other Canadian Tire family retailers like Mark’s and CT Gas+. You also start earning 4% back in Canadian Tire Money on qualifying purchases from Canadian Tire and partner stores as soon as you start using your card.
Users get a CA$0.05 back at Gas+ and participating Husky Stations. Except for Walmart and Costco, you will get 1.5% back on the first CA$12,000 you spend on groceries yearly and 0.5% on everything else. There is no annual fee and no specified income requirement. This card has a purchase interest rate of 19.99%
2. Refresh Financial Secured Visa
This credit card is perfect for people with low credit scores and is looking to rebuild it. A credit check is not part of the evaluation process to get this card.
However, it is a secured credit card, so you need to make a deposit, and the application may require extra steps than usual. It has a low interest rate which helps you save more on interest and build your credit score.
This card has an annual fee of CA$12, with CA$3 for maintenance every month. There is no specified income requirement, and the purchase interest rate is 17.99%. You will get CA$100 each time you refer a family member or a friend; the number of referrals is unlimited.
3. BMO Preferred Rate MasterCard
The Bank of Montreal issues this credit card. It is also an excellent option for people looking to build their credit score as it offers one of the lowest interest rates in Canada.
It has an annual fee of CA$20, which will be refunded in the first year, and a purchase interest rate and cash advance interest rate of 12.99%. There is no specified income requirement for this credit card.
As a welcome offer, you get a 3.99% introductory interest rate on balance transfers for nine months with a 1% transfer fee.
4. PC Financial MasterCard
This credit card is unique because there is no annual fee attached to it. You get your application status report within minutes after submitting your application online.
It is a President’s Choice (PC) store card like the Canadian Tire’s card. You can use it in stores like Loblaws, No Frills, Shoppers Drug Mart, Joe Fresh, and other stores under the President’s Choice umbrella. You can also use it for gas fill-ups at stations like Esso and Mobil. The interest rate is, however, high.
With this card, users can earn at least 25 points per CA$1 when they shop at Shoppers Drug Mart, about 30 points per CA$1 when they fill up at Esso or Mobil, and 10 points per CA$1 when they shop at other stores under the PC umbrella.
There is no specified income requirement, and the purchase interest rate is 20.97%
5. American Express Cobalt
This credit card is great if you love rewards. Who doesn’t? It is arguably the best rewards credit card. You earn rewards (points) on eating out, food delivery, travel, lodging, and shopping.
All points are collected under American Express’s Membership Rewards Select program, and you can redeem them for travels directly on the American Express Travel portal.
You can also transfer your points to specific Hotel programs like Marriott Bonvoy or Hilton Honors. You can as well redeem the points for cash back on your credit card statement.
There is an annual fee of CA$120, which is charged monthly at CA$10. There is no specified income requirement, and you earn 5 points for every CA$1 spent at eligible restaurants, bars, cafes, and food delivery in Canada.
You get 2 points for every CA$1 spent on eligible transit and gas purchases in Canada as well as travel purchases – flights and hotel. You also get the point on every CA$1 you spend on other purchases.
As a welcome offer, you can get up to 30,000 points in your first year with an additional 15,000 points when you spend CA$3000 within your first three months if you apply by 5th May 2021.
Instant Approval Cards vs. Guaranteed Approval Cards
Instant approval cards are not the same as guaranteed approval cards. Instant approval cards usually have requirements you must meet. So, your approval depends on the criteria they use.
Guaranteed approval cards, on the other hand, are subsets of secured credit cards. They are the better option if you are looking to build a low credit score if you don’t have a credit score or repair your bad credit history.
Secured cards require deposits to secure your card limit in case you default on your monthly payments. Thus, instant approval cards do not have guaranteed approvals, and guaranteed approval cards may not be approved instantly.
When you are applying for an instant approval credit card, keep these tips in mind;
- Know your credit score to know the kind of card you will apply for. Credit scores are essential, and depending on how low or high your credit score is, you may get a store credit card, a cashback credit card, or a premium credit card. If your credit score is too low, secured credit cards are the better option.
- Don’t apply for too many cards at once.
- Check for the income requirements before you apply to avoid denial.
- You should check your current debit card debts because banks use your credit card debts as approval criteria. Your credit card debts should not be more than 40% of your income or over 30% of your total credit limit. You should pay back some amount on your debt first before you apply.
- You should report all of your income, regular wages, side jobs, and part-time jobs when you want to apply and ensure that you don’t lie about it.
- You should track and monitor your credit file regularly. You should review it for inaccuracies or abnormalities and sort them out before applying for a new card to avoid issues during the application process.
It is quite easy to get your credit card application instantly approved as long as you report the right and adequate information and take the proper steps. There are different cards to choose from, so you should compare the costs and benefits and your eligibility status before you apply.