Ben Nguyen 
Getting approved for a new credit card can be a challenge, but it also provides tremendous financial benefits. This step-by-step guide answers all your questions about how to apply for a credit card in Canada. Follow these tips and maximize your chances of getting the right card for your needs.
What Should You Do Before Starting Your Credit Card Application?
Before applying, take some time to assess your credit profile and financial habits to pick the optimal card. There are three primary types of credit card users, each with ideal card features:
Revolvers
Revolvers carry a balance month-to-month, slowly paying off credit card debt over time. Key considerations for revolvers include:
- Low interest rates – critical for minimizing costly interest charges that accumulate on balances
- Intro 0% balance transfer offers – provides temporary relief from high interest on existing debts
- Generous grace periods – more time to pay balances each month before interest applies
Transactors
Transactors pay off their statement balance in full each month and avoid interest charges altogether. Transactors are great candidates for reward cards and should evaluate the following:
- Lucrative sign-up bonuses – earn high-value rewards just for opening an account
- High rewards rates – accelerate points or cash back earned from everyday spending
- No foreign transaction fees – prevents extra charges on international purchases
Credit Builders
Credit builders have poor, limited, or no credit history. Those looking to establish or rebuild credit should consider secured cards. These require an upfront refundable deposit that becomes the card’s credit limit. Key factors for credit builders include:
- Low minimum deposit – reduces the upfront amount needed to open the account
- Interest-bearing deposits – earn interest on the deposit while building credit
- Path to the unsecured card – potential to upgrade to an unsecured card later on
How Do You Find the Right Credit Card Matching Your Profile?
Once you understand your credit habits and status, you can find a card tailored to your spending profile and financial situation. The major credit card categories include:
Low-Interest Cards
Ideal for revolvers, these cards offer interest rates significantly lower than average cards. This saves revolvers money by minimizing expensive interest charges on carried balances. Low-interest cards generally have fewer rewards.
Balance Transfer Cards
Balance transfer cards allow you to consolidate high-interest debts onto a new card at a temporary low introductory rate (often 0%). This enables revolvers to save on interest by paying down balances faster during the promo period. Avoid cards charging high transfer fees.
Cash Back Cards
Perfect for transactors, cash back cards provide statement credits equal to a percentage of your spending – simplifying rewards redemption compared to travel cards. Popular for day-to-day spending.
Travel Rewards Cards
Frequent travellers can redeem points from co-branded airline and hotel cards for free flights, hotel stays, car rentals, and more. However, blackout dates and redemption restrictions are common.
Student Cards
Student cards help those in school or young adults establish credit history and build good habits. Look for low fees and bonus rewards on essentials like groceries, commuting, and entertainment.
Secured Cards
Secured cards require an upfront refundable deposit and are ideal for credit builders needing to establish a positive payment history. Deposits range from $500 – $10,000+ depending on the card.
That said, you should consider your credit profile – whether you’re a revolver, transactor, or credit builder – and find a card catering to your specific habits and financial situation.
Also, ensure the card matches your spending patterns and categories. One with accelerated rewards on groceries and gas is ideal if you spend heavily in those areas.
What Eligibility Requirements Should You Meet to Get Approved?
Before applying, double-check that you meet the card’s eligibility criteria to maximize approval odds.
Typical requirements include:
- Credit score – Most everyday cards need 660+, but premium rewards cards require 700+
- Income – Minimums vary, but $60,000+ individual or $100,000+ household income improves approval odds
- Age – Must be the age of majority in your province, either 18 or 19
- Residency – Must be a Canadian resident or permanent citizen
If you fall slightly short, several options can improve your approval odds:
- Becoming an authorized user on someone else’s existing card
- Leveraging a relationship with the card issuer through a bank account or loan
- Putting down a security deposit for a secured card
- Meeting a minimum spending threshold within 3-6 months of opening the account
Meeting eligibility criteria is key for credit card approval. Take steps to improve your profile if needed.
What Is the Recommended Process for Submitting Your Application?
When you’re ready to apply, follow four steps for a smooth and successful application process.
Apply for a Credit Card Online for the Fastest Response
Submitting your application online directly through the card issuer’s website leads to the fastest response time, with many offering instant approval decisions. It also allows you to securely upload any required documents.
Have Required Information Ready
Prepare the following details to accurately complete the online application:
- Personal information – full legal name, birthdate, SIN, home address, contact details
- Income – individual and household incomes, if applicable
- Employment details – employer name, job title, length of employment
- Financial information – assets, existing debts, income sources
Provide Supporting Documents
You may need to provide:
- Pay stubs verifying income
- Tax returns for the previous 2 years
- Recent utility bill or bank statement confirming your address
Submit any required documents promptly to avoid processing delays.
Carefully Enter All Details
Triple-check that all information provided – especially financial figures – is correct before submitting. Inaccuracies could negatively impact your approval odds or lead to account closure later on.
What Happens After Applying for a Credit Card in Canada?
Be prepared for the following timeline and process after your application is in review:
Wait For an Approval Decision
Decision speed varies situationally:
- Instant approvals – Within minutes if you have excellent credit
- 1-2 business days – Common for online applications
- 2-3 weeks – Applications needing manual review may take longer
Higher credit scores often lead to faster approvals. Call the issuer if it has been more than 2 weeks.
If Your Credit Card Application Is Approved
If approved, activate your new card as soon as it arrives and use it responsibly by paying balances on time and keeping utilization low. Also, take advantage of any great sign-up bonuses, rewards programs, or intro rates associated with the card.
If Your Credit Card Application is Denied
Typical reasons for denial include:
- Insufficient credit score or income for the card’s requirements
- Inaccurate or unverifiable application details
- High existing credit utilization on current cards
- Too many credit accounts have recently opened
- Listed as bankrupt or insolvent
If denied, wait at least 6 months before reapplying for the same card. In the meantime, consider applying for a secured card to establish a positive credit history or a different card with lower eligibility barriers better suited to your current profile.
Also, review your credit report for any errors – discrepancies could contribute to denials and should be disputed with the credit bureau.
After getting your credit card, you may run into ZIP code issues when using it abroad. If you consider how ZIP codes and postal codes affect payments, you can find our guide here: ZIP Code vs. Postal Code on Credit Card.
What Strategies Can Help You Get Approved for a Credit Card?
Use five tips to set yourself up for approval success:
Maintain Good Credit Habits
Having an excellent credit score and report leads to higher approval odds short term and saves you money long-term. Make on-time payments, keep utilization under 30%, and minimize credit inquiries.
Check your credit reports annually and dispute any errors. Don’t close your oldest accounts, as credit history length helps your score.
Only Apply for Credit Cards You Are Likely to Qualify For
Thoroughly review the card’s published eligibility criteria and pre-qualify, if possible, before applying. Only apply for cards closely aligned with your credit profile to avoid unnecessary denials, which can drop your credit score.
Minimize Hard Credit Inquiries
Each credit card application triggers a hard credit check, which can negatively impact your score if done excessively. Only apply for one card at a time and allow 6-12 months between applications when possible.
Leverage Existing Relationship
Issuers may offer better approval chances and fee waivers to existing banking customers. Consider opening a chequing, savings, or investment account before applying for that provider’s credit card.
Having a bank account can help with credit approvals and setting up payments. Here’s how to get a void cheque from Simplii Financial.
Become an Authorized User
Asking to become an authorized user on a family member or partner’s existing card can help you benefit from their good credit profile and improve your approval odds. Their positive history gets added to your credit reports.
The bottom line
To recap, you can follow our step-by-step guide to maximize your chances of getting approved for the ideal credit card tailored to your profile and needs.
With the right preparation and strategic approach, you can get approved for the optimal card providing great rewards, ideal interest rates, robust insurance coverage and other benefits you seek.
Frequently Asked Questions (FAQs) related to applying for credit cards in Canada
When is the best time to apply for a credit card?
The best time to apply is when you have a stable income, manageable debts, and an excellent credit score above 700. Having a history of responsible credit usage will maximize your approval odds.
Do store credit cards count towards your total number of credit accounts?
Yes, retail store credit cards like those from Canadian Tire or The Gap count as separate credit accounts and contribute to your overall utilization rate across all cards.
Can you get approved for a travel rewards card with average credit?
Most premium travel rewards cards require very good or excellent credit (scores above 700). With average credit in the 600s, you may need to build your score further before qualifying for luxury travel card approval.
Is there a way to get approved without a hard credit check?
Soft credit checks which don't impact your score are sometimes used for pre-qualification. But all final approved applications require a hard pull on your credit file.
Can recent inquiries from mortgage or auto loans impact your credit card approval odds?
Too many hard inquiries in a short period from any source can negatively influence credit card approval, especially for top rewards cards. Spread out applications over time.
Is it better to apply for credit cards online or in a branch?
Online applications are generally faster and more secure. However, applying in person at your primary bank branch can help utilize any existing relationship for better approval chances.
What documents do you need to provide to apply for a credit card?
Be prepared to provide ID, proof of income through recent pay stubs or tax returns, proof of address via a utility bill, and a social insurance number.
Can you get approved if you have no credit history?
If you have no credit reports at all, secured credit cards that require a refundable deposit are your best approval option. These help build your credit profile.
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