Apply for Credit Card Canada by Being Smart

By: EconomyWatch Content Team   Date: 20 January 2010

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EconomyWatch Content Team

The Economy Watch Content Team manages our thousands of reference pages on economic, industry,

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If you wish to apply for credit card Canada then it is essential that you carefully evaluate the offers that you receive in the mail. Do not just simply apply for the first one that you receive or the one that has the most attractive advertising. You can save yourself a tremendous amount of money both now and in the future if you pick and choose wisely.

There are some issues regarding a credit card application that are key to your decision. If you check the disclosure that is included with the application then most of the pertinent questions should be answered there. Most of this information will be in small print. If you need to use a magnifying glass to read it then do so. Do not apply for a card without understanding what it has to offer you.

There are many different kinds of credit cards in Canada. You need to decide what type of card you want before you apply for any offers you have received. For example, do you need to apply for a secured credit card or a student credit card? Knowing what kind of card you want will help narrow down your search.

Before you apply for credit card Canada you need to know how much the annual percentage rate (APR) is. This is the percentage that is applied to the total balance that you have once the grace period for your card is over. A high APR is not as good as a low one. For example, the higher the APR is on your card the more you will pay in finance charges if you carry a balance from month to month. The majority of credit cards in Canada have different APRs for balance transfers, cash advances and items purchased on the card. It is in your best interests to find out what the APR is on each element of the card before you apply for credit card Canada.

Speaking of a grace period, not all credit cards have the same one. The definition of a grace period is the time span you are given to pay your outstanding balance in full before you have to pay a finance charge. Your credit card statement should tell you this information somewhere. The grace period is most often expressed as days from the billing date. For example, it might say that your grace period is “30 days from the billing date.”

The longer a grace period you are granted the better it is for you. This gives you a longer period of time in which to pay off the card without paying any additional charges. Please note that when you apply for credit card Canada once you have a balance owing on your card you may not be permitted a grace period for any new spending you do. 
 


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