What Do I Need to Apply for a Credit Card

Want a credit card to build your credit? Smart move - if you use it wisely.

Having your info ready before you apply makes things go faster. Let's look at what you need.

How to get a credit card

Basic Requirements

• You need to be Canadian or a resident (temporary residents might wait longer)

• You must be 18 or 19, depending on your province

• Your credit score matters

• No bankruptcies in the last 7 years

• You need to make enough money to qualify

What do I need for a credit card application?

You'll need these basics when you apply:

• Your full legal name and birthday

• Where you live, your phone number and email

• Where you work now (and before)

• How much money you make each year

• Your SIN (you can skip this, but it helps)

• Info about other credit cards you have

That's it! Just have these details ready and you're good to go.

What to look for in your first credit card

Before picking a card, check these things:

Fees

• Annual fee? Many cards don't charge one. Start with these.

• Cash advance costs add up fast. A $3 ATM fee ten times a month is $30 gone.

• Traveling? Watch for foreign fees. Some cards add 1-2% to convert money.

If you need quick cash occasionally, KOHO's cash advance offers a more affordable alternative with transparent fees.

Interest Rate

• Look for a low APR, even if you plan to pay in full each month.

• A lower rate helps when emergencies hit or you make big purchases.

Compare your options before you decide.

Three ways to apply for a credit card

You can apply for a credit card online, at a bank branch, or by phone.

Online Application

This is the fastest option. Just fill out the form, answer questions about yourself, and sometimes upload proof of income. Many providers approve applications within minutes.

Best for: People who want quick approval, have simple income situations, and don't need special limits.

In-Branch Application

Visit your local bank or credit union. Book an appointment so an advisor can review options with you. Bring ID and proof of income.

Best for:

• First-time card users like students

• People who need advice on card options

• Those with complex income situations

• Newcomers to Canada (you'll likely need extra documents)

Phone Application

Call and apply without visiting a branch. The advisor will explain how to send your ID and income proof.

Best for: People who want to talk to someone but don't want to visit a branch.

Speed up your credit card application

Fill out forms right and apply for cards that match your credit. Here are some tips:

Check your credit score

Look at your score before you apply. If it's low, get your credit report to see why. Bad score? We can help you make a plan to fix it.

Watch your credit use

Keep your credit use under 30% of your limit. Using too much hurts your score. But using none at all doesn't help either - lenders can't see how you handle credit.

Pay down debt

Too much debt makes approval harder. Lenders worry you won't pay new balances. Try to reduce what you owe first.

Look for prequalified offers

Check your online banking or mail for prequalified card offers. These aren't guarantees, but your chances are better with these.

How your credit score affects card applications

Your credit score shows lenders how likely you are to pay your bills on time.

Better Score = Better Chances

A good score makes getting approved easier. Banks see you as responsible with credit.

With a low score, you might still get a card but with a smaller credit limit.

What's in Your Credit History

Your credit history builds your score. It includes:

• What credit cards and loans you have

• Whether you pay on time

• Any late or missed payments

Banks look at this history when you apply for a new card.

What to do if your credit card application gets denied

Getting turned down for a card sucks. But it's not the end of the world.

Here's what to do next:

Find out why

You'll get a letter explaining the rejection. Usually it's about your credit score or missing info on your application. Maybe you've missed payments or carry too much debt.

Check your credit report

Look over your report if that's why you were denied. Found mistakes? Dispute them with the credit bureau.

Fix the issues

Low credit score? Take a few months to build it up:

• Use existing cards wisely

• Pay bills on time

• Try to pay off your balance each month

• Check you meet basic requirements (age, income)

Don't rush into more applications

Applying for a bunch of cards right away hurts your score even more. Wait a bit, fix what's wrong, then try for a card that matches your credit situation.

Card options when you have low or no credit

Need a credit card but don't have much credit history? You still have options.

Become an authorized user

Ask a family member or friend to add you to their card. You'll get your own card, and their account shows up on your credit report. The main cardholder might be able to set limits on how much you can spend.

Try a secured credit card

These work differently than regular cards. You put down a deposit first - this becomes your credit limit. So if you deposit $500, you can spend up to $500.

Secured cards are perfect for building credit. Make your payments on time, and some card companies will:

• Raise your limit without asking for more money

• Eventually switch you to a regular card

Either option, along with using credit responsibly, helps build your credit history. KOHO Credit Building helps you establish credit history without the risk of debt.

Ready to take the next step?

Getting a credit card is just the beginning. What matters most is how you use it.

Pay your bill on time every month. Try to pay the full balance when you can. This builds your credit and keeps interest costs down.

If you're new to credit cards, start small. Buy a few things each month that you can easily pay off. This shows lenders you're responsible without putting you at risk.

And remember - a credit card isn't free money. It's a tool that can either help your financial future or hurt it. The choice is yours.

Need more help with credit? Check your online banking for tips or talk to someone at your bank. Taking control of your credit now pays off big time down the road.