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Credit Card Applications

There is a lot of information out there on how credit cards function and why we should use them properly, but not much is stated about the application process. Every day, Canadians apply for credit cards, and the application form may seem to be a straightforward interchange of data. Credit card providers must look at your current financial condition in order to accept you; in order to do so, they must obtain your credit report, which means that each application may result in a modest and temporary blow to your credit score - particularly if you are refused. Before you press "submit," here's a brief rundown of what you should know about credit card applications.

Credit card application requirements

Your request for credit is made by submitting a credit card application. The major danger for a credit card company is that you will borrow money that you will not be able to repay. As a result, while applying for a credit card, you must show the card issuer (lender) that you are a responsible and skilled borrower.

A credit card issuer may additionally demand your: name, date of birth (you must be 18 years old), social insurance number (SIN), and address, in addition to basic personal information like your name, date of birth (you must be 18 years old), and SIN. 

Your present employment situation (including your present job(s) and how long you've been there)
Monthly earnings, segmented by source
Information about any additional credit cards you may have
Any additional debts or monthly commitments you have, such as a mortgage or a vehicle loan, should be included.

Aside from that, the credit card company will want to go into your credit history. You must permit them to do a background check with one of Canada's credit-reporting agencies as part of the application procedure. The agency will send a copy of your credit report, including your credit score, to the issuer. Your credit score is based on how well you've paid off your previous debts.

Credit card minimum income requirements

The credit card issuer uses all of the information they collect about you to assess whether or not you should be granted credit and, if so, how much credit you should be granted. The amount of money you make each year has a direct influence on the credit cards you qualify for and how much credit you get.

If you have a low salary, for example, you should only be provided a little amount of credit so that you can afford to pay off your bill in full each month. If you have a higher salary, though, you may be able to afford some of the rewards credit cards with annual fees and greater credit limits since a credit card issuer can see you make enough money to do so.

Here are some of the credit cards that TD Canada Trust has to offer, along with their minimum income criteria and credit limits:

Credit Card - Minimum Income - Credit Limit

TD Rewards Visa Card - None - Minimum $500

TD First Class Travel Visa Infinite - $60,000 (or $100,000 household income) - Minimum $5,000

TD Aeroplan Visa Infinite Privilege - $200,000 - Minimum $10,000

Information provided to you in your credit card application

In your credit card application, you were given the following information:

While it may seem that you are disclosing a lot of information, you have the right to access certain information as a consumer in order to get this new credit card. The credit card firm, in particular, is required to provide you with all pertinent information on the credit card that will be issued to you. All of these facts must be set up in a "Information Box" in Canada, which explains:

  • What is the current yearly interest rate?
  • What is the length of the interest-free grace period?
  • How is the minimum payment determined?
  • What are the costs of converting a foreign currency?
  • What is the yearly fee?
Fees for other accounts and transactions

Initial Credit Limit: $5,000

Annual Interest Rate or Rates: 19.99% on purchases, 24.99% on cash advances and balance transfersAPR increases to 24.99% in the event of a late payment, credit limit breach or violation of contract terms

Interest-Free Grace Period: 21 days

Determination of Interest: Interest is determined using the average daily balance method

Minimum Payment: Greater of 3.00% of your balance or $10

Foreign Currency Conversion: 2.50%

Annual Fee: $99

Other Fees: Balance transfer fee: 1.00% of amount transferred

Extra copy of statement: $5

Overlimit fee: $25

NOTE: Credit card issuers are not required to publish the full specifics of how their rewards programs function in their applications, such as how points are valued and what their spending limits are. You may need to interact with a representative at the credit card issuer directly to get this information.

Credit card application approval time

The approval process for most credit cards takes between 5-7 days, but it may take up to 30 days.

Instant approval credit cards allow you to apply for a credit card online and find out whether you've been accepted nearly instantly. If your application is approved, you will still have to wait 5-7 days for the card to arrive in the mail since it is subject to a background check, which includes a review of your credit record and credit score.

How to activate a new credit card

A new credit card will be sent to you if your application is approved, or if an existing credit card expires and has to be renewed. To activate your new credit card, contact the toll-free number shown on the back of the card.