How to get approved for a credit card in Canada

To get a credit card in Canada you apply to the card’s issuer, and the Financial Consumer Agency of Canada (FCAC) sets out the starting point: To apply for a credit card, you must be of legal age in your province. FCAC also says that lenders use your credit history when deciding whether to lend to you, how much interest to charge and what credit limit to offer, and that a poor or limited credit history may make it harder to get a credit card. Beyond that, the requirements come from the issuer, and the lists below show how they differ from one issuer to the next. Further down are income figures for a range of cards, checks you can run before applying, decision times, and what happens after a refusal. Pages for particular situations, such as a first card or a card while your credit is weak, are listed at the end.

What credit card issuers check

These issuers set out what they look for when you apply:

RBC, CIBC and American Express each name the age of majority. They differ on credit history: RBC says an established, favourable history is not always required, CIBC asks for a good credit score, and American Express asks for a Canadian credit file. RBC and CIBC also name a minimum income, which the next section covers.

How a credit score works is explained on credit scores, and how to see what your own report holds is on checking your credit report.

How much income you need for a credit card

There is no single figure: RBC describes the minimum income as the issuer’s requirement and says it applies for some cards, so the amount, and whether there is one, depends on the card.

The table shows the figure each issuer states for these cards, with the card’s network, and its tier where the provider names one. The rows are grouped by tier, not ordered by income.

Welcome offers, first-year fee waivers and fee rebates tied to a bank account, banking package, profession or another card are not included.

Some issuers set student cards apart. CIBC states no minimum income requirement for its Dividend Visa for Students. For its student card, BMO counts income from these sources, among its other requirements: Annual income from employment, scholarship/grant, student loan or family allowance. Cards made for students are ranked on student credit cards.

A secured card asks for a security deposit, according to FCAC; the cards and their terms are on secured credit cards.

Checking whether you’d be approved before you apply

FCAC says that when a lender checks your credit, it creates an inquiry on your credit report. How hard and soft checks differ, and how each shows on your report, is on hard and soft credit checks.

Issuers that describe a check before applying

Capital One and American Express describe a check you can run before you apply, and Scotiabank explains what a pre-approved offer means:

How fast a decision comes

RBC describes the timing this way: RBC says an applicant may receive an instant decision, or the bank may follow up to verify details, and that approval timelines vary: some applications are decided in real time, while others may take several business days depending on the review process.

Capital One’s guaranteed cards, whose approval it describes as guaranteed on stated conditions, are covered on credit cards for bad credit, and the one that takes a deposit also under Capital One’s guaranteed cards.

Several applications close together

Each lender’s check for an application is an inquiry on your report, as FCAC’s line above says. CIBC advises against applying for other cards right away after a refusal, saying it could negatively affect your credit score. How inquiries are counted, and how long they stay on a report, is on hard and soft credit checks.

If your application is declined

In the provinces named below, a law says what you must be told when you are refused credit because of information gathered about you, such as a credit report; the terms and time limits differ by province:

• Ontario (Consumer Reporting Act): when a benefit is denied or a charge raised wholly or partly because of information from a consumer reporting agency or from someone else, the user of that information must give you notice when it tells you the decision, and if you ask within 60 days it must give you the agency's name and address (or the nature and source of the information, if it came from someone other than an agency).
• British Columbia (Business Practices and Consumer Protection Act): a person who denies or raises the cost of a benefit because of a credit report must give you written notice within 30 days of the decision, in person or by mail, saying you can ask for the reporting agency's name and address; if you ask in writing within 60 days of receiving the notice, it must give them.
• Saskatchewan (The Credit Reporting Act): a user of a credit report who denies a benefit or raises its cost because of the report must give you written notice within 30 days of the decision, in person or by mail, saying you can ask for the agency's name and address; if you ask in writing within 60 days of receiving the notice, it must give them.
• Manitoba (The Personal Investigations Act): where a personal investigation was done and you are then denied a benefit, in whole or in part, the user must tell you in writing within 10 days of the denial, and you can then ask to be told what the investigation found, within 30 days of that notice.
• Prince Edward Island (Consumer Reporting Act): when a benefit is denied or a charge raised wholly or partly because of information from a consumer reporting agency or someone else, the user must tell you at the time the decision is communicated, and if you ask within 60 days it must give you the agency's name and address (or the nature and source of the information, if it came from someone other than an agency).

CIBC says a declined applicant gets a letter stating the reason, and suggests reviewing the credit report if it was a factor in the decision. FCAC says: Errors in your credit report may be the reason you couldn’t get an unsecured credit card. How to get your report is on checking your credit report, and how to correct a mistake on it is on disputing a credit report error.

Other kinds of card to look at next:

• Secured credit cards: FCAC says a secured card may be an option if you don’t have a credit history or have bad credit.
• Credit cards for bad credit: cards for a weak credit file.
• Prepaid cards: FCAC says a prepaid card issued by a financial institution that links to a payment card network needs money put on it first.

A card turned down at the checkout, after you already have it, is a different problem, covered on why a card is refused at the checkout.

Where to go next, by situation

• Your first credit card: no credit history yet, the age of majority in most provinces and territories, and the easiest cards to get.
• Student credit cards: cards made for students, ranked.
• Credit cards for newcomers: five banks’ programs, compared.
• Secured credit cards: cards that take a deposit.
• Credit cards for bad credit: options while a credit file is weak.
• Prepaid cards: cards that spend a loaded balance.

Choosing between cards is covered on how to choose a credit card. Cards side by side are in the comparison table, Visa cards are ranked on best Visa cards, and an overall ranking is on best credit cards.