The prepayment function of credit cards brings us great convenience. Therefore, applying for a credit card for students who are going to study in Canada will also be of great help to their future study abroad life. There are many differences between the life of international students in Canada and that in China. This article introduces the instructions for applying for a credit card for studying in Canada. Students studying in Canada can learn about it.
1. Introduction to basic knowledge of credit cards
Using a credit card is actually borrowing money from the credit card company for consumption. If you repay the money on a monthly basis, it is a loan without interest. Credit card companies make money by charging merchants who accept credit card settlements. In addition, they also make profits by charging interest on overdue payments from consumers.
2. Credit Card (credit card)
Credit card is an indispensable tool for living in Canada. There are many different types of credit cards, and the choice should be based on each person's specific circumstances. There are three main types of credit cards: Visa, Master and Amex Express. The credit cards of major banks in Canada are generally Visa cards. Only BMO’s Master card is available. Most merchants accept both Visa and Master cards, but some, such as NoFrills, only accept Master cards. So it’s best to have one of each.
Canada has five major local banks: TD Bank, CIBC, BMO, Royal Bank and Scotiabank. There are also Bank of China, HSBC and online bank ING.
Personal bank accounts generally include two types: Checking Account and Saving Account. Checking Account has no interest, while Saving Account has interest. To use a check, you must have a checking account. Which account to choose depends on individual circumstances, mainly considering interest, service fees and convenience. In addition, each bank website can recommend accounts based on individual circumstances. Here are some relatively good banks recommended to you.
1). Bank of Montreal (BMO) has low service charges and a simple and clear plan. If you use a student card to apply for a student account, you can waive the usage fees for Saving and Checking accounts. Many banks can only use student cards to apply for a student account. Checking Account usage fee is waived. If you open a student account, BMO will also give you an SPC Card that can be used for discounts in hundreds of stores. BMO's online banking is also relatively easy to use. BMO has an office in China, and you can open an account directly in China without bringing cash to Canada. There are many branches near the school.
2). The advantage of TD Canada Trust is that there are many branches and automatic counters, and the service is considerate and convenient. And the staff at branch banks around downtown can all speak Mandarin. TD's online services are also the best. You can directly pay various credit cards and bills, as well as transfer funds and pay tuition fees, which is very convenient and fast. The disadvantage is that if a student account does not specifically apply for a withdrawal, there is a limit on the amount of cash that can be withdrawn from the ATM every day, which is about $100. But you can ask the bank to set it higher.
3). The biggest advantage of RBC Royal Bank is that you can open a free Checking account with no minimum deposit limit. If the number of monthly deposits and withdrawals is very small, you can consider it. The disadvantage is that the number of automatic counters and branches is small, which is not convenient.
3. Credit card application
You can apply for a credit card by filling in a form (the form can be found online), or go directly to the bank to apply on the spot.
If you apply by filling out the form online, the credit card company will usually call or make an appointment within two weeks after the application is submitted. The new card will arrive in the mail in another two weeks. Credit cards are generally issued based on the applicant's credit record (Credit). New immigrants can generally apply for a credit card easily, but for international students who have just arrived in Canada and have no credit history, it is generally more difficult to apply for a credit card. There are two ways to get a credit card. One is to pay an insurance deposit. For example, if you pay a deposit of $1,000, you can get a credit card with a limit of $1,000. This kind of credit card is actually a debit card, which does not accumulate credit points and does not make much sense. In addition, apply for some small-limit credit cards that are easy to apply for. Build up your credit first and then apply for other credit cards later. CIBC and TD credit cards are easier to apply for, but for international students, it is best not to fill in the SIN NUMBER (OPTIONAL) when filling out the application form, otherwise it will generally be difficult to apply for a credit card. In addition, the University of Toronto specifically provides MBNA credit card applications, which can generally be obtained after filling out the form. Instead, you fill out an online form to apply for an MBNA credit card and ask for immigration status. Once you have a credit card, it will be easier to apply for other credit cards after using it for a year.
Generally, freshmen or scholars who have just arrived in Canada can consider applying for a CIBC Classic or MBNA card first. After you have accumulated a certain level of credit, you can apply for Citibank Enrich, which offers rebates, CIBC Shoppers Optimum VISA Card, which offers car rental insurance, and American Express Costco Platinum Cash Rebate Card, which offers discounts.