No single credit score guarantees you a credit card in Canada. Each lender has its own approval criteria, and lenders and the credit bureaus use different scoring formulas without sharing the exact details. Your score is one input: lenders use your credit report and score to judge how risky it is to lend to you, and they also look at your income.
Equifax Canada says lenders generally see people whose scores are in the band it calls good, or higher, as acceptable or lower-risk borrowers. What each band means is on the credit score ranges page. Canada has 2 main credit bureaus, Equifax and TransUnion, and the score you check yourself may not be the one a lender sees, because a lender may weigh some information more heavily.
What does an issuer look at when you apply?
Visa, for example, says it works with Canadian banks to issue its Visa Infinite cards. The issuer then looks at two things: your credit file and what you tell it in the application.
From your credit file, lenders check your history to decide whether to lend to you, how much interest to charge and what limit to offer. The common factors behind a score include:
- how long you have had credit
- whether you miss payments or carry a balance on your cards
- how much you owe, and whether you are near or over your limits
- how often you apply for new credit
A poor or thin credit history may make it harder to get a card. How the score itself is built is on the how credit scores work page.
From the application, the issuer looks at your income to judge whether you can comfortably take on new credit. RBC, for example, says lenders use your debt-to-income ratio, your monthly debt payments compared with your monthly gross income, to gauge your room for more credit. Some cards also set a minimum income; check the card itself through the card finder or its review.
What do you need to apply?
You must be of legal age in your province to apply. RBC’s guide gives this as the age of majority in your province or territory, 18 or 19 depending on where you live, and says most applicants must also be Canadian residents, with newcomers, temporary foreign workers and international students applying in a branch.
RBC, for example, asks for:
- approved government-issued ID, such as a driver’s licence or passport, and your date of birth
- your Canadian home address and monthly housing costs
- your employment status, employer’s name and contact details, and your income
- proof of income if asked, such as pay stubs, T4 slips, tax returns or bank statements
You do not have to give your social insurance number to apply for a card. You may be asked for it for a credit check, but you are not legally required to give it, and you can offer a copy of your credit report instead. RBC says it may ask for your SIN to confirm your identity but that this is not mandatory.
FCAC suggests checking your credit report with both bureaus. Checking your own report or score does not affect your score. How to get both free is on the free credit score page.
What the application must tell you
If you apply to a federally regulated issuer such as a bank, the application must include an information box setting out the card’s key features, with interest rates, fees and other charges shown clearly. The box must come at the start of the application form or of a separate document that comes with it.
Applying means agreeing to all the card’s terms, including its rates and fees, so ask about anything unclear before you sign. You may also be offered credit card balance insurance; it is optional, separate from the card, and you do not need it to be approved.
If you agree to a card verbally, a federally regulated issuer must confirm it in writing without delay. If you get a card you did not consent to, contact the issuer, and if it does not fix the problem, contact FCAC. How to read the rates is on the card interest page.
Does applying hurt your credit score?
When you sign a credit application, you consent to the lender checking your credit, and that check creates an inquiry on your credit report. Equifax Canada says applying for several credit accounts in a short time may affect your score. How much an inquiry counts, for how long, and checks that leave no mark are on the hard inquiries page.
How do you apply, and what happens next?
RBC lists three ways to apply:
- Online: fast, and some decisions come in real time.
- By phone: useful if you want help filling in the form.
- In a branch: useful if your situation is more complex or you want face-to-face help.
You may get an instant decision, or the bank may follow up to check your details. RBC says some applications are decided in real time while others take several business days, depending on the review. If you are approved, RBC says the card usually arrives by mail within a few business days.
RBC says applying for 2 or more cards at once would hurt your chances of approval with it, and Equifax Canada says several applications in a short time may affect your score.
If you are declined, or have no Canadian credit
Errors in your credit report may be the reason you could not get an unsecured card, so check your report and correct an error as soon as you find it. The bureaus only collect credit activity in Canada; some lenders may look at your history from another country, and you may need to bring that report and meet a bank officer. A secured card may carry a one-time application or set-up fee that you may not get back if you are declined.
Building a score from nothing, including as a newcomer, is on the improve your credit score page. Cards for this stage are on the secured cards list and the bad credit cards list.
Finding a card to apply for
Start with the card finder. The best credit cards lists group cards by type, including no annual fee cards and student cards.
More guides are on the credit card basics page.
More on annual fees.