WILKES-BARRE – A former assistant manager of the Wilkes-Barre City Employees Federal Credit Union was sentenced Thursday morning in federal court for bank fraud. There are no lines to stand in, or mountains of statements to keep track of. But if you are looking for a bank you can walk into and see a person face to face, online banking doesn’t provide that. Here in Canada the banking system is very different with only a handful of major banks that cross the country, with some provincially based credit unions in the mix. Secured credit cards are a smart option for those who’ve had credit troubles or even bankruptcy.
Recently some on-line only banks have arrived, but the bulk of Canadians have bank accounts in one (or more) of the five major banks. The application process for secured credit cards is very similar to regular credit cards, however if you are approved, you must send a security deposit (usually refundable) to the credit card issuer and that amount will typically equal your line of credit. Just like regular credit cards, you’ll get a monthly statement and need to make payments for your purchases or cash advances.
Some secured credit cards will pay a little interest on your deposit and most will return your security deposit when you close your account or upgrade to an unsecured card as long as your balance is paid in full and you haven’t defaulted on your account. The odds of approval are higher because you are guaranteeing your line of credit with your deposit.
If you’ve applied for regular credit cards and have been declined, you may want to apply for a secured card. No. Just because your odds of approval can be higher than with standard credit cards doesn’t mean everyone is approved. Your overall credit situation, how long it has been since your bankruptcy has been discharged and other factors will be considered.
Here’s a list of some of the best secured credit cards and details to help you choose the one that’s right for you. So if you haven’t done so already, get your credit history from the big 3 reporting agencies, Experian, Trans Union and Equifax. I have to make some assumptions, and one of them is I’m assuming you don’t have a bankruptcy or foreclosure on your credit history.