2. What is an Annual Percentage Rate (APR)?
The APR is a figure of the cost of credit relative to the charge being financed, which includes interest and may also include other types of charges (depending on the creditor), as an annual rate.

3. I have damaged credit / a low credit score. Can I still obtain a Credit Card?
Yes, applicants with damaged credit can still obtain a Credit Card. Often times, this will be a secured Credit Card.

4. What is a secured Credit Card?
This type of Credit Card requires a security deposit. These are generally for applicants with non existant or damaged credit. Typically, the credit limit will be a percentage of the security deposit or bank account balance of the applicant.

5. What is a grace period?
This is the amount of time given by the creditor for the card holder to pay the outstanding balance before interest charges take effect. Grace periods vary depending on the creditor.

6. Who is eligible to apply for a Credit Card in Canada?
Eligibility requires that the applicant be a permanent Canadian resident that is of the age of majority or over in their province of residence.

7. What is a balance transfer?
People who already have a Credit Card may transfer their existing balances onto a new card. Typically, this is done when card issuers offer attractive balance transfer rates.

8. What does being pre-approved for a Credit Card entail?
Credit Card issuers who have obtained consumer data often extend Credit Card offers to those who meet general criteria. After extending the offer, if an application is made, the issuer will take a closer look at more specific criteria in order to ascertain whether the applicant is indeed eligible for the offer in question.

9. What Is a Credit Report?
This report contains information regarding a person's financial history such as: last place of residence, employment history, payment history, whether bankruptcy was declared and other relative information.
The Credit Report is compiled by consumer agencies such as Credit Bureaus so that creditors can obtain information regarding applicants and assess the credit standing of an applicant.

10. Can I obtain a copy of my Credit Report?
Yes, contact a credit bureau for information on how to obtain a copy of your Credit Report.

          For more information, have a look at the glossary.