New kind of Visa card launched for those with bad credit rating WebPosted Thu Aug 10 10:13:00 2000 TORONTO - A Canadian trust company will offer a new type of credit card this September ¡Vone aimed at people with bad credit histories or none at all. Home Trust Co., with the help of First Data Corp., will offer a Visa card aimed at the estimated 4.1 million adult Canadians who don't own one. It's the first secured Visa card to be available in Canada. There is one catch: users must put down a deposit equal to the line of credit - that's a minimum of $300 ¡V on which they will be paid interest at a rate of five per cent. The company is targeting university students, people taking their first jobs or immigrants who haven't established their credit history yet. "These are people who are either emerging into the marketplace or who have had credit problems in the past and need to re-establish their credit," says Gerald Soloway, president of Home Trust. Soloway claims there's a very low risk for his company. That's because it's a major lender for self-employed people and others who are unable to get big loans from other lenders. "We have a lot of expertise in this area...we think we can transfer that expertise and knowledge of that market place to these four million Canadians," says Soloway. First Data Corp. is run out of Atlanta. It provides credit, debit and transaction processing services in seven countries. The card will be available through Home branches in British Columbia, Alberta and Ontario. Applications will be offered through the mail for everyone else, except those living in Quebec. (Quebec sucks) The card carries an annual fee of $72. * From CBC.ca http://cbc.ca/cgi-bin/templates/view.cgi?/news/2000/08/10/credit_card000810
RE: Good news for Candians who One thing that is never mentioned in these articles is the fact that this card, like previous one's by the banks (before they all but ended the practice) will be reported to the credit bureaus (TransUnion and Equifax..Experian has no presence in Canada) as a SECURED card, which is a very negative connotation. One wonders if any of the creditors above a department store will deem it worthy enough to grant a card/credit. As for Quebec sucking...HOOOOBOY do I know that.
RE: Good news for Candians who God Steven I can't beleive a educated guy like you can say what you just said about the "Secured" listing on the card. First off we don't know if the card will say this or not, but let's say it does. Don't you think that the banks realize that people have to start somewhere? Look the card is designed as a start, and can start a person off with credit at a bank, and then department stores. After that then the person can go to get credit elsewhere after 12-18 months. I wonder if you know anything about Canada with your stupid statement about Quebec Sucks. Look Canada has been awarded the status of being the best country in the world to live in, and that includes Quebec (by the U.N.) for the last 6 years in a row! That is the reason so many immigrants come to Canada, and why this card will be a great help to them. In fact Canada has a greater per capita Immigration than any other country in the world, also we have a much more deverse immigration than any other country, with people coming from all over the world. As for Quebec, have you ever even been to Quebec? It has a strong culture, and History, Quebec City is a U.N. Heritage site, Montreal has hosted Olympics, Expos, and numerious festivals, and still remains the most affordable place to live in North America. Not to mention having some of the best restaurants in the world! Every place has problems, but I would never wish to live back in the U.S. where I spent 25 yrs. I do live in Ontario but have considered going back to Quebec. Please tell me would you honestly say Detroit, New York, or Chicago are safer more livable places to live and Raise a family? Steven come one summer to Montreal, then give your oppinion!
RE: Good news for Candians who hey Michael, you probably know what i was talking about. Quebec does suck, most Canadians agree with it. But it doesn't mean we hate them, don't mix up my meaning. Be soon Quebec won't be a part of Canada, by that time, don't use our currency, our water, our power, our passport, our CBC, our Airlines...ETC...AND don't ask for our social assistance, overseas embassy protection (ask U.N. for help) Yes,Canada awarded the status of being the best country in the world to live in, but it's the whole Canada; With the best city in the world to live in, who give a damn to Quebec? Quebec has a strong culture, sorry, it's not really Canadian's. Well, Vancouver has a strong culture too, it's also not the Canadian one, but it's being the best city to stay in the world. Don't use other people's award to fit with Quebec, it smells...and very strong.
RE: Good news for Candians who Well I guess that's the beauty of our country that every one is free to have there own opinion. Personally I lived in Vancouver for 18 months and found it a city of Hippies, tree huggers, and old rich money over run by New Asians who couldn't drive. I really think that you should learn a little bit more of Quebec and maybe even visit the place (Have you ever gone to Quebec?). The average Quebecer is not really wanting independence. I certainly don't know anyone who does! If you look at what Quebec has asked for it's been a distinct society. Throughout history that's all they ever wanted. That's the whole reason Quebec didn't join the U.S. in 1776! Remember Quebecers did give allegance to the crown in the early 1700's when the crown guaranteed them the French language, and Catholic religion. You can't bad mouth a whole province that want's to speak the language of there birth, and protect there identity. Look at it this way how would B.C. react if they lost control over there fishing, and forestry?
RE: Good news for Candians who SECURED VS UNSECURED Here is a typical sampling of what you find with most of the companies offering secured cards. "This card will be reported as unsecured" "This secured card will be reported as unsecured to the credit bureaus." "No one will know it's a secured card, not even the credit bureaus" If, as you imply, there is no difference between the two, then why do so many companies go 'out of their way' to include information, oftentimes highlighting it. Why is it that most 'credit experts' advise to make sure that if you get a secured card to make sure its reported as unsecured, why is it people stay away from Wells Fargo because they report their secured cards as SECURED. WHY? Either we are dealing with mass hysteria here or the penalty (credit scores, looked upon unfavorably by the credit and finance industry or any number of other factors) whatever the case may be its obvious that the 'prevailing thought' is that having a secured card reported as SECURED to the credit bureaus is a BAD THING. As far as how Home Trust will report it I base my "presumption" on what has previously occured in this extremely conserative banking milleau. "I wonder if you know anything about Canada with your stupid statement about Quebec sucks." To start with I was BORN in Montreal, when I say I know about this city and how much it SUCKS I ain't kidding. 1/3 of the city on welfare, another 1/3 in deadend low-paying jobs, virtually every person I've known there has left so unless you are being offered a fortune you don't want any part of this city and its "foreverundum". But your right about the affordable part which is one reason I've been able to keep an apartment there even while living elsewhere. As it is I'm there literally every single month..Toronto too. As for the rest of Canada, I've lived in Toronto 3 times, Vancouver once, so I know the country intimately, as for the states I've bounced around Miami Beach and New York (its not so much the crime rather the smell, much cleaner in Canada, evenso for Montreal Turk ) numerous times in fact I've moved so often I don't want to think about it though I suppose I'll be moving many times more since I have a habit of getting "restless" after a couple of years.
RE: Good news for Candians who I'm afraid I would have to lean towards the fact that most people do have a hystaria about a card reported as secured, although it is quite understandable. I doubt these days that with everything being scored and processed on computers that the secured really matters. Especially with sub prime creditors like Aria, which could be a good second or third creditor to apply with. I'm glad to know you were in Montreal, I know no place is perfect, and remember that the grass is always greener over the fence. I think a lot of the anglo Canadians that bad mouth Quebec are really the ones who refuse to learn any French. As for the welfare stats, isn't it about the same for BC, and ON. and even double or triple that for the Maritimes! You've got to admit that Montreal has a style that no other North American city can equal!
RE: Good news for Candians who Home Trust just joined the VISA association three months ago. Their main previous focus appears to be residential mortgages (including the sub-prime market and to self-employed applicants.) They don't say if they plan on issuing regular unsecured cards as well, but my guess is that, even if they issue both, they will be strongly associated with the secured "sub-prime" market. So even if they don't specify "secured" when reporting to the bureaus, a human loan officer or other evaluator who sees it listed on an applicant's report may say, "Oh, s/he has one of those sleazy sub-prime Home Trust secured cards.") In America, this type of thing might be somewhat less clear, depending on the issuer. A Cross-Country card might be an obvious bad sign, but Capital One also issues "prime" 9.9% platinum cards in addition to their secured offerings. For automated scoring, I strongly suspect that an account marked as "secured" would *not* be considered nearly positive as one that didn't have that caveat. -- CardReport.Com - Credit Tools, News, And Reference http://www.cardreport.com/ Everything You Need To Know About Credit And Debt --
RE: Good news for Candians who One must also consider that the Canadian banking establishment made a purposeful decision to either cut back or eliminate secured cards based on either a 'supposed claim' of too many previous individuals defaulting or an extremely conservative, shortsided and narrowminded policy of focusing on only those with good credit records or perhaps both. Whatever the case may be, considering the low esteem those who are not prime credit candidates are held by the banking and financial establishment I truly believe these individuals WILL be discrminated against. Fortunately, the secure card will be of use in obtaining instant credit that means approval on the spot just by displaying the bankcard (surprisingly this is still common in Canadian department stores while its becoming extinct in the US); furthermore, this secured card will enable those to obtain department store cards that had a "Canadian only" bankcard criteria; perhaps this was in response to those who obtained department store cards with offshore cards when they were totally shut out by the very strict Canadian system. As far as automated scoring is concerned I must point out that online applications are banned in Quebec, same goes for most telephone applications. Though as regards the rest of the country until a knowledgeable individual or organisation comes forth with the pertinent facts any claim that secured tradelines are scored lower than unsecured one's is pure speculation no matter how logical it may seem. And remember, as Killer remarks, when have the CRA's and scoring systems ever been fair and advantageous to the consumers.
RE: Good news for Candians who One must also consider that the Canadian banking establishment made a purposeful decision to either cut back or eliminate secured cards based on either a 'supposed claim' of too many previous individuals defaulting or an extremely conservative, shortsided and narrowminded policy of focusing on only those with good credit records or perhaps both. Whatever the case may be, considering the low esteem those who are not prime credit candidates are held by the banking and financial establishment I truly believe these individuals WILL be discrminated against. Fortunately, the secure card will be of use in obtaining instant credit that means approval on the spot just by displaying the bankcard (surprisingly this is still common in Canadian department stores while its becoming extinct in the US); furthermore, this secured card will enable those to obtain department store cards that had a "Canadian only" bankcard criteria; perhaps this was in response to those who obtained department store cards with offshore cards when they were totally shut out by the very strict Canadian system. As far as automated scoring is concerned I must point out that online applications are banned in Quebec, same goes for most telephone applications. Though as regards the rest of the country until a knowledgeable individual or organisation comes forth with the pertinent facts any claim that secured tradelines are scored lower than unsecured one's is pure speculation no matter how logical it may seem. And remember, as Killer remarks, when have the CRA's and scoring systems ever been fair and advantageous to the consumers.
RE: Good news for Candians who We seem to rehash the same stigma of a sub prime card over and over again. EVERYONE HAS TO START SOMEWHERE. NO ONE IS BORN WITH GOOD CREDIT! This is the first time a product like this is being offered to Canada so it is great news!
RE: Good news for Candians who Michael D. Reid wrote: ------------------------------- We seem to rehash the same stigma of a sub prime card over and over again. EVERYONE HAS TO START SOMEWHERE. NO ONE IS BORN WITH GOOD CREDIT! This is the first time a product like this is being offered to Canada so it is great news!>> Bill Gates kids will : )
