Types of Credit Cards in Canada
There are many similarities between types of credit cards in Canada and the United States. In Canada, residents can choose from a variety of major and retail store credit cards. The cards allow consumers to purchase goods or services, then pay the balance back in monthly installments. Some credit cards also allow Canadians to withdraw cash at ATMs.
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Unsecured Credit
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Almost all Canadian credit cards are unsecured, which means only an approved application is needed to get the account.
Secured Credit
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A few Canadian credit cards are secured. This means people with bad or no credit have to put up a security deposit to guarantee card repayment in order to get the account started.
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Major Cards
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MasterCard, Visa and American Express all issue cards to eligible Canadian consumers (see Resources). This allows people to use the cards or withdraw cash at many locations throughout the world.
Gas Cards
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Many Canadian gas stations, such as Petro-Canada, issue cards that can be used at their fueling stations. Sometimes these cards can also be used to purchase auto repairs or snacks at the stations.
Store Cards
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A number of stores in Canada, such as Canadian Tire, distribute credit cards to eligible customers. These can only be used for purchases at retail outlets of the issuing company.
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