Peoples Trust Secured MasterCard
- $69.60 Annual Fee.
- Can help you build or rebuild your credit history in Canada.
- Your account will be reported to major credit bureaus.
- Deposit is insured by CDIC!
- GIC earns 0.50% interest compounded annually!
- Credit limit is matched dollar for dollar on your deposit.
- $500 minimum deposit.
- You can increase your deposit in $100 intervals!
- Virtually everyone is approved.
- 12.99% interest rate.
Apply now for the Peoples Trust Secured MasterCard!
Peoples Trust Secured MasterCard Review
Sometimes you have no other choice, but to start at the bottom and work your way up no matter how good you are. Credit scores are like that, no matter how responsible you are with your money, your credit score will never go up without opening up some form of credit.
A secured credit card might be your best/only real option to start your credit history, to rebuild your credit score or to start a new credit history in North America. Many newly landed immigrants are surprised to find out that their credit record in Europe, Asia or Africa doesn't come with them.
It is called a secured card for a reason. When you sign up you will be asked to make a deposit into a GIC (that earns 0.5% interest) that is equal to your desired credit limit. This GIC can't be touched until after you have cancelled your card. When you cancel your card, Peoples Trust will refund your deposit.
People Trust will report to the credit bureaus on the credit condition of your secured MasterCard. As your credit score improves, you may be able to successfully apply for an unsecured credit card. With a $69.60 annual fee, it would be wise to do everything possible to improve your credit score such as paying off your balance in full or at the very least paying the minimum payment on time.
This isn't a forever card, but merely a means to start/rebuild your credit. I wouldn't keep this card for more than a year. It would be a good idea to apply for an unsecured credit card before the next annual fee is due, but do not cancel this card until after you have been approved for your next credit card.
Credit Card Nerd Math
You might be inclined to keep this card, because of the 0.5% GIC, but that would be foolish. You would need to deposit $13,920 just to pay for the $69.60 annual fee. The numbers work like this: $69.60 annual fee / 0.5% = $13,920.00 required security deposit. This should be motivation to get your shit together and improve your credit score so that you can get a better credit card.
Provider: Peoples Trust
Minimum Credit Limit: $500
Grace Period: 25 days
Annual Fee: $69.60
Additional Holder Annual Fee: $35.40
Interest Rate: 12.99%
Cash Advance: 24.5%
Over Limit Fee: $5
Balance Transfers: n/a