Your Reliable Secured Credit Card Option

The Home Trust Secured Visa is a credit card designed to help Canadians rebuild their credit. Offered by Home Trust, a well-known mortgage lender, this card provides an opportunity to build a credit score while establishing a relationship with a potential mortgage lender. This can be particularly beneficial if you’re eyeing mortgage financing in the future.

Key Features of the Home Trust Secured Visa

When considering a secured credit card, certain features can make or break its effectiveness in rebuilding credit. The Home Trust Secured Visa stands out in several categories:

• No Annual Fee: Unlike many other secured cards, the Home Trust Secured Visa does not charge an annual fee, making it an economical choice for those looking to rebuild their credit without incurring extra costs.
• Credit Bureau Reporting: This card reports to both Equifax and TransUnion, which is crucial for building a comprehensive credit profile.
• Credit Impact: Credit cards generally impact your score more significantly than other credit-building tools like loans or lines of credit. The Home Trust Secured Visa is no exception, offering a similar impact as cards from major banks.

Understanding the Value to Underwriters

While the Home Trust Secured Visa is a great tool for rebuilding credit, its value to underwriters could be improved. Underwriters generally prefer credit cards issued by major banks, as they are perceived to carry more weight in credit evaluations. However, for those starting their credit journey or recovering from past credit issues, the Home Trust Secured Visa serves as an excellent stepping stone.

One limitation is the credit limit, which ranges from $500 to $10,000. Although this range is suitable for many, the card does not offer automatic credit limit increases, even with a history of timely payments. To increase the limit, cardholders must provide additional security deposits.

Application Process and Timeline

The application process for the Home Trust Secured Visa has seen improvements, especially since the onset of the COVID-19 pandemic. However, the time it takes to receive the card can still be lengthy, often exceeding three months. This delay can be a drawback for those eager to start rebuilding their credit as quickly as possible.

Comparing with Other Credit Rebuilding Options

In the landscape of credit rebuilding, the Home Trust Secured Visa competes with various other secured and unsecured options. While major banks offer secured credit cards to newcomers or those with no credit history, they are less available to individuals with prior credit issues. The Home Trust Secured Visa fills this gap effectively, providing a viable option for Canadians looking to rebuild their credit.

Pros and Cons Summary

Pros

• No annual fee, making it cost-effective.
• Reports to both major credit bureaus, aiding in comprehensive credit building.
• Acts as a stepping stone to more traditional credit products.

Cons

• Long wait times for card issuance.
• No automatic credit limit increases.
• Limited perceived value to underwriters compared to major bank cards.