How it Works -- Features What is a secured credit card? Why a secured credit card? How does this help me establish or re-establish my credit? What is the minimum/maximum credit limit? Who qualifies for the program? Who does not qualify for the program? How do you apply for a Home Trust Secured VISA? Do I need to send additional documents along with my application form? What happens if I am declined? How can I send my deposit? Can I fax in my application? How long does it take to get a card? Do I have to be a Canadian resident to get a Home Trust VISA card? Is there any way to speed up the process? When do I get my deposit back? How can I increase my credit limit? Is there an annual fee? What is the interest rate? Do I have to pay the balance in full each month? How do I make payments? What if I have a past bankruptcy? Can I qualify if I am in Consumer Proposal or Credit Counselling Service? Is the Home Trust VISA card available nationally? How old do you have to be to get a credit card? How much can I spend? I have an existing mortgage with Home Trust, do I need to complete a Secured VISA application? Who can I contact if I have questions that are not listed here? 1. What is a secured credit card? A secured credit card is a product in which the security deposit you provide is equal to your credit limit. It works just like any other credit card. Your deposit will be held in an interest bearing account with interest (currently 1%) payable annually. You are required to make regular monthly payments over and above the security deposit because this is not a "prepaid" card. 2. Why a secured credit card? The Home Trust Secured VISA will allow you to build or rebuild a solid credit rating. Many people have been declined by the banks for a credit card due to past bad credit or because they have no credit history. Having a credit card is not a luxury anymore, it's a necessity. The Home Trust Secured VISA allows you to make purchases on-line or by phone, book a flight or rent a car. And VISA is accepted at over 24 million locations worldwide. 3. How does this help me establish or re-establish my credit? Home Trust reports your file to the credit bureau on a monthly basis. Your file is updated and your credit history begins. Both the primary applicant and the co-applicant's credit bureau can be updated. 4. What is the minimum/maximum credit limit? The minimum credit limit is $1,000 and the maximum is $10,000. 5. Who qualifies for the program? Almost everybody who applies (our approval rate is approximately 95%). Applicants must have a source of income. 6. Who does not qualify for the program? People who are currently in bankruptcy do not qualify. 7. How do you apply for a Home Trust Secured VISA? Fill out an application form and mail it to 145 King Street West, Suite 2300, Toronto, Ontario, M5H 1J8 along with your security deposit. We will not process an application without the deposit. 8. Do I need to send additional documents along with my application form? If you have never applied for credit in Canada, you probably do not have a credit file under your name at the credit bureau. If that is the case, then you may be required to provide documents that verify your address, date of birth or Social Insurance Number (a copy of your driver's license, a copy of a current bill, or a copy of your health card/SIN card). 9. What happens if I am declined? If your application is declined, Home Trust will return your security deposit to you (cheques are not cashed until the application is approved). 10. How can I send my deposit? Attach a cheque (personal or personal certified cheque drawn on a Canadian Financial Institution) to your application form and mail it to Home Trust. 11. Can I fax in my application? No. Applications must be accompanied by a security deposit and cannot be sent by fax. 12. How long does it take to get a card? The application process takes approximately 2-3 weeks from the time the application and security deposit are received, if you send a personal certified cheque drawn on a Canadian Financial Institution. It will take up to an additional 15 days if you send a personal cheque, as we must wait for personal cheques to be cleared by the bank. 13. Do I have to be a Canadian resident to get a Home Trust VISA card? The card is available to Canadian residents except residents of Quebec. 14. Is there any way to speed up the process? There is no real way to speed up the process, however, ensuring that your application is complete will help. Guaranteed funds will expedite the process by one week because we will not have to wait for the funds to clear. Also, if either of the following applies to you, there are documents you can send with your application to ensure that your file is not delayed: if you have moved since your last loan/credit request or if you do not have a credit history, send a copy of your driver's license or a bill that matches your current address if you have recently been discharged from bankruptcy, attach your certificate of discharge You may request "rush delivery" to have your card delivered to you by courier for a fee of $39. Please note that this is only a rush delivery and it will not affect the approval process. 15. When do I get my deposit back? Your deposit will be held as long as you have an account with Home Trust. When you close your account, we will return your deposit, plus earned interest once all purchases and fees have cleared. 16. How can I increase my credit limit? You can increase the limit on your card by sending additional funds to Home Trust and clearly indicating that you are requesting a credit line increase. If you simply make an overpayment but do not submit a request to have your credit limit raised, your available credit will increase temporarily, but your credit limit will remain the same. 17. Is there an annual fee? There is a one-time set-up fee of $39 charged to the first statement. A monthly fee of $7.50 will appear on subsequent bills. For a secondary card, there is an additional fee of $3 per month. 18. What is the interest rate? Most banks charge between 17 and 21%. We charge 19.50% on purchases and 21.50% on cash advances. Interest is not charged if the balance is paid in full by the statement date. However, for cash advances, interest is charged from the time the advance is made to the time it is paid off. 19. Do I have to pay the balance in full each month? You have to pay at least the minimum payment on the statement. You cannot use your security deposit to pay off the balance. 20. How do I make payments? You can make a payment at any Canadian financial institution that bears the VISA logo (Bank of Montreal will also accept payments), either in the branch or through PC or telephone banking. If you prefer, you can mail your cheque or money order directly to Home Trust in the envelope provided to you with your statement. 21. What if I have a past bankruptcy? You may still qualify if you have a past bankruptcy as long as you have been discharged. There is no waiting period after a discharge. 22. Can I qualify if I am in Consumer Proposal or Credit Counselling Service? If you are in Consumer Proposal or Credit Counselling Service, we require a letter from your trustee stating: proposal has been filed proposal has been accepted all payments are up to date 23. Is the Home Trust VISA card available nationally? It is available in every province and territory except Quebec. 24. How old do you have to be to get a credit card? At least the age of majority in the province/territory where you reside (18 years of age in Ontario, Alberta, Saskatchewan. Manitoba, Prince Edward Island; 19 years of age in British Columbia, New Brunswick, Nova Scotia, Newfoundland/Labrador and the territories). 25. How much can I spend? You may make purchases up to the limit of your Home Trust VISA card or you can use your card to make cash advances at ATMs or at a bank. Your Home Trust VISA card is a revolving line of credit. As you use your credit card, you are continually borrowing against your line of credit and repaying it. The amount of credit you have available at any time will vary depending on your current outstanding balance. 26. I have an existing mortgage with Home Trust, do I need to complete a Secured VISA application? Although you are an existing Home Trust customer, you are still required to complete a Secured VISA application and submit it along with a deposit to set up an account. For processing purposes, please indicate on your application that you have an existing mortgage with Home Trust. 27. Who can I contact if I have questions that are not listed here? You can call Home Trust VISA Customer Service at: 416-777-5851 or 1-888-281-7793 from Monday to Friday between 9 am and 5 pm or email visa@hometrust.ca