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March Break on a Budget

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March Break is a time for travel, relaxation, rest, and some family fun. After the pandemic this will be the first time kids and parents can enjoy a normal March Break. While you might not be heading to a tropical island with white sand beaches and turquoise waters this year, that doesn’t mean you should be staying home for March Break. There are some awesome travel destinations for everyone, so whether you are a luxury or mid-range traveler or an avid backpacker, now is the time to travel and enjoy sightseeing attractions, nature, some amazing activities, and festivals. Here are some travel ideas and advice for a memorable, low-budget March Break holiday.

March Break Ideas

Ice Hotel in Quebec

Hodel de Glace is a gem in the town of Valcartier and a worthwhile experience. Open from January to March, the hotel is made out of snow, ice, and frozen water, including sculptures, furniture, walls and the décor. With 44 suites and rooms, Hotel de Glace features a chapel, Grand Hall, bar, and an outdoor pool and spa baths. Themes change every season to keep visitors delighted, with plenty of attractions and things to do around, like snowboarding and skiing, ziplines, and more.

Algonquin Provincial Park, Ontario

Found between Ottawa River and Georgian Bay, Algonquin Provincial Park is just the right location for nature lovers and adventure-minded travelers. It is the home to many streams and lakes for rafting, kayaking, and canoeing in the summer, along with cross-country skiing, during the cold months.

Halifax, Nova Scotia

A city with plenty to offer, this can be a starting point for a few days trip to enjoy local museums, historic architecture, and serene fishing villages. Halifax itself is the home to attractions and landmarks such as the Maritime Museum of the Atlantic, the Halifax Citadel National Historic Site, Art Gallery of Nova Scotia, and plenty more.

Budget Travel Advice

Travel within Your Province

Travelling within your province is a great way to enjoy a relaxed and pocket-friendly vacation on March Break. Naturally, accommodation makes for a big chunk of your travel budget but there are plenty of budget options to look into. If you are travelling by car, for instance, staying at provincial parks can help keep costs down. Alternatively, you can try couchsurfing, cheap hotels, hostels, or guesthouses in your province.

Living in Ontario? You can claim 20% tax credit if you travel in Ontario this year. The credit to support local tourism applies to overnight stays between Jan. 1 and Dec. 31, 2022

Rent a Camper Van

Renting a camper van or taking a train trip can be inexpensive travel options for March Break when done right. Renting a camper van not only allows you to create your own itinerary and travel plan but is also a great way to explore Canada on a tight budget. Costs to plan for include vehicle insurance and maintenance, gas, living, and activity and attraction costs. Taking a train trip is also a great way to travel across Canada and take advantage of the well-connected train network, making commuting inexpensive and comfortable. Keep in mind that only fully vaccinated travelers are currently allowed on interprovincial VIA Rail and Rocky Mountaineer trains.

Whatever your preferred mode of travel, consider covering one region only, like the Maritime Provinces, the Toronto/Niagara region, or the West Coast. Because of Canada’s size and vast territory, transportation costs can be expensive if travelling across the country.

Last Minute Deals

Airfare can be expensive in Canada, so why not check last minute deals on search engines like Itravel2000 or Expedia? Expedia, for example, features last minute vacation deals to help you save on flights and all-inclusive packages, especially if you book a bundle of services for your spring vacation. Additionally, Expedia offers travelers the opportunity to make monthly payments as well as use book now, pay later plans. And if you want to purchase travel insurance, there are plenty of options to choose from, including package, hotel booking, and flight protection plans.

Itravel200 also features last minute deals and the option to collect points for additional savings. You can choose from hundreds of vacation deals from cities such as Vancouver, Calgary, Montreal, and Toronto, with a selection of travel destinations, standard and superior rooms, and all-inclusive packages. You will find great promotions and discounts on car rentals, tours, hotels, and flights operated by major airlines such as WestJet, Air Canada, Sunwing, and Porter.

Join in at Festivals and Local Events

Art, food, and music festivals and diverse events are happening here all year round. The best part is that most local festivities in spring time have free entry. This is also a great opportunity to learn more about local traditions, cultures, and artistic works, try amazing food, and mingle with locals. Depending on your travel destination, you will find events, carnivals, and festivals showcasing rodeos, music, local cuisines, contests, native craftsmanship, and plenty more. To find out when and where events take place, pick up local newspapers at restaurants or cafes or Google to plan your stay in advance.

Visiting Big Cities

If you plan to stop in some of Canada’s biggest cities, you want to join the self-guided or historical guided tours they offer. Use an attraction pass if you are heading to Toronto, Calgary, or Vancouver and visit some of the remote communities and small towns around big cities.

Local Museums

Visiting local museums is also a way to save on travel costs and find more about Canada’s history and wildlife. Canada’s museums feature a wealth of stories, photos, and artifacts, from Indigenous contemporary and past experiences to the country’s Gold Rush of the late 19th century.

Inflation in Canada

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Inflation rates are record high around the world, and Canada is no exception, with an 18-year high of 4.7 percent in November. Prices rose across sectors, ranging from bakery, dairy, and meat to furniture, household products, energy, and transportation.  A combination of factors is driving inflation, the main being money printing, high oil prices, product shortages, supply chain disruptions, and pent-up consumer demand.

Reasons for Record High Inflation

Whether high inflation rates are driven by global supply chain issues or money printing is a hotly debated issue at the moment. In the view of some academics and finance experts at the Bank of Canada, it is supply chain disruptions that cause inflationary pressures and drive food and energy prices up. According to a second group of academics, monetary printing creates an overabundance of demand while supply would not always catch up. The result is inflation whereby prices rise and purchasing power declines.

If we take the monetarists’ argument, inflation is not a temporary phenomenon and requires a tight fiscal policy and interest rate hikes. Such policies would involve tax increases, spending cuts, unemployment, and recession. Recession is generally a period of economic decline marked by substantially lower levels of industrial and economic activity. Businesses see less demand and are forced to lay off workers to cut costs, generating unemployment and insecurity.

As prices rise, inflation also eats away at our money and savings. Inflationary pressures not only result in an overall decline of purchasing power but affect the performance of companies and interest rates on savings accounts. When inflation is high, central banks would typically raise interest rates to discourage consumers from borrowing and buying and keep the cost of goods and services stable. The Bank of Canada recently signaled that interest rate hikes cannot be ruled out as a way to keep inflation under control. The current situation, however, is high inflation and low interest rates on savings whereby the value of your money declines. Fortunately, there are plenty of things to do to protect your savings, like investing in real estate, precious metals, commodities, crypto, and defensive stocks.

Investing in Real Estate

As the value of real estate rises with inflation, rental income can be a potential hedge, especially when it comes to short-term leases such as multi-family properties. Investors who are able to keep their mortgage terms the same and adjust their rent up benefit from inflation. Investing in real estate also provides recurring income that either exceeds or keeps pace with inflation.

Precious Metals

Precious metals such as platinum, silver, and gold are known to be a hedge against inflation as well as a portfolio diversifier. Each precious metal, whether palladium or gold, has its own unique specifics, benefits, and risks. Gold, for example, is less affected by demand and supply, making it easy to sell and buy. An added advantage is the fact that there are different investment options to choose from, including numismatic coins, bars, and proof and bullion gold coins. The downside is that it doesn’t produce passive income the way real estate does.

Commodities

When inflation is high, commodity prices also rise and offer a good return potential. Unlike financial assets such as bonds and stocks, commodities are one of the few investment classes that actually benefit from inflationary pressures. The rationale is that rising demand for services and products results in price increases and hence, the value of the commodities that go into producing goods and services also increases.

Bonds and stocks, on the other hand, tend to perform better when the inflation rate is either slowing or stable. When inflation picks up, it reduces the interest rate that bonds pay while high-dividend and income-oriented stock prices fall. This is why returns from commodity indexes like the S&P Goldman Sachs Commodity Index, Credit Suisse Commodities Benchmark, and Bloomberg Commodity Index are independent of bond and stock returns.

Defensive Stocks

Defensive stocks offer stable earnings and dividends regardless of market conditions and typically outperform other investments in periods of economic decline such as recession or stock market crash. The reason is that they belong to sectors of the economy where there are only minor changes in demand. Such sectors are, for example, healthcare, utilities, and food and beverages. The consumer defensive sector includes businesses engaged in the production of packaging, personal and household products, food and beverages, and tobacco. The sector also includes companies offering services such as training and education. Organizations providing healthcare services fall in this category, including medical supplies and equipment, long-term care facilities, hospitals, home health care, research services, and pharmaceuticals. Examples are also life science development and biotech, vaccine developers, and medical device manufacturers. A third sector is utilities, comprising independent power producers and water, gas, and electric utilities and a fourth – communication services such as media and advertising, 5G network, and telephone and broadband.

Crypto Currencies

Investing in crypto currencies can be a viable alternative to stocks and bonds, with a return of over 6 percent. Proponents point to the fact that bitcoin is not tied to a particular economy, fiscal policy or currency and cannot be devalued by a central bank or government printing money. Not only is bitcoin a digital currency but it has a limited supply and is secure, interchangeable, and durable. Finance experts, however, warn that crypto is a highly volatile asset and one tied to speculative trading. Also, cryptocurrencies have been around for a relatively short period to establish whether they can really act as a hedge against inflation.

Gold, on the other hand, has held its value for centuries. Academics at Duke University also note that bitcoin is vulnerable to crashes and manias over relatively short periods, which makes it a risky asset. Its value is tied to two factors – speculative trading and supply. All in all, bitcoin may have a limited value in developed postindustrial countries with stable fiat currencies. Crypto currencies may have a more practical use in countries prone to political instability and turmoil and hyperinflation.

Summing Up

Inflation is currently higher than normal in Canada, primary drivers being money printing, pent-up demand, and supply chain bottlenecks. Droughts affecting agricultural produce across the country are only making things worse.

Global supply chain disruptions are likely to continue in 2022, mainly due to China’s Covid-19 zero policy, resulting in delayed ships and overwhelmed ports. Inflation rates of 4 – 5 percent could also be with us until 2024. While these changes are temporary, a shift in Canada’s monetary policy may not have the desired effect. Hiking interest rates would result in economic slowdown at a time when governments around the world are withdrawing emergency support and fiscal stimulus.

What Canadians can do to protect their savings is invest in precious metals, real estate, defensive stocks, or commodities, all of which acting as a hedge against inflation. Other assets that offer protection against inflation are leveraged loans, real estate investment trusts, and mortgage-backed securities and corporate bonds.

8 Easy Steps to Become Debt Free in 2022

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Having debt cannot only affect your credit score but can cause a lot of stress, depression, fear, low self-esteem, and even denial. Many Canadians face piling bills, empty checking accounts, and debt in the form of car payments, credit cards, mortgages, and personal and student loans. The good news is that there are easy steps to follow and achieve financial security and freedom.

Step 1 – Make a Budget

Creating a budget is the first step to getting your finances in order and under control. To create a good personal budget, you may want to start with an itemized summary of your expenses and income. Check your financial statements, including utility bills, rent/mortgage payments, investment accounts, and bank statements. Then list all expenses and sources of income. Sources of income to record include your paycheck, investments, alimony, bonuses, rental income, and dividends. Then record your expenses, including utility bills, groceries, insurance coverage, car payments, and mortgage or rent payments. Compare your income and expenses and if you are over your budget, divide expenses into fixed and variable. Variable expenses include gifts, dining out, entertainment, etc. This is the category that allows you to make adjustments and cut down on expenses.

Step 2 – Start Paying off Your Outstanding Bills

Paying off outstanding bills is an important step to becoming debt free. Interest accumulates if you only pay the minimum balance, and it will take you longer to pay off card debt. If you have high-interest cards, it is best to start with the card that carries the highest interest rate. If you have a large balance, this means that you pay less toward the principal and more toward interest charges.  When you are done paying your card balance, you may want to focus on the card that carries the next highest rate. Make sure you pay your utility bills on time as well. If you are significantly behind on electricity, gas, and water bills, your providers are likely to report late payments to the credit bureaus. This will affect your credit score and ability to obtain low-cost loans. Not only this but even when you are done paying all cards and loans, your credit score will still be affected.

Step 3 – Negotiate for a Lower Interest Rate

Negotiating a lower interest rate helps make payments more manageable and affordable. There are different ways to go about this, and one is to focus on the oldest credit card that you have. Credit unions and banks are more willing to work with loyal and established customers and are likely to lower your rate. If you have other credit cards, it pays to simply call and ask. Make sure that you have the required information such as your current interest rate, outstanding balance, due date, grace period, and other card terms.

Step 4 – Do a Credit Card Balance Transfer

This is another way to lower the current interest rate and pay down debt faster. Many financial institutions offer balance transfer credit cards, including CIBC, Scotiabank, MBNA. Banks feature very low or zero introductory rates during the promotional period, allowing customers to save on interest charges. However, it is also important to check other terms such as annual fees, balance transfer fees, late payment penalties, and grace periods. Some providers also have minimum income and credit score requirements. Ask your issuer about perks and incentives such as low annual fees, comprehensive insurance, awards schemes, car rental discounts, and return guarantee.

Step 5 – Set Financial Goals

To set financial goals, it is important to consider what matters to you, whether saving for retirement, paying college tuition, buying a new car, or going on vacation. Then consider whether it is within reach and how long it will take you to achieve your goals. The next step is to create a budget and set money aside on a monthly basis. Make sure your budget is realistic. You may want to open a separate savings account and transfer money from your debit account. Monitor your progress to see how close you are to accomplishing your goals.

Step 6 – Use Cash

Experts claim that using your hard-earned money makes it less likely to splurge and overspend.  This is what behavioral economists call the pain of paying. The main reason lies in the physical component of paying cash. Getting to an ATM to withdraw money also has a physical component and is inconvenient for many. A good way to save is to follow the cash envelope budgeting system. It involves withdrawing money at the beginning of the month and dividing it into different categories, including groceries, gas and transportation, entertainment, etc.

Step 7 – Avoid Expensive Hobbies

Some of the most expensive hobbies to have include scuba diving, yacht racing, flying a plane, model railroading, to name a few. Needless to say, you should avoid expensive hobbies like these and will save tons of money. The majority of people have hobbies such as photography, bicycling, swimming, and reading books which are low-cost and fit into a tight budget. Unlike them, ballroom dancing, ice sculpting, and hot air ballooning can be very expensive and are not everybody’s affair.

Step 8 – Avoid Eating Out

Eating out can be expensive even if you only eat at fast food chains. Spending $10 a day at your favorite fast food chain adds up to $50 a week and $200 a month. To save money, it is best to avoid eating out during the workweek, prepare meals at home, and bring the lunchbox at work. This is also a way to ensure that you have a healthy and balanced menu. It is a good idea to create a meal plan for the week and buy the products that you need. In this way, you will only buy items that you need instead of wasting money on groceries. Another way to save money is to stock on inexpensive convenience items and prepare meals when you are short of time. Such items are bagged greens, canned beans and tomatoes, and pre-made pizza dough. You may also think of products that come together for a healthy and cheap meal. There are great inexpensive meals to cook, for example, cheese olive bread, spaghetti with meat sauce, curried chickpeas with spinach, and tuna casserole. Combining inexpensive products is also a good way to cook on a tight budget. Cheap grocery items include baby carrots, cottage cheese, tofu, whole grain pasta, brown rice, and chicken bread.

There are plenty of good reasons to get rid of debt, the most important being that you will enjoy a higher credit score, free income, and less stress. Many are aware of this but keep their old habits instead of prioritizing debts, paying off outstanding bills, making a realistic budget, using cash, etc. Being financially literate and savvy about money also helps borrowers to become debt free and make wise choices. People with a good financial literacy know how to set realistic goals and manage their finances. They save toward retirement, have an emergency fund and a balanced investment portfolio, and know their responsibilities and rights as taxpayers, borrowers, and consumers.

Canadian Guide to Protecting Your Wealth from Inflation

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Inflation is on the rise in Canada and rose to 3.7 percent in July, 2021. This is the biggest jump since May, 2011 and is mainly due to more sectors of the economy reopening and consumers having where to spend their money. While pay rates are set to trail inflation, salary increase budgets are unlikely to catch up with inflationary pressures in 2021. Plus, it is not guaranteed that salaries will go up across all sectors of the economy. Inflation is robust but fortunately, there are ways to protect your wealth and fight the effects of inflation. From buying real estate and investing in stocks to alternative investments and portfolio diversification, there are time-tested strategies to protect your money.

1. Buying Real Estate

Investing in real estate may sound counterintuitive given that the average selling price is $688,000. Prices rose by 38 percent in 2020 alone. In most cases, Canadians looking to buy a home need to apply for a loan. As it turns out, however, the cost of borrowing decreases when wages increase and prices are on the rise. Average home prices are also rising faster than the consumer price index which makes investing in real estate a good hedge against inflation.

Additionally according to the Canadian Real Estate Association, home prices tend to be skewed by listings in expensive metropolitan markets such as Vancouver and Toronto. CREA tracks the house pricing index which gives a more accurate picture in terms of the types and number of properties sold.

2. Investing in Stocks and Bonds

There are investments that actually benefit from inflation, such being energy and retailers stocks. Energy companies profit when inflationary pressures are driven by oil price increases. Retailers also hike prices and considering the pandemic e-commerce boom, investing in e-commerce stocks can be a good idea.

Some equities both benefit and contribute to inflationary pressures, for example, metals, grain, lumber, and crude oil. It makes sense to buy shares in commodity companies either through mutual funds and exchange-traded funds or directly.

Investing in government bonds is yet another way to protect your money from inflation. What portion to dedicate to fixed income depends on how soon you will need cash and your risk tolerance. As a rule, government bonds offer income and security but the shorter the maturity, the lower the yield. That is because investors face less risk of interest rate increases. Bonds with longer maturity are more sensitive to interest rate fluctuations. The choice of shorter maturity depends on factors such as income requirements, nearing retirement, and the need to diversify investments.

3. Alternative Investments

The price of alternative investments such as silver, gold, and cryptocurrencies is also rising in the long run. As they are risky, dedicating a small portion to alternative investments only makes sense. At the same time, they are thought to not only retain their purchasing power but to outperform when inflationary pressures arise.

Also, there is a wide array of investment options to look into, besides bonds and stocks, each with its proposition, value, and risk factor. The range of solutions includes derivative contracts, commodities, antiques and art, managed futures, hedge funds, venture capital, and private equity.

The category of alternative assets is vast, indeed, but there are some factors to consider when building a portfolio. First, investors can choose to own assets such as farmland, commodities, precious metals, and real estate indirectly or directly. They can either buy physical assets or shares like, for example, invest in shares of gold or gold bars. The same is true for other assets such as real estate or farmland. When buying shares, the asset is tied to physical property, thus giving investors a choice between financial and physical assets.

Some alternative investments are classified as risky, such being the case with farmland. The value of farmland has steadily risen on an annual basis over the last three decades. There are no signs of slowing down in the short term, given the demand for commodities and agricultural products. In fact, farms will need to significantly increase production to meet growing demand as global population growth continues.

An alternative solution is to invest in inflation-linked bonds which are pegged to the consumer price index. In this case, the interest and principal rise and are adjusted for inflation. There are many benefits to investing in inflation-linked bonds such as less risk and volatility and higher returns compared to conventional bonds. A word of caution should be mentioned here, however. When deflation occurs, the bond principal will fall below par value, with interest due on the inflation-adjusted principal. Investors are likely to incur capital losses if deflationary pressures persist. The longer the maturity, the more vulnerable bonds become to interest rate fluctuations.

4. Portfolio Diversification

Building a diversified portfolio is an excellent hedge against inflation. The types of assets that can protect an investment portfolio against inflationary pressures include US stocks and REITs, treasuries, TIPS, commodities, emerging stocks, gold, European and Pacific stocks, and international REITs. Real estate investment trusts, for example, buy a diverse range of real estate that is rented out and produces solid returns. There is also an option to invest in international and US REITs and many have done so since the 2008 US market crush. The fact is that REITs invest in both commercial and residential real estate and are more diversified than conventional real estate portfolios. This means that they are more stable and less risky in case of rising inflation and economic shocks.

5. Consider a Fixed-Rate Mortgage Loan

There are currently variable-rate mortgages offered at about or even less than 1 percent. Getting a variable-rate mortgage sounds tempting as it looks like borrowing for nothing but it comes with a hitch. The fact is that a significant increase in mortgage rates could translate in hundreds and even thousands of dollars in interest over the loan term.

In comparison, five-year fixed-rate mortgages are currently available at about two percent. Regardless of inflationary pressures and rate fluctuations, borrowers pay two percent over the course of the mortgage. Locking in a variable-rate loan is a good idea when inflation is rising.

Investing in stocks, alternative assets, and real estate is worth considering given that high inflation could last for years. According to chief economist with Bank of Montreal Douglas Porter, inflation rates could remain at 3 – 5 percent for a year or even two. The outlook for the U.S. is similar, with prices and inflation rising until 2023. In fact, inflation south of the border is higher than in Canada, reaching 5.4 percent in June. Canada, however, is behind the U.S. on the path to economic recovery which is a red flag when it comes to recessionary pressures. Investing in physical and financial assets now can help mitigate the effect of expected rising inflation. With a variety of inflation-proof stocks such as energy and utilities and exchange traded funds, there are plenty of options to hedge against inflation.

Home Trust Credit Cards and Financial Solutions

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One of the largest trust companies in Canada, Home Trust features a selection of financial solutions, including credit cards, commercial and residential mortgages, and deposits. It is one of the few providers to offer secured cards to subprime borrowers who are looking to rebuild or improve their credit profile.

Company Overview

Established in 1987, Home Trust is a leading financial service provider with offices in Toronto, Winnipeg, Halifax, Montreal, Calgary, and Vancouver. It is a subsidiary of Home Capital Group, the largest provider of uninsured mortgages. Home Capital offers a wide choice of financial products, ranging from government-mortgage securities and TFSAs to investment certificates and short term deposits. Being a wholly owned subsidiary, Home Trust features a selection of guaranteed investment certificates tailored to the needs of commercial and individual customers. To clients who need to rebuild credit, Home Trust offers secured credit cards with cashback rewards, shopping security, and travel benefits.

Home Trust Credit Cards

Home Trust offers three types of credit cards, along with convenient online services to pay bills, access statements, and monitor spending behavior.

Home Trust Preferred Visa

Available nationwide except in Quebec, this card features a unique combination of benefits. It earns cash back on eligible purchases and charges no annual fees. The fact that this Visa card by Home Trust offers travel benefits such as guaranteed hotel reservations and no foreign transaction fees makes it a valuable asset for those who travel frequently, either for work or for leisure. While cash back is not offered on purchases in foreign currency, users earn 1 percent on all transactions at home in Canada. Money back is offered on daily purchases such as monthly bill payments, groceries, and gas. There is a convenient online calculator to check earnings based on approximate monthly spending. Added incentives for customers are emergency cash and card replacement, purchase security, and no cap on cashback earnings.

The Home Trust Preferred Visa is available to customers who are permanent residents of legal age and are not currently in bankruptcy. Only applicants with an annual income of $15,000 or higher quality for this card.

  • Annual fee: none
  • Interest Rate: 19.99 percent
  • Cash advances: 19.99 percent
  • Grace period: at least 21 days

Home Trust Equityline® Visa

For those who own their home, this is an option to tap into their home equity and access a secure line of credit. It can be used to pay for college, cover operating or start-up costs, finance home remodeling projects, or consolidate debt. Home Trust also offers an easy-to-use online calculator to calculate interest savings when consolidating debt. To determine their savings, users are asked to enter their current interest rate and balance. Consolidating $20,000 in debt with 22.99 percent interest, for example, saves $2,600 in annual interest payments.

With Home Trust’s Equityline® Visa, users benefit from a revolving line of credit that can be as high as $10,000. Added perks are low interest rates, no prepayment penalty, cash back on purchases, and no foreign exchange fees. Users get 1 percent back on qualifying purchases for no annual fee. This Equityline® Visa charges no foreign transaction fees, whether shopping online or using the card abroad.

  • Annual interest rate: 9.99 percent
  • Cash advance rate: 9.99 percent
  • Annual fee: none
  • Interest-free period: at least 21 days
  • Mortgage title fee: up to $781

Mortgage discharge fees vary by province as follows: Ontario – $295, the Maritime Provinces and Manitoba – $200, British Columbia – $75, and Alberta – $0.

To apply, customers are asked to provide employment and address information, along with details about their mortgage and property, including annual taxes, purchase price, and estimated home value. Additionally, applicants have to provide information about their liabilities and assets and the intended use of the funds, whether it is home improvement, debt consolidation, or anything else. Personal details to include in the application are number of dependents, marital status, and current residential address.

Home Trust Secured Visa

This card is a good choice for those who are looking to rebuild credit and for young people with limited or no credit exposure. It has been rated #1 secured card in 2021 by creditcardGenius and for a good reason. Users can choose from a no annual fee or low interest option and are free to set their own credit limit. The deposit amount can be as high as $10,000 and as low as $500. The best part is that almost everyone gets approved. The fact that monthly payments are reported to the major bureaus expedites credit improvement.

While customers with good or excellent scores could be better served by another card with travel or cashback benefits, Home Trust’s Secured Visa enables users to control their spending and works just like an unsecured credit card. Holders can use it to set up accounts, pay bills, and shop online.

  • Interest rate: 19.99 percent
  • Annual fee: none
  • Interest rate: 14.90
  • Annual fee: $59 percent
  • Interest-free period: at least 21 days
  • Foreign currency conversion: 2 percent

To apply, customers fill in an online application and provide details such as annual income, business phone number, employer name, occupation, and employment status. They are also asked to indicate a security deposit and confirm whether they are a close associate or family member of a head of international organization or a politically exposed domestic or foreign person. There is also an option to add an authorized user for a monthly fee of $2 or annual fee of $19.

Benefits for Users

Home Trust offers a number of benefits to card users, among which affordable interest rates, cash back, online account management, and access to home equity. All cards come with Visa purchase security by Alliance Company of Canada or Royal Sun.

Those who opt for the secured option can use it wherever VISA cards are accepted. Paying the balance on time allows users to build credit and apply for a range of financial products with lucrative rates and rewards. Secured cards are also a better alternative to prepaid cards which are not accepted by all retailers. Whether holders are up to date on their payments or not, prepaid cards have not effect on credit ratings.

Overall, Home Trust is a good financial services provider with a wide choice of product offerings. Perfect for basic banking and financing needs, Home Trust offers secured and unsecured VISA cards with no annual fee, hotel reservations, and other benefits. Online shoppers and travelers enjoy the double benefit of no foreign transaction fees and earning cash back on purchases. In addition to access to credit, customers are offered a range of business and residential mortgage products, including refinancing and renewals, together with high interest deposit solutions and guaranteed investment certificates. Additionally, Home Trust offers customers handy financial resources and information regarding home ownership, holiday spending on a tight budget, the impact of debt on credit rating, and plenty more.