Considering getting a new or additional Canadian credit card? There are many queries Canadians have about obtaining and using Visa, MasterCard or American Express credit cards in Canada. Here are a few of the most frequently asked questions and some answers to help you with any decisions:

1)    What are the benefits of getting a Canadian credit card?

For better or worse, credit cards are essential today in Canada and the rest of the world for making hotel reservations, renting vehicles, paying for unexpected emergencies or simply building a strong credit history. A Canadian credit card can be flexible and convenient financial tool to pay and borrow money as long as you manage your finances responsibly. Use it wisely and it can be a long-term friend; spend it foolishly and it can be a quick-fix burden.

2)    How do I apply for an Amex, MC or Visa credit card in Canada?

In Canada, there a two different types of credit cards - secured and unsecured. Canadian secured credit cards are available from two reputable companies - secured MasterCard from HorizonPlus and secured Visa from Home Trust. There type of credit cards are perfect for anyone with a bad credit history such as bankruptcy or no credit history at all such new immigrants or young adults. Virtually any Canadian (the age of majority) who applies for either a secured Master Card or secured Visa is guaranteed approval since the card is secured with a refundable security deposit. Completing the application and sending it in with a cheque or money order equal to the amount of the credit limit you want to secure will result in the arrival of a MasterCard or Visa in a couple of weeks. Treat this new credit card responsibly by paying the monthly balance or minimum payments on time will result in repairing or building a positive credit history in Canada.

Over time, you will then be eligible to apply for an unsecured credit card such as American Express. Since this charge card has no security deposit, Amex Canada is trusting your good credit reputation that you will pay back what you spend on their Aeroplan or Air Miles card . Application is possible online, with instant approval available to Canadians with a good credit score of 720 or better. Again, using an unsecured credit card responsibly will continue to build a great credit history with Equifax Canada and TransUnion Canada.

3)    How do I know which type of credit card - secured or unsecured - that I qualify to apply for based on my Canadian credit score?

Credit scores used to be hidden from Canadians. As consumers, we seldom knew how our bank manager or loans officer made their decisions on our mortgage application, loan request or credit card submission. Fortunately that has all changed in Canada with the ability to obtain our Canadian credit reports and FICA credit scores directly online from both national credit bureaus - EquifaxCanada and TransUnionCanada. You simply visit the website either credit agency (or both), complete the personal information required to identify you, pay a small fee and your Canadian credit score is instantly available for your review and printing. Once you determine where you stand between 300 and 900, you will know whether Canadian credit card companies will consider you a suitable risk for an unsecured American Express card or if you need to apply for a secured MasterCard or Visa.

4)    I've heard about travel reward credit cards, what kind of benefits do they provide me?

Depending on the strength of your Canadian credit score, you may be able to apply for either an American Express Aeroplan charge card or Amex Canada Air Miles credit card. Both give you the ability to get points for every purchase towards travel on a host of the world's best airlines, including Air Canada and WestJet. Better still, you don't have to use the points for air travel alone. Both Aeroplan and Air Miles now allow you redeem your rewards for a host of merchandise, services and even vacations. One of the reasons to build and maintain a strong Canadian credit rating is to enjoy perks such as credit card rewards. If you're spending the money, you might as well enjoy the benefits!

More Frequently Asked Questions about Canadian Credit Cards in my next article.