How to apply for a crypto credit card in Canada: the process explained

Applying for a crypto rewards credit card in Canada is similar to applying for a standard credit card, but there may be additional steps if rewards are paid in crypto.  Applicants usually need to provide personal information, agree to a credit check, verify their identity, and meet the issuer’s eligibility requirements. If the card pays rewards in crypto, the applicant may also need a verified crypto account where rewards can be received or managed.

Before applying, applicants should review the card’s basic eligibility requirements. This typically includes age, residency, income, credit history, and account requirements.

In Canada, credit card eligibility can vary by issuer and product. Some cards may require a minimum individual or household income, while others prioritize credit history, existing account status, or other approval criteria.

For a crypto rewards credit card, there may also be crypto platform requirements. For example, the applicant may need to confirm an existing account with the crypto platform that receives the rewards.

A crypto credit card works like a standard credit card. A credit card lets users pay for goods and services up to their credit limit. The credit limit simply refers to the maximum total dollar amount a user can spend. As the balance is paid down, more credit becomes available.

The crypto feature is connected to the rewards program. Instead of earning cashback, points, or miles on eligible purchases, the cardholder earns crypto rewards. That means users should understand the two parts of the product: 1) the credit card side, including interest rates, fees, repayment obligations, credit limit, and billing cycle, and 2) the crypto rewards side, including supported crypto assets, reward timing, account verification, tax considerations, and volatility.

Most credit card applications ask for basic personal and financial information. This often includes full legal name, date of birth, home address, email address, phone number, employment status, employer information, and gross annual income.

The card issuer may also inquire about housing costs, existing debt obligations, or other financial details. This is vital for the issuer to assess the applicant’s creditworthiness and ability to manage credit.

Specific to a crypto credit card, applicants may need to provide information that would connect the card to their crypto account. This may include identity verification details, account numbers, and confirmation that the account is eligible to receive crypto rewards.

Once the applicant has reviewed the card details and gathered the required information, they can submit the application through the provider’s standard process. This may be online, through an app, in person, or through any official application channel.

Submitting the application will require the applicant to confirm they understand that when someone applies for a credit card, they enter into an agreement that gives both the cardholder and issuer rights and responsibilities.

The issuer may need to verify the applicant’s identity before approving or activating the card. This may include checking government-issued identification, confirming address details, or using other approved verification methods.

For the crypto rewards side, additional verification may be required if rewards are delivered through a crypto trading platform.

A crypto credit card is still a credit product, meaning the issuer is likely to review the applicant’s credit history before making a decision. This often includes gathering information from one or both of Canada’s two main credit bureaus, Equifax and TransUnion.

A strong credit score does not guarantee approval. The issuer may also factor in income, employment status, repayment history, account standing, and internal eligibility rules before making a decision.

After the application is submitted, the issuer may approve, decline, or ask for additional information. Some applications may be reviewed quickly, often within minutes. Others may take longer as part of their standard processes.

An application may be delayed for several reasons, including missing information, details that do not match the applicant’s credit file, or documents that are unclear or expired.

If approved, the applicant may instantly receive card details, a credit limit, the cardholder agreement, and instructions to activate a virtual card. Otherwise, the necessary information will be delivered in the mail.

If the card pays rewards in crypto, the cardholder may need to connect or confirm their crypto account. The reward setup process may include selecting the crypto asset, accepting reward terms, completing platform verification, or confirming where rewards will be deposited.

Some cards may automatically deposit rewards into a linked crypto account after a set amount of time. Others may require the user to make a selection before rewards are paid.

A crypto credit card should be used like any other credit card. Cardholders should spend within their budget, be mindful of their balance, and pay at least the minimum required amount on time.

The crypto rewards may be the unique feature, but the credit card responsibilities are the same. Carrying a balance will often result in interest charges that may outweigh the value of any rewards earned.