Featured secured credit cards
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Secured Neo Mastercard
Build your credit easily while earning up to 5% cash back at select partner stores.
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Interest Rates:
19.99% purchase, 22.99% cash advance, N/A balance transfer
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Home Trust Secured Visa Card
Choose between no-fee and annual-fee options with different purchase interest rates.
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Interest Rates:
19.99% purchase, 19.99% cash advance, N/A balance transfer
Best secured credit cards in Canada
These are the best secured credit cards in Canada, as chosen by MoneySense editors. To make our picks, we used criteria we believe are important to Canadians with no or poor credit, who are the most likely to need a secured credit card. We paid particular attention to annual fees, the interest rates (APRs) on purchases and cash advances, minimum deposit requirements, rewards and eligibility requirements.
Gold: Capital One Guaranteed Secured Mastercard
At a glance: With its secured MasterCard, Capital One guarantees you’ll be approved as long as you’re of the age of majority in your province, you don’t already have a Capital One account, and you can provide security funds of $75 or $300. This card comes with a few extra perks like extended warranty, car rental insurance and some travel benefits. Especially worth noting is that the card comes with price protection: If you buy a new item that goes on sale for a lower price within 60 days, Capital One will pay you the price difference up to $100 per item and $500 per year. This is an incredibly rare perk even among premium cards in Canada.
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Capital One Guaranteed Secured Mastercard
Annual fee: $0
Rewards: None
Welcome offer: None at this time
Card details
| Interest rates | 21.9% to 29.9% on purchases, cash advances and balance transfers |
| Income required | None specified |
| Credit score | None specified |
Pros
- Guaranteed approval: You’ll be automatically approved if you meet the basic eligibility requirements listed above.
- Insurance coverage: It’s one of the few secured cards to offer insurance, including car rental collision, common carrier travel accident, and baggage delay insurance.
- Price protection: A rare perk, even among premium cards, which could save you up to $500 per year.
Cons
- Maximum security deposit: The most you can deposit initially is $300, which gives you a very low credit limit compared to cards with a deposit limit of $10,000. However, upon successful approval with Capital One, you may be able to increase your limit by depositing up to $2,500.
Silver: Secured Neo Mastercard
At a glance: The Neo Secured Mastercard is one of the few secured cards that offers some appealing extras like rewards, a welcome offer and a low minimum deposit. This card lets you deposit as little as $50, and you can earn an average of 5% cash back on purchases at select partner stores. Neo even promises guaranteed approval as long as you’re a Canadian resident and are the age of majority in your province or territory.
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Secured Neo Mastercard
Annual fee: $60
Rewards: A minimum of 0.5% cash back and an average of 5% cash back on purchases at partners
Welcome offer: Get $25 when you sign up.
Card details
| Interest rates | 19.99% to 29.99% on purchases (19.99% to 24.99% for Quebec residents) and 22.99% to 31.99% on cash advances (22.99% to 25.99% for Quebec residents) |
| Income required | None |
| Credit score | 690 or higher |
Bronze: Home Trust Secured Visa
At a glance: The Home Trust Secured Visa is a user-friendly card with attractive flexibility. Applicants have the choice of going with an interest rate of 19.99% with no annual fee or opting for a low interest rate of 14.90% and paying a $59 annual fee. Because Home Trust reports your payments to Canada’s credit bureaus, you can establish a credit file and build up your score. Unfortunately, the card is not available to Canadians who live in Quebec or who are currently in bankruptcy.
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Home Trust Secured Visa
Annual fee: $0
Rewards: Does not offer rewards.
Welcome offer: None at this time.
Card details
| Interest rates | 19.99% on purchases and 19.99% on cash advances |
| Income required | None specified |
| Credit score | 300 or higher |
Another secured card option for Canadians
Secured Neo World Elite Mastercard
At a glance: The Secured Neo World Elite Mastercard offers up to 5% cash back on groceries, 4% on recurring bills, 3% on gas and 1% elsewhere. With a $200 minimum security deposit, it’s a good option for newcomers and self-employed Canadians with a higher-than-average income. Cardholders who deposit and maintain $5,000 to $10,000 into a Neo Everyday account earn rewards at an even higher rate.
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Secured Neo World Elite Mastercard
Annual fee: $125
Welcome offer: None at this time
Card details
| Interest rates | 19.99% to 26.99% on purchases and 22.99% to 28.99% on cash advances (different rates apply for Quebec residents) |
| Income required | $80,000 per year |
| Credit score | 690 or higher |
What is a secured credit card?
A secured card is a specific type of credit card that requires applicants to make a cash deposit in order to be approved. The experience of using a secured card for everyday purchases is mostly the same as a “regular” credit card, and the deposit requirement makes secured cards extremely attainable and a good option for people who want to build their credit with a credit card but don’t qualify for traditional unsecured credit cards because of bad credit or a lack of credit history.
How does a secured credit card work?
With a secured credit card, you have to pay a deposit upfront in order to be approved. The deposit serves as collateral, so it’s easy to be approved for these cards even if you have a bad credit rating. The spending limit on your secured credit card becomes your credit limit. If you miss your payments, then the issuer may take money from your deposit to cover what you owe, but you cannot use the deposit yourself to make payments on your card. If you decide to close your account or to upgrade to an unsecured card, your deposit is returned. Otherwise, the card works just like a regular unsecured credit card. You can use it to buy things online, in stores or to cover regular monthly bill payments, such as utilities or Internet service. If you carry a balance at the end of the month, you will be charged interest at the stated rate.
Who should apply for a secured credit card?
Nearly everyone is eligible for a secured credit card. Many even come with guaranteed approval, meaning you only have to meet certain basic eligibility criteria. This makes them a good option for students and young people with no credit history, newcomers and other Canadians who want to build or rebuild their credit rating.
Do secured credit cards build credit?
Yes. In fact, building a better credit rating is the primary value of a secured credit card. Because payment history is such an important factor in determining a credit score, this is an excellent option for people who are new to the country, have no credit or poor credit, or have recently filed for bankruptcy. It is important to remember to be as careful making your credit card payments as you would with any other loan or bill payment. Missed payments can hurt your credit rating more easily than making payments can help it.
If you make your minimum payment on time every month, it’s possible to develop good credit in as little as a year. Once that happens, you may be able to qualify for an unsecured credit card and get your deposit back. It is good practice to use your secured credit card regularly but to use it sparingly. You want to be sure you can pay off your entire balance each month to avoid paying interest.
Can you increase the credit limit of a secured credit card?
Each credit card provider may have different rules about increasing a credit limit, but you should be able to increase your limit as long as you provide the required deposit amount. Note that you can’t simply make an overpayment on your balance as a way to increase your limit.
Secured vs unsecured credit cards
Here are the primary differences between the two types of credit cards.
| Secured credit card | Unsecured credit card | |
|---|---|---|
| Requires security deposit | Yes | No |
| Guaranteed approval | Often, but not always | No |
| Interest rates on purchases and cash advances | Typically higher than average | Average and sometimes lower |
| Can help build credit | Yes | Yes |
| Rewards and perks | Rare | Common, especially for premium cards |
Where to get a secured credit card in Canada
You won’t find secured credit cards listed on the websites of most major banks in Canada. In fact, it’s much more common to find smaller financial institutions with secured card options. However, you might still be able to get secured credit if you contact your bank directly. Major institutions also offer other credit-building options to students and newcomers.
| Financial institution | Secured credit cards available online |
Other credit-building options for students & newcomers |
|---|---|---|
| BMO | None | Yes |
| CIBC | None | Yes |
| National Bank of Canada | None | Yes |
| RBC | None | Yes |
| Scotiabank | None | Yes |
| TD | None | Yes |
| Neo Financial | Secured Neo Mastercard Secured Neo World Elite Mastercard |
No |
| Home Trust | Home Trust Secured Visa | No |
| Capital One | Capital One Guaranteed Secured Mastercard | No |
| Koho Financial | None | Prepaid credit card with optional credit building feature |
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