Top 7 Best Secured Credit Cards in Canada to Build, Rebuild or Increase Your Credit Score

If you’re looking to rebuild or build your credit, secured credit cards are one of the best options available.

By using a secured credit card responsibly, you can improve your overall credit score and get on the path to financial health.

best-secured-credit-cards-canada

If you’re a student, new to Canada or self-employed, you might also struggle with building a good credit score.

Recovering from bankruptcy or recently insolvent and trying to rebuild your credit? That’s exactly why there’s such a thing as a secured credit card in Canada. 

Think of a secured credit card as a nod to rebuilding your credit score and finances in general.

With the best-secured credit card in your arsenal, you’ll truly stand a chance to bounce back from setbacks.

Let’s dig in.  


Quick Comparison: Secured Credit Card in Canada

Best Secured Credit Cards in CanadaAnnual FeeWelcome BonusInterest Rate
Overall Best No-Fee Card and Unlimited Cashback: Neo Financial Secured Credit Card$015% cash back on purchases19.99%-24.99%
Best Premium Rewards: Plastk Secured Credit Card$485,000 points and 0% APR for 3 months17.99 %
Best to Build/Rebuild Credit: Refresh Financial Secured Credit Card$12.95N/A17.99%
HomeTrust Secured Visa Card$0 or $59 for low-interestN/A19.99% (No Annual Fee Card) or 14.90% (Annual Fee Card)
ATB Alberta Secured Credit Card$49N/A19.99%
Capital One Secured Credit Card$59N/A19.8%
Best Big-5 Bank: TD Secured Credit Card$29N/A23.74%

In-Depth Review of the Best Secured Credit Card in Canada for Building or Rebuilding Credit

Our experts have researched and compared secured credit cards in Canada to help you find the best option for your needs.

Whether you’re recovering from personal bankruptcy or new to the world of credit cards and you need to increase your credit score, these Canadian-secured credit cards will come to your rescue.

With our guide, you can confidently choose a secured credit card that will help you achieve your financial goals.

Top 5 Best Secured Credit Cards in Canada

1. Overall Best Cashback Secured Credit Card in Canada → Neo Financial Secured Credit Card

✅ Perks: Unlimited Cashback
✅ Guaranteed & Instant Approval regardless of low or no credit score
✅ Welcome Bonus: Up to 15% cashback on your first purchase at some Neo partners ($25 value)
✅ Annual Fee: $0
✅ Credit Check: N/A

Key Features

  • Average Cashback: 5% cashback1
  • Credit Check: No – there is no hard credit check for the Neo Secured Credit Card
  • Minimum Security Deposit: $50
  • Credit limit: $50 – $10,000. Your credit limit will be equal to your security deposit
  • Flexible Credit Limit: Increase or decrease your credit limit whenever you need
  • Interest Rate / APR: 19.99%-24.99%4
  • Never miss a payment with auto-pay feature

The Neo Financial card isn’t your regular secured credit card. Unlike the usual trend, they reward you with juicy perks and cashback while you freely have access to credit. 

7,000+ loyalty programs in your pocket, with so many ways to earn cashback.

The best part about this card is that you don’t need a huge sum of money to get it. With only $50, you can get this no annual fee secured credit card. Also, feel free to increase the credit limit whenever you need to.

Voted Canada’s Best Cashback card for a reason!2

If your credit score is not good, or you are new to credit or Canada, don’t let it bother you. Neo Financial isn’t going to do a hard credit check.

There are also no over-the-limit or annual fees, and they’ll help you monitor your spending with helpful insight.

Get your security deposit back if you decide to close your account, and you have no outstanding balance or if you move from the Neo secured credit card to the Neo unsecured credit card.

Neo Disclaimers

Card issued by ATB Financial pursuant to a license by Mastercard International Inc. Mastercard® is a registered trademark, and the circle design is a trademark of Mastercard International Inc.

1 Average cashback is based on current offers at select partners. Cashback varies per plan, offer and partner.
2 As awarded on October 19, 2021, by votes cast in the RewardsCanada.ca Canada’s Choice awards.
3 Conditions apply.
4 For Quebec: Monthly Statements; No monthly or annual fees; 21-day grace period; Minimum payment is the higher of $10.00 or 5.0% of total statement balance; Purchase rate (19.99%-24.99%) and cash advance rate (22.99%-26.99%).

Pros

  • Required security deposit is as low as $50 (the lowest in the secured credit card market)
  • Zero monthly and annual fees
  • Track your spending with their insight dashboard
  • Auto-pay so you won’t miss a payment

Cons

  • Your purchase interest rate might be as high as 24.99%, depending on certain factors

2. Best Premium Rewards Secured Credit Card in Canada → Plastk Secured Credit Card

✅ Perks: Premium Rewards
✅ Guaranteed Approval
✅ Welcome Bonus: 5,000 bonus reward points ($20 value) and 0% APR for the first 3 months
✅ Interest Rate: 17.99% (one of the lowest in the secured credit card market)
✅ Credit Check: No

Key Features

  • Interest-Free Grace Period: 3 days interest-free grace period on cash advances and 25 days grace period with no interest on purchases
  • Credit Check: N/A
  • Earn more reward points through Plastk referral program
  • Zero fraud liability
  • Free monthly credit score, powered by Equifax*
  • Annual Fee: $48
  • Maintenance Fee: $6 monthly
  • Foreign Transaction Fee: 3.50%
  • Interest Rate: 17.99 % (one of the lowest in the secured credit card market). The interest rate bumps up to 29.99% if you miss two payments
  • Minimum Security Deposit: $300

If you’re looking for the best secured credit card in Canada to increase your credit score and enjoy premium rewards simultaneously, the Plastk Secured Credit Card is your best bet. 

The newest and best way to build or rebuild your credit and get rewarded for it.

For starters, the card is designed to earn you reward points on all your purchases everywhere Visa is accepted for payment, worldwide. The great thing about earning rewards points with Plastk is that there’s no limit on how much you can earn.

Let’s break it down. Every 2,500 reward points you earn equals $10.

For example, you can use your Plastk card reward points to purchase gadgets from top brands like Apple, LG, Coach, and more.

✔Credit View ✔️Credit Watch ✔Credit Education

You could also consider subscribing to Plastk Sentinel – the best way to monitor, track and review your full credit report (powered by Equifax*).

Knowledge is power when it comes to your credit score. Knowing your credit score is the fastest way to improve it.

Preferred Secured Credit Card of the Vancouver Canucks

Pros

  • Reports to Equifax
  • Earn 1 point for every $1 spent
  • Reward points with various redemption options
  • Book trips and hotels with your points
  • The Plastk Secured Visa* credit card is accepted at hotels and car rentals
  • Track your spending to keep you on budget
  • Instant balance payments via Interac e-transfer

Cons

  • Two missed payments result in an increased interest rate of 29.99%

Here’s my full Plastk Secured Credit Card review if you’d like to know more about this secured credit card.


3. Best Secured Credit Card for Newbies/Beginners to Build or Rebuild Credit in Canada → Refresh Financial Secured Credit Card

UPDATE: Refresh Financial does not offer the Secured Card anymore. We recommend the Neo Secured Card or the Plastk Secured Card instead. Alternatively, check out Refresh Financial Credit Builder Loan.

✅ Guaranteed Approval with no credit check required
✅ Bankruptcy or consumer proposal will not cause you to be declined
✅ No cash advance fee
✅ Interest Rate: 17.99% (the lowest in the secured credit card market)
✅ Credit Check: No
✅ Credit Bureau Reporting: Yes – Equifax & Transunion

Key Features

  • Security Deposit / Credit Limit: $200 – $10,000
  • Annual Fee: $12.95
  • Maintenance Fee: $3 monthly
  • Approval: Guaranteed with a security deposit
  • Welcome Bonus: N/A
  • Credit Check: N/A – No hard credit check is required
  • Interest Rate: 17.99 % 

The Refresh Financial Secured Credit Card was designed with beginners and newbies in mind, and here’s how we know.

Upon signing up, you’ll get access to free credit reports and credit education to enlighten you on how to build and manage your finances. 

The Black Tier experience of the Refresh self-serve dashboard, gives you access to Refresh Financial Intelligence Training (FIT).

Aside from that, there won’t be a credit check. So, you don’t have to drench yourself in panic while you sit by your phone or refresh (pun intended) your email, wondering if your application gets approved. 

More so, you can get a Refresh Financial secured card with as low as a $200 minimum security deposit.

Pros

  • Build your credit score and knowledge of finance with their courses
  • 21-day interest-free grace period
  • Payment reported to both credit bureaus
  • Choose your credit limit with a security deposit

Cons

  • You can’t upgrade to an unsecured credit card

Check out my full Refresh Financial Secured Visa review for more information about this secured credit card.


4. Best No-Fee Secured Visa Credit Card: HomeTrust Secured Visa Card

Key Features

  • Credit Limit: $500 to $10,000
  • Annual Fee: $0 or $59
  • Approval: Guaranteed with a security deposit
  • Welcome Bonus: N/A
  • Credit Check: N/A
  • Interest Rate: 19.99% or 14.90% if you pay a $59 annual fee

The HomeTrust Secured Visa Card is a no-fee secured Visa card that brings a lot to the table.

For starters, you can enjoy a discounted purchase annual interest rate of $14.90%. But there’s a small price for that- an annual fee of $59.

If you don’t have an issue with the annual 19.99% interest rate, feel free to stick with the no-annual-fee option. 

This award-winning secured credit card Canada comes digital wallet ready. Simply add it to Google Pay, Samsung Pay, or Apple Pay. You’ll also enjoy fraud protection, thanks to the zero liability policy. 

Pros

  • The foreign exchange fee is low
  • Zero annual fees
  • Guaranteed approval
  • Fraud protection

Cons

  • Unavailable to residents of Quebec

5. Best Secured Card for Car Rentals: ATB Alberta Secured Credit Card

Key Features

  • Credit Limit: $500 minimum
  • Annual Fee: $49
  • Approval: Guaranteed, If you meet the requirement
  • Welcome Bonus: N/A
  • Interest Rate: 19.99% 

Are you thinking of getting a car rental while building your credit score? The ATB Alberta Secured credit card got a special offer for you. The card avails you a 25% discount off car rentals you get at Avis and Budget locations. 

Note that these locations must participate in the program to enjoy the discount. Beyond that, you’ll enjoy a 0% grace period on the interest rate. 

But it’ll only last for 21 days after a charge is incurred. All you need to get started with this credit card is the $500 minimum security deposit. Of course, you can increase it eventually. 

Pros

  • Juicy discount on car rental
  • 0% interest rate grace period
  • Minimum of $500 security deposit

Cons

  • Limited rewards
  • Only available in the province of Alberta

Additional Two Secured Credit Cards to Build Credit in Canada

6. Best for Insurance: Capital One Secured Credit Card

Key Features

  • Credit Limit: $75 minimum
  • Annual Fee: $59
  • Approval: Guaranteed, If you meet the conditions
  • Welcome Bonus: N/A
  • Interest Rate: 19.80%

This secured credit card from Capital One tops the list for secured cards with an affordable credit limit and insurance benefits. Their array of insurance coverage on your purchases is mind-blowing for a secured credit card.

For starters, it comes with zero liability protection that ensures you don’t bear the consequence of fraud on your card. 

There’s also purchase assurance and price protection coverage.

More so, there is an extended warranty you’ll enjoy on any product you purchase with this card. The best of it all is the $250,000 you’ll get in Common Carrier Travel Accident Insurance. 

Pros

  • Amazing insurance coverage lineup
  • Affordable security deposit
  • Interest premium benefits

Cons

  • No cash back reward

7. Best Bank Secured Credit Card: TD Secured Credit Card, Canada

For those looking to build their credit, the TD secured credit card Canada is a great option.

This card requires a security deposit, which acts as your credit limit. This deposit is 100% refundable if you close your account and there is no balance owed.

With responsible use, you can improve your credit score and qualify for a traditional credit card in the future.

The TD secured credit card is not available online.

To get one, simply visit your nearest TD Bank branch and speak to a banking specialist. They will be able to provide you with all the information you need about the TD secured credit card and help you submit your application.


What is a Secured Credit Card?

A secured credit card is a type of credit card that requires a security deposit in order to obtain and use the card.

The deposit acts as collateral for the credit card issuer and helps to reduce the risk of default. As a result, secured cards are often easier to obtain than unsecured cards, even for people with bad credit.

The security deposit is usually equal to the credit limit on the card, which means that if you deposit $500, you will have a $500 credit limit.

Secured cards are an excellent way to build or rebuild your credit, as they report to the major credit bureaus just like any other credit card. And, as you make on-time payments and keep your balances low, you can eventually qualify for an unsecured card with better terms.

If you’re looking for a secured card in Canada, there are a few things to consider.

  • First, make sure that the card reports to at least one of the major credit bureaus in Canada.
  • Second, look for a card with low fees and a reasonable interest rate.
  • And finally, choose a card that offers some additional benefits, such as rewards or cash back.

With so many options available, it’s easy to find a secured credit card that’s right for you.

What’s the Fuss about Secured Credit Cards?

The fuss about secured credit cards in Canada is that it doesn’t matter if you’re a beginner/newbie in the game of credit scores or trying to bounce back from a financial rut; a secured credit card is the companion you need. 

The best part of this type of card is that your credit score doesn’t matter. You need to meet the unique requirements highlighted by the provider to qualify. Don’t worry; most secured credit card providers won’t check your credit score

You typically need to be a resident of Canada Canada. Most importantly, you’ll need to provide a security deposit to be approved. The security deposit doesn’t need to be too much. It usually ranges from $70 to $10,000. It’s all up to what you can afford. However, you should know that the amount you provide as a security deposit becomes your credit limit automatically. 

Don’t panic; you can always increase the security deposit when you can, depending on the service provider. Secured credit cards help you grow your credit score while you spend. 

But you have to carefully select a secured credit card. The reason is that some card providers offer better perks with the card compared to others. A major perk is that some Canadian secured credit cards give you the chance to upgrade your secured card to an unsecured card. 

This access is unlocked once your credit score hits the score that’s eligible for an unsecured credit card. More so, some grant you delicious travel benefits too.


How Does a Secured Credit Card Work?

To understand how a secured credit card works, it’s important to first understand what a credit card is.

A credit card is simply a loan that is extended to you by a financial institution. When you use a credit card to make a purchase, you are essentially borrowing money from the bank and agreeing to repay that amount, plus interest, over time.

A secured credit card works in much the same way, except that the loan is secured by a deposit that you make upfront.

For example, if you were to open a secured credit card with a $500 limit, you would be required to make a $500 deposit as well.

The deposit acts as collateral for the loan, which means that if you default on your payments, the bank can simply keep your deposit.

Otherwise, a secured credit card functions just like any other credit card and can be used to make purchases or withdraw cash from ATMs.

Just keep in mind that because the loan is secured by your deposit, you will only be able to borrow up to the amount of your deposit. As such, secured credit cards are best suited for those who are looking to build or rebuild their credit.

Whatever card you use, ensure they report to the credit bureau. That’s the only way your credit score will increase.


Secured vs Unsecured Credit Card

There are two main types of credit cards in Canada: secured and unsecured.

Secured cards are backed by a deposit that you make upfront, while unsecured cards are not. Both have their pros and cons, so it’s important to know which type of card is right for you before you apply.

Secured Credit Card

Generally speaking, secured cards are best for people with bad credit or no credit history. Because they involve a deposit, they’re less risky for lenders and, as a result, easier to get approved for.

Unsecured Credit Card

Unsecured cards, on the other hand, tend to have better rewards programs and perks but can be more difficult to qualify for if you have bad or no credit.

So which type of credit card is right for you?

If you’re not sure which type of card is right for you, consider your financial situation and credit history.

If you have good credit, an unsecured card may be the better option. However, if your credit is poor or you don’t have a credit history, a secured card may be your best bet.

Whichever type of card you decide on, be sure to compare offers from multiple issuers before applying to get the best deal.


Difference Between Prepaid and Secured Credit Cards

Prepaid cards are becoming increasingly popular, but secured credit cards are still the better option for people looking to build or improve their credit score.

Both have their own advantages and disadvantages, so it’s important to understand the difference before choosing which one is right for you.

Prepaid Card

Prepaid cards are not tied to a credit score, so they can’t be used to help build your credit.

Instead, they function like a debit card, with the funds you load onto the card being spent as you make purchases. Once the balance on the card is depleted, you’ll need to reload it in order to continue using it.

Secured Credit Card

Secured credit cards, on the other hand, work like any other credit card. You’re borrowing money (your credit limit) and will need to make monthly payments toward your balance.

The security deposit you put down simply acts as a payment guarantee – it doesn’t mean that your card is paid off.

Because secured cards report activity to the credit bureaus, paying off your balance in full every month can help improve your credit score over time. Once you’ve established a good credit history, you may be eligible for an unsecured credit card.

So which type of credit card is right for you?

If you’re looking to build or improve your credit score, a secured card is the way to go. However, if you don’t want to worry about making monthly payments or impacting your credit score, a prepaid card may be a better option.

The Refresh Financial Secured Credit Card is NOT a prepaid card. Therefore, you can use it to build, rebuild, or increase your credit score as it reports to the two credit bureaus in Canada.


How to Choose a Secured Credit Card in Canada

You should consider certain factors before settling for a secured credit card in Canada. We’ll briefly glance over these features so you can choose the best. 

1. Credit Bureau Reporting

The point of applying for a secured credit card is to build or improve your credit score. In that case, you should select a card provider that constantly reports to the credit bureau – Transunion and Equifax. 

Some secured credit card providers do not report to the credit bureau. When that happens, your credit score won’t increase or decrease, and thus, it will not help you build or rebuild your credit. 

So, look out for secured credit card providers who report to at least one or all credit bureaus in Canada.

✔️ Refresh Financial Secured Credit Card reports to both credit bureaus – Transunion and Equifax.

✔️ Plastk Secured Credit Card reports to Equifax.

Get Your Free Equifax Credit Report with Borrowell

2. Ability to Upgrade

Sometimes, switching to unsecured credit cards is easier when the secured credit card provider you use provides that option. So, looking out for the upgrade feature is a great idea before subscribing to a secured credit card.

If you use your Neo secured credit card responsibly by paying off your balance in full each month, you may eventually be eligible for the Neo unsecured credit card.

3. Minimum Security Deposit Required

The security deposit is another feature you should consider. What’s your budget like? 

Can you give up $500 as a security deposit, knowing that you might not get it back if you can’t pay back what you owe over a long period? This would guide you to which card you should opt for.

With the Neo Secured credit card, you only need to put down $50 as a security deposit.

4. Fees

Some of the best-secured credit cards in Canada offer no-fee cards. But they have interest rates and other fee charges. You might want to opt for those if it benefits you in the other aspects.

The best-secured credit card currently in Canada with no fees is the Neo Secured Credit Card. While the best premium rewards card is the Plastk Secured Credit Card.



FAQs: Best Secured Credit Card in Canada

Do Canadian Banks Offer Secured Credit Cards?

Yes, Canadian banks offer secured credit cards.

Is Income Requirement Necessary to Get a Secured Credit Card?

No. Most secured credit cards do not require an income requirement. 

How Does a Secured Credit Card Rebuild Your Credit Score?

A secured credit card rebuilds your credit score through your credit balance management and prompt repayment.
By using your secured credit card and making regular, on-time payments, you can prove to potential lenders that you are a responsible borrower.
Over time, this can help to improve your credit score and make it easier to qualify for loans with better terms and interest rates.

Can I Get a Deposit Refund from a Secured Credit Card?

Generally, it would help if you got a deposit refund when you pay off your balance and close the account or upgrade to an unsecured credit card. Nevertheless, there are rare cases where there’s no refund.
Carefully go through the terms and conditions to confirm the clause about deposit refund.

What Is the Easiest Secured Credit Card to Get in Canada?

The easiest secured credit card to get in Canada is the Plastk Secured Visa Credit Card. Although many secured credit cards do not have rewards, the Plastk Visa card is a secured credit card with premium rewards.


Final Thoughts: Best Secured Credit Cards in Canada

Almost all the credit cards on this list reports to at least one of the credit bureaus in Canada.

With the right secured credit card in your wallet, be rest assured that you are on your way to building or rebuilding your credit score.

Now, the ball is in your court. So go ahead and select any one of your choice that meets your needs and pay the required security deposit, and you’re good to go.


AUTHOR

Charity (Charee) Oisamoje is the founder of TheFinanceKey - TFK. She leads the editorial team, which is comprised of subject-matter experts.

Her professional competencies and expertise make her qualified on this topic. She is an expert at collecting details, verifying facts, and making complex subjects easy to understand.

Backed by Solid Credentials: ✔️MBA in Finance ✔️Canadian Investment Funds (IFIC) Graduate ✔️Masters Degree in International Business ✔️Chartered Professional Accountant (CPA) Candidate ✔️Chartered Insurance Professional (CIP) ✔️BSc Accounting

Learn More >> About Page


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