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.

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.  

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Quick Comparison: Secured Credit Card in Canada

Best Secured Credit Cards in Canada	Annual Fee	Welcome Bonus	Interest Rate
Overall Best No-Fee Card and Unlimited Cashback: Neo Financial Secured Credit Card	$0	15% cash back on purchases	19.99%-24.99%
Best Premium Rewards: Plastk Secured Credit Card	$48	5,000 points and 0% APR for 3 months	17.99 %
Best to Build/Rebuild Credit: Refresh Financial Secured Credit Card	$12.95	N/A	17.99%
HomeTrust Secured Visa Card	$0 or $59 for low-interest	N/A	19.99% (No Annual Fee Card) or 14.90% (Annual Fee Card)
ATB Alberta Secured Credit Card	$49	N/A	19.99%
Capital One Secured Credit Card	$59	N/A	19.8%
Best Big-5 Bank: TD Secured Credit Card	$29	N/A	23.74%

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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: Instant, Unlimited Cashback
✅ Guaranteed and Instant Approval
✅ Welcome Bonus: Exclusive $25 sign-up offer plus earn up to 15% cashback on first-time purchases at over 10,000 Neo partners
✅ Annual Fee: $0
✅ Credit Check: N/A

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Key Features

• Average Cashback: 5% cashback
• 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%
• Never miss a payment with auto-pay feature

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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

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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

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

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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

Not Available

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 % 

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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

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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% 

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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%

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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.

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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 select a secured credit card carefully. 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 (like the Neo Secured Credit Card) give you a 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.

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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.

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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.

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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 scores.

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 Neo 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.

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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.

✔️ Neo Secured Credit Card reports to both credit bureaus – TransUnion.

✔️ 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.

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FAQs: Best Secured Credit Card in Canada

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Final Thoughts: Best Secured Credit Cards in Canada

Almost all the credit cards on this list report 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.

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