If you have bad credit and are unable to qualify for a traditional credit card, you can use a secured credit card to help build your credit score. However, choosing the best secured credit card in Canada can be difficult with all the options available. To help you, we’ve curated a list of the best secured credit cards in Canada in 2025.
Key Points:
- A secured credit card is a great option if your credit score is too low to get approved for an unsecured card.
- With timely payments, you can use your secured card to build good credit.
- Some of the best secured credit cards in Canada include Secured Neo Mastercard, Tims Secured Mastercard, Home Trust Secured Visa*, and Vancity enviro™ Secured Visa*.
The Best Secured Credit Cards In Canada
| Annual Fee | Purchase Interest Rates | Min. Deposit | |
 Secured Neo Mastercard | $5/monthly | – 19.99% – 29.99% – QC: 19.99% – 24.99% | $50 |
 Secured Tims® Mastercard | $0 | – 20.99% – 26.99% – QC: 20.99% – 24.99% | $50 |
 Home Trust Secured Visa Card | 0$ or $59 | – 19.99% (no annual fee) – 14.90% (with annual fee) | $500 |
 Vancity enviro™ Secured Visa* card | $0 – $395 | 11.25% or 19.50 % | $500 |
Secured Neo Mastercard
The Secured Neo Mastercard is a unique secured credit card, in that it allows users to earn cashback on all their purchases while at the same time working toward improving their credit. This card is ideal for anyone looking to rebuild their credit, but who is also looking for additional perks and benefits.
Neo Financial is a 100% digital financial institution, which means you can apply for a secured card (or any of their other financial products), make payments, manage your accounts, etc., all online and from the comfort of your home.
Furthermore, approval is guaranteed (must be the age of majority in your province or territory of residence, a Canadian resident, and provide security funds) and there is no credit check required (hard credit check required in QC).
Secured Neo Mastercard Main Features
| Fee | $5/month |
| Interest Rate | – Purchase rate: 19.99% – 29.99% (QC: 19.99% – 24.99%) – Cash advance rate: 22.99% – 31.99% (QC: 22.99% – 25.99%) |
| Minimum Security Deposit | $50 |
| Credit Limit | Up to $10,000 |
| Card Requirements | – Must be the age of majority in your province or territory of residence – Must be a Canadian resident – Must provide security funds |
| Credit Check? | No (except QC) |
Extra Perks
- Earn Cashback: Neo lets you earn cash back on gas, groceries, dining, and retail.
- Add Perks: Neo credit card holders can also customize their cards by adding perks. They are stackable and reward you for spending by boosting cashback offers for different categories. Neo perks are flexible and come with no commitment. You can easily add a perk to your card via the Neo app and cancel it at any time.
- Build Your Credit Score: Each time you make a payment, Neo reports it to both TransUnion and Equifax, helping you grow your credit score. You can even track your progress in real time using the Neo app.
- Mobile App: Easily manage your card, perks, and credit score from one place with the Neo app.
Secured Tims® Mastercard
The Secured Tims Mastercard is a no-annual-fee credit card designed to help consumers build or repair their credit score using a security deposit as collateral. It offers rewards on everyday purchases, including groceries, gas, and Tim Hortons orders. Points may be redeemed for free items or statement credits.
The card doesn’t require a hard credit check (except in Quebec), making it accessible to those with bad credit.
Secured Tims® Mastercard Features
| Fee | $0 |
| Interest Rate | – Purchase rate: 20.99% – 26.99% (QC: 20.99% – 24.99%) – Cash advance rate: 22.99% – 27.99% (QC: 22.99% – 25.99%) |
| Minimum Security Deposit | $50 |
| Credit Limit | Up to $10,000 |
| Card Requirements | – Be the age of majority in your province – Be a Canadian resident |
| Credit Check? | No (except QC) |
Extra Perks
- Earn Rewards: up to 12x points per $1 spent at Tim Hortons locations in Canada, 2x points per $1 on groceries, gas, and transportation, and 1x point per $4 on all other purchases.
- Coverage: Get extended warranty up to $1,000 per incident and purchase protection for 90 days up to $1,000 per incident.
Home Trust Secured Visa* Card
The Home Trust Secured Visa allows consumers to build credit without being charged any annual fees. Shop and pay online with your secured card like you would with a conventional credit card, set your deposit limit (minimum of $500), and only pay interest if you carry a balance. If you are prepared to pay your balance in full every month, this is an ideal card for you.
Home Trust Secured Visa* Features
| Fee | $0 or $59 |
| Interest Rate | – 19.99% APR with no annual fee – 14.90% with an annual fee |
| Minimum Security Deposit | $500 |
| Credit Limit | Up to $10,000 |
| Card Requirements | – Be the age of majority in your province – Be a Canadian resident (excluding QC) – Have a steady source of income – Not currently in bankruptcy |
| Credit Check? | Yes |
Extra Perks
- Strengthen Your Credit Profile: Your payments are reported to major credit bureaus, helping you build a good credit history over time with on-time payments.
- Zero Liability: Have peace of mind knowing you won’t be held responsible for unauthorized transactions on your card.
- Digital Wallet: Tap and go with the digital wallets for quick and convenient payments.
Vancity enviro™ Secured Visa* Card
The Vancity enviro Secured Visa card is a great option for residents of BC who have struggled with financial issues in the past, but are now ready to rebuild their credit. This secured credit card works slightly differently from other secured cards.
To start, you will need to open a Vancity TFSA or high-interest savings account and invest at least $500. Your investment will act as your security, and you’ll be issued a credit card with a limit equal to your investment.
| Fee | $0 – $395 |
| Interest Rate | 11.25% or 19.50% |
| Minimum Security Deposit | $500 |
| Credit Limit | N/A |
| Card Requirements | – Live in BC – Be a Vancity member in good standing – Be at least 19 years old – Make the required security deposit |
| Credit Check? | N/A |
Extra Perks
- Track Your Carbon Footprint: Use the Carbon Counter to measure your carbon footprint and make informed choices.
- Give Back To The Planet: Each year, 5% of the card’s profits help fund environmental initiatives through the Vancity enviroFund™.
- Earn When Spending: Collect Vancity Rewards points with every purchase, and turn everyday spending into rewards.
Looking for the best credit card options?
What Is A Secured Credit Card?
Secured credit cards require you to make a security deposit, so you’re basically spending your own money.
It sounds a bit like a debit card, but a secured credit card can do a lot more for you; namely, help you to build credit. With every timely payment that you make, your creditor will report your activity to the credit bureaus, which may help build your credit. Over time, your credit may be high enough to upgrade yourself to an unsecured credit card.
How Does A Secured Credit Card Work?
Also referred to as a guaranteed credit card, a secured credit card requires a cash deposit to use. The cash deposit you provide generally becomes the credit card’s limit. You can then use your card to make purchases, just as you would a regular credit card. You will be able to make purchases in-store, online, through payment processing services, and use it to pay bills.
Do note that in the event you default on your payment, the credit card issuer can use your security deposit to repay the owed balance. However, if you keep up with your bill payments and then cancel your card after some time, your security deposit will be returned to you.
The Best Secured Credit Card In Canada: Advantages And Disadvantages
All financial products have corresponding pros and cons. Before getting a secured credit card, it’s important to understand all of the advantages and disadvantages so you know what you’re getting yourself into.
Advantages
The following perks come with using a secured credit card:
- Build Good Credit: If you have no credit history or a bad credit score, a secured credit card is one of the easiest credit products to qualify for. With it, you can use it to help build or rebuild your credit, as long as you make payments on time and in full.
- Introduction To Credit Use: If you’re new to credit entirely, a secured credit card is a great introduction to what it’s all about. It can help you prepare for larger credit commitments in the future.
- Minimal Requirements: To qualify for a secured credit card, you need to be the age of majority in your province or territory and have the funds available for the deposit – that’s all. Generally, no credit checks or income verification is required and approval is instant.
- Versatile Purchase Options: With a secured credit card, you can make purchases online, in-store, through payment processing services, and more.
Disadvantages
Consider the following potential downsides to secured credit cards before applying:
- Upfront Deposit Required: You’ll need to provide a cash deposit, which acts as your credit limit. That money is tied up and usually doesn’t earn interest.
- Low Credit Limits: Compared to traditional unsecured credit cards, the credit limit on your secured card may be much lower, limiting your spending power.
- Doesn’t Fix Bad Financial Habits: If you’re getting a secured credit card to rebuild credit, the card itself won’t fix your bad habits. You still need to work on your spending habits, which can be tough.
When Should You Use A Secured Credit Card?
A secured credit card can be useful in the following scenarios:
- To Build A Credit Profile: If you have no credit because you’re young or are a newcomer to Canada, you can use a secured credit card to establish a positive credit history.
- Repair Credit: If you have credit but your credit score is low due to poor financial habits, you can use a secured credit card to get back on track and give your score a boost.
- Alternative To Regular Credit Cards: If you’re having trouble obtaining a traditional unsecured credit card, a secured card can be a viable alternative.
Secured Vs. Prepaid Cards
There are key differences between prepaid credit cards and secured cards:
| Prepaid Cards | Secured Cards | |
| Purchases | You’re using your own money. Prepaid cards are loaded with your own money that you can later use to make purchases. | You’re borrowing money from your credit card provider, which you repay at a later date. |
| Credit Score | Payments are not recorded to the credit bureaus because you’re not borrowing money that must be repaid. | Payments are reported to the credit bureaus, which can help build your credit. |
Learn more: Secured Credit Card vs. Prepaid Credit Card
How To Pick The Right Secured Credit Card
There are many secured credit cards out there, so how do you choose which one is best for you? Here are a few things to consider when picking a secured credit card.
- Credit Reporting: They report to credit bureaus to help you build credit.
- Low Minimum Deposits: You can afford the secured deposit minimum.
- Credit Limit Increases: There is an option to increase your credit limit down the line.
- Upgrade to Regular Cards: There are unsecured credit card options you can upgrade to when the time is right.
- Low Fees: Annual fees are low, saving you money.
- Low Interest: Annual interest rate is competitive, keeping costs low on balances.
- Earn Rewards: Points can be earned on expenditures.
How To Get The Most Value From A Secured Credit Card
Secured credit cards are powerful tools to help both establish and improve credit, but only when used responsibly. To make the most out of your secured credit card, consider the following:
- Only use the card for a handful of small purchases every month.
- Make your payments in full every month before the due date. This will help you build your credit score and avoid paying interest.
- Keep tabs on your credit score every so often. If it has increased quite a bit, ask your creditor about an upgrade to an unsecured credit card.
How To Switch From A Secured To An Unsecured Credit Card
Eventually, you may be able to make the leap to an unsecured credit card after you’ve been diligent with your bill payments and have built up your credit score.
To upgrade, you can do one of the following:
- Upgrade With Your Current Creditor: Reach out to your existing credit card provider and ask if they would be willing to approve you for an unsecured card based on your payment history.
- Apply With A New Creditor: You can also explore other credit card issuers to get an unsecured credit card. When comparing options, be sure to consider interest rates, credit limits, annual fees, penalties, and perks.
| Note: Make sure you meet the required credit score and income requirements before applying to avoid unnecessary rejections. Also, make sure to understand that closing your secured credit card could affect your credit score, because it will lower your credit history length, which is a key factor in your credit score calculation. |
Learn more: Switching From a Secured Credit Card to a Regular Credit Card
Final Thoughts
Regardless of your financial situation, secured credit cards can help you build or rebuild credit and are a great introduction to credit in general. While there may be annual fees and interest rates to consider, secured cards offer a way to establish and improve your financial habits and secure a better financial future.
Secured Credit Card FAQs
Can my secured credit card application be rejected?
Can a secured credit card affect my credit score?
How can a secured credit card help me?
Neo Credit and Neo Secured Credit cards are issued by Neo Financial™ pursuant to license by Mastercard International Incorporated.
¹Minimum balance in a Neo Everyday account required to earn the highest rate. Cashback earn subject to monthly maximum spend limits. Cashback may be limited and varies by perks, offer, and partner. There may be monthly limits for boosted cashback offers.
²When you make payments in full and on time each month.
