Best Credit Cards To Build Credit 2025

Lisa
Author:
Lisa
Lisa Rennie
Senior Contributor at Loans Canada
Lisa has worked as a personal finance writer for over a decade, creating unique content to help educate Canadian consumers. Expertise:
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  • Real estate
  • Mortgage financing
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Priyanka
Reviewed By:
Priyanka
Priyanka Correia, BComm
Senior Editor at Loans Canada
As a senior member of the Loans Canada team, Priyanka Correia is committed to empowering Canadians with the knowledge they need to make smart financial choices.
Expertise:
  • Personal finance
  • Consumer borrowing
  • Consumer banking
  • Debt management
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Updated On: July 17, 2025
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British Columbia Residents: iCash offers payday loans in British Columbia (license number: 67639)

Ontario Residents: Loan amounts and repayment terms are subject to qualification requirements. The maximum allowable cost of borrowing under the payday loan agreement is $14 for every $100 advanced. On a $500 loan of 14 days, the total cost of borrowing is $70, with a total payback amount of $570 and an APR of 365%. On a loan of 62 days, the APR is 82.42%.

Manitoba Residents: To learn more about your rights as a payday loan borrower, contact the Consumer Protection Office at 1-204-945-3800 or 1-800-782-0067 or at www.manitoba.ca/cca/cpo

Nova Scotia Residents: Payday loans are High Cost Loans. The maximum allowable cost of borrowing under the payday loan agreement is 14$ per every 100$ received, which means on a 100$ loan for 14 days, the total cost of borrowing is 14$, with total payback amount of 114$ and an APR of 365.00%.

PEI Residents: Loan amounts and repayment terms are subject to qualification requirements. The maximum allowable cost of borrowing under the payday loan agreement is $14 for every $100 advanced. On a $300 loan of 14 days, the total cost of borrowing is $42, with a total payback amount of $342 and an APR of 365.00%. On a loan of 62 days, the APR is 82.42%.

The Cashback Program and Refer a Friend Program are not available in Manitoba, British Columbia and New Brunswick.

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Have you tried to apply for a credit card but got turned down? It may be because your credit score isn’t up to par. But how are you supposed to build good credit if you’re not given the financial tools to do so? That’s where credit cards to build credit come in, and finding the best credit-building credit cards is a good first step. 

These credit cards are available to Canadians with no credit or low credit scores and are typically secured with a deposit. By using them responsibly, it can help you steadily build a healthy credit score. 


Key Points:

  • Credit building credit cards are designed to help users improve their credit scores by reporting on-time payments to the credit bureaus.
  • They’re easier to qualify for, as good credit scores aren’t typically required.
  • Over time, responsible usage of credit building credit cards can open up opportunities to qualify for traditional unsecured credit cards.

Best Credit Cards To Build Credit In Canada

Annual FeeMinimum Deposit
Secured Neo Mastercard$5/monthly$50
KOHO Card$48 – $177$0 
Home Trust Secured Visa$0 or $59$500
Vancity enviro™ Secured Visa* Card$0$500
Secured Tims Mastercard$0$50

Learn more: Top Secured Credit Cards In Canada


Neo Mastercard

Secured Neo Mastercard

The Secured Neo Mastercard offers the benefits of both a secured and unsecured credit card. It offers users the ability to earn cash back on their everyday purchases while building credit. Approval is guaranteed, as long as you’re able to provide the minimum $50 security deposit. 

There are also no credit checks (except in Quebec) or income requirements, making this card ideal for those with poor credit. Moreover, users can earn 

Secured Neo Mastercard Features

Monthly Fee$5
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$50 – $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 CheckNone

Extra Perks

  • Earn Cashback: With Neo, you’ll earn cash back on all your gas and grocery purchases, plus other purchases like dining and retail purchases. 
  • Build Credit: When you make payments, Neo reports it to both credit bureaus in Canada (TransUnion and Equifax). Moreover, with each payment, you can track how it impacts your credit score through the Neo app.
  • Premium Plan: If you want higher cash back rewards and more perks, you can upgrade your card to the Premium plan. 
  • Neo Perks: If you’re looking for specific perks like travel insurance, you can add Neo’s Travel Perk to your card for a fee. They offer 4 types of perks: Travel, Mind & Body, Food & Drink and Mobile & Personal Protection. 
  • Neo App: For ease-of-use, Neo has a mobile-friendly app available on the App store and Play Store.

KOHO card indigo

KOHO Prepaid Mastercard

When you open a Koho account, you’ll have access to a prepaid Mastercard that you can make regular transactions using the money in your Koho account. Moreover, like a credit card, you can use it to earn cash back. If you want to build credit, you can sign up for Koho’s optional credit building program for an additional fee. 

Koho’s credit-building program provides you with a line of credit where you pay a monthly subscription fee. That payment is reported to one of the credit bureaus in Canada, which helps you build a healthy payment history.

With this option, you’ll enjoy the benefits of a credit card and be able to build credit without the risk of debt. 

KOHO Prepaid Mastercard Features

Monthly Fee– Essential Plan: $4*
– Extra Plan: $12
– Everything Plan: $14.75
*0/month with direct deposit to your account
Interest RateN/A
Minimum Security Deposit$50
Credit LimitN/A
Card Requirements– Must be the age of majority in your province or territory of residence
– Must be a Canadian resident
Credit CheckNone

Extra Perks

  • Multiple plans: Koho offers three plans: Essential, Extra, and Everything. Each comes with a different fee and perks. 
  • Earn Cashback: Depending on the plan you choose you can earn up to 2% cash back on groceries, transportation, food & drinks and up to 0.5% on everything else.
  • Earn Interest: You’ll also earn up to 4% interest on the balance in your Koho account. 
  • Build Credit: When you sign up for Koho’s credit-building program, on-time payments are reported to Equifax. Depending on your Koho plan, you can also enjoy discounts on KOHO’s credit-building program. 
  • Track Your Spending: Budget and keep tabs on your expenditures using the KOHO app.

Home Trust Secured No-Fee Visa

Home Trust Secured Visa

The Home Trust Secured Visa makes it easier to get approved for a credit card with low or no credit, with the option of no annual fee. This makes the card an affordable option for Canadians looking to build their credit score. 

While a credit check is required, the vast majority of applicants for the Home Trust Secured Visa are approved. You can then use the card like any other conventional unsecured credit card and work towards building your credit score with every timely payment you make.

Home Trust Secured Visa Features

Monthly Fee$0 or $59
Interest Rate– Purchase rate: 19.99% with no annual fees, or 14.90% with $59 annual fee
– Cash advance rate: Low-rate option: 19.80%; no annual fee option: 19.99%
Minimum Security Deposit$500
Credit Limit$500 – $10,000
Card Requirements– Must be the age of majority in your province or territory of residence
– Must be a Canadian resident (excluding Quebec)
– Must have a source of income
– Cannot currently be in bankruptcy
Credit CheckYes

Extra Perks

  • Build Good Credit: Payments are reported to the credit bureaus, helping you build a healthy credit history.
  • Fraud Protection: The card comes with a Zero Liability policy to help protect you from fraud.
  • Digital Pay: Add the card to your digital wallet (Google Pay, Samsung Pay and Apple Pay) for the ultimate in convenience when checking out.

Vancity enviro™ Secured Visa card

Vancity enviro™ Secured Visa* Card

The Vancity enviro™ Secured Visa Card* helps you build or repair your credit using a refundable security deposit as your credit limit. It works like a regular credit card and lets you earn Vancity Rewards points, while also supporting environmental initiatives through the enviroFund™ program. To get the card, you’ll first need to open a Jumpstart™ High Interest Savings Account or TFSA and make a minimum deposit of $500. 

The Vancity enviro™ Secured Visa Card* is suitable for newcomers to Canada or those with limited credit history. It comes with no annual fee on select versions, allows you to earn interest on deposits, and can be upgraded as your credit improves.

Vancity enviro™ Secured Visa* Features

Monthly Fee$0 or $395
Interest Rate11.25% or 19.50%
Minimum Security Deposit$500
Credit LimitNot specified
Card Requirements– Be an existing or new Vancity member in good standing
– Be at least 19 years old
– Live in BC
– Make a security deposit equal to the maximum credit limit on the enviro Visa card
Credit CheckNot specified

Extra Perks

  • Carbon Counter™: Estimate your carbon footprint with the Carbon Counter™.
  • Support Environmental Projects: 5% of profits from the card goes towards supporting the Vancity enviroFund™ program each year.
  • Earn Points: Earn Vancity Rewards points with every purchase. 

Secured Tims® Mastercard

Secured Tims Mastercard

The Secured Tims Mastercard is a no-annual-fee credit card designed to help consumers build or repair their credit history. You’ll earn Tims Rewards Points on purchases, with higher earn rates at Tim Hortons, groceries, gas, and transit. 

There’s no hard credit check required (except in Quebec), making it suitable if you have no credit or bad credit. Your credit limit is based on a refundable security deposit starting at $50. You can apply conveniently through the Tim Hortons app, and manage your account with the help of real-time alerts.

Secured Tims Mastercard Features

Monthly Fee$0
Interest Rate– Purchase rate: 20.99%–26.99% (20.99%-24.99% in Quebec)
– Cash advance rate: 22.99%–27.99% (22.99%-24.99% in Quebec)
Minimum Security Deposit$50
Credit Limit$50 – $10,000
Card Requirements– Be the age of majority in your province or territory
– Be a permanent Canadian resident
– Provide security deposit
Credit CheckNo (except in Quebec)

Extra Perks

  • Earn Points: Eran Tims Rewards Points with every purchase, and keep tabs on your points balance in the Tim Hortons app.
  • Mobile Payments: Add your Tims Mastercard to your Apple Wallet or Google Wallet for convenient mobile payments wherever Mastercard is accepted.
  • Notifications: Stay in the know about your transactions and how much you’re being charged thanks to real-time notifications.

Can You Build Credit With A Regular Credit Card?

Yes, just as you can build credit with a secured credit card, you can build credit with a regular unsecured credit card. That said, whether you can use a regular credit card to build credit depends on whether you can qualify for one. 

The type of credit card you’re eligible for will vary based on whether you’re a student, a newcomer, someone with bad credit or low income.

Best Credit Card To Build Credit For A Student

Any one of the above-mentioned cards would be suitable for students, given their ease of approval and low (or no) fees. That said, there are several other credit cards in Canada that are designed with students in mind, like the Scotiabank® Scene+™ Visa* Card.

Scotiabank® Scene+™ Visa* Card

With a minimum income requirement of $12,000, and zero annual fees, this card is affordable and a great option for students with low incomes. Moreover, you’ll earn Scene points on all purchases, which can be redeemed for travel, groceries, credit, gift cards and at Cineplex. 

Learn more: Best Credit Card For Students In Canada 2025

Best Credit Card To Build Credit For A Newcomer

Like students, newcomers to Canada also have hurdles to overcome when it comes to credit history and budgeting. Fortunately, the above card options may be suitable. Otherwise, you can choose from any one of the many credit cards available to newcomers.

Scotia Momentum® No-Fee Visa Card

One stand-out option is the Scotia Momentum® No-Fee Visa Card, which comes with no annual fee and great cashback rewards. You’ll earn 5% cash back on purchases up to $2,000 within the first 3 months. Then, enjoy 1% back on everyday purchases, like gas, groceries, pharmacy items, and recurring bills, and 0.5% on all other purchases.

Best Credit Card To Build Credit When You Have A Low Income

If you’re on a tight budget and don’t earn a substantial income, finding a credit card with no annual fee and generous cash back rewards is key. While any of the above cards might do, one in particular you may also want to consider is the Tangerine Money-Back Credit Card.

Tangerine Money-Back Credit Card

This card comes with no annual fee, and requires a very low annual income of just $12,000, making it accessible for many low-income Canadians. Plus, you can earn 2% cash back in up to 3 categories of your choice, and 0.5% on everything else.


How To Choose The Right Credit Cards To Build Credit?

Considering how many credit cards there are to build credit, it can be difficult to choose just one. But based on certain criteria, you can make that decision a bit easier. 

When shopping for credit cards to build credit, keep the following factors in mind:

  • Does the creditor report payments to the credit bureaus? If your payments aren’t being reported, your credit score will not improve. 
  • How much does the card cost? Find out if the card comes with an annual or monthly fee to ensure it fits within your budget.  
  • What’s the minimum security deposit? Secured credit cards require a security deposit. Make sure you have enough to meet the minimum amount. 
  • Can you earn cash back or points? Find out if the card offers a cash back rewards system. If it does, find out how much you can earn on each dollar you spend. 

Benefits of Using Credit Cards To Build Credit

Using a credit card as a way to build a positive credit history is beneficial in the following ways:

  • You Get Points: Credit cards not only help you build credit, but you’ll also have access to various perks such as cash back or points, travel insurance, extended warranty and other benefits depending on the card.
  • Welcome Bonus: Many credit cards offer welcome bonuses, which can be worth over $1,000 in some cases.
  • Impacts Multiple Credit Scoring Factors: When you use a credit card to build credit, it impacts various common factors used to calculate credit scores, including payment history, credit utilization ratio and credit history. 
  • Various Types Of Cards: There are several types of cards available on the market, each with different eligibility requirements, fees, and benefits. No matter what your credit or finances are like, there’s a card out there for you. 
  • Secured Cards: Secured cards are especially useful for consumers with bad credit or low income. With no credit checks required and low minimum security deposits, approval is almost guaranteed. Moreover, many secured credit cards come with the same benefits of a regular credit card such as cash back, travel insurance and more importantly, the ability to build credit.

Final Thoughts

If you’re looking for a way to establish credit or build it, you can find numerous credit cards to build credit. By using the card responsibly, you can build the credit needed to gain access to more financial tools in the future.


Credit Cards To Build Credit FAQs

Should you apply for a credit building credit card?

If you’re just starting to build credit, it can be tough to develop a credit score that will open the doors to various credit and loan products. Applying for credit building credit cards is a good idea as they are much easier to get approved for compared to conventional credit cards.

What are credit building credit cards?

Credit building credit cards are designed to help consumers with bad or no credit improve their scores through on-time payments. They’re often secured with a deposit, reported to credit bureaus, and may offer card upgrades over time.

Do I really need a good credit score? 

A good credit score can help you in many different aspects of your life. More commonly, it can help you gain access to various credit products at affordable rates. This is particularly important if you ever want to finance a major purchase like a car or a house. Similarly, good credit can also help you rent, get a job, and secure lower insurance premiums. 

What are the best prepaid credit cards in Canada?

Some of the best prepaid credit cards in Canada are the CIBC Air Canada AC conversion Visa Prepaid Card, Canada Post Prepaid Reloadable Visa card, Wealthsimple Cash, and EQ Bank Card.

Neo Credit and Neo Secured Credit cards are issued by Neo Financial™ pursuant to license by Mastercard International Incorporated.

¹When you make payments in full and on time each month.

²Minimum 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.

Lisa Rennie avatar on Loans Canada
Lisa Rennie

Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.

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