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Like other financial products, traditional unsecured credit cards require that you meet certain criteria, including having a healthy credit score. After all, the creditor is letting you spend money that’s not really yours, and a good credit score will give them some peace of mind knowing that you’re good for the money and will make your payments as they come due.

But what if you have bad credit? Or what if you have no credit at all? What can you do to build your credit while still being able to use a credit card?

That’s where secured credit cards come into the picture. Unlike unsecured credit cards that allow you to spend up to a certain credit limit of money that’s not yours, secured credit cards require you to make a security deposit before you start spending. So in essence, you’re 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, you can slowly and steadily build credit, since most secured credit cards report your activity to the credit bureaus. Over time, responsible payment activity you can give your credit score the boost it needs to finally be eligible to upgrade yourself to an unsecured credit card. 

If you have bad credit or no credit, you may want to consider getting yourself a secured credit card, and we’ve rounded up the best ones for Canadians.

The Top Secured Credit Cards In Canada

Annual FeePurchase RateMin. Deposit
Neo Secured Credit$0–19.99% – 26.99%
– QC: 19.99% – 24.99%
Home Trust Secured Visa Card0$ or $59– 19.99% (no annual fee)
– 14.9% (with annual fee)
Vancity enviro™ Secured Visa* card$0 – $39511.25% – 19.50%$500
TD Cash Secured Credit Card$2927.74% variable APR$300
Capital One Guaranteed Secured Mastercard$5919.8%$75 or $300
No-Fee Scotiabank Value Visa$016.99%$500

You’ve made it this far along which must mean you’re interested in getting a Canadian secured credit card. Not all secured credit cards were made equal, below are the top five secured credit cards in Canada along with what you can expect when applying for and using the card.

neo financial credit card

Neo Secured Credit

  • Annual Fee: $0
  • Purchase Rate:
    • 19.99% – 26.99%
    • QC: 19.99% – 24.99%
  • Minimum Security Deposit: $50
  • Maximum Security Deposit: $10,000

Neo Card Secured Credit 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.

Neo Secured Credit users earn enormous bonuses – like up to 15%1 cashback on first-time purchases from Neo partners – as well as an average of 5%1 cashback at Neo partners. Users can easily adjust their credit limit, and there is no annual fee. 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, two features that credit-constrained individuals will appreciate.

$25 Welcome Bonus

Neo is offering new customers a $25 welcome bonus, sign up by clicking the button below and receive your $25.

Neo Credit Perks

Neo Credit holders can customize their cards by adding perks. Neo perks 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.

Everyday Essential Perks 

Valued at over $170 a year, Everyday Essentials perks can be added to your Neo Credit card for a low fee of $8.99 a month. With it, users can earn 1.5x more cash back when they shop at participating grocery stores and gas stations.

  • 1.5x more cashback at grocery and wholesale stores like Costco and Walmart
  • 1.5x more cashback at specialty food and liquor store partners
  • 1.5x more cashback at gas station partners
  • Access to exclusive offers from grocery stores and gas stations 
  • Have your card balance covered with life insurance protection
Travel Perks 

Neo Travel perks cost $4.99 a month and have a value of over $360 a year. Users who travel regularly will benefit from the added perks.

  • 1.5x cashback boost at all airline, hotel, and car rental travel partners
  • 2% cashback on all foreign transactions
  • Comprehensive travel insurance
  • Priority Pass airport lounge access 
Premium Access Perks 

Premium Access perks is a great option for all Neo Credit holders, as the price tag is so affordable at $0.99 a month with a value of over $100 a year. 

  • Up to 20% cashback on first-time purchases
  • Exclusive monthly cashback bonus offers
  • Priority phone line with customer support
  • Purchase protection with extended warranty
Home Trust Secured No-Fee Visa

Home Trust Secured Visa Card

  • Annual Fee: $0 or $59
  • Annual interest rate: 19.99% APR with no annual fee, 14.9% with an annual fee
  • Minimum credit limit: $500
  • Maximum credit limit: $10,000
  • Insures eligible items for 90 days after purchase if damaged or stolen
  • Credit check required

The Home Trust Secured No-Fee Visa allows consumers to build credit without being charged any annual fees. Approval isn’t guaranteed, though approval rates are pretty high at about 95%. Shop and pay online with your secured card much like you would with a conventional credit card. Set your own 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. There is no annual fee if you agree to a higher interest rate. Although, the interest rate will not impact you so long as you make payments on time and in full. If you don’t intend to make full, timely payments every month, you’re a revolving credit card user, then the annual fee with lower interest is the best option with this card. The paid version of this credit card has an annual fee of $59 (or $5 paid monthly). The fee is offset by a lower APR of 14.99% versus the no-fee card’s APR of 19.99%.

Vancity enviro Secured Visa Card

Vancity enviro™ Secured Visa* card

  • Annual Fee: $0 – $395
  • Interest Rate: 11.25% or 19.50%
  • Minimum Deposit: $500

The Vancity secured credit card is a great option for residents of British Columbia who have struggled with financial issues in the past but are now back on track and ready to rebuild their credit. This secured credit card works slightly different than 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. Another benefit is that you’ll be able to earn interest on the security amount because it’s been invested. 

TD Cash Secured Credit Card

TD Cash Secured Credit Card

  • Annual Fee: $29
  • Annual interest rate: 27.74% variable APR
  • Minimum credit limit: $300
  • Earn 1% cash back on eligible purchases
  • No limits with accounts in good standing
  • Redeem rewards for cash back and gift cards

The TD Cash Secured Credit Card is great for building or repairing your credit while also giving you the benefit of earning cash back on all your expenditures. You can use it like any other card to make purchases both in-person and online and earn rewards. If you use the card wisely, not only will you be improving your credit score, but you‘ll also have the ability to upgrade to an unsecured card.

The TD secured credit card requires a deposit upfront which then becomes the credit limit. There is an annual fee and high interest, but there are other unique benefits to using this card. So long as you manage the card successfully by making payments on time and in full for seven continuous months, you will become eligible for an unsecured credit card with TD. This card will definitely help you along the path to improved credit and personal finances.

Capital One Guaranteed Secured Mastercard

Capital One Guaranteed Secured Mastercard

  • Minimum Deposit: $75
  • Credit limit: $300
  • Guaranteed approval
  • Annual interest rate: 19.8% APR
  • Annual fee: $59
  • Increase credit limit up to $2,500
  • Emergency card replacement if your card is lost or stolen
  • Emergency cash advance
  • 24/7 telephone access 

The Capital One Guaranteed Secured MasterCard is a great option for Canadians who are just starting to build their credit or are in the process of repairing it. Approval is guaranteed, and the card is supported by Mastercard, so you can use it anywhere that MasterCard is accepted (which is just about everywhere). You’ll also be protected against credit card fraud thanks to the card’s built-in liability protection. The Capital One Guaranteed credit card also has one of the lowest minimum deposits on the market making it easier to commit to. However, the low minimum deposit is offset by the annual fee and high-interest rate. The annual fee is unavoidable, unfortunately, but as long as you always pay off your full balance every month, you can dodge any interest charges.

Need help choosing the right credit card for your needs? Check out this article

No-Fee Scotiabank Value Visa

No-Fee Scotiabank Value Visa

  • Annual fee: $0
  • Annual interest rate: 16.99%
  • Minimum credit limit: $500 
  • 25% discount as participating Budget or Avis locations
  • Optional protection in the event of job loss, strike, disability, illness, or death

Start building your credit without having to pay any annual fees with the No-Fee Scotiabank Value Visa. Right now, you can snag an introductory interest rate of only 3.99% on balance transfers for the first 6 months after getting the card (then pay 16.99% after that). The card also offers as much as 25% discounts when you pay for a car rental using your card at eligible Budget or Avis car rental locations.

How Does A Secured Credit Card Work?

A secured credit card requires a cash deposit to use. Secured credit cards are also referred to as guaranteed credit cards. 

Typically, the cash deposit becomes the credit card’s limit. Although it depends on the credit card provider, some will require a higher cash deposit for a lower credit limit. Secured credit cards are designed for higher-risk borrowers which is why a deposit is required. In the event that the credit card user defaults, the credit card issuer will keep the deposit to repay the owed balance. 

Other than the fact that security is required, a secured credit card is the exact same as 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 you know the difference between a secured credit card and a prepaid credit card? Find out here.

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. Below is a list of all the advantages and disadvantages of secured credit cards. 


  • Build or Rebuild Credit. If you have no credit history or poor credit, a secured credit card is one of the easiest ways to build or rebuild credit. So long as you make payments on time and in full, you will be amazed at how quickly your credit improves.
  • 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.
  • Little to No 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.
  • Versatile Purchase Options. You might be thinking, why go through the hassle of getting a secured credit card if I already have the cash available for use? Cash is a limiting payment option these days. With a secured credit card, you can make purchases online, in-store, through payment processing services, and more.


  • High Interest and More Fees. Most secured credit card users are perceived to be a higher risk in the eyes of lenders. For this reason, interest rates tend to be higher and more fees are applicable. 
  • 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.
  • Can’t Access Deposited Funds. Once the cash deposit has been given to the credit card issuer, you won’t be able to access the funds until the end of the card’s term. Be sure that you don’t require the cash for anything else since it will be tied up for quite some time.

Check out these 8 secured credit card myths, click here.

When Should You Use A Secured Credit Card?

If you’ve never heard of a secured credit card, you might be wondering what instances where using one would be favourable. Secured credit cards actually have many uses and purposes compared to what you might initially think. A list of common secured credit card uses follows below. 

  • Build credit history if none exists
  • Rebuild credit if credit is currently poor
  • Alternative to regular credit cards if having trouble obtaining one
  • Use to make an anonymous or one-time purchase
  • Recently moved to Canada

Secured vs. Prepaid

The major key difference between a prepaid credit card and a secured credit card is where the money comes from. 


  • When you make purchases using a secured credit card, you are borrowing money from your credit card provider, which you repay at a later date. 
  • When you make a purchase using a prepaid credit card, you are using your own money. Prepaid cards are loaded with your own money that you can later use to make purchases.  

Credit Score

  • When you make a purchase using a secured credit card, the payments are reported to the credit bureaus, which can help build your credit. 
  • When you make a purchase using your prepaid credit card, it is not recorded to the credit bureaus because you are not borrowing money that must be repaid. It is simply a tool that allows you to manage your spending and make purchases.

How To Pick The Right Secured Credit Card

There are a number of 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.

  • They report to credit bureaus to help you build credit
  • You can afford the secured deposit minimum 
  • There is an option to increase your credit limit down the line
  • There are unsecured credit card options you can upgrade to when the time is right
  • Annual fees are low
  • Annual interest rate is competitive
  • Rewards or 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.

Secured Credit Card FAQs

Can my secured credit card application be rejected? 

It may come up as a surprise, but you can get denied for a secured credit card. Despite, providing a deposit to your lender for security, certain factors can cause your lender to deny your application for a secured credit card. Bankruptcies, multiple missed payments, accounts in collections, etc. can cause your application to be denied by some lenders. If you are unsure as to why your lender has rejected you, you have the legal right to ask for an explanation. It is important to ask, as it can provide you with direction on what you should be trying to improve. 

Can a secured credit card affect my credit score?

Getting a credit card when you have really bad credit can be extremely difficult. That’s where a secured credit card comes in. It is a powerful tool that is designed to help borrowers with poor credit to rebuild their credit. Every payment you make is reported to the credit bureaus, which in time helps you build your credit enough to get an unsecured credit card. It can take as little as a year before you can reap the benefits of an unsecured credit card such as the low-interest rate, lower fees, and reward points

How can a secured credit card help me?

If you have low or no credit and are unable to get approved for a traditional unsecured credit card, then you may have to resort to a secured credit card. A secured credit card gives you the chance to either build your credit score from the ground up if you’re just starting out, or it can help you repair a bad credit score after a history of poor financial behaviour. If you use it responsibly, not only can you build up a good credit score, but you’ll open up more opportunities to secure other financial products, including mortgages and personal loans. 

Secure A Better Financial Future

Regardless of your financial situation, secured credit cards can help you build or rebuild credit and are a great introduction to credit in general. Of course, there are annual fees and interest rates to consider along with establishing and improving financial habits. Secured credit cards are simply an excellent tool to secure a better financial future.

Card issued by ATB Financial pursuant to license by Mastercard International Inc.

1Average based on current offers at select partners. Cashback varies per plan, offer and partner.

Veronica Ott avatar on Loans Canada
Veronica Ott

Veronica is a writer who specializes in creating unique and educational personal finance content. She has extensive experience writing blog posts for companies in the financial sector. Veronica's background is in accounting as she graduated from Western University in 2017 with a degree in accounting. She is passionate about using her accounting expertise to help others with their personal finance questions and issues and enjoys using her writing to educate Canadian readers. When Veronica is not writing, she enjoys film, reading, travelling, going to the gym, and listening to music.

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