Best Secured Credit Cards in Canada
A secured credit card is a great tool for building credit history or rebuilding after a bad setback. Use it wisely and keep your account in good standing, and one of Canada’s best credit cards can help strengthen your credit.
The winner is...
Rewards breakdown
Rewards breakdownCashback on groceries.
Cashback on gas & electric vehicle charging.
NerdWallet's take
NerdWallet's takeThis cash-back earning secured card offers 1% back on gas and grocery purchases alongside credit monitoring tools and ATM fee reimbursements. Less appealing is its monthly fee that amounts to near $100 annually. Neo says that you may be able to have the monthly fee waived by maintaining a minimum balance in a Neo Chequing or Neo Savings account, though it doesn’t state what the minimum is. For cash-strapped credit-builders on a budget, the cost of this card could be a dealbreaker. Best for: Anyone building their credit who doesn’t mind paying for some nice-to-have extras.
Pros
- Earns 1% cash back on gas and grocery purchases.
- Credit score monitoring and credit building tools.
Cons
- $7.99 monthly fee.
- Purchase interest rates as high as 29.99%.
Card details
Card details- Guaranteed approval and no credit score required to apply
- International IDs accepted
- 1% cashback on groceries
- 1% cashback on gas & electric vehicle charging
- Average of 5% cashback at 10,000 partner locations nation-wide—on top of the base cashback rates
- Start with a security fund of as little as $50
- Can help builds credit history with consistent, on-time payments
- Track your monthly spending with real-time insights
- Instant cashback that can be redeemed anytime
- Pay your bill instantly with Neo's #1 rated financial app
More Nerdy Perspective
The Neo Secured Mastercard does three things I look for in a secured card really well: It’s accessible — there’s no hard credit check, so approval is as close to guaranteed as you can get. It’s an effective credit-building tool because it reports card activity to both credit bureaus and offers real-time credit data via the Neo app, which can help you stay on top of changes to your credit score. It earns rewards, an uncommon perk among secured cards. As for the cost? You’ll need a security deposit of at least $50 to open an account, and the card costs $7.99 a month.
Runners-up...
Rewards breakdown
Rewards breakdownAsia Miles per $1 spent on Cathay Pacific purchases.
Asia Miles per $1 spent on foreign currency purchases.
Asia Mile per $1 spent on everyday purchases in Canada.
NerdWallet's take
NerdWallet's takeThe Cathay World Elite Mastercard is a strong choice for Cathay Pacific flyers. Cardholders earn 4x Asia Miles on Cathay Pacific flights and 2x on foreign spending, plus priority airport services and discounted lounge access. A 3% foreign transaction fee applies, though — which is slightly higher than the industry standard of 2.5%. Best for: Cathay Pacific loyalists.
Pros
- Extensive travel coverage.
- Priority airport services.
- Discounted airport lounge access for $32 USD per visit.
Cons
- High purchase interest rates of 19.99% to 26.99%.
- $80,000 individual or $150,000 household annual income requirement.
- Not available to Quebec residents.
Card details
Card details- Earn 35,000 Asia Miles upon sign-up and 25,000 additional Asia Miles after spending $5,000 in 90 days.
- Earn 4 Asia Miles per $1 spent on Cathay Pacific purchases & earn 2 Asia Miles on foreign currency purchases. Earn 1 Asia Mile per $1 spent on everyday purchases in Canada.
- Earn an average of 5x the Asia Miles" at thousands of Neo partners, and up to 15x miles" on first-time purchases
- Secured option available with guaranteed approval® - no credit history required
- Experience the world in a whole new way: Access exclusive benefits and make every trip memorable - including access to more than 1,300 airport lounges worldwide', and Mastercard Travel Rewards' while you're abroad.
- Travel worry-free with comprehensive coverage: Protect yourself when you travel with coverage' for emergency medical care, trip cancellation, lost luggage, and more - so you can relax and enjoy your trip.
- Your multi-tool for money: Unlock the power of Neo and manage your card in real-time, track your spending insights", and get proactive alerts and notifications - all from the palm of your hand, with the Neo app.
- Get exclusive membership perks: Online priority check-in, extra baggage redemption, and Cathay Pacific Business class lounge redemption access.
- Save up to 15%* on flights to Asia and beyond: From now until December 31, 2025, enter discount code CXNE0150FF and pay with your Cathay World Elite® Mastercard to enjoy up to 15% OFF* when making your flight booking.
- Once you have earned your Asia Miles, redeem them for the items that matter most to you as a traveler. Choose from airline tickets, hotels and car rentals, to everyday goods such as electronics, gift cards and more.
NerdWallet's take
NerdWallet's takeA simple, no-fee secured card with a fairly standard 19.99% interest rate and no rewards. One notable feature is the card’s broad deposit range ($500 to $10,000). Best for: Budget-conscious credit-builders who don’t carry a balance.
Pros
- No annual fee.
- Low 14.90% interest rate available with $59 annual fee.
- Broad $500 to $10,000 security deposit range.
Cons
- No rewards.
- Not available in Quebec.
Card details
Card details- No annual fee, unless opting for the lower rate version (annual fee of $59 and 14.90% interest).
- $500 minimum security fund deposit required.
- $10,000 maximum security fund deposit.
- 2% foreign transaction fee.
- Protection against fraud through Visa’s Zero Liability Policy.
- Manage your account and billing online.
- Add your Home Trust Secured Visa to your Apple Pay, Google Pay or Samsung Pay digital wallet.
- To be eligible, you cannot currently be in bankruptcy. You must be able to provide security funds and be a Canadian resident of the age of majority in the province or territory where you live. The Home Trust Secured Visa card is not available to Québec residents.
Rewards breakdown
Rewards breakdownPoints per $1 spent at Tim Horton’s restaurants.
Points per $1 spent on groceries, EV charging, gas and transit.
Point per $4 spent on everything else (0.25 points per $1).
NerdWallet's take
NerdWallet's takeThis secured card co-branded by Tim Hortons is sure to entice Timmies enthusiasts who want to skip the credit check. It’s not all double doubles and doughnuts, though. Interest rates can be high and Quebec residents must first apply for the unsecured version, which will trigger a hard credit check. Best for: Timmies lovers who want to build credit and earn rewards.
Pros
- No annual fee.
- 12x points at Tim Horton’s restaurants.
Cons
- Purchase interest rates as high as 26.99%.
- Quebec residents must first apply for the unsecured version and undergo a hard credit check.
Card details
Card details- Earn Tims Rewards Points on everyday purchases with no annual fees.
- The minimum amount you can provide as security funds is $50 and the maximum is $10,000.
- With the Tims Secured Credit Card, you’ll earn points everywhere you shop and get 2 points per $1 on groceries, gas, EV charging, and transit (0.25 points per $1 spent on everything else). Plus, earn 12 points per $1 at Tim Hortons restaurants when you scan for Tims® Rewards.
- Get a $20 digital gift card upon first purchase with a new Tims Mastercard.
- Connect an existing bank account and add a minimum of $50 as security funds.
- Add the card to your Apple Wallet or Google Wallet to start earning points everywhere you shop.
- Turn your Tims Rewards Points into your Tims faves or use them to lower the balance of your current billing cycle—only with a Tims credit card.
- Extend the manufacturer's warranty for most items purchased on your Tims Mastercard for up to one year. Repair, replace or get reimbursed up to $1000 per incident.
- Most items purchased with your Tims Mastercard can be repaired, replaced, or reimbursed up to $1,000 per incident. Protection is valid for 90 days after your purchase.
- Mastercard Zero Liability — protection against unauthorized purchases on your card.
- 24-hour TimBot chat support and live team members available 9 a.m. – 10 p.m. EST.
- Terms and conditions apply.
NerdWallet's take
NerdWallet's takeAs one of the few secured cards with travel coverage, this Capital One offering proves that secured cards can be tools for more than building or establishing credit. That said, you won’t earn rewards, and the ongoing interest rate for non-Quebec residents is extremely high. Best for: Anyone seeking an instant-approval card to build or rehabilitate their credit.
Pros
- No annual fee.
- Has some travel coverage.
Cons
- Doesn’t earn rewards.
- High 29.9% interest rate for non-Quebec residents.
- Maximum credit limit of $2,500.
Card details
Card details- $0 annual fee.
- $75 or $300 minimum security fund deposit is required.
- $2,500 maximum security fund deposit.
- Hard credit checks are made on Capital One Guaranteed Secured Mastercard applications.
- Credit activity, including every payment, is reported to TransUnion and Equifax, the two major consumer credit bureaus in Canada.
- Ability to upgrade to an unsecured credit card.
- Guaranteed approval, as long as you meet eligibility requirements.
- Includes Capital One Price Protection Service, Purchase Assurance, and Extended Warranty coverage that automatically doubles the original manufacturer’s warranty for up to two years on most items.
- Cardholders benefit from Mastercard Global Service, which includes emergency cash advances, and Zero Liability for unauthorized use of the card.
- Access to travel benefits: Common Carrier Travel Accident Insurance (up to $250,000), a Car Rental Collision/Loss Damage Waiver, baggage delay, and travel assistance.
- Preferred rates: 21.90% for purchases and balance transfers, 21.90% for cash advances.
- To be eligible, you must be able to provide security funds and be the age of majority in the province or territory where you live. In addition, you don’t have an existing Capital One account or a pending application for one, haven’t applied for a Capital One account more than once in the last 30 days or had a Capital One account that was not in good standing in the last year.
Rebuild your credit while keeping more cash in your pocket with the Neo Secured Mastercard. Unlock cashback on your everyday essentials - 1% on Groceries, Gas and EV Charging. Plus, earn an additional average of 5% cashback when you shop at our over 10,000 partners. Click Apply Now for details.
Methodology
BACK TO TOPBest Credit Cards in Canada
Compare the best credit cards side-by-side and find a card that will meet your needs with special perks and benefits.
What to know about secured credit cards
A secured credit card works like a regular credit card but requires a security deposit as collateral — instead of relying primarily on your credit score to determine eligibility. You can use the card to build your credit by paying off the balance in full each month and demonstrating responsible spending habits.
Advantages and disadvantages of secured credit cards
Ability to build credit and improve your score.
Easy to get, even for those with no or bad credit.
Some may offer rewards like cash back.
Cash security deposit is required, meaning you won’t get your security deposit funds back until you close the account.
Monthly or annual fees may apply.
High rates of interest may apply.
How to choose the right secured credit card for you
Secured cards are typically aimed at people who cannot qualify for an unsecured credit card, such as students, people with bad credit, or Canadian newcomers who need to build up a credit history from scratch. Here are some things to consider when choosing a secured credit card.
Eligibility
Credit card issuers tend to be much more flexible with their eligibility requirements for a secured card, but that doesn’t mean you’re guaranteed to be approved.
Security deposit minimums: Some cards may have a minimum deposit to apply. Remember, you don’t get this deposit back until you close the account, so make sure you’re comfortable parting with it for a while.
Income requirements: Secured credit cards do not tend to have strict or clearly stated income requirements. If they do, make sure you are confidently within the range before applying.
Age and residency requirements: You generally need to be a Canadian resident who is the age of majority in your territory or province to apply for a secured card.
Credit bureau reporting
One of the big draws of a secured credit card is the ability to build a credit history when you have none. So, it’s important to ensure that the issuer reports payments to at least one of the two main credit bureaus (TransUnion and Equifax).
Affordable deposit
Carefully consider your budget and how much money you can afford to tie up indefinitely as a security deposit. Do you have enough savings in your emergency fund to cover both the security deposit and an unexpected expense, for example?
Low or no fees
Annual fees can vary significantly among issuers, so be sure to check the cost of each card when making your selection. The more affordable the card, the more likely you'll be able to pay off your balance in full and build a healthy score.
Ability to switch to unsecured
A credit card issuer that also offers unsecured cards gives you the flexibility to switch to another type of credit card after you've improved your credit score.
Use our credit card interest calculator to see how much you’ll owe if you don’t pay off your balance.
What Reddit has to say
We know expert recommendations matter — but so do real-life experiences. On Reddit, Canadian users frequently swap credit-building tips, and a few secured cards consistently stand out.
The Capital One Guaranteed Secured Mastercard gets the most love. It’s described as “the easiest to get,” even by those with active consumer proposals or bankruptcies. Some were surprised to be approved for an unsecured card instead — even while “knee-deep in a consumer proposal.” One said the card helped them rebuild to a credit score above 800. However, some drawbacks were flagged, like foreign transaction alerts requiring a text-enabled number and the inability to upgrade without reapplying.
The Secured Neo Mastercard is another oft-mentioned option, and typically praised for “flexibility in moving money in and out” of the deposit, which can be useful when cash flow is tight.
The Home Trust Secured Visa Card is seen as a stable choice that isn’t “tied to a high interest lender.” Users also recommend its low-interest version — helpful “if you’re willing to pay the fee” and want to avoid carrying a high-interest balance.
Other recommendations include the KOHO Prepaid Mastercard — not a secured card, but widely noted for its Credit Building feature. One Redditor said it offers “all the benefits of a credit card with none of the headache or debt,” and helped a family member’s score rise from the low 500s to mid 600s in less than two years. The Secured Tims® Mastercard also comes up, and like Neo and KOHO, doesn’t require a hard credit check.
Our favourite Reddit tip for using secured cards? “Treating them as an extension of your debit card.” Buy something small, pay it off right away, and repeat.
Frequently asked questions
What is an unsecured credit card?
An unsecured credit card, more commonly known as a traditional or regular credit card, is a card that does not require a security deposit for approval. The credit card issuer “trusts” that the cardholder will make regular payments and therefore does not require collateral. This “trust” is primarily based on the cardholder’s credit history and credit score. A good credit score implies the cardholder can repay their debts and handle credit responsibly.
Check your credit score before you apply for an unsecured option to make sure you have a good enough score to qualify.
Are credit cards secured debt?
Secured debt is a type of debt in which the borrower provides some form of collateral (such as cash or a car) to guarantee repayment of the debt. Secured credit cards are a form of secured debt because you pay a cash security deposit as collateral.
What is a secured credit card?
A secured credit card requires the cardholder to provide a cash security deposit to open an account. The card’s credit limit is typically the same as the security deposit. So, for example, if your deposit is $500, you’ll have a $500 credit limit.
The deposit acts as a form of collateral, reducing the risk for the credit card provider. If the secured credit cardholder doesn’t make their payments, the issuer can use the deposit to pay off the debt. This is why secured credit cards tend to be easier to qualify for than unsecured cards, making them ideal for people with poor credit or no credit history.
When used responsibly — paid in full and on time — a secured credit card can build your credit. If your score is high enough, you’ll likely qualify for a traditional, unsecured credit card that does not require a deposit.
Note: To keep your account in good standing, you’ll need to pay at least the required minimum payment each billing cycle. And remember, the security deposit acts as collateral, and won’t pay off charges to the card. The deposit is only used if the cardholder defaults on payments.
How does a secured credit card work?
A secured credit card works similarly to a regular, unsecured credit card.You can use a secured credit card to make purchases and then pay off your balance in full, or make the minimum payment each month. The big difference is that you must provide a cash security deposit, which is equal to your credit limit. If you fail to pay your bill, the issuer uses this money to settle the account.
The issuer usually reports your payments to Canada’s credit bureaus, just like standard credit cards. As long as you use your card responsibly and make your payments on time, your credit score will rise. If boosting your credit score is your goal, make sure your payments are being reported — not all issuers do so.
If you close the account, or upgrade to an unsecured card, your deposit is returned.
What is the security deposit for a secured credit card?
The security deposit for a secured credit card can vary widely depending on the issuer. With few exceptions, most secured credit cards in Canada require a deposit of at least $50.
How do credit limits work with a secured credit card?
Credit limits vary with each provider, but you can start with as little as a $50 security deposit, and limits can reach upward of $10,000.
Each provider may have a different method for increasing your credit limit. As long as it falls within the maximum allowable amount, you should be able to increase your limit if you can provide the security funds.
What are typical secured credit card rates?
Secured credit card interest rates vary — from as low as 11.25% to as high as 25.90%, according to NerdWallet's analysis.
Who offers secured credit cards?
As of this writing, the following institutions offer secured cards:
TD Canada Trust
Home Trust
Tims Financial
Capital One
Neo Financial
Vancity (Vancouver only)
ATB Financial (Alberta only)
Should I pay my secured credit card early?
It’s a good idea to make payments in full and on time each month to avoid interest charges.
While you don’t have to make payments early, it may be a good habit to adopt if you tend to be late or forget to make payments. You may also consider setting up automatic payments or alerts when your balance is due.
How long should I keep a secured credit card?
It’s advisable to keep a secured credit card until you see an improvement in your score and feel confident that you can successfully apply for an unsecured credit card. A credit score of at least 660 will help you qualify for an unsecured card, but as a general rule of thumb, the higher your score, the better your chances of approval.
What happens if I close my secured credit card?
If you cancel your secured card, you’ll get your full security deposit back as long as you don’t have any pending charges or a balance remaining on the card.
What are the alternatives to secured credit cards?
Prepaid cards are a handy way to make purchases without carrying cash. They can also help you curb spending and avoid accumulating debt, since they’re loaded with your own money and do not accrue interest. However, unlike unsecured credit cards, your transactions are not typically reported to credit bureaus. That means prepaid cards can’t help you improve your credit score or establish a credit history.
Student credit cards are available for students who don’t have a credit history, so eligibility requirements are more relaxed. While some student cards are available only to those enrolled in a college or university, most are technically available to anyone.
Credit cards for Canadian newcomers are designed for recent arrivals who don’t yet have a Canadian credit history. Many banks offer unsecured cards through newcomer packages, featuring no annual fees, rewards and travel perks.
What is the application process for a secured credit card?
Some smaller banks and alternative financial institutions that issue dedicated secured credit cards allow prospective cardholders to apply online, and many offer instant or guaranteed approval.
The process is the same as applying for an unsecured credit card. You simply hit the “apply” icon on the website and follow the prompts, such as:
Review the terms and conditions and accept them.
Provide personal information like your name and social insurance number (SIN).
Enter your employment details.
Indicate whether you want to include an authorized user.
Submit your application.
If approved, pay your deposit. The method by which you pay the deposit varies among banks, but may include mailing a cheque or completing a bank transfer.
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