A secured credit card requires a refundable security deposit — typically $200–$10,000 — which becomes your credit limit. They’re designed for people who can’t qualify for a regular credit card, including those with no credit history, a discharged bankruptcy, or a low credit score. Used responsibly, a secured card can help rebuild your credit score in 12–24 months.
How Secured Credit Cards Work
- You deposit funds — the deposit is held in a separate account and is fully refundable when you close the card or graduate to an unsecured card
- The deposit = your limit — spend up to your deposit amount; your issuer reports to Equifax and TransUnion just like a regular card
- Pay in full each month — interest rates on secured cards are typically 19.99–22.99%; paying in full avoids all interest charges
- Graduate over time — after 12–24 months of on-time payments, many issuers will return your deposit and convert you to an unsecured card
Who Needs a Secured Card?
- No credit history: newcomers to Canada, young adults, anyone new to the credit system
- Poor credit history: discharged bankruptcy, missed payments, collections
- Declined for unsecured cards: if you’ve been turned down for a standard card, a secured card is the next step
Best Secured Credit Cards
| Card | Annual Fee | Deposit Required | Key Feature |
|---|---|---|---|
| Home Trust Secured Visa | $0 or $59 | $500–$10,000 | No annual fee option; no credit check |
| Neo Secured Mastercard | $0 | $50 minimum | Earn cash back; instant decision; low min. deposit |
| Capital One Guaranteed Secured Mastercard | $59 | $75–$300 | Guaranteed approval; low minimum deposit |
| Capital One Guaranteed Mastercard | $59 | None (guaranteed unsecured) | Guaranteed approval without a deposit |
| Refresh Financial Secured Visa | $48.95 | $200–$10,000 | Credit building focus; includes credit coach |
| Plastk Secured Mastercard | $48 | $300–$10,000 | Earns rewards points while building credit |
| Peoples Trust Secured Mastercard | $89 | $500–$25,000 | High limit potential; major bank backing |
Secured vs. Guaranteed Approval Cards
Not all credit-building cards require a deposit:
- Secured cards hold your deposit as collateral — you get it back when you close or graduate the account
- Guaranteed approval cards (like the Capital One Guaranteed Mastercard) approve anyone regardless of credit history, with a low limit and no deposit — but may have higher fees
What to Avoid
- Prepaid cards do NOT build credit — they don’t report to credit bureaus
- Secured cards with high fees — anything over $100/year is excessive when you’re starting out
- Not paying in full — interest at 19.99–22.99% erases any small rewards and defeats the purpose of credit building
Related Articles
- Best Credit Cards for Newcomers to Canada
- Best Student Credit Cards in Canada
- Best No Annual Fee Credit Cards in Canada
- Understanding Credit Scores in Canada
Card details current as of June 2026. Approval criteria and deposit requirements may change — verify with the issuer before applying. See our Advertiser Disclosure.