A secured credit card requires a refundable cash deposit as collateral. Your credit limit equals your deposit — typically $500–$10,000. Secured cards are the most accessible credit-building tool in Canada, available to applicants with bad credit, no credit history, or discharged bankruptcies.
Best Secured Credit Cards in Canada
| Card | Annual Fee | Min. Deposit | Interest Rate | Best For |
|---|---|---|---|---|
| Home Trust Secured Visa | $0 or $59 | $500 | 19.99% (no-fee) or 14.9% (with fee) | Best overall; no-fee option |
| Capital One Guaranteed Secured Mastercard | $59 | $75 | 19.8% | Guaranteed approval; lowest deposit |
| Neo Secured Mastercard | $0 | $50 | 19.99%–26.99% | Cash back on purchases; fintech |
| Refresh Secured Visa | $12.95/mo | $200 | 17.99% | No credit check required |
| Plastk Secured Visa | $48/yr + $6/mo | $300 | 17.99% | Rewards points on spending |
| Canadian Tire Triangle Secured Mastercard | $0 | $500 | 19.99% | Canadian Tire shoppers |
Best No-Fee Secured Card: Home Trust Secured Visa
The Home Trust Secured Visa is Canada’s most popular secured card. It comes in two versions:
- No annual fee version: 19.99% interest rate — best if you pay in full every month
- $59 annual fee version: 14.9% interest rate — best if you sometimes carry a balance
Minimum deposit is $500, maximum $10,000. Home Trust reports to both Equifax and TransUnion — essential for building your credit history. After 12–18 months of responsible use, you can apply to upgrade to an unsecured card.
Best for Guaranteed Approval: Capital One Secured Mastercard
The Capital One Guaranteed Secured Mastercard is the closest thing to guaranteed credit card approval in Canada — the only requirement is a $75 minimum deposit and a Canadian mailing address. Annual fee is $59. This card is the go-to option for those who have been declined everywhere else, including recent bankruptcies or discharged consumer proposals.
Best for Cash Back: Neo Secured Mastercard
Neo Financial issues a secured Mastercard with cash back at partner merchants — the only secured card in Canada to offer meaningful rewards. Cash back rates vary by merchant; guaranteed minimum 0.5% everywhere. Minimum deposit is $50 — the lowest of any Canadian secured card. Annual fee is $0 (standard) or $4.99/month (Neo+ for enhanced cash back).
How Secured Cards Build Credit
Every secured card from a federally regulated issuer (Visa, Mastercard on secured cards) reports your payment history to Equifax and TransUnion monthly. Building credit requires:
- Use the card regularly — small, manageable purchases each month
- Pay the full balance every month — this is reported as “paid as agreed”
- Keep utilisation below 30% — ideally below 10% of your limit
- Don’t close the account — length of credit history matters
- Apply for unsecured card after 12–18 months — request a credit limit increase or graduation to unsecured
When Does Your Deposit Come Back?
Your deposit is returned when you:
- Close the card account in good standing (no outstanding balance)
- Graduate to an unsecured card (issuer converts the account and returns deposit)
- The issuer’s internal review determines you qualify for deposit return
Home Trust typically reviews accounts after 12 months of good standing. Capital One has a fixed process — contact them to request a review.
Secured vs. Prepaid Cards
| Feature | Secured Credit Card | Prepaid Card |
|---|---|---|
| Reports to credit bureaus | Yes | No |
| Builds credit history | Yes | No |
| Requires deposit | Yes (refundable) | Yes (not always refundable) |
| Interest charged | Yes (if balance carried) | No |
| Best for | Credit building | Budgeting / no credit needed |
Key point: Only secured credit cards build credit. Prepaid cards do not report to Equifax or TransUnion.
Who Should Get a Secured Card?
- New immigrants with no Canadian credit history
- Young Canadians (18–21) starting their credit profile
- Anyone with a bankruptcy or consumer proposal
- Those declined for unsecured cards
- People rebuilding after serious credit events (missed payments, collections)
Related Articles
- Building Credit in Canada: Step-by-Step
- What Credit Score Do You Need for a Credit Card?
- Best Newcomer Credit Cards in Canada
- Best No Annual Fee Credit Cards in Canada
- How Credit Scores Work in Canada
Secured card terms, deposit amounts, and interest rates subject to change. Verify with each issuer before applying. See our Advertiser Disclosure.