The best secured credit cards in Canada for 2025

Featured secured credit cards

Best secured credit cards in Canada

These are the best secured credit cards in Canada, as chosen by MoneySense editors. To make our picks, we used criteria we believe are important to Canadians with no or poor credit, who are the most likely to need a secured credit card. We paid particular attention to annual fees, the interest rates (APRs) on purchases and cash advances, minimum deposit requirements, rewards and eligibility requirements.

Gold: Capital One Guaranteed Secured Mastercard

At a glance: With its secured MasterCard, Capital One guarantees you’ll be approved as long as you’re of the age of majority in your province, you don’t already have a Capital One account, and you can provide security funds of $75 or $300. This card comes with a few extra perks like extended warranty, car rental insurance and some travel benefits. Especially worth noting is that the card comes with price protection: If you buy a new item that goes on sale for a lower price within 60 days, Capital One will pay you the price difference up to $100 per item and $500 per year. This is an incredibly rare perk even among premium cards in Canada.

Silver: Secured Neo Mastercard

At a glance: The Neo Secured Mastercard is one of the few secured cards that offers some appealing extras like rewards, a welcome offer and a low minimum deposit. This card lets you deposit as little as $50, and you can earn an average of 5% cash back on purchases at select partner stores. Neo even promises guaranteed approval as long as you’re a Canadian resident and are the age of majority in your province or territory.

Bronze: Home Trust Secured Visa

At a glance: The Home Trust Secured Visa is a user-friendly card with attractive flexibility. Applicants have the choice of going with an interest rate of 19.99% with no annual fee or opting for a low interest rate of 14.90% and paying a $59 annual fee. Because Home Trust reports your payments to Canada’s credit bureaus, you can establish a credit file and build up your score. Unfortunately, the card is not available to Canadians who live in Quebec or who are currently in bankruptcy.

Another secured card option for Canadians

Secured Neo World Elite Mastercard

At a glance: The Secured Neo World Elite Mastercard offers up to 5% cash back on groceries, 4% on recurring bills, 3% on gas and 1% elsewhere. With a $200 minimum security deposit, it’s a good option for newcomers and self-employed Canadians with a higher-than-average income. Cardholders who deposit and maintain $5,000 to $10,000 into a Neo Everyday account earn rewards at an even higher rate.

What is a secured credit card?

A secured card is a specific type of credit card that requires applicants to make a cash deposit in order to be approved. The experience of using a secured card for everyday purchases is mostly the same as a “regular” credit card, and the deposit requirement makes secured cards extremely attainable and a good option for people who want to build their credit with a credit card but don’t qualify for traditional unsecured credit cards because of bad credit or a lack of credit history.

How does a secured credit card work?

With a secured credit card, you have to pay a deposit upfront in order to be approved. The deposit serves as collateral, so it’s easy to be approved for these cards even if you have a bad credit rating. The spending limit on your secured credit card becomes your credit limit. If you miss your payments, then the issuer may take money from your deposit to cover what you owe, but you cannot use the deposit yourself to make payments on your card. If you decide to close your account or to upgrade to an unsecured card, your deposit is returned. Otherwise, the card works just like a regular unsecured credit card. You can use it to buy things online, in stores or to cover regular monthly bill payments, such as utilities or Internet service. If you carry a balance at the end of the month, you will be charged interest at the stated rate. 

Who should apply for a secured credit card?

Nearly everyone is eligible for a secured credit card. Many even come with guaranteed approval, meaning you only have to meet certain basic eligibility criteria. This makes them a good option for students and young people with no credit history, newcomers and other Canadians who want to build or rebuild their credit rating.

Do secured credit cards build credit?

Yes. In fact, building a better credit rating is the primary value of a secured credit card. Because payment history is such an important factor in determining a credit score, this is an excellent option for people who are new to the country, have no credit or poor credit, or have recently filed for bankruptcy. It is important to remember to be as careful making your credit card payments as you would with any other loan or bill payment. Missed payments can hurt your credit rating more easily than making payments can help it. 

If you make your minimum payment on time every month, it’s possible to develop good credit in as little as a year. Once that happens, you may be able to qualify for an unsecured credit card and get your deposit back. It is good practice to use your secured credit card regularly but to use it sparingly. You want to be sure you can pay off your entire balance each month to avoid paying interest.

Can you increase the credit limit of a secured credit card?

Each credit card provider may have different rules about increasing a credit limit, but you should be able to increase your limit as long as you provide the required deposit amount. Note that you can’t simply make an overpayment on your balance as a way to increase your limit.

Secured vs unsecured credit cards

Here are the primary differences between the two types of credit cards.

	Secured credit card	Unsecured credit card
Requires security deposit	Yes	No
Guaranteed approval	Often, but not always	No
Interest rates on purchases and cash advances	Typically higher than average	Average and sometimes lower
Can help build credit	Yes	Yes
Rewards and perks	Rare	Common, especially for premium cards

Where to get a secured credit card in Canada

You won’t find secured credit cards listed on the websites of most major banks in Canada. In fact, it’s much more common to find smaller financial institutions with secured card options. However, you might still be able to get secured credit if you contact your bank directly. Major institutions also offer other credit-building options to students and newcomers.

Financial institution	Secured credit cards available online	Other credit-building options for students & newcomers
BMO	None	Yes
CIBC	None	Yes
National Bank of Canada	None	Yes
RBC	None	Yes
Scotiabank	None	Yes
TD	None	Yes
Neo Financial	Secured Neo Mastercard Secured Neo World Elite Mastercard	No
Home Trust	Home Trust Secured Visa	No
Capital One	Capital One Guaranteed Secured Mastercard	No
Koho Financial	None	Prepaid credit card with optional credit building feature

More of the best credit cards:

• Best credit cards in Canada
• Best no-fee credit cards
• Best low-interest credit cards
• Best balance transfer credit cards