Best Secured Credit Cards in Canada for 2025
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.
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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 $5 a month.
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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 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 Neo Secured Card 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 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 Tim Hortons 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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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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