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Best Secured Credit Cards in Canada

Best secured credit cards in Canada

Tyler Wade
Cory Santos

Fact checked by Amy Tokic

Updated Nov 12, 2025

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3 top secured credit cards in Canada

Getting a secured credit card can be a lifeline for anyone with bad credit or no credit history. Here's our list of the best secured cards in Canada so you can start building credit today.

Secured credit cards are an excellent tool for building or repairing credit. When used responsibly, they help establish good credit habits, control spending and improve financial management skills. To support your journey to financial independence, we’ve compiled the best secured credit cards in Canada. We'll help you assess crucial factors like interest rates, security deposits and additional advantages. 

  • Why you can trust Money.ca's best secured credit cards in Canada list

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    Money.ca rates all credit cards on a numeric scale of 1 to 5 stars, with 1 being the lowest and 5 the highest rating, respectively. Money.ca’s proprietary scoring formulas break down the confusing language, complex points, rewards and earn rates to give you the real data that caters to your needs first, not ours.

    Our partnerships have no impact on our ratings, which are solely determined by the merits of each card. To learn more about how we researched and ranked these cards, read our full credit card review methodology. We used it to review over 140 cards to create our best credit cards Canada list, and to power our new credit card comparison tool.

🏆Gold: Capital One Guaranteed Secured Mastercard

Capital One Guaranteed Secured Mastercard®

2.1

Review
On Capital One's Secure Site

Get this card if you...

  • are looking to improve your credit score
  • want a low security deposit card
  • value purchase protection and extended warranty coverage

The Capital One Guaranteed Secured Mastercard® might not be the most famous card on the market, but it’s an exceptional secured card designed to help Canadians build (or rebuild) their credit score:

  • No annual fee: The Capital One Secured Mastercard charges no annual fee — making it one of the few secured options in Canada to do so. We recommend this card as the best overall option for Canadians looking to establish their credit history without unnecessary costs
  • Low minimum security deposit: The card requires a $75 minimum security deposit. This minimum is great as it’s a significantly lower barrier to entry, making it more accessible than competitors that require $500 or more.
  • Digital-first banking experience: Capital One Canada operates as a digital bank, providing easy account management and accessibility across Canada through their user-friendly mobile app
  • Peace of mind with $0 Fraud Liability: You won't be responsible for unauthorized charges, giving you added security while building credit

Capital One is not responsible for the content on this site including any editorials or reviews. Please click on the Apply now link for the most up to date product information.

🥈 Silver: Home Trust Secured Visa*

Home Trust Secured Visa*

3.0

Review
On Home Trust's Secure Site

Get this card if you...

  • are looking to improve your credit
  • want a secured card with a higher limit
  • want to take advantage of an interest-free grace period

The Home Trust Secured Visa is another impressive option to consider. We like the Home Trust card because of its low foreign transaction fee of 2.5%. That's not exceptional but it's significantly lower than the 3% you'll find with many secured cards.

  • No annual fee option: Like the Capital One Card, Home Trust offers a fee-free secured card, making it budget-friendly for those building credit
  • Less established presence: Home Trust has a smaller footprint in Canada compared to Capital One, which means potentially fewer customer service options and less brand recognition
  • Solid credit-building alternative: Despite narrowly missing the top spot, this card remains a worthy contender for those who prefer a Visa over a Mastercard
  • Steep minimum deposit requirement: What really holds the Home Trust Secured Card back is the steep $500 minimum deposit requirement. But while this is substantially higher than Capital One's $75 minimum, it's still reasonable compared to some competitors

🥉 Bronze: Neo Secured Mastercard

Neo Secured Mastercard

2.3

Review
On Neo's Secure Site

Get this card if you...

  • have a low credit score
  • want to improve your credit score
  • want to earn cash back on everyday purchases

The Neo Secured Mastercard is a great option for those looking to establish a credit history for the first time in Canada.

  • Charges an annual fee: Unlike our top two picks, Neo charges an annual fee of $96, which is why it ranks third despite some attractive features
  • Low minimum deposit: Neo offers the lowest minimum security deposit of our top three, at just $50. making initial access easier for those with limited funds
  • Earn cash back on gas or groceries: Unlike many secured cards, Neo rewards you for everyday spending in key categories, including 1% back on groceries.
  • Tiered rewards system: You can earn up to 1% back based on your Neo account balance, but as we recommend for anyone new to credit, building a $10,000 account balance is unlikely in the early stages of credit building
  • Digital-first experience: Like Capital One, Neo offers a modern banking experience through its app, making account management straightforward

It's worth noting that cash back is capped after $6,000 per year on groceries, $10,000 per year on gas and $30,000 per year on everything else.

Disclosures:

  • Neo Credit and Neo Secured Credit cards are issued by Neo Financial™ pursuant to license by Mastercard International Incorporated. 

Best secured credit card for rewards

Secured Tims® Mastercard

2.3

Review

Get this card if you...

  • want to build your credit history
  • want to avoid paying an annual fee
  • earn more rewards at Tim Hortons

The Tims Secured Mastercard is another secured card option from Neo Financial. 

  • Earn while building credit: Collect Tims Rewards Points on every purchase, with accelerated earning at Tim Hortons locations
  • Low minimum security deposit: Requires just $50 to get started, significantly lower than competitors like the Home Trust Secured Visa which requires $500
  • No hard credit check required: Unlike most credit cards, you can apply without impacting your credit score through a hard inquiry (except for Quebec residents)
  • Purchase protection included: Comes with 90 days of purchase protection—a premium feature rarely found on secured credit cards
  • Welcome bonus: Get a $20 digital gift card upon first purchase with a new Tims Mastercard.† Offer valid through June 30, 2025.
  • Big rewards at Tims: Earn 12 points per $1 at Tim Hortons restaurants when you scan for Tims Rewards

Disclosures:

  • Conditions Apply

    The Tims® Mastercard is issued by Neo Financial™ pursuant to license by Mastercard International Incorporated.

What is a secured credit card?

A secured credit card is the perfect financial tool for Canadians with no credit history or those rebuilding after financial setbacks. We recommend these cards as an excellent starting point for establishing credit.

Unlike regular credit cards, secured cards require a security deposit that serves as collateral. This deposit typically equals your credit limit—deposit $500, get a $500 limit. The good news? This deposit is fully refundable when you close your account in good standing.

Think of a secured card as credit training wheels. You get all the convenience of a regular credit card while proving to lenders you can manage credit responsibly. Your payment history gets reported to credit bureaus, helping you build a positive credit profile over time.

Pros and cons of secured cards

  • Credit building: Secured cards report to all three major credit bureaus, making them an excellent tool for establishing or rebuilding credit history when other options aren't available
  • Reduced approval requirements: The security deposit significantly reduces the lender's risk, making these cards accessible to those with poor credit or no credit history
  • Refundable deposit: Your security deposit, which acts as collateral and the credit line, is fully refundable when you close the account
  • Security deposit required: You must provide an upfront cash deposit, typically $200-$500, which serves as your credit limit and may be difficult for cash-strapped individuals
  • Fewer perks: Secured cards typically lack perks like rewards or credits
  • Higher fees: Secured cards often charge higher interest rates (typically 20-25%) and may include annual fees, application fees, or monthly maintenance charges

Why do you need a secured card?

  • No credit history: A secured card is your entry point to the credit world if you're new to Canada or have never had credit products before.
  • Credit rebuilding: We recommend secured cards if you've experienced bankruptcy, consumer proposal, or missed payments that damaged your credit score.
  • Limited income: Traditional credit cards often require minimum income thresholds that secured options don't.
  • Guaranteed approval: Since your deposit backs the credit limit, approval is nearly guaranteed regardless of your credit situation.
  • Building financial discipline: The fixed limit helps establish responsible spending habits without the risk of accumulating unmanageable debt.
  • Access to online purchases: Secured cards provide the convenience of online shopping and bill payments just like regular credit cards.
  • Credit bureau reporting: Your responsible payment history gets reported to TransUnion and Equifax, steadily improving your credit profile.

How to apply for a secured credit card in 8 easy steps

Applying for a secured credit card in Canada typically involves the following steps:

  1. 1 Research and compare: Start by researching different secured credit cards. We’ve listed the best ones above, many banks don’t currently offer secured cards (see more below). Compare their features, fees, interest rates and benefits. Use online resources, user reviews and sites such as money.ca to gather information.
  2. 2 Check eligibility: Ensure you meet the eligibility criteria for the card you're interested in. This usually includes being the age of majority in your province, having a Canadian address and sometimes specific income or employment requirements.
  3. 3 Gather necessary documents: You’ll need proof of identity (like a driver's license or passport), proof of address (like a utility bill) and financial information (like bank statements or pay stubs).
  4. 4 Fill out the application: Apply online (just click on the apply buttons above), or by phone, or in-person at a bank branch, depending on the issuer's process. Fill in all required information accurately to avoid delays.
  5. 5 Submit deposit: If approved, you'll need to provide the security deposit, which sets your credit limit. This can usually be done via a bank transfer or a cheque.
  6. 6 Wait for approval: After submitting your application and deposit, there will be a processing period. The time frame varies by issuer but is generally quick.
  7. 7 Activate your card: Once you’re approved and you receive your card by mail, follow the issuer’s instructions to activate it. This might involve calling a number or activating it online.
  8. 8 Start using the card: Begin using your card for purchases and make sure to pay your bills on time to start building your credit. You can use it for monthly subscriptions like streaming services and online purchases, too. 

Remember, each credit card issuer may have slightly different processes and requirements, so it's important to read the specific instructions provided by the issuer of the card you choose.

Secured credit card FAQs

  • Is it a good idea to get a secured credit card?

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    If you have no credit history in Canada or are working to rebuild your credit after challenges like bankruptcy or missed payments, a secured credit card can help you achieve that goal.

  • Do secured credit cards build credit?

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    Yes, secured credit cards can build credit. Responsible use, including timely payments, is reported to credit bureaus, positively impacting your credit score.

  • Is it possible for secured credit card applications to be declined?

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    Yes, applications for secured credit cards can be declined. Reasons include extremely low credit scores, unresolved bankruptcies, or insufficient income for the minimum deposit.

  • How much is a security deposit on a secured credit card?

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    Security deposits for secured credit cards vary, typically ranging from $50 to several hundred dollars, depending on the card issuer and the desired credit limit.

  • How do I increase my limit on a secured credit card?

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    To increase your limit on a secured credit card, you can usually add to the deposit amount, or the issuer may offer an increase after a period of responsible card use.

  • How fast will a secured credit card build my credit?

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    A secured credit card can start improving your credit within a few months, but significant credit building typically requires consistent, responsible use over a longer period, like a year or more.

  • What is the smartest way to use a secured credit card?

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    The smartest way to use a secured credit card is to make small, manageable purchases, pay your bill in full and on time each month, and keep your credit utilization low.

  • What not to do with a secured credit card?

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    Avoid late payments, maxing out your credit limit and using the card for cash advances. These practices can lead to high fees, interest and negatively impact your credit score.

  • Should I max out my secured credit card?

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    No, you should not max out your secured credit card. High credit utilization can hurt your credit score. Aim to use less than 30% of your available credit limit.

Tyler Wade Personal finance content strategist & writer

Tyler Wade has worked in personal finance for over 5 years writing for brands like Ratehub, Forbes, KOHO, and now Money.ca.

Cory Santos Senior Reporter

Cory Santos is a finance writer, editor and credit card expert with nearly a decade of experience in personal finance. Cory joined Wise Publishing from BestCards, with bylines in numerous print and digital publications across North America, including the Miami Herald, BlogTO, Debt.ca, AOL, MSN and Medium as well as financial podcasts like KOFE Talk. He's also the creator and author of the annual Money.ca Credit Card Awards.

Disclaimer

The content provided on Money.ca is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.

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