Best Secured Credit Cards in Canada

Credit Card
Annual Fee
Interest Rate
Why This Credit Card?



cash advance
  • No Annual Fee!
  • Great way to build and repair your credit!
  • Home Trust reports your file to the credit bureau on a monthly basis.
  • Deposit is insured by CDIC!
  • Credit limit is matched dollar for dollar on your deposit.
  • $500 minimum deposit.
  • $10,000 maximum credit limit!
  • Virtually everyone is approved
  • Supplementary cards are available!
  • 19.99% interest rate

Read more about this card


The advantages and disadvantages of a secured credit card

The biggest advantage of a secured credit card is that you are all but guaranteed to be approved unless you still have a bankruptcy that has not been discharged yet.  You are also less likely to fall into the debt trap, simply because you need to put up a deposit equal to your credit limit.

Who should apply for secured credit card?

A secured credit card is one of the least desirable types of credit cards, but could be one of your most important credit cards.  You will need to put up a deposit equal to your desired credit limit, which can be a small burden to some, but a secured credit card is also one of the best ways and could be the only way for you to start rebuilding your credit.  Note, a prepaid card is not the same as a secured credit card.  A secured card such as the Home Trust Secured Visa will report to the credit bureaus, a prepaid will not, therefore a prepaid will not help you improve your credit score.
    If you have no credit or a low credit score, then a secured credit card that is routinely paid off each month will help you increase your credit score.  A better credit score will eventually allow you to apply for an unsecured credit card that might have benefits such as travel rewards, cash back and/or insurance perks.

Who shouldn't apply for secured credit card?

You will only get declined for a secured credit card if you are not the age of majority in your province, if you are not a Canadian citizen or if you still have a bankruptcy that has not been discharged yet.  Everyone else is guaranteed to be accepted.  That said, not everyone should apply for a secured credit card.
    If you are already 100% decided that you will apply for a secured credit card, then there this very little downside to applying for a non secured credit card.  If approved great, if not come back here and apply for a guaranteed approved secured credit card.

FAQ on Secured Credit Cards

Are prepaid credit cards and secured credit cards the same?
Absolutely not.  A prepaid credit card is more or less a glorified gift card.  Prepaid cards do not report to the credit bureaus, therefore it will not count in your credit profile.

How does a secured card help my credit score?
A secured credit card is just like any other card except the credit card provider has a secured deposit (usually a GIC) against the maximum credit limit.  Each month they will report to the credit bureaus and let them know if you are in good standing and what your credit utilization rate is.  Thinking that credit providers would treat a secured credit card different to an unsecured credit card is like thinking banks wouldn't care that you are paying off your mortgage on time, because there is a house secured against it.

Do secured credit cards charge you interest?
Yes.  Even though your deposit covers your entire credit limit, you will still have to pay off the credit card in full, otherwise interest will be charged on the remaining balance.

Can I use the security deposit to pay this month's credit card bill?
No.  It is considered a security deposit and will only be refunded after you have cancelled the card.  The credit card provider can also decide after a period of time, typically 12 to 18 months to return the deposit, making it an unsecured card.

I have been using my secured credit card for a while now, should I cancel and replace it?
No, at the very least you should replace it then cancel it.  It is a good idea that you keep the card open at least until you have been approved for a better credit card.