Top 5 Secured Credit Cards in Canada for Jul 2022

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by Enoch Omololu


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A poor or bad credit score makes it unlikely that you will easily qualify for a regular credit card.

While you may want to avoid credit cards if you tend to misuse them and overspend, paradoxically, a credit card or other credit facility is required to help you rebuild your credit rating.

Borrowers with bad credit are not without options. There are secured and unsecured credit cards you can qualify for depending on your financial history, credit score, and ability to put down a deposit that serves as collateral.

This post covers the best secured credit cards you can apply for in Canada, including the Neo Secured Card, Plastk Secured Credit Card, and Home Trust Secured Visa.

What is a Secured Credit Card?

A secured credit card is different from a traditional credit card in that you are required to provide a security deposit (or collateral) to protect the lender if you default on your payments.

This refundable deposit is held in a savings account and is typically equal to your credit limit.

Secured credit cards are not only suitable for people who are trying to repair their credit score. In some cases, individuals without a credit history (e.g. newcomers and foreign students) may also use them to build or establish a credit rating.

My first credit card in Canada as a student was an RBC secured credit card. If you are a permanent resident, you can usually qualify for a regular credit card.

A poor credit score is one that is 650 and below. If you do not know what your credit score is, you can find out here for free.

Best Secured Credit Cards in Canada

These are the top secured and guaranteed approval credit cards available to Canadians.

1. Neo Financial Secured Mastercard

  • Annual fee: $0
  • Cash back rewards: Up to 5% cash back
  • Interest rate: 19.99% – 24.99% on purchases; 21.99% – 26.99% on cash advances
  • Security deposit: starts at $50
  • Credit limit: Dependent on your security deposit

The Neo Secured Card is the best secured credit card in Canada.

It doubles up as a cash back credit card, offering up to 5% unlimited real cash back when you shop at thousands of stores across Canada.

If you are looking for a no-fee secured card, this is it.

Even better, approval for this card is guaranteed and you only need $50 to get started on your way to growing your credit score.

Neo Financial customers get access to a free app as well as a virtual card you can add to your favourite payment wallets.

And, you can redeem cash back earnings towards your statement balance at any time. Learn more about what it offers in this review.

neo secured credit card

2. Home Trust Secured No-Fee Visa

  • Annual fee: $0
  • Interest rate: 19.99% purchases and cash advances
  • Security deposit: $500 – $10,000
  • Credit limit: $500 – $10,000

The Home Trust Secured No-Fee Visa is a no-fee secured credit card that boasts an approval rate above 95%.

If you are looking for a credit card that can help you repair or rebuild your credit, this card works, and approval is almost guaranteed unless you are currently in bankruptcy.

Home Trust Secured Visa

3. Plastk Secured Visa* Credit Card

  • Annual fee: $48 plus $6 monthly maintenance fee
  • Interest rate: 17.99% on purchases; 21.99% on cash advances
  • Security deposit: $300 – $10,000
  • Credit limit: $300 – $10,000

The Plastk Secured Visa* Credit Card is designed with credit building in mind and offers some other unique perks including:

  • Free access to your credit score on a monthly basis
  • Rewards points on everyday purchases
  • Welcome bonus of 6,250 points ($25 value)
  • 0% APR on purchases for the first 3 months

The card also comes with a versatile mobile app that’s available on iPhone and Android devices.

To qualify, you must have reached the age of the majority in your province or territory, and be able to provide a security deposit.

There’s also a Plastk Secured Credit Card that’s designed for students to help them build their credit scores.

Plastk secured credit card

4. Scotiabank Value Visa

  • Annual fee: $29
  • Interest rate: 12.99% purchases (0.99% promo rate for balance transfers for 6 months)
  • Credit limit: Minimum of $500

If you have a fair or better credit score or are a newcomer to Canada, the Scotiabank Value Visa is worth checking out.

It offers a lower interest rate of 12.99% on purchases and cash advances, and you can also take advantage of the promotional 0.99% balance transfer rate for 6 months.

This card also offers up to a 25% discount when you use it to pay for car rentals at participating Avis or Budget locations.

No-Fee Scotiabank Value Visa Card

5. Home Trust Secured Visa

  • Annual fee: $59
  • Interest rate: 14.90% purchases, 19.80% cash advances
  • Security deposit: $500 – $10,000
  • Credit limit: $500 – $10,000

The Home Trust Secured Visa annual fee card is different from its no-fee counterpart in that it offers a lower interest rate of 14.90% on purchases.

You can be approved for a credit limit as high as $10,000 and approval rates exceed 95%.

Home Trust Secured Visa

Bonus: Capital One Guaranteed Secured Mastercard

  • Annual fee: $59
  • Interest rate: 19.80% purchase AIR
  • Security deposit: $75 – $300
  • Credit limit: $300 – $2,500

The Capital One Guaranteed Secured Mastercard is one of the easiest secured credit cards to qualify for in Canada as long as you:

  • Are at least the age of the majority in your province or territory of residence
  • Have not applied for a Capital One account more than once in the last 30 days
  • Don’t have an existing Capital One application
  • Can provide the required security deposit

This card allows you to increase your credit limit to $2,500 if you can provide the collateral.

capital one secured credit card

How Do Secured Credit Cards Work?

Other than the fact that you will need to put down a deposit, a secured credit card is very similar to a standard credit card.

The card issuer reports your credit activity to the credit bureaus and this will raise your credit score if you pay your balance in full and on time each month.

Usually, your security deposit will match your credit limit and most secured credit cards do not offer rewards or extra perks.

The other credit card types you can take a look at if you are trying to pay off your credit card debt or consolidate it are:

Unsecured credit cards: You won’t have to put down a deposit, however, your credit score has to be at least in the fair to good category. An example is the Scotiabank Value Visa.

Balance transfer credit cards: These cards allow you to consolidate your credit card debt on one card at a lower interest rate. Here are the top balance transfer cards in Canada.

Low-Interest rate credit cards: These cards offer a lower purchase and/or balance transfer AIR and are great for saving on interest fees.

Prepaid credit cards: These cards do not impact your credit score, however, they provide many of the conveniences that come with regular credit cards and are widely accepted for payments and other transactions. Read more about them here.


A secured credit card only serves its purpose to help you establish, rebuild or repair your credit rating if you use it responsibly.

Plan to pay your balance in full and on time within the grace period. After your credit score has improved, you can easily apply for a standard credit card and withdraw the deposit you give to the bank.

If what you are looking for is a bad credit personal loan, click here for options.

You can also apply for a prepaid credit card that offers a credit-building service. The best prepaid card in this category is the KOHO Prepaid Mastercard.

Best Secured Credit Cards in Canada FAQs

Do secured credit cards build credit?

Yes, a secured credit card can help increase your credit score like a regular credit card. The credit card company reports your credit history to the credit bureaus and if you are making payments on time and using your card responsibly, a secured card can be great for building and rebuilding credit.

What is the best secured credit card in Canada?

The top secured credit card in Canada is the Neo Financial Secured Credit Card. This secured credit card has no annual fees and users earn cash back when they make purchases.

What banks offer secured credit cards in Canada?

Secured credit cards are not commonly offered or advertised by Canada’s largest banks. That said, you may qualify for one if you apply for a credit card and do not have sufficient credit history. You can learn about the secured credit cards offered by RBC, BMO, TD, and CIBC.

Can I put $1,000 on a secured credit card?

Yes, you can deposit $500, $1,000, or more as security funds for your secured credit card. Your security deposits determine your credit limit.

Top 5 Secured Credit Cards in Canada for Jul 2022

Best Credit Offers in July 2022

Earn up to 10% cash back for a limited time ($100 bonus)

One of the best no-fee credit cards in Canada.

Get 2% unlimited cash back on up to 3 purchase categories.

Get 0.5% unlimited cash back on all other purchases.

Get 10% bonus cash back in first 2 months ($100 value).

1.95% balance transfer offer for 6 months.

Get up to 10% cashback and grow your savings ($20 bonus)

Free prepaid reloadable Mastercard (use referral code CASHBACK during signup for $20 free).

Access to a portion of your paycheque 3 days early.

Free budgeting app with automatic savings features.

1.20% savings interest on every dollar balance.*

Compare the best personal loan rates in Canada

Get the best rates from multiple lenders.

Borrow up to $50,000 regardless of your credit score.

Pre-approvals are available in as fast as 5 minutes.

Low-interest rates start at 1.99% and terms from 4-60 months.

The NeoCard pays up to 5% cash back at select retailers

Get a $25 bonus when you apply for the Card.

Up to 5% cash back at participating stores.

No annual account fees and 1% minimum cash back guaranteed.

Guaranteed instant approval credit card.

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Enoch Omololu

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch has a passion for helping others win with their personal finances and has been writing about money matters for over a decade. He has been featured or quoted in The Globe and Mail, Winnipeg Free Press, Wealthsimple, Financial Post, Toronto Star, CTV News, Canadian Securities Exchange, Credit Canada, National Post, CIBC, and many other personal finance publications.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO, monitors his credit score for free using Borrowell, and earns interest on savings through EQ Bank.

3 thoughts on “Top 5 Secured Credit Cards in Canada for Jul 2022”

  1. I would also encourage others to speak with their credit union. My local credit union, Vancity, offers all of their Visa cards in secured versions. If you’re a BC resident, I highly recommend looking into their no-fee Enviro Visa Classic. It provides 0.5% cashback, extended warranty and lets you keep the deposit in an interest-bearing GIC or savings account.

  2. The Scotiabank Value Visa Secured Card was discontinued over a year ago.

    • @Tina: I believe you are referring to the “Scotiabank No-Fee Value Visa Card”.

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