A secured credit card can help salvage your credit rating when you have a poor or bad credit score and your applications for a regular card are being denied.
In addition to reporting your transactions to the credit bureaus with the hope that this improves your score, some secured credit cards also offer rewards.
Does BMO offer a secured credit card? I cover this in more detail below.
BMO Secured Credit Cards
Like some other big banks in Canada, i.e. CIBC and Scotiabank, BMO does not have a credit card specifically designed for people with bad credit.
While it lacks a secured credit card, if your credit score is decent (660+), you could look at the BMO Preferred Rate Mastercard.
This low-interest rate card has a 12.99% interest rate for purchases and cash advances. It also offers a 3.99% promotional balance transfer rate for 9 months (note there is a 1% transfer fee and a $29 annual card fee).
What a low-interest card does is it helps you save on interest fees if you routinely carry a balance.
Related: Guaranteed Loans for Bad Credit.
Best Secured Credit Cards in Canada
If you have the security deposit (collateral) required and have a job (i.e. are earning an income), it is very likely you will be approved for one of these cards… regardless of your credit score.
Neo Secured Credit
Rewards: Earn an average of 5% real cash back on purchases.
Welcome offer: Up to 15% cashback on your first-time purchases, plus a $25 welcome bonus.
Interest rates: 19.99% – 29.99% for purchases; 22.99% – 31.99% for cash advances.
Annual fee: $0
Credit limit: Starts at $50.
Credit score required: Poor or bad credit score.
The Neo Secured Mastercard is the best secured credit card in Canada in 2024.
Unlike traditional secured cards, it has no annual fees and no monthly maintenance fees. It also offers real cash back rewards, including:
- Up to 5% cash back at 1,000+ Neo partners
- Minimum 0.50% cash back across all purchases (including non-participating stores)
Guaranteed approval is offered regardless of your credit score, and you can open an account with a security deposit as low as $50.
New cardholders get a 15% welcome bonus on their first purchases at most Neo partner stores.
You can redeem your Neo cash back rewards as a statement credit at any time. Learn more in this review.
Home Trust Secured Visa
Rewards: Earn points you can redeem for cash.
Interest rates: 14.90% on purchases; 19.80% on cash advances.
Annual fee: $59.
Credit limit: $500 to $10,000.
Credit score required: Poor or bad credit score.
The Home Trust Secured Visa (Low Rate option) has a $59 annual fee and a low purchase interest rate of 14.90%.
Depending on your collateral, you can get a credit limit of up to $10,000.
This card also offers purchase security against theft and damage for up to 90 days after purchasing an item.
Home Trust has a no-fee secured card that offers a 19.99% purchase interest rate. Read our detailed Home Trust Secured Visa review for more information.
Secured vs. Unsecured Credit Cards
A secured credit card requires the cardholder to make a down payment, also referred to as collateral or security deposit.
This security deposit is generally equivalent to your credit limit and is paid back to you when you close your account.
For example, if you want a secured credit card with a $2,000 credit limit, you must deposit $2,000 with the credit card issuer.
On the other hand, an unsecured or regular credit card does not require you to provide collateral. However, you will normally need to have a good, very good, or excellent credit score.
Benefits of a Secured Credit Card
- It helps to rebuild or repair your credit
- Easy approvals even when you have a poor credit score
- It can be helpful for establishing a credit score if you have no credit history
- Some offer rewards, e.g. Neo Secured Card
Disadvantages of a Secured Credit Card
- Your security deposit is not available to spend until your account is closed
- Approval is not always guaranteed
- Most secured cards don’t offer rewards
- Annual and/or monthly fees may be on the high side.
Conclusion
If you do not qualify for an unsecured credit card, a good secured credit card can help put your finances back in order.
For free weekly updates on your credit score, click here.
BMO Secured Credit Cards FAQs
BMO does not offer a secured credit card in Canada. It does have a prepaid card or a low-interest credit card if that’s what you are looking for.
None of the big banks in Canada offer secured credit cards. That said, you can check the options from Neo Financial and Home Trust Company.
While people with a bankruptcy record can get secured credit cards, the lack of a verified income or no security funds can result in your application being denied.
Yes, you can get a secured credit card with a bad or poor credit score (i.e. credit score ranging from 300 to 659).
Related: Best Scotiabank Secured Credit Cards
