Best BMO Secured Credit Cards in Canada

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 the four other big banks in Canada i.e. TD, RBC, 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 $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.

1. Plastk Secured Credit Card

  • Credit limit: $300 – $10,000
  • Purchase interest rate: 17.99%
  • Cash advance interest rate: 21.99%
  • Annual fee: $48 (plus $6 monthly maintenance fee)
  • Credit score required: N/A
  • Welcome bonus: 5,000 points

The Plastk Secured Visa Credit Card is one of the top secured credit cards in Canada.

It reports your credit use to the credit bureaus, giving you an opportunity to strengthen your credit profile when you make your payments on time. You also get free monthly credit score updates.

Your credit limit is determined by the security deposit you provide and ranges from $300 to $10,000.

This card also offers rewards points when you pay for purchases using the card.

You can redeem your points for:

  • Cash back (250 points = $1)
  • Merchandise
  • Hotel and travel booking
  • Gift cards
  • Special events
  • Charitable giving

In addition to its $48 annual fee, you pay a $6 monthly maintenance fee for a total of $120 per year.

Approvals for this card is instant, you can learn more about it in this Plastk Secured Visa* Card review.

APPLY FOR PLASTK SECURED VISA* CREDIT CARD

2. Home Trust Secured Visa (Low-Rate)

  • Credit limit: $500 to $10,000
  • Purchase interest rate: 14.90%
  • Cash advance interest rate: 19.80%
  • Annual fee: $59
  • Credit score required: Poor or bad credit score
  • Welcome Bonus: N/A

The Home Trust Secured Visa (Low Rate option) has a $59 annual fee and 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 general equivalent to your credit limit and it 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 will need to 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

  • Helps to rebuild or repair your credit
  • Easy approvals even when you have a poor credit score
  • Can be helpful for establishing a credit score if you have no credit history
  • Some offer rewards e.g. Plastk Secured Credit 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.

FAQs

Does BMO offer a secured credit card?

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.

Which Canadian banks offer secured credit cards?

None of the big banks in Canada offer secured credit cards. That said, you can check the options from Plastk Financial & Rewards Inc and Home Trust Company.

Can I be denied a secured credit card?

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.

Can you get a secured credit card with a 500 credit score?

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

Best Credit Offers this month

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.

1.95% balance transfer offer for 6 months.

$350* welcome bonus offer from Scotiabank.

Annual fee waived in the first year.

Comprehensive travel benefits and mobile device insurance.

Cash back card with the most awards in 2021.

Get the best rates from multiple lenders.

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

Pre-approvals offered in as fast as 5 minutes.

Low interest rates starting at 9.9%.

Free prepaid reloadable Visa card.

Access to a portion of your paycheque 3 days early.

Credit building available with a subscription.

Free budgeting app with automatic savings features.

Retirement 101 eBook - 3D

Join Our Newsletter!

Sign up now to join thousands of other visitors who receive our bi-weekly newsletter and latest personal finance tips. You will also receive our FREE eBooks.

Author

Photo of author
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. His writing has been featured or quoted in the Toronto Star, The Globe and Mail, MSN Money, Financial Post, Winnipeg Free Press, CPA Canada, Credit Canada, Wealthsimple, 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.

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Share
Pin
Tweet
WhatsApp
Reddit