If you are trying to improve your credit score in Canada, you will often hear that you need to get a secured credit card.
While you typically need a minimum credit score of 660 or more to apply for most traditional credit cards, a secured credit card has a lower (or no) threshold.
This makes it possible for those with poor credit to access “credit” and rebuild their credit scores while spending responsibly.
Although Scotiabank does not have a secured credit card, we discuss your options below.
Scotiabank Secured Credit Cards
Scotiabank has many excellent credit cards, but they do not offer a dedicated secured credit card.
If you have a decent credit score and are just looking for a low-interest card that saves you on interest fees, you can look at the Scotiabank Value Visa.
Scotiabank Value Visa Card
Rewards: Save up to 25% off car rental rates at AVIS and Budget car rental locations.
Welcome offer: 0% balance transfer for 10 months; the annual fee is waived in the first year.
Interest rates: 12.99% on purchases and cash advances.
Annual fee: $29
This card has a 12.99% purchase interest rate and 0% balance transfer for the first 10 months (12.99% after the promo period ends). It also has a $29 annual fee.
The Scotiabank Value Visa does not meet your needs if you have a poor or bad credit score, and you will need to try other options. Learn more about it in this Scotiabank Value Visa review.
Newcomers to Canada who don’t have a credit history can benefit from Scotiabank’s StartRight Program. Instead of relying on just your credit score, your income and other credit factors are considered.
The StartRight program is open to permanent residents (0-3 years in Canada), international students, and foreign workers.
Here is a list of credit cards for newcomers.
Best Secured Credit Cards in Canada
Given that Scotiabank does not have a secured credit card, you can look at the ones below that are specifically designed for people with bad credit.
- Neo Secured Credit Card
- Home Trust Secured Visa
- Capital One Secured Cards
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.
Based on our review, the Neo Secured Card is currently the best secured credit card in Canada. It has no annual fees, and you earn rewards typical of a premium credit card, including:
- Up to 5% cash back at thousands of Neo partner stores
- At least 0.50% cash back at non-participating retailers
New cardholders also earn 15% cash back (welcome bonus) on their first purchases at multiple locations, plus a $25 cash bonus after your application is approved.
You can redeem your cash back as a statement credit.
This Neo Card offers guaranteed approval. Learn more about how it works 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.
Depending on which of the Home Trust Secured Visa cards you apply or qualify for, you could pay a $59 annual fee and interest rates as low as 14.90% (low-rate card), or a $0 annual fee and 19.99% interest (no-fee card).
Like other secured credit cards, your credit limit depends on the security deposit you provide and can range from $500 to $10,000.
Learn more in this Home Trust Secured Visa review.
Capital One Secured Credit Cards
Capital One Canada offers a secured or guaranteed credit card called the Capital One Guaranteed Secured Mastercard.
It has a $59 annual fee, a 19.80% purchase interest rate, and a $75 or $300 security deposit.
How Secured Credit Cards Work
A secured credit card can help you build or repair your credit when you do not qualify for a regular credit card or loan.
The card is “secured” in the sense that you are required to provide a security deposit or collateral equivalent to your credit limit.
Sometimes secured cards are also called “guaranteed approval credit cards” or “bad credit score credit cards.”
When you close your account, and it is in good standing, your security deposit is paid back to you.
Unlike traditional credit cards, most secured credit cards do not offer rewards.
Related: Best Personal Loans for Bad Credit.
Benefits of Secured Credit Cards
- Easier to qualify for with any credit score.
- They generally report to credit bureaus and can be used to establish or rebuild your credit.
- You can determine your credit limit based on the security deposit you provide.
- Some offer cash back rewards, such as the Neo Secured Card.
- You may be able to graduate to an unsecured credit card after some time.
- Zero liability insurance from the card issuer.
- Your deposit is refundable when you close your account if it is in good standing.
Downsides of Secured Credit Cards
- Your security deposit is locked up until you cancel the card.
- Many secured credit cards have annual fees and monthly maintenance fees.
- Interest rates are often higher if you carry a balance.
- Generally lack insurance coverage and perks.
Scotiabank Secured Credit Card FAQs
The Neo Secured Card is the best secured credit card in Canada for rebuilding credit.
Canada’s big banks rarely advertise credit cards that are specifically designed for people with bad credit. Therefore, Scotiabank, RBC, BMO, and CIBC do not offer secured credit cards in Canada. You can learn about TD secured credit cards here.
While many secured cards are advertised as instant or guaranteed approval, there is a possibility that your application is denied. Reasons for this may include bankruptcy, no income sources, multiple applications, foreign residency, etc.
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