If you want to build credit, a secured credit card can help you climb the first rungs on the credit ladder. Once you put down a security deposit, you can use a secured card just like a regular credit card. The card issuer then reports your payment history to the credit bureaus, helping your credit score move in the right direction.
But where can you find secured credit cards in Canada, and what other alternatives are available? Keep reading to find out.
| Provider | How much you can borrow | Interest rate | Fee | Required deposit | |
|---|---|---|---|---|---|
| Neo Secured Mastercard | $50 – $10,000 | 19.99%–29.99% (up to 25.24% in Quebec) | $119.88/year | Min. $50 | Go to site |
| Capital One Guaranteed Secured Mastercard | $75 – $2,500 | 29.9% (21.9% in Quebec) | $0 | Min. $75 | |
| Home Trust Secured Visa | $500 – $10,000 | 19.99% | $0 | Min. $500 | |
| Nyble credit line | $30 – $250 | 0% | Optional $11.99/month for a premium membership for instant transfers | N/A | Go to site |
| KOHO cash advance | $20 – $500 | 0% | From $2/month | N/A | |
| Bree early pay | $20 – $750 | 0% | Optional $2.99 – $45.99 fee per instant transfer | N/A | Go to site |
Canadian fintech Neo Financial offers a variety of credit cards, and all of them are available with a secured credit limit. Options range from the entry-level Neo Mastercard through to premium cards like the Neo World Elite Mastercard. All you have to do is provide a security deposit to set your credit limit, then start spending and rebuilding your credit.
The Neo Secured Mastercard is the most common secured version.
Check the table below for an example of the rewards you can earn each year with a Neo cash back Mastercard.
| Category | Neo Mastercard | Neo World Mastercard – Shop & Dine | Neo World Mastercard – Gas & Grocery | Neo World Mastercard – Everywhere | Neo World Elite Mastercard – Shop & Dine | Neo World Elite Mastercard – Gas & Grocery | Neo World Elite Mastercard – Everywhere |
|---|---|---|---|---|---|---|---|
| Fee | $119.88* | $119.88* | $119.88* | $119.88* | $149 | $149 | $149 |
| Grocery cashback | – | – | 2% | 1% | – | 5% | 2% |
| Food & drink cashback | – | 2% | – | 1% | 3% | – | 2% |
| Recurring payments cashback | – | – | 2% | 1% | – | 4% | 2% |
| Gas and EV charging cashback | – | – | 2% | 1% | – | 3% | 2% |
| Retail shopping cashback | – | 2% | – | 1% | 3% | – | 2% |
| Everything else cashback | – | 0.5% | 0.5% | 1% | 1% | 1% | 2% |
| Partner cashback | Up to 15% | Up to 15% | Up to 15% | Up to 15% | Up to 15% | Up to 15% | Up to 15% |
| Example total cashback per year | $60 | $258 | $414 | $342 | $456 | $834 | $624 |
| What you keep after fees | -$59.88 | $138.12 | $294.12 | $222.12 | $307 | $685 | $475 |
*This is the Build fee. Build is Neo’s level two membership, with perks like a higher savings rate and credit monitoring.
If you prefer your rewards with a travel flavour, here’s how the Cathay World Elite Mastercard and the United MileagePlus Neo World Elite Mastercard compare.
| United MileagePlus Neo World Elite Mastercard | Cathay World Elite Mastercard | |
|---|---|---|
| Annual fee | $89 | $180 |
| Earn rate |
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This card is designed to help you build or repair credit. You can get pre-approved online without hurting your credit score, and once you’ve provided a deposit as collateral, you can start using your card just like you would a regular Mastercard. Your card use and payments are reported to the credit bureaus to help get your credit back on track.
The bad news is you can’t earn cash back or rewards points with this card; the good news is that it does come with a range of insurance covers. Purchase assurance and extended warranty cover headline the list, while the Price Protection Service refunds the cost difference when an item you purchased then goes on sale. And if you’re planning your next vacay, travel accident and baggage delay insurance are also included.
A cardholder’s insights into the Capital One Guaranteed Secured Mastercard
The Home Trust Secured Visa works exactly how a secured credit card should. You fork out a security deposit of at least $500, and that amount becomes your card’s credit limit. You can then pay with your card in store and online anywhere Visa is accepted, and Home Trust reports your card use to the credit bureaus to help boost your credit score.
If you’re looking for cash back or other rewards, look elsewhere. This is a no-frills card that does exactly what a secured credit card is designed to do: help you build credit.
Home Trust Secured Visa review
Vancity offers six secured enviro Visa credit cards. Choose from no-annual-fee, low-interest, rewards and travel cards, then provide a security deposit and start spending. Your deposit will earn interest. Available in BC only.
Collabria credit cards are widely offered by credit unions across Canada, but do they have a secured version? It depends on the credit union. Visit your local credit union branch or phone them up to ask what options are available to you. They may be willing to offer you a secured credit card, particularly if you already have an ongoing banking relationship with them.
An interest-free line of credit that can help you build credit might sound too good to be true, but that’s exactly what Nyble offers. You can apply in minutes online with no credit check; instant funding is available; and you won’t owe a cent of interest when you repay your loan.
There’s more to Nyble than just building credit. Not only can you check your credit score for free, but you also earn reward points for on-time payments. Upgrade to a premium membership to get 5x the rewards earn rate, plus other perks like instant payments, balance protection insurance and identity theft coverage.
Your points can be redeemed for gifts, including gift cards from popular retailers like Starbucks, Amazon and Tim Hortons.
If you’re a KOHO member, you can subscribe to KOHO Cover and get an interest-free cash advance of up to $500. No credit checks. No minimum income requirement. The money is available instantly, and you have the flexibility to repay at any time.
Sign up for Cover and you’ll get access to free financial coaching valued at up to $425. And thanks to your KOHO plan, you’ll be rewarded with unlimited 1–2% cash back for your spending on groceries, transportation, and food and drinks. Add 2%–3.5% interest on your savings balance into the equation, and the deal sounds even sweeter.
But just how much value can you get? Let’s say you have an Essential plan and you spend $1,200 per month on cash back categories—that works out to $144 cash back per year. If you also use your KOHO account as a savings account, you can earn 2.5% interest on an initial deposit of $2,000 and extra deposits of $250 each month. This means your balance will increase to $5,085 by year-end (including $85 in interest).
Need some extra cash to pay an urgent bill? An interest-free cash advance of up to $750 from Bree could be just what the doctor ordered. There are no credit checks, mandatory charges or late fees to worry about, and instant funding is available for a fee.
Sign up for a completely optional Bree membership to make the most of a budgeting tool you can use to track your income and expenses. Members also get a weekly newsletter with money management tips. It’s not the most exciting of perks, but it could be useful.
Before you can decide which secured credit card is the best fit, you need to work out what your top priority is.
If your main focus is accessing credit that’s easy to qualify for, a cash advance app might actually be a better choice than a secured credit card. These apps don’t check credit, and they don’t require you to shell out a security deposit. They also accept a variety of income types.
If your top priority is building credit, consider secured credit cards and the Nyble cash advance app. Nyble reports to the credit bureaus to help improve your credit score, but it only offers small credit amounts of up to $250.
Among the credit cards, the Home Trust Secured Visa is worth checking out if you want the lowest interest rate (14.9% – 19.99%). But it requires a minimum security deposit of $500, so you might want a card with a lower minimum like the Capital One Secured Mastercard ($75).
A Neo secured card offers the best perks, but fees will apply.
Regular, unsecured credit cards offer better rewards and don’t require you to tie up a big chunk of cash as collateral. So if you have good credit, why would you consider a secured credit card?
A secured card doesn’t make sense most of the time, but there are some exceptions:
Does RBC offer a secured credit card? Unfortunately not.
Newcomers to Canada can check out RBC’s Newcomer Advantage program for help getting a credit card, while the bank also offers a range of student credit cards to help you start building credit history.
No, you can’t get a TD secured credit card in Canada.
But TD does offer a secured card in the US—the TD Cash Secured Credit Card—so don’t be fooled if you see this pop up in your search results.
No, you can’t get a Scotiabank secured credit card.
But newcomers can check out the StartRight program, while students can check out the bank’s range of student credit cards.
You can’t get a CIBC secured credit card.
But there are five CIBC student credit cards to choose from. The bank also offers credit cards for newcomers, with no security deposit or credit history required.
You can’t get a BMO secured credit card in Canada. But US residents can check out the BMO Boost Secured Credit Card, so don’t be confused if you see it listed in your search results.
If you’re a new arrival to Canada, the BMO NewStart Program includes ways to access credit even if you don’t have a credit history. BMO also has newcomer and student credit cards, plus a BMO Prepaid Mastercard you could check out.
No. Just like the other big banks, National Bank doesn’t have secured credit cards.
However, its Newcomer Program may allow you to get a credit card with no prior Canadian credit history.
Look at these key factors when choosing a secured credit card:
A secured credit card is an important stepping stone on your journey back to good credit. There are several options to choose from too, so the best secured credit card for you depends on what you want in a card—a low interest rate, no annual fee or cash back rewards. Compare a range of options along with cash advance app alternatives before deciding where to apply.
