Compare secured credit cards with low deposits

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• The perks

  • Low or high credit limit available. Provide anywhere from $200 to $10,000 as your collateral.
  • No credit check. This is one of the rare credit cards in Canada that requires no credit check.
  • Control over your credit limit. The amount of security deposit you offer up will determine your monthly credit limit, which means you can control whether you have a high or low credit limit. Credit limits range from $200 to $10,000.
  • Competitive purchase rate. This card has a purchase rate of 17.99%. This interest rate can easily be avoided by paying off your balance in full each billing cycle.
  • Free education. Refresh Financial offer access to free educational financial training on their online portal called Refresh f.i.t, which includes informationregarding finances, money and tips on building up your credit score.

• What to watch out for

  • Annual and monthly fees. There is an annual fee of $12.95 a year, with an additional fee of $3 per month for the card. Altogether, this card will cost you $48.95 in fees.
  • Paying late. Paying off your balance in full means you can avoid interest rates. If you don’t pay in full however, you’ll be looking at an interest rate of 17.99%.
  • Monthly inactivity fee. Should you not use your credit card for a billing cycle, you’ll incur a $2 inactivity fee.

Capital One Guaranteed Secured Mastercard

The Capital One Guaranteed Secured Mastercard offers the lowest security deposit of all secured cards on the market – only a minimum of $75 is required. Although no credit card is ever guaranteed, this Capital One card guarantees approval, as long as you meet four conditions. These conditions are:

1. Be 18 years of age or the age of majority in your province or territory
2. You haven’t applied for a Capital One card in the last 30 days or had an account not in good standing in the last year
3. You don’t have an existing Capital One account or a pending application,
4. You provide the necessary security funds of either $75 or $300.

• The perks

  • Low minimum deposit. You’ll only have to provide $75 to get this credit card. You have the option to provide more if you’d prefer to have a higher credit limit.
  • Guaranteed approval. Capital One claim that approval for this card is guaranteed, as long as you meet four conditions (listed above).
  • Ability to control credit limit. Choose a credit limit between $300 to $2,500.

• What to watch out for

  • Credit check. Capital One will check your credit report for this card, however approval is very high.
  • Annual fee. This card has an annual fee of $59, or the option to pay $5 every month.
  • Interest rate. Paying off your balance in full means you can avoid interest rates. If you don’t pay in full however, you’ll be looking at an interest rate of 19.8%.
  • Lower credit limit. While $2,500 is a decent credit limit, this maximum limit is much lower than other secured credit cards.

Bottom line

The security deposit you put down to get a secured credit card doesn’t have to wipe out your savings. Even a secured credit card with a $75 deposit can help you rebuild your credit if you spend responsibly and pay off your balance at the end of each month. Check out our full secured credit card guide to learn more about these powerful credit building cards.

Frequently asked questions about secured cards

• When I make a security deposit, will it earn interest?

  No, most providers won’t pay interest on your security deposit.

• Is a secured credit card a “normal” credit card?

  Yes. You can use it like any other credit card, as long as you stay within your credit limit. Much like a regular credit card, you can swipe, tap, insert or pay online with your card. If you don’t pay off your balance in full at the end of the month, you’ll be charged interest the same way as a standard unsecured credit card.

• Will card providers check my credit?

  Many secured card providers will check your credit. For that reason, you may be declined if your credit score is too low. If you’re declined for a secured card, consider applying with a provider that doesn’t check your credit.