A secured credit card can be incredibly helpful if you’re looking to improve your credit score. But to get one, you have to put down a security deposit — and that can put a real dent in your savings and a strain on your budget. Banks and secured credit card providers typically require a minimum deposit of $500. Fortunately, there are a couple of secured credit cards on the market that don’t have to cost you as much.
Compare secured cards
Card-by-card rundown
Many secured credit cards require a minimum deposit of around $500 on average. However, your minimum deposit can be as low as $75 or as high as $10,000 depending on your card. Remember that as long as you provide the minimum amount, you can control your credit limit. The deposit amount you provide will serve as your monthly credit limit.
With this secured credit card, you can look forward to building up your credit score by making on-time payments. You’ll need to provide a minimum deposit of at least $200, with the option to provide up to $10,000 should you need access to a much higher credit limit.
While it has an annual and monthly fee, this secured card does not require a credit check and comes with a competitive purchase APR of 17.99%.
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.
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:
Be 18 years of age or the age of majority in your province or territory
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
You don’t have an existing Capital One account or a pending application,
You provide the necessary security funds of either $75 or $300.
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.
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
No, most providers won’t pay interest on your security deposit.
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.
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.
Emma Balmforth is a producer at Finder. She is passionate about helping people make financial decisions that will benefit them now and in the future. She has written for a variety of publications including World Nomads, Trek Effect and Uncharted. Emma has a degree in Business and Psychology from the University of Waterloo. She enjoys backpacking, reading and taking long hikes and road trips with her adventurous dog.
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