Best Secured Credit Cards in Canada

Establishing a good credit score early on will make it easier to get a regular credit card when you need one. A record of steady borrowing and timely repayments with the fewest mishaps is the key. Credit cards can help you rebuild your credit rating, but it might be a good idea to avoid them if you tend to misuse the privilege.

Secured Credit cards might not be easy for people with bad credit to get, but they’re productive in certain circumstances. Secured cards are charging interest based on how much money is in the account, while unsecured cards require a variety of factors to be considered beforehand.

Best Secured Credit Cards in Canada – Top Picks

Interest Rate

17.99%

Balance Transfer

N/A

Annual Fee

$48

Card Type

Secured

Earn 15% on your first purchase at most Neo partners, 1% on all other purchases

Interest Rate

24.99%

Balance Transfer

N/A

Annual Fee

$0

Card Type

Secured, No-Fee, Cashback

Interest Rate

14.90%

Balance Transfer

N/A

Annual Fee

$59

Card Type

Low-Interest, Secured

Interest Rate

17.99%

Balance Transfer

17.99%

Annual Fee

$120

Card Type

Student, Secured

1 point/$1 On all purchases

Interest Rate

17.99%

Balance Transfer

17.99%

Annual Fee

$120

Card Type

Secured

Card Best Suited For: Frequent travelers, online shoppers

Interest Rate

19.99%

Annual Fee

$0

Balance Transfer

19.99%

Card Type

Secured

This post covers the insight on Canadian secured credit cards, including the Plastk Secured Credit Card and Home Trust Secured Visa.

What is a secured credit card and how does it differ from unsecured cards?

A secured credit card links a deposit to your account, which acts as collateral for your loan. The bank retains the right to their money until the loan is paid in full.

One unique feature of credit cards is the refundable deposit. With this, you can easily pay if your credit limit doesn’t cover your purchase.

According to the U.S. Census Bureau, roughly 1 in 5 adults could not be identified as either having clear or poor credit, which can make it difficult to enter or recommence the credit market.

My first credit card in Canada as a student was an RBC secured credit card. In order to obtain a regular credit card, I had to have been a permanent resident for at least two years, and have my earnings proven with an income statement from my employer.

Credit scores need not be that low—this interview discusses how they affect college admission.

How to make sure you get an unsecured credit card after a secured credit card

Aside from a required deposit and a credit card, the secured credit card program is virtually the same as a regular card.

The card issuer reports your credit activity to the credit bureaus, and this will raise your credit score when you pay in full and on time.

Many secured credit cards have a limited credit limit and require a security deposit.

There many other credit card types you can take a look at if you are trying to pay off your credit card debt or consolidate it. For example, Secured cards require a deposit in order to allow credit purchases. Affinity cards offer bonus points for spending within a designated group of vendors that might also match your spend profile.

With the ever-expanding popularity of installment credit, it’s difficult to choose which card is right for you. However, if your credit score is in the fair to good range, consider using the Scotiabank Value Visa. The Scotiabank Value Visa does not require a security deposit, making them more accessible for individuals with limited funds.

Balance Transfer Credit Cards: These cards allow you to consolidate your credit card debt on one card at a lower interest rate. The Top balance transfer credit cards in Canada are Include Offerhub’s Top Picks

Low-interest rate credit cards can save you money on interest fees. These cards have a lower AIR and are great for borrowers who pay off their balance in full each month.

Prepaid credit cards offer many of the conveniences that come with regular credit cards. These cards do not impact your credit score and are accepted by many merchants. If you’re considering getting one, read more about them here.

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