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
Everybody knows it; it’s difficult to get any credit if your credit score is low or you’ve got no credit at all. But of course, life is filled with second chances- so is the world of credit.
You already know that one of the ways to prevent getting locked out or disqualified from taking credit or loans in the future is to use an excellent secure card. There are tons of them in the market.
The first thing you should know about the refresh secured card is that you won’t earn any reward on purchases by using it. So, if you’re looking to earn reward points or possibly cashback with this secured card, the refresh card won’t give you that- you might want to look into other secured cards if that’s your primary goal.
Nevertheless, hang around a little more to unravel the entire essence of the refresh secured card. Let’s explore some of the benefits that make this card stand out among its peers.
Benefits for Card
Everyone deserves a fresh start, especially when it comes to building your credit score and entering the good books of loans and other credit companies.
Lucky for you, that’s what the refresh secured card is about- giving people second chances to redeem their credit image. The refresh secured card dishes out second chances in the form of the benefits it offers its end-users. Keep reading.
- Zero barriers, guaranteed approval: As somebody with bad credit or no credit history at all, it is difficult for credit companies to issue you any credit card to bail you out of certain expenses you might not have the financial capacity to shoulder.
Frankly, if you eventually get a company that’ll still issue you a credit card, you’ll realize that your hands would practically be tied as they would offer you the card with alarmingly high-interest rates.
Aside from that, the terms won’t be favourable. But don’t worry, the refresh card won’t hold a grudge against you for having a bad credit score or no credit, as it doesn’t determine your creditworthiness based on your credit history.
So, if your credit score is at the rock bottom of 300, you’ve got nothing to worry about. You’ll get a refresh secured card as long as you meet the requirement and eligibility criteria. Now, you can breathe easily.
- Low fee and Interest rates: When it comes to the annual fee of this card, you don’t need to get nervous as it is affordable compared to other secure cards on the market. You’ll only be charged a total of $48.95 per annum.
Here’s a quick breakdown. You’ll start by paying an annual fee of $12.95. Then, you’ll be charged a monthly fee of $3. When you add it up, it’ll equal the total cost of $48.95.
Clearly, that’s fair compared to what other cards offer. Let’s not forget about the interest fee where it gets interesting. As a new refresh cardholder, you’re awarded a 21-day interest-free grace period.
That implies that if you can’t pay your credit card balance within the stipulated time, you’ll have the grace of a 21-day extension to pay back what you owe without paying the $17.99% interest.
- Security Deposit: Before you are issued any secure card, you’ll be required to make a deposit prior to the card sign-up. The common trend among most secure card issuers is that you’ll need to make a $500 deposit.
Without it, you automatically are not eligible. But of course, refresh financial steps in and gives you a shot at owning a secure card with as low as a $2oo deposit.
The best part is that the interest rate you’ll be charged won’t be determined by the deposit amount. With a maximum deposit of $10,000, the only thing that could be affected by your deposit amount is the credit limit you’ll get.
Guess what? Refresh financial would give back your deposit if you ever decide to terminate your relationship with them.
Details and Eligibility
As earlier stated, Refresh financial won’t carry out a credit check on you. But while Refresh Financial is interested in helping you build a better credit future, there are specific requirements that you must meet to get the coveted refresh secure card. If you wish to qualify for the card, you must;
- Be a Canadian citizen.
- Be 18 or 19, depending on the legal age in your province.
- Pay a $200 deposit- comes in handy when you default payment
- Have not applied for the refresh secured card earlier in the same month or have a refresh account already.
- Have zero debt on your refresh account if you had a previous account with refresh financial.
If you meet these criteria, the rest of the application process becomes easy. Once you are through with the prerequisites, proceed to apply for the credit card and start correcting your credit future.
At the moment, Refresh Financial provides no insurance coverage with their secured card. However, the other perks this card offers make up for this as there aren’t many cards like this one.
Refresh Credit Card FAQ
Earn 15% on your first purchase at most Neo partners, 1% on all other purchases
Secured, No-Fee, Cashback
Neo financial institution makes banking as easy, stress-free and streamlined as possible. The co-founders of the SkipTheDishes empire established it. Work ethics in SkipTheDishes that have made life convenient for people over the years have been transferred to this institution.
For an institution established recently, neo financial has grown to become one of the most sought after in the country. This is because it offers excellent reward programs to customers. This company provides a three-tier incentive program, which includes:
- Neo essential: This is the most common because it is free. You can make an average of 4% in cash back when you buy goods at participating outlets. You can cash out at least 1% after every purchase.
- Neo ultra: this tier provides an average of 6% cashback at partner shops. Also, you can cash back at least 1% after every purchase in other stores; you must not spend more than $5,000 per month. This tier costs $8.99 per month.
- Neo plus: You get an average of 5% cashback at involved stores. You can cash back at least 1% after every purchase; non-partners must not spend more than $5,000 per month. Neo plus is valued at 2.99 dollars per month.
Benefits of cards
Neo financial credit card provides the following benefit:
- Cashback rewards: customers make money when they buy goods at several outlets, such as local stores, online retail stores, gas stations, restaurants and others. With this card, you can make an average of over 5% unlimited cash back at different local and national partner stores. The cashback earned can be redeemed immediately and can be withdrawn anytime. Neo cards also give users a one-time bonus cashback offer of at least 20%
- High-interest rate on savings: This institution provides one of the most lucrative interest rates in the industry. Compared to other traditional financial institutions such as TD and RBC, which give 0.01% – 0.05% interest, Neo financial is miles ahead. You can get 1.3% interest evaluated every day (on your end balance) and paid per month with this company.
- No monthly fees: Users don’t have to worry about monthly payments.
- Cards possess features that can be used as a cheque and savings account: this benefit puts the institution ahead because most traditional savings accounts allow limited transactions. You can use your Neo money account as a cheque and savings account. You can pay bills, purchase goods and send/receive e-transfers without extra charges.
- No annual fee: There is no yearly fee for users on this platform.
- Mobile app: You can get the Neo Financial app on i0S and Android phones. The institution provides access to a great dashboard that allows easy management of finances. This app can be used to pay bills, check the cashback offers, and make POS transactions on google and apple pay. It can also be used to disable your card if you lose it.
- $25 promotional offer: New users are given a $25 voucher after confirmation for a particular period.
- Operates virtually: This company is virtual, and you don’t need to go to the bank to make any transactions. You can do everything from the comfort of your home via the app or by reaching out to their customer service.
- Discounts: the discount given depends on the business involved. Neo partners with different companies in your area; this enables the provision of fantastic incentives to improve your community’s economy. These offers include:
- Savings: This company understands the relevance of savings. As a result, users can open a savings account and get high interest on their cash.
- No minimum balance: With the most popular savings accounts, you must have a certain amount of money to open the account and get interested or escape fees. However, the Neo savings account allows users to access these offers with no minimum balance.
Details and eligibility
Anyone can get a Neo financial card, but you must:
- Meet the age of majority in your country
- Stay in Canada
If you meet these criteria, then you can use provided secure links to go to Neo’s website. Many Canadians prefer this company because it offers great rewards. You can access all your tips, card information and spending data with just one click. Three forms exist for Neo Mastercard; Standard, Plus and Ultra. The average cashback differentiates these cards in participating stores.
Neo credit card enhances partnership and strengthens local provinces and businesses. Business owners can learn more about this company through the app.
With Neo financial institution, your money is held by Concentra bank and has deposit insurance protection of $100,000 for every category and depositor. This bank is a Canada deposit insurance corporation (CDIC) member. You will enjoy this premium zero liability protection using Neo Cashback Rewards Mastercard.
Credit card FAQ
The Home Trust Secured Visa credit card is issued by Home Trust, a leading Canadian financial services company established in 1977 to help people achieve their financial goals. The company has three card variants, each with its unique offerings that target various categories of Canadians. They are the Preferred, Equityline, and Secured Visa Credit Cards.
The card has a low annual fee and no penalties for missed or late payments, also making it a great option for those who are worried about added costs or fines.
Additionally, the card offers a competitive interest rate and the potential to have your deposit returned early, which is a great feature if you’re looking to eventually upgrade to an unsecured credit card. This review provides all you need to know about the Home Trusts Secured Visa Card and its perks.
Card Rewards: How the Home Trust Secured Annual Fee Visa Card Works
The Home Trust Secured Annual Fee Visa Card works like every regular credit card, except that it locks the deposit as the card limit. That means you cannot spend more than you have deposited in the account. Each month or year, the credit card holder will be required to make a deposit which will simultaneously count to build a better credit score. Users may deposit any amount between $500 and $10,000.
Although the Secured Visa credit card is excellent for improving credit performance, it may not be a perfect fit for those looking to get cash backs and card rewards. That is because the Secured Visa credit card does not offer rewards, unlike the other card variants that give a one percent cash back on all qualifying purchases and automatic hotel reservation opportunities.
Nonetheless, this card offers numerous benefits to its users who are typically students, self-employed, and others new in Canada. Some highlights features of this credit-boosting card are:
- No Annual Fee Option. All Secured Visa cardholders have the option to choose between two plans during registration, depending on their preferences. One gives an annual interest rate of 19.99 percent with zero annual fees, the other has a 14.90 percent interest rate coming with an annual fee of $59.
- No Penalties for Missed or Late Payments. Ideally, every cardholder should have to pay a monthly or yearly fee on or before stipulated dates. However, in case the cardholder misses the payment deadline or misses a payment, Home Trust does not penalize them. That afford them an opportunity to repair their bad credit score.
Benefits of Using Card Home Trust Secured Annual Fee Visa Card
The Card Home Trust Secured Annual Fee Visa Card offers a number of benefits for cardholders. One of the biggest benefits is that it helps cardholders to build or rebuild their credit history. This is important, as a good credit history is essential for getting approved for loans and other credit products in the future.
The Card Home Trust Secured Annual Fee Visa Card also comes with a number of other benefits discussed below.
- Build Your Credit History. Helping users build their credit rating is the main focus of the Secured Visa credit card offerings. All they require to build an impressive credit rating is to keep up with their payments schedules while they shop with their cards every other day.
- Control How You Spend. Owning a Secured Annual Fee Visa card gives users control over their spending. The users can only spend as much as they deposited and when they qualify, they can increase their spending limits.
- Use Your Card Anywhere. The credit card is accepted in over 200 countries and two million ATMs worldwide, giving users the freedom to transact from anywhere in the world.
- Protect Your Credit from Fraud. With the Zero Liability Policy, the Home Trust Secured Visa credit card owners get extra protection from unauthorized transactions done on their cards. If someone fraudulently uses a Secured Visa card without the owner’s consent, the card owner will bear a penalty for the fraudulent act.
- Online Account Management. All Home Trust cardholders, including the Scured Visa credit card have access to a online account management. They can get their account information, track monthly expenses, and help from customer service from anywhere in the world
Details and Eligibility
Home Trust’s Secured Visa credit card offers several unique rates covered in the Secured Visa Disclosure Statement.
- Annual Interest Rate: Is the minimum amount of charges cardholders have to on interest-bearing purchases and cash advances. The Secured Visa credit card has two options of interest rate: 19.99 percent with zero annual fees and $14.99 with $59 annual fee. The interest rate kicks in from the day the card is activated.
- Interest-Free Grace Period. The card has a 21-day interest-free period on all card transaction except bank transfers and cash advances.
- Minimum Payment. The minimum monthly payment is $10. It could also be three percent of the account balance if that is greater than $10.
- Foreign Currency Conversion. Every transaction with a foreign currency on the card is first converted to the Canadian dollar and a two percent charge applies with every conversion.
- Annual Fees and Other Fees. The Secured Visa Card does not require an annual fee but has some other charges. They include the $29 for overlimit, $45 dishonoured cheque fee, and $12 inactivity fee payable if the card is redundant for a 12-months period. Other charges include the ATM, statement copy and cash advance copy charges.
To be eligible for the secured visa card, applicants must:
- Have a steady income stream
- Agreed to the terms and conditions guiding the Secured Visa creditc card holders.
- Have reached the age of majority in their resident province.
- Be Canadian residents. However, the card is not available to people in Quebec province.
The Security Visa Card does not offer insurance coverage to the cards unlike the Preferred and Equityline cards that offer purchase security. The purchase security insurance feauture is issued by the Chubb Insurance Company of Canada. Instead, the Security Visa Card provides the Zero Liability Policy.
The Zero Liability Policy protects card users from taking resonaibility for unathorized transactionns made on their cards after they have reported stolen or missing. To benefit from the policy, the card holders will have to meet the following requirements:
- The user’s must be able to prove that they have taken necessary precautions to protects their card, PIN, and other security and verfication codes. These steps must meet the recommendations outlined in the Home Trust Cardholder Agreement.
- The cardholder must be willing to corporate fully with the investigation process following Visa Conditions.
- The cardholder did not benefit in any way from the unathorized transactions.
Home Trust Secured Annual Fee Visa Card 2022 Frequently Asked Questions
Card Best Suited For: Frequent travelers, online shoppers
This card is best suited to both frequent travellers and online shoppers. Since there is no annual fee, no foreign currency transaction fees, and cash back on every type of purchase, this is the best kind of card to have whether you are frequently heading away from home for business/recreation or you prefer to shop from the comfort of your couch. The limit of 10 transactions per day may become an issue for some people, but it is also a great way to regulate shopping if overspending is a problem you are afflicted with.
- Cashback on all purchases
- No annual fee
- No foreign exchange fees
- Very simple to understand
- Great purchase security with 90-day insurance of theft or damage of eligible items
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.