The very best secured bank cards in Canada for August 2023

Finest total secured bank card

House Belief Secured Visa*

At a look: The House Belief Secured Visa is an extremely user-friendly card with enticing flexibility. Candidates have the selection of going with an rate of interest of 19.99% with no annual payment or choosing a low rate of interest of 14.90% and paying a $59 annual payment. As a result of House Belief studies your funds to Canada’s credit score bureaus, you possibly can set up a credit score file and construct up your rating. All you actually need to use is a minimal of $500 in a Canadian checking account. Sadly, the cardboard isn’t accessible in case you are presently in chapter or dwell in Quebec. With this card you possibly can deposit wherever from $500 as much as $10,000, and your chosen quantity turns into your restrict. 

• Annual payment: $59 (low-interest choice)

• Rate of interest: 14.9% on purchases (low-interest choice)
• Earn fee: None

• Welcome supply: This card doesn’t have a welcome bonus right now.

• Extra advantages: Zero legal responsibility safety, appropriate with Apple Pay, Google Pay or Samsung Pay Digital Pockets

• Annual revenue requirement: None

Professionals

• With two rate of interest and annual-fee choices to select from, you possibly can choose the one which works finest for you.
• Your deposit is protected by the Canada Deposit Insurance coverage Company (CDIC).
• House Belief studies to each Equifax and TransUnion—Canada’s two credit score bureaus.
• The overseas alternate payment of two% is low in comparison with most playing cards, which generally cost 2.5%.
• You may deposit as a lot as $10,000 and use that as your credit score restrict.

Cons 

• The minimal deposit of $500 is excessive, contemplating it may be as little as $50 with another playing cards.
• The cardboard isn’t accessible to residents of Quebec or people who find themselves presently in chapter.
• The corporate fees a $12 payment in case your card is inactive for a 12 months and $29 if you happen to exceed your credit score restrict.

Finest secured card for rewards

Neo Secured Card*

At a look: Neo is likely one of the few secured playing cards that gives some interesting extras like rewards, a welcome supply and a low minimal deposit. This no-fee card allows you to deposit as little as $50, and you may earn a mean of 5% money again for purchases you make at choose companions. Neo even guarantees assured approval so long as you’re a Canadian resident and are the age of majority in your province or territory.

• Rate of interest: 19.99% on purchases (19.99% to 25.49% for Quebec residents), 24.99% on money advances
• Earn fee: 0.5% as much as 5%

• Welcome supply: You may earn $25 money again.

• Extra advantages: Limitless money again, Insights dashboard allows you to observe spending

• Annual revenue requirement: None

Professionals

• The Neo Secured Card is likely one of the few secured playing cards to supply rewards.
• At $50, the minimal safety deposit is low in comparison with playing cards just like the House Belief Secured Visa, and you may nonetheless select to deposit as much as $10,000 for the next credit score restrict.
• In case your total money again falls beneath 0.5%, Neo will prime you up.
• Neo presents quite a lot of completely different perks you could add to your card (for a payment) reminiscent of app subscriptions, free fitness center courses and insurance coverage like prolonged guarantee and even journey insurance coverage (relying on what perk bundle you join).

Cons 

• The rate of interest charged for purchases varies, relying on credit score profile and province. It may be as little as 19.99%, however as excessive as 29.99%, which is on the far finish of the spectrum.
• You received’t any any rewards at retailers that aren’t Neo companions.
• The corporate solely studies to TransUnion, whereas some secured bank card suppliers report back to each credit score bureaus.

Finest secured card for insurance coverage

Capital One Secured Mastercard

At a look: With its secured MasterCard, Capital One ensures you’ll be accepted so long as you’re of the age of majority in your province, you don’t have already got a Capital One account, and you may present safety funds of $75 or $300. This card comes with a number of additional perks like prolonged guarantee, automotive rental insurance coverage and a few journey advantages. Particularly price noting is that the cardboard comes with worth safety: Should you purchase a brand new merchandise that goes on sale for a lower cost inside 60 days, Capital One can pay you the value distinction as much as $100 per merchandise and $500 per 12 months. That is an extremely uncommon perk even amongst premium playing cards in Canada.

• Annual payment: $59
• Rates of interest: 21.9% on purchases and money advances
• Earn fee: None
• Welcome supply: This card doesn’t have a welcome bonus right now.
• Minimal deposit: $75
• Extra advantages: Prolonged guarantee, buy assurance, worth safety, in addition to journey advantages like frequent provider journey accident protection, automotive rental collision/loss harm waiver, baggage delay and journey help

• Annual revenue requirement: None

Professionals

• With the Capital One Secured Mastercard, you’re assured approval if you happen to meet the eligibility necessities famous above.
• It’s one of many few secured playing cards to supply insurance coverage protection.
• The cardboard comes with worth safety—a uncommon perk, even amongst premium playing cards—prolonged guarantee, frequent provider journey accident insurance coverage, baggage delay and journey help.

Cons

• Whereas the Neo Secured Card has no annual payment and presents money again, this card has an annual payment of $59 and doesn’t include any rewards or money again.
• Probably the most you possibly can deposit initially is $300, which supplies you a really low credit score restrict in comparison with the opposite playing cards on this listing. Nevertheless, upon profitable approval with Capital One, you could possibly enhance your restrict by depositing as much as $2,500.

What’s a secured bank card?

A secured card is a selected kind of bank card that requires candidates to make a money deposit as a way to be accepted. The expertise of utilizing a secured card for on a regular basis purchases is usually the identical as a “common” bank card, and the deposit requirement makes secured playing cards extraordinarily attainable and choice for individuals who need to construct their credit score with a bank card however don’t qualify for conventional unsecured bank cards due to very bad credit or a scarcity of credit score historical past.

How does a secured bank card work?

You pay a deposit upfront as a way to be accepted for a secured bank card. The deposit serves as collateral, so it’s straightforward to be accepted for these playing cards even when you have a very bad credit ranking. The spending restrict in your secured bank card might be one to 2 occasions the safety deposit you place down. Should you miss your minimal funds, then the issuer might take cash out of your deposit to cowl what you owe, however you can not use the deposit your self to make funds in your card. Should you determine to shut your account or to improve to an unsecured card, then your deposit might be returned. 

Apart from that, the cardboard works similar to a daily unsecured bank card. You should use it to purchase issues on-line, in shops, or to cowl common month-to-month invoice funds, reminiscent of utilities or Web service. Should you carry a stability on the finish of the month, you’ll be charged curiosity on the said fee. 

Do secured bank cards construct credit score?

Sure. In truth, constructing a greater credit standing is the first worth of a secured bank card. As a result of fee historical past is such an necessary consider figuring out a credit score rating, this is a wonderful choice for people who find themselves new to the nation, haven’t any credit score or poor credit score, or have lately filed for chapter. You will need to keep in mind to be as cautious making your bank card funds as you’ll with every other mortgage or invoice fee. Missed funds can damage your credit standing extra simply than making funds may help it. 

Should you make your minimal fee on time each month, it’s doable to develop good credit score in as little as a 12 months. As soon as that occurs, you could possibly qualify for an unsecured bank card and get your deposit again. It’s good apply to make use of your secured bank card repeatedly however to make use of it sparingly. You need to make certain you possibly can repay your whole stability every month to keep away from paying curiosity.

Secured vs unsecured bank cards

Secured bank cards

• Require deposit
• Straightforward to get accepted for (even when you have very bad credit)
• Typically have annual charges, or setup charges
• Don’t include any perks or rewards
• Can have greater rates of interest, however charges can range
• Can assist construct credit score

Unsecured bank cards

• No deposit required
• Require a reasonably good credit standing
• No arrange charges; many choices wouldn’t have annual charges, whereas others do
• Can include advantages reminiscent of journey factors, money again, journey insurance coverage and so forth
• Decrease rate of interest playing cards can be found
• Can assist construct credit score

Steadily requested questions

Extra of one of the best bank cards: