A secured credit card asks for a refundable deposit up front, and that deposit becomes the credit limit. Because the issuer holds your money as security, these cards are usually open to people with no Canadian credit file, a thin one or a damaged one, and the account is reported to the credit bureaus like any other card. This page compares the secured cards available in Canada, explains how they work, and covers the other credit-builder options for people who would rather not put down a deposit. It is one of our credit card reviews and roundups; the credit scores hub covers how scores are calculated.
Best Secured Credit Cards in Canada
| Card | Annual fee | Minimum deposit | Rewards | Reports to |
|---|---|---|---|---|
| Home Trust Secured Visa | $0 (or $59/yr for a reduced rate) | $500 | None | Not confirmed on issuer page |
| Neo Secured Mastercard | $0 card fee + $9.99/mo Build membership | $50 | Partner offers only | Equifax and TransUnion |
| Capital One Guaranteed Secured Mastercard | $0 | $75 | None | Not confirmed on issuer page |
Home Trust Secured Visa: best overall
The Home Trust card has no monthly or annual charge at the standard rate, and it allows a deposit large enough for a limit that’s useful day to day. The cash back card in Home Trust’s lineup is its separate Preferred Visa.
| Feature | Details |
|---|---|
| Annual fee | $0 (or $59/yr for a reduced rate) |
| Deposit | $500 minimum, up to $10,000 |
| Purchase interest rate | 19.99% standard, or 14.90% with the optional $59/yr fee |
| Rewards | No rewards program (0% cash back) |
| Reports to | Not confirmed on Home Trust’s page; ask the issuer |
| Availability | Not offered in Quebec |
Strengths: no ongoing cost at the standard rate, a high deposit ceiling for a larger limit, an option to pay a fee for a lower interest rate. Drawbacks: the $500 minimum deposit is the highest of the three, there are no rewards or insurance, and Quebec residents can’t apply.
Neo Secured Mastercard: lowest deposit
Neo’s secured card starts at a $50 deposit, which makes it the easiest of the three to open on a tight budget. The card itself carries no annual fee, but using the secured credit limit requires Neo’s paid Build membership, so it is not a no-cost card.
| Feature | Details |
|---|---|
| Fees | $0 card fee; using the secured credit limit requires a paid Build membership at $9.99/month |
| Deposit | $50 minimum, up to $10,000 |
| Purchase interest rate | 19.99%-29.99% (up to 24.99% in Quebec) |
| Rewards | Up to 15% cash back at Neo partner merchants (personalized offers, no guaranteed base rate) |
| Foreign transaction fee | 3% (waivable with a Neo Grow membership) |
| Reports to | Equifax and TransUnion |
Strengths: the lowest deposit, available in Quebec, and an app that shows your score as it changes. Drawbacks: the monthly membership adds up over a year of credit building, cash back comes from Neo partner merchants, and the foreign transaction fee is above the usual rate.
Capital One Guaranteed Secured Mastercard: approval for almost anyone
Capital One approves this card for applicants who meet its basic conditions and fund the deposit, which suits people who have been declined elsewhere. The trade-off is a low ceiling on the limit and a high interest rate.
| Feature | Details |
|---|---|
| Annual fee | $0 |
| Deposit | $75, $200 or $300 |
| Purchase interest rate | 29.9% (21.9% for Quebec residents) |
| Rewards | No rewards program (0% cash back) |
| Reports to | Not confirmed on Capital One’s page; ask the issuer |
Strengths: approval is close to certain, no annual fee, small deposit options, and an established issuer. Drawbacks: the limit tops out at $2,500, the interest rate is high, and there are no rewards.
Refresh Financial is now part of Borrowell
Borrowell acquired Refresh Financial in February 2021, and refreshfinancial.ca now forwards to borrowell.com. Some lists still show Refresh Financial’s secured Visa, so confirm with Borrowell that it is offered before counting on it.
How a secured credit card works
The deposit is the limit
| Aspect | How it works |
|---|---|
| Amount | Becomes your credit limit, dollar for dollar |
| Purpose | Security for the issuer if you stop paying |
| Paying your bill | You still pay each statement from your own account; the deposit isn’t used for payments |
| Refund | Returned when you close the account in good standing or the issuer upgrades you |
A $500 deposit gives a $500 limit. You spend on the card, pay the statement, and if you later close the account with the balance cleared, the $500 comes back.
Secured, unsecured and prepaid cards compared
| Secured credit card | Unsecured credit card | Prepaid card | |
|---|---|---|---|
| Credit check | Minimal or none | Yes | No |
| Deposit | Yes | No | You load your own money |
| Builds credit | Yes | Yes | No |
| Reported to the bureaus | Yes | Yes | No |
| Credit limit | Equals your deposit | Set by the issuer | Equals your loaded balance |
| Upgrade path | To an unsecured card | Already unsecured | None |
Prepaid Visa and Mastercard products aren’t credit accounts, so however long you use one, it adds nothing to your credit file. The prepaid card roundup covers them for budgeting.
When the bureaus hear about it
Issuers typically report your balance and payment status to the bureaus about once a month, usually around the statement date. Neo states it reports to both Equifax and TransUnion; check the other two issuers’ reporting before you apply, because different lenders pull different bureaus. Expect a lag of a month or more between a change in how you use the card and the change showing in your score; the build-credit-from-scratch guide walks through what to expect over the first year.
Using it so it helps your score
| Habit | Why it matters |
|---|---|
| Paying the full balance by the due date | Payment history carries the most weight in a score, and paying in full avoids interest |
| Keeping the reported balance low | A balance near the limit raises your credit utilization, even on a small limit |
| Using it a little every month | An active account keeps reporting |
| Keeping it open after you upgrade | Account age counts toward your score |
The common mistakes are the reverse: paying only the minimum (interest at the rates above, with no credit benefit), maxing out the limit, missing a payment, and closing the account as soon as an unsecured card arrives.
Choosing a deposit amount
| Budget | Deposit range | Cards that fit |
|---|---|---|
| Tight | $50 to $200 | Neo, Capital One |
| Moderate | $300 to $500 | Capital One (up to $2,500 with added funds), Home Trust (from $500) |
| A larger limit | $1,000 or more | Home Trust or Neo, up to $10,000 |
A small deposit is easier to put down, but a small limit makes it harder to keep the reported balance low. A larger deposit gives more room and keeps more of your money tied up until the account is closed or upgraded. Neo and Capital One let you add funds later to raise the limit (Capital One up to $2,500).
When to move to an unsecured card
| Signal | What it suggests |
|---|---|
| A year or more of on-time payments | Enough positive history for most entry-level cards |
| A score in the mid-600s or higher | Inside the range many starter cards approve |
| A low balance relative to the limit | Shows the account is being used lightly |
| No new negative marks | Makes an upgrade or new approval more likely |
There are two routes. Some issuers review secured accounts and offer an unsecured version, returning the deposit; where the account number carries over, so does its history. Otherwise you can apply for an unsecured starter card such as those in our first credit card guide and keep the secured card open for its age. Spacing out applications matters here: the guide to time between applications explains why.
Getting the deposit back
The deposit is returned after an upgrade or after you close the account, once the balance is paid in full and the account is in good standing. Timing varies by issuer, from a billing cycle or two to several weeks after closing.
Other ways to build credit
Not everyone needs a deposit. These options suit particular situations:
| Option | Annual fee | Rewards | Suits |
|---|---|---|---|
| Capital One Smart Rewards Mastercard | $0 | 5x points per $1 paid toward your balance (unique structure, not per dollar spent) | Fair or limited credit, no deposit |
| BMO CashBack Mastercard for students | $0 | 3% groceries (capped $15/statement), 1% recurring bills (capped $5/statement), 0.5% everything else | Full-time students |
| KOHO Credit Building | About $10 a month, less on some plans | Cash back on the prepaid card | People who want no credit card at all |
- Unsecured cards for fair credit. The Capital One Smart Rewards Mastercard needs no deposit and approves limited or fair credit. Its points are earned on payments toward the balance rather than on purchases.
- Student cards. Bank student cards often approve full-time students without a deposit or credit history; the student credit card roundup compares them.
- KOHO Credit Building. KOHO reports monthly payments on a small line of credit to Equifax, and its own pages differ on whether TransUnion also receives them. It builds a payment record without a credit card, but more slowly than a card reported to both bureaus.
- Becoming an authorized user on a family member’s established card, covered in the authorized user guide.
If your situation is specific, these pages go further: newcomers can start with the newcomer credit card guide, and anyone recovering from a bankruptcy or consumer proposal has the rebuilding credit after bankruptcy guide. For guaranteed-approval and fair-credit options beyond secured cards, see the credit cards for bad credit roundup.
Secured card questions
Can I be declined for a secured card?
It’s uncommon, but it happens: an undischarged bankruptcy at some issuers, failed identity verification, a frozen credit file, or living in a province the issuer doesn’t serve. Capital One lists four conditions for guaranteed approval, and Neo also describes approval as guaranteed.
Can I use a secured card abroad?
Yes, though foreign purchases carry a foreign transaction fee (Neo’s is the highest of the three). The no foreign transaction fee card roundup covers cards without one, most of which need established credit.
Will a secured card hurt my credit?
Only through how it’s used. The application may cause a hard inquiry, and late payments or a high balance count against you, but on-time payments and a low balance build a positive record.
Related Resources
Sources
The figures and rules on this page come from these sources, last checked against them on October 6, 2026. How we check facts.
- neofinancial.com: Paid
- neofinancial.com: Neo Mastercard | Apply Online in Minutes | Neo Financial™