Best Secured Cards in Canada for 2022

Secured credit cards are your stepping stone to improving your credit and upgrading to a better card. If you’ve been wondering what the best secured credit card in Canada is, check out our reviews.

 

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5 Best Secured Cards that Stand out in 2022

1. Plastk Secured Visa

The Plastk Secured Visa Card is an excellent secured card including a free monthly credit score in addition to an app for tracking your progress. When approved, you receive 5,000 points to spend on rewards. Full Review

  • 25-day interest-free grace period for purchases
  • 3-day grace period for cash advances
  • Referral program
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The Plastk Secured Visa Card is an excellent secured card including a free monthly credit score in addition to an app for tracking your progress. When approved, you receive 5,000 points to spend on rewards. Full Review

Rating

9.8

Annual fee

$48 annual fee + $6 monthly maintenance fee

Interest rate

17.99%

Security deposit

at least $300

Credit limit

$10,000

2. Capital One Guaranteed Secured Mastercard

The Capital One Guaranteed Secured credit card offers attractive perks including price protection and an extended warranty. Cardholders with poor credit history will find this card especially beneficial. Full Review

  • Guaranteed approval
  • Extended warranty
  • Travel insurance
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The Capital One Guaranteed Secured credit card offers attractive perks including price protection and an extended warranty. Cardholders with poor credit history will find this card especially beneficial. Full Review

Rating

9.5

Annual fee

$59

Interest rate

19.8% on purchases and balance transfers, 21.9% on cash advances

Security deposit

$49, $99, or $200 depending on your credit state

Credit limit

at least $200

3. Citi® Secured Mastercard

The Citibank secured credit card is the best choice if you're looking for a card with no annual fee. Cardmembers can also enjoy travel insurance perks, as well as additional features like AutoPay. Full Review

  • 24/7 customer service
  • Monthly reporting to 3 major credit bureaus
  • Citi® Identity Theft Solutions
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The Citibank secured credit card is the best choice if you're looking for a card with no annual fee. Cardmembers can also enjoy travel insurance perks, as well as additional features like AutoPay. Full Review

Rating

9.2

Annual fee

$0

Interest rate

22.49% APR

Security deposit

$200 - $2,500

Credit limit

$200 - $2,500

4. Home Trust Secured Visa

The Home Trust Secured Visa offers a card with no annual fee at an interest rate of 19.99%, or you can pay a fee of $59 for an interest rate of 14.99%. Additionally, the approval rate for the Home Trust secured card is over 95%. Full Review

  • Accepted in over 200 countries
  • 90 days of purchase protection
  • Online account services
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The Home Trust Secured Visa offers a card with no annual fee at an interest rate of 19.99%, or you can pay a fee of $59 for an interest rate of 14.99%. Additionally, the approval rate for the Home Trust secured card is over 95%. Full Review

Rating

9.1

Annual fee

$0 or $59

Interest rate

14.9%

Security deposit

$500 - $10,000

Credit limit

$500 - $10,000

5. Scotiabank Value Visa

The Scotiabank Value Visa card is the most affordable secured card option with a low annual and interest fee. What's more, Scotiabank even has a promotional interest rate of 0.99% on balance transfers and cash advances during the first six months. Full Review

  • Free additional cards
  • Scotia Credit Card Protection
  • Visa payWave
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The Scotiabank Value Visa card is the most affordable secured card option with a low annual and interest fee. What's more, Scotiabank even has a promotional interest rate of 0.99% on balance transfers and cash advances during the first six months. Full Review

Rating

8.7

Annual fee

$29

Interest rate

12.99%

Security deposit

$500

Credit limit

$500

Detailed Reviews

  • ✅ Low interest rate
  • ✅ Great sign-up bonus
  • ✅ Easy application process
  • ⛔️ A high foreign exchange fee
  • Rating: 9.8
  • Annual fee: $48 annual fee + $6 monthly maintenance fee
  • Interest rate: 17.99%
  • Security deposit: at least $300
  • Credit limit: $10,000

With the Plastk credit card, you can simultaneously build your credit score and claim attractive rewards. 

Upon approval, cardholders receive 5,000 bonus points. 2,500 points are worth $10, meaning the welcome offer is worth $20. 

You can claim the bonus after three months, and new customers also receive 0% APR on purchases in the first 90 days.

You can use rewards points earned from purchases made with the Plastk Secured Visa Card for merchandise, charity donations, gift cards, or you can use it to pay off your balance

Furthermore, the Plastk offer includes a free credit score each month, as well as an app that will make earning rewards and tracking your progress easier.

  • ✅ Mastercard Global Service
  • ✅ No foreign transaction fees
  • ✅ Great for repairing credit
  • ⛔️ Low credit limit
  • Rating: 9.5
  • Annual fee: $59
  • Interest rate: 19.8% on purchases and balance transfers, 21.9% on cash advances
  • Security deposit: $49, $99, or $200 depending on your credit state
  • Credit limit: at least $200

The Capital One Mastercard Secured credit card is a great choice for cardholders with weaker credit histories, and the guaranteed approval makes sure the provider accepts the majority of candidates.

The everyday benefits of the Capital One Secured Mastercard in Canada include price protection, purchase assurance, and extended warranty.

Although as a secured card, its primary purpose is accessing and building credit, it offers other perks, such as Zero Liability for unauthorized use of your card. 

What’s more, you can enjoy travel benefits, such as common carrier travel accident insurance, car rental loss/collision damage waiver and more.

  • ✅ Simple eligibility requirements
  • ✅ Users can qualify with limited or bad credit
  • ✅ Reports to all three credit bureaus
  • ⛔️ High APR
  • Rating: 9.2
  • Annual fee: $0
  • Interest rate: 22.49% APR
  • Security deposit: $200 – $2,500
  • Credit limit: $200 – $2,500

The Citibank secured credit card stands out from other secured cards by not targeting users with poor credit but those with limited or no credit.

Should you be eligible to become a cardholder, this card is a perfect choice since it doesn’t charge an annual fee.

Cardholders can enjoy additional benefits, such as Account Alerts or AutoPay.

On top of that, Citibank credit cards come with excellent account protection features, including fraud alerts, $0 liability on unauthorized charges, as well as Citi® Identity Theft Solutions. 

Home Trust Secured Visa
Home Trust Secured Visa

Best Low Interest Secured Credit Card

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  • ✅ Low interest rates on purchases
  • ✅ 21-day no-interest grace period
  • ✅ Allows users to set their own limits
  • ⛔️ No rewards or discounts
  • Rating: 9.1
  • Annual fee: $0 or $59
  • Interest rate: 14.9%
  • Security deposit: $500 – $10,000
  • Credit limit: $500 – $10,000

If you’ve been struggling with rebuilding your credit score, the Home Trust secured Visa card might be for you. 

The key benefit of the card is that you can get it at a $0 annual fee, with a higher interest rate, or pay an annual fee and receive a lower interest rate. Additionally, Home Trust sends reports to two major credit bureaus each month to help your credit rating.

Thanks to its high approval rate, it’s easy to become a user of this secure Visa card. 

After getting approved, you can take advantage of plenty of benefits while rebuilding your credit. For instance, 

Home Trust cardmembers can make purchases online or over the phone, book reservations, and access their funds from over 1 million ATMs worldwide.

  • ✅ Low balance transfer rate
  • ✅ Low annual fee
  • ✅ Free additional card
  • ⛔️ No insurance benefits
  • Rating: 8.7
  • Annual fee: $29
  • Interest rate: 12.99%
  • Security deposit: $500
  • Credit limit: $500

If you’re looking for a credit card with a low annual fee and interest rate, consider adding the Scotiabank Value Visa card to your wallet. 

The provider even offers a promotional interest rate of 0.99% for cash advances and balance transfers during the first six months, making the card a great value for your money. 

Furthermore, cardmembers can add a Supplementary Cardholder at no charge and even save up to 25% on car rentals when participating at AVIS and Budget locations in Canada and the U.S. 

What’s more, you can save some time at checkout with the mobile app by simply tapping your Scotiabank Value Visa card on your smartphone.

Secured Credit Cards at a Glance

We’ve created a short guide to help you understand what secured credit cards are and what to use them for.

What is a secured credit card?

The key difference between a regular and a secured credit card is the mandatory security deposit that protects the bank should you fail to meet your payment deadline.

It’s usually the same amount as your credit limit, stays in your savings account, and can be refunded.

People who are making efforts to improve their credit scores aren’t the only ones who can benefit from a secured card.

For instance, international students or foreigners can also use the cards to start building a credit score

How do secured credit cards work?

Apart from the required security deposit, secured cards work similarly to traditional credit cards.

The bank reports your credit activity to credit bureaus, thus raising your credit score if you regularly pay off your balance.

Other options for paying off your credit card debt include unsecured credit cards, low-interest credit cards, balance transfer credit cards, or prepaid cards.

Secured credit cards vs. prepaid cards

Just like a secured card, a prepaid credit card requires you to deposit money upfront. However, the credit card company uses the loaded sum to pay for your purchases with the prepaid card. 

Contrastingly, secured credit card users pay for their purchases when they receive a statement at the end of each month. 

Advantages of secured credit cards

The primary role of secured credit cards is building or repairing credit. There are a few benefits that make these cards a great option:

  • Easier approval – Since you’re paying a deposit as collateral, missing out on your payments is less likely to happen. Plus, your credit score is not that significant when you apply for a secured credit card.
  • Earning rewards – Although it’s not that likely, some secured cards provide benefits similar to unsecured cards, including travel insurance or cashback services. Cashback is a convenient option for paying off your monthly balance.
  • Refundable deposits – One of the best things about a secured credit card is that you get your security deposit back, provided that you don’t default on your payments. And even if you do miss out on your payments, you can’t lose more than your deposit.

Disadvantages of secured credit cards

Let’s take a look at a couple of key concerns about credit building cards in Canada:

  • High fees – Before committing to a secured card, it’s best to check all your options to find one that doesn’t require high fees or additional costs for application or processing.
  • High-interest rates – Generally, secured credit card issuers don’t offer generous interest rates due to the risk of default. However, most secured cards come with 15-25% interest rates.

Tips for using a secured card 

Secured credit cards are the most useful credit-building tool. Here are some ways to make the most out of them:

  • Use your card responsibly – Make a few small purchases each month, but don’t go overboard with spending.
  • Pay your balance on time – If you pay your balance in full, you won’t have to pay interest. 
  • Track your credit score – Be sure to regularly check the status of your credit score so you can ask your issuer for an upgrade to an unsecured card when it improves.

How to get a secured credit card?

Although every bank has a different process, the secured credit card application in Canada has a few common steps:

  1. Applying for a card – the card issuer checks how risky you are.
  2. Funding the deposit – you have to pay the security deposit and disclose bank account information. 
  3. Receiving the card – upon acquiring your security deposit, the card issuer will mail you your credit card.
  4. Paying your bill – to avoid interest charges, it’s best to pay off your balance in full each month.
  5. Upgrading to a better card – once your credit score improves, you have a chance to upgrade to an unsecured card. 

You might be interested: Best Aeroplan Credit Cards in Canada

Before we go on a Shopping Spree

Secured credit cards are an excellent option whether you want to improve or start building your credit. Despite many issuers offering secured credit cards with different benefits, it can be tricky to pick the right one.

We hope our reviews will help you invest in the best secured credit card in Canada for your needs.

FAQ

What is a secured credit card?

A secured credit card is a card that requires a security deposit, which is refunded if the cardholder doesn’t default on their payment.

What’s the highest credit card limit in Canada?

Many banks don’t disclose this information. However, some cards have limits of $100,000, while the limits of other cards go as high as $500,000.

How does a secured credit card work?

Secured cards are funded by a deposit when you’re opening your account. Typically, the deposit amount matches your credit limit.