Best Secured Credit Cards Canada

Secured credit cards can be an excellent option for those who have a low credit score or limited credit history. By providing a security deposit, cardholders are able to access credit that might otherwise be denied to them. This can help establish or rebuild credit, which can eventually lead to approval for an unsecured card with more favorable terms. In this article, we’ll take a look at the best secured credit cards available in Canada, highlighting their key features, benefits, and fees.

1. Home Trust Secured Visa Card

The Home Trust Secured Visa Card is widely regarded as one of the best secured credit cards in Canada. It offers a flexible credit limit based on the security deposit, which can range from $500 to $10,000. There is no annual fee, making it an attractive choice for those looking to build or repair their credit without incurring additional costs.

Key Features:

• No annual fee
• Credit limit based on the security deposit ($500 to $10,000)
• Accepted at millions of locations worldwide
• Online account access

Benefits:

• Helps establish or rebuild credit
• Reports to major credit bureaus in Canada
• No minimum income requirement

Fees:

• 19.99% annual interest rate on purchases
• 21.99% annual interest rate on cash advances

2. Refresh Financial Secured Visa Card

Refresh Financial’s Secured Visa Card is another popular choice among Canadians seeking to improve their credit scores. With a minimum security deposit of $200 and a maximum of $10,000, this card offers credit limits that cater to a wide range of financial needs. The annual fee is $48.95, which is relatively low compared to other secured credit cards.

Key Features:

• Credit limit based on the security deposit ($200 to $10,000)
• Reports to major credit bureaus in Canada
• Online account access and management

Benefits:

• Helps establish or rebuild credit
• No credit check required
• No minimum income requirement

Fees:

• $48.95 annual fee
• 17.99% annual interest rate on purchases
• 21.99% annual interest rate on cash advances

3. Capital One Guaranteed Secured Mastercard

The Capital One Guaranteed Secured Mastercard is another excellent option for Canadians looking to establish or rebuild their credit. This card requires a security deposit of $75, $300, or $500, which determines the credit limit of $300, $500, or $2,500, respectively. There is an annual fee of $59, but the card offers a host of additional benefits, including purchase protection and extended warranty coverage.

Key Features:

• Credit limit based on the security deposit ($300 to $2,500)
• Purchase protection and extended warranty coverage
• Online account access and management

Benefits:

• Helps establish or rebuild credit
• Reports to major credit bureaus in Canada
• No minimum income requirement

Fees:

• $59 annual fee
• 19.8% annual interest rate on purchases
• 21.8% annual interest rate on cash advances

4. Plastk Secured Visa Card

The Plastk Secured Visa Card is an excellent choice for those looking to rebuild their credit while earning rewards. With a minimum security deposit of $300 and a maximum of $10,000, cardholders can enjoy a credit limit that suits their financial situation. The annual fee is $48, and cardholders earn 1 reward point for every $1 spent on the card.

Key Features:

• Credit limit based on the security deposit ($300 to $10,000)
• Earn 1 reward point for every $1 spent
• Redeem points for gift cards, merchandise or statement credits
• Online account access and management

Benefits:

• Helps establish or rebuild credit
• Reports to major credit bureaus in Canada
• No minimum income requirement
• Earn rewards while building credit

Fees:

• $48 annual fee
• 17.99% annual interest rate on purchases
• 21.99% annual interest rate on cash advances

5. TD Cash Secured Credit Card

The TD Cash Secured Credit Card offers a simple way for Canadians to build or rebuild their credit while enjoying a low-interest rate on purchases. The card requires a minimum security deposit of $500 and offers a credit limit up to $5,000. The annual fee is $29, making it a cost-effective option for those looking to improve their credit score.

Key Features:

• Credit limit based on the security deposit ($500 to $5,000)
• Online account access and management
• 24/7 customer service

Benefits:

• Helps establish or rebuild credit
• Reports to major credit bureaus in Canada
• Low annual interest rate on purchases

Fees:

• $29 annual fee
• 14.9% annual interest rate on purchases
• 22.99% annual interest rate on cash advances

Secured credit cards are a valuable tool for Canadians looking to establish or rebuild their credit. By carefully evaluating the key features, benefits, and fees associated with each card, you can find the best option for your unique financial situation. The Home Trust Secured Visa Card, Refresh Financial Secured Visa Card, Capital One Guaranteed Secured Mastercard, Plastk Secured Visa Card, and TD Cash Secured Credit Card all offer various advantages that can help you improve your credit score and gain access to better financial products in the future.

Remember to use your secured credit card responsibly by making timely payments and keeping your balance low in relation to your credit limit. Over time, your responsible use of credit will be reflected in your credit score, and you may be able to qualify for an unsecured credit card with more favorable terms and rewards.