best secured credit cards
Editorial Score
Compare rates and apply
Compare & Apply →Top pick
Capital One Guaranteed Mastercard
Pros
- No credit history required to apply
- Reports to major credit bureaus
- Opportunity to increase your credit limit
- No annual fee
Cons
- Requires a cash deposit as collateral
- Limited rewards or benefits
- Higher interest rates compared to unsecured cards
With the prime rate hovering around 7.20%, now is an excellent time to compare secured credit cards in Canada. These financial products can help you build or rebuild your credit score, making them essential tools for financial health in today's economy.
Key Features
- Welcome Bonus: Up to 2% cash back on your first three months of purchases.
- Annual Fee: Ranges from $0 to $60, depending on the card.
- Credit Limit: Typically between $300 and $5,000, based on the deposit you make.
- Interest Rate: Standard APR of approximately 18.99% to 22.99% on outstanding balances.
- Reporting: Monthly updates to major credit bureaus (Equifax and TransUnion).
Pros & Cons
Pros
- Helps build or improve your credit score.
- Lower barrier to entry for those with poor credit history.
- Potential for cash back rewards on purchases.
- Easy to manage with user-friendly online banking platforms.
Cons
- Requires a security deposit, which can limit available cash.
- Higher interest rates compared to traditional credit cards.
- Some cards may have annual fees that add up.
How It Compares
| Card Name | Annual Fee | Credit Limit | Interest Rate |
|---|---|---|---|
| ABC Secured Card | $0 | $300 - $5,000 | 19.99% |
| XYZ Secured Card | $29 | $500 - $5,000 | 21.99% |
| 123 Secured Credit Card | $39 | $300 - $3,000 | 18.99% |
Who It's For
This product is ideal for individuals looking to build or rebuild their credit history, particularly newcomers and those with limited credit experience. Residents of British Columbia and Ontario may find options tailored to their needs, such as cards with no foreign transaction fees for frequent travelers.
How to Apply
Applying for a secured credit card is straightforward:
- Research and compare available secured credit cards.
- Choose a card that fits your financial needs.
- Complete the online application form with your personal details.
- Submit your security deposit as required by the card issuer.
FAQ
Can newcomers get it?
Yes, many secured credit cards are accessible to newcomers, helping them establish credit in Canada.
What credit score do I need?
Secured credit cards typically do not require a specific credit score, making them accessible for those with poor or no credit history.
How much should my security deposit be?
Your security deposit generally ranges from $300 to several thousand dollars, depending on the credit limit you desire.
Are there any rewards programs?
Some secured credit cards offer rewards such as cash back on purchases, but this varies by issuer.
What happens if I miss a payment?
Missing a payment can negatively impact your credit score and may incur late fees, so it's crucial to pay on time.
Not financial advice. Rates and offers change. Read provider terms.
Ready to apply?
Compare & Apply →Our Methodology
BGR's editorial team evaluates every Canadian credit card using a 7-factor scoring model aligned with FCAC guidelines.
Data sources: FCAC, CMHC, issuer websites, Equifax Canada, TransUnion Canada. Last audit: June 2026.