Top Secured Credit Cards in Canada for 2023
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Home Trust Secured Visa Card
Pros
- No annual fee
- Earn rewards on purchases
- Reports to major credit bureaus
- Flexible security deposit options
Cons
- Requires a security deposit
- Limited credit limit based on deposit
- Interest rates may be higher than unsecured cards
Key Features
Secured credit cards are an excellent option for Canadians looking to establish or rebuild their credit. These cards require a security deposit, which becomes your credit limit, and they often come with lower credit score requirements compared to traditional credit cards. For 2023, some of the top secured credit cards in Canada include the Home Trust Secured Visa Card, the Scotiabank StartRight Program for International Students, and the CIBC Cash Back Mastercard. A key feature among these is the ability to earn rewards, such as cash back, while working on improving your credit score.
A typical secured credit card in Canada will have the following features: a security deposit that equals your credit limit, variable interest rates that are generally higher than those of unsecured cards, and standard purchase interest rates around 19.99% to 24.99%. Some cards may offer a welcome bonus, which can vary, so it's essential to check the current offer. Annual fees also vary, and some cards may offer a lower interest rate for balance transfers or purchases. Earning rates are usually standard, with no rotating categories or spending limits.
Pros & Cons
One of the significant advantages of secured credit cards is that they are more accessible to individuals with lower credit scores or those new to Canada. The security deposit ensures that the lender has a level of protection, making it easier for applicants to get approved. Additionally, these cards can help you build credit over time by making regular payments and keeping your credit utilization ratio low. However, the interest rates can be high, and you'll need to make a security deposit, which may not be ideal for everyone.
Some pros of secured credit cards include:
- Lower credit score requirements
- Opportunity to build or rebuild credit
- Potential to earn rewards
- More accessible to newcomers to Canada
Some cons include:
- Higher interest rates
- Require a security deposit
- May have annual fees
- Lower credit limits
How It Compares
To compare the top secured credit cards in Canada, let's look at a few examples:
| Card | Interest Rate | Annual Fee | Minimum Credit Score |
|---|---|---|---|
| Home Trust Secured Visa Card | 19.99% | No annual fee | No minimum credit score |
| Scotiabank StartRight Program for International Students | 20.99% | No annual fee | No minimum credit score, but requires a student visa |
| CIBC Cash Back Mastercard | 20.99% | $59 | 600+ |
As you can see, each card has its unique features, benefits, and requirements. The Home Trust Secured Visa Card has no annual fee and no minimum credit score requirement, making it an excellent option for those with poor or no credit history. The Scotiabank StartRight Program for International Students is designed specifically for international students and offers a credit limit of up to $5,000. The CIBC Cash Back Mastercard offers cash back rewards but has a higher annual fee and requires a minimum credit score of 600+.
Who It's For
Secured credit cards are ideal for individuals who are looking to establish or rebuild their credit. This may include:
- Newcomers to Canada who are looking to build credit from scratch
- Individuals with poor or no credit history
- Those who have been rejected for traditional credit cards
- Students or young adults who are new to credit
It's essential to note that secured credit cards may have different eligibility requirements depending on the province you reside in. For example, some cards may be more readily available in certain provinces or may have different interest rates. It's crucial to check the issuer's website for the most up-to-date information and to ensure you meet the eligibility criteria.
How to Apply
To apply for a secured credit card, you'll typically need to provide:
- Personal identification, such as a driver's license or passport
- Proof of income, such as a pay stub or tax return
- Address and contact information
- A security deposit, which will become your credit limit
It's essential to carefully review the terms and conditions of the card before applying, including the interest rate, annual fee, and any rewards or benefits. You should also ensure you can afford the monthly payments and that you understand the risks associated with credit cards.
Actionable tips for applying and managing the product responsibly include:
- Make timely payments to avoid interest charges and late fees
- Keep your credit utilization ratio low to help improve your credit score
- Avoid applying for multiple credit cards in a short period, as this can negatively impact your credit score
- Monitor your credit report regularly to ensure it's accurate and up-to-date
FAQ
What is the difference between a secured and unsecured credit card?
A secured credit card requires a security deposit, which becomes your credit limit, whereas an unsecured credit card does not require a deposit. Unsecured credit cards typically have stricter credit score requirements and may offer more benefits and rewards.
Can I get a secured credit card with bad credit?
Yes, secured credit cards are often more accessible to individuals with poor or no credit history. However, you may still need to meet certain eligibility criteria, such as providing a security deposit and having a stable income.
How long does it take to build credit with a secured credit card?
Building credit with a secured credit card can take time, typically several months to a few years. It's essential to make regular payments, keep your credit utilization ratio low, and monitor your credit report to ensure it's accurate and up-to-date.
Can I upgrade to an unsecured credit card from a secured credit card?
Yes, it may be possible to upgrade to an unsecured credit card from a secured credit card, depending on the issuer and your credit history. You'll typically need to demonstrate responsible credit behavior and meet the issuer's eligibility criteria for an unsecured card.
Are secured credit cards regulated by the Financial Consumer Agency of Canada (FCAC)?
Yes, secured credit cards are regulated by the FCAC, which ensures that credit card issuers comply with certain standards and guidelines. The FCAC provides resources and information to help consumers make informed decisions about credit products.
Not financial advice. Rates and offers change. Read provider terms.
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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.