Best Secured Credit Cards in Canada for 2025
Credit cards without the credit checks to help you rebuild your credit score.
The Secured Tims Mastercard is the best secured credit card for Canadians – and it's not just for coffee lovers. However, it has some stiff competition from a few different issuers, like Neo Financial and Home Trust.
The selection of secured credit cards has undergone significant changes over the past few years, now featuring rewards cards, low-fee cards, and even premium cards. After all, just because you need to build credit doesn't mean you don't deserve a few perks too.
If you're in the market for a secured card, the extensive reviews below cover everything you need to know to help you make an informed decision.
Key Takeaways
- The best secured credit card in Canada is the Secured Tims Mastercard.
- Secured credit cards are credit-building tools with little to no annual fees and guaranteed acceptance.
- Secured credit cards require a security deposit and typically offer no rewards, cash back, or welcome bonuses – though there are exceptions.
The best secured credit cards for 2025
The algorithm that helps us determine the best credit cards gave us the best secured credit cards in Canada with a clear winner: the Secured Tims Mastercard.
| Category | Credit Card | Annual Fee | Pros | Cons |
|---|---|---|---|---|
| Best secured credit card in Canada | Secured Tims Mastercard | $0 | * Earn rewards on daily purchases, especially transit and groceries * Use points on your daily Tims run * No annual fee | * Points are only worth 0.5 cents each * Low base earn rate of 1 point per $2 |
| Best secured card for rewards | Neo Secured Credit | $95.88 | * 12,000+ retail partners * $50 minimum security deposit * $95.88 annual fee * No income requirements * Up to 5% cash back * Premium upgrade available | * Purchase interest rate starting at 19.99% * 2.5% foreign exchange fee * No insurance included |
| Best low fee secured credit card | Home Trust Secured Visa Card | $0 | * $0 annual fee * $59 optional annual fee for lower interest rates * No income requirements * 2% foreign exchange fee * High acceptance for Visa credit cards | * $500 minimum security deposit * No insurance included * No rewards |
| Best low interest secured credit card | Home Trust Secured Visa (Low Rate) | $59 | * 14.9% purchase interest rate * 2% foreign exchange fee * No income requirements * High acceptance for Visa credit cards | * $500 minimum security deposit
* $59 annual fee * No insurance included |
| Best premium secured credit card | Neo Secured World Elite Mastercard | $125 | * Earn an average of 5% cash back * Increase your cash back by keeping a balance of $5,000 in a Neo Everyday Account * Redeem your cash back whenever you want * Includes 12 types of insurance | * Caps on bonus categories * High income requirements of $80,000 personal or $150,000 household * No welcome bonus * Extra cards not available |
1. The best secured credit card in Canada
If you love Tim Hortons and earning rewards on your everyday spending, this card is a fantastic choice. You’ll earn 2 points for every $1 spent at Tim Hortons, as well as on groceries, gas, EV charging, and transit. Additionally, you’ll get 1 point per every $4 spent anywhere else.
Points can then be redeemed for any menu item at Tim Hortons, making it perfect for loyal customers. You can also put your rewards to statement credits, so you don’t have to worry about wasted points. Plus, with no annual fee, it’s an affordable way to rack up rewards, enjoy your favourite treats, and boost your credit score.
2. The best secured card for rewards
Given how rare it is for a secured credit card to offer rewards, the Neo Secured Credit easily wins 2nd place. Cardholders can earn 1% cash back on gas and grocery purchases, and up to 5% at over 12,000 Neo Financial partners:
- 5% at bars, cafes, and restaurants like Earls, Boston Pizza, and Freshii
- 3% through food delivery, ride-sharing, and streaming services like Uber and Netflix
- At least 2% while shopping in-store or online at Aldo, Hudson’s Bay, Roots, and more
A $0 annual fee, $50 minimum security deposit, and no hard credit checks are just the cherries on top.
If you like the rewards, you can upgrade to the Premium card for $59.88 per year. The premium card gets 3% cash back on gas and groceries, 0.5% on all other purchases, and up to 6% in all the categories mentioned above – plus purchase protection, 24/7 legal assistance, and up to $2,500 of group life insurance coverage.
3. Best low fee secured credit card
The Home Trust Secured Visa Card doesn’t provide any credit card rewards or insurance, but it also won’t cost you a cent. Your first card is free, additional cards are free, and transactions in non-Canadian dollars only cost 2% to process – but you’ll have to make a minimum $500 security deposit to get it.
If you need more wiggle room in your spending limit, you can deposit as much as $10,000 and pay Home Trust $59/year to drop your interest rate to 14.9% (see below).
All in all, there are worse ways to fix a bad credit score.
4. Best low interest secured credit card
The Home Trust Secured Visa (Low Rate) carries the same strengths and weaknesses as its free counterpart, with one exception: its annual purchase interest rate is only 14.9%. It may not be the lowest interest rate you can find in Canada but it’s the best you can do if you’re in a consumer proposal, you declared bankruptcy, or you have bad credit.
Given that interest fees are the number one reason Canadians get dragged into credit card debt, it’s worth considering the low-rate Home Trust Secured Visa.
5. Best premium secured credit card
The Neo Secured World Elite Mastercard has a hefty annual fee but its benefits manage to offset the cost. The card has substantial income requirements, but if you qualify,, you can earn up to 5% cash back with Neo partners and an additional 2% back if you have a $5,000 balance in a Neo Everyday Account.
Cash back isn’t the only thing the Neo secured card has going for it, either; the card’s generous insurance package includes a dozen types of insurance coverage.
How we get our ratings
Our creditcardGenius algorithm weighed the 7 rating factors as follows:
- Rewards: 31%
- Fees: 20%
- Insurance: 16%
- Interest: 7%
- Perks: 16%
- Approval: 5%
- Acceptance: 5%
Learn more about our Genius Rating methodology
What cardholders say
While it’s useful to read through credit card details, there’s nothing like honest user feedback to help you find the card that's right for you.
Several users were using the Neo Secured Credit, which had been free, until the issuer began charging $5 a month:
Another Redditor recommended the Home Trust Secured Visa Card, our favourite low interest secured card.
Ultimately, you’ll want to decide if you’re okay paying a monthly or annual fee, or if you want a no fee secured card.
Compare all secured credit cards in Canada
×1 Award winner 
$100 GeniusCash + Up to 2% cash back on purchases + No foreign exchange fees.*
Awards are given out once a year but rating and rankings can shift throughout the year. The #1 card for 2025 is pinned to the top.
What is a secured credit card?
Secured credit cards are spending tools designed for newcomers, recovering debtors, and other non-traditional borrowers with poor credit.
Most secured cards have no annual fees, no income requirements, low credit requirements, and high approval rates. They work just like a regular credit card – the catch is that you have to provide a security deposit.
How secured credit cards work
If you get approved for a secured credit card, you must provide a security deposit to receive it. The size of your deposit doubles as your card’s available credit limit – deposit $50, and you can only spend up to $50. Deposit $1,000 and you’ll have up to $1,000 of spending power, and so on.
A security deposit eliminates any financial risks for your credit card issuer. If you don’t pay your credit card statements on time, the company will cancel your card and keep your deposit. That’s why you can only spend as much as you pay for the card in the first place.
Can secured credit cards improve your credit?
A secured credit card's most important function is building your credit score, but it’s not as simple as slipping it into your wallet. The major credit bureaus in Canada use 5 factors to measure your financial trustworthiness and calculate your credit score.
Here are the 4 areas in which a secured credit card can improve your credit and how to do it:
- The length of your credit history: It takes 30–90 days for your credit score to update, so hold onto a secured card for at least 3 months and don’t be discouraged if your credit rating doesn’t immediately increase.
- Your credit mix: Successfully managing several types of credit products helps demonstrate your financial responsibility. This is the easiest area to improve. If you apply for and receive a secured credit card, you’ve already succeeded in diversifying your wallet.
- Your credit utilization ratio: Banks prefer to lend to people who spend less money than they have access to. Try to spend less than half of your secured credit card limit every month – ideally, less than 30% – or increase it by making a bigger deposit.
- Your payment history: Lenders like to know that you pay your bills in full and on time. Try to pay off your credit card before the payment deadline each month to improve your credit rating.
If you’re curious, the other factor used to measure credit score is application frequency. You can boost your score simply by resisting the urge to apply for any other credit cards or credit products for at least 3 months after receiving a secured credit card.
How long do I need to use a secured credit card?
You need to use a secured credit card until your credit score improves enough for you to apply for a better card. A good credit score in Canada is 660–724, but how long it takes you to reach it depends on your current credit score and spending habits.
It takes your credit score 30–90 days to update, so bank on using a secured credit card for 3 months to 1 year at best.
Secured credit card pros and cons
When deciding whether a secured card is right for you, consider that while they can be a huge help in rebuilding credit, you'll still be charged interest and other types of fees.
Here's an overview of the pros and cons related to secured credit cards:
Pros of secured credit cards:
- Helps build and improve credit
- Near-guaranteed approval
- No or low annual fees
- No income requirements
- Possible rewards, cash back, and welcome offers
- Helps avoid overspending
- Teaches financial discipline
- Security deposit is returned when the card is closed
- Accepted everywhere credit cards are accepted
Cons of secured credit cards:
- Requires a security deposit
- May still charge monthly/annual fees
- Credit card limit is restricted by the security deposit
- Interest fees and late payment charges still apply
- Little to no insurance included
Secured credit card alternatives
If you don’t like the downsides of a secured credit card or you aren’t trying to build credit, consider applying for:
- No fee credit cards, which provide cash back and other rewards on the cheap
- Prepaid credit cards, which offer some rewards but don’t let you spend more than what you have in your account – and don’t contribute to your credit score
- Student credit cards, which have relaxed credit and income requirements to help young cardholders build credit
Pro Tip: The creditcardGenius quiz makes it easy to find a credit card that matches your credit score, goals, income requirements, and priorities in less than a minute.
How to get a secured credit card
Applying for a secured credit card is the same as applying for any other card:
- Check the eligibility requirements: You must be a Canadian resident and at least the age of majority in your province or territory. Fortunately, income and credit requirements don’t really apply to secured credit cards.
- Gather your documents: Generally, you need a piece of government-issued ID with your name, date of birth, and address, plus your SIN card.
- Submit your application: Most banks enable Canadians to submit their applications by phone, by mail, in-person, or online.
Once you’re approved, you’ll need to make a security deposit to receive your card. Some issuers require you to create an account, while others ask for payment by e-transfer or debit card. One thing’s for sure: you can’t make a security deposit with another credit card.
Which banks offer secured credit cards in Canada?
While Amex, BMO, TD, and other banks offer secured credit products to American customers, these cards have yet to make it north of the border.
The only bank offering secured credit cards in Canada is Home Bank, which manages the financial services company Home Trust. Neo Financial is a financial technology company that isn’t regulated by the Financial Consumer Agency of Canada (FCAC).
Transitioning from a secured to an unsecured credit card
Once you’ve built your credit, you’ll probably want to upgrade to an unsecured credit card that offers more rewards and benefits. To prepare for that transition, keep the following in mind:
- Monitor your credit score. While you have your secured card, check your credit score regularly (say, once a month) so that you can track your improvements and determine when you might qualify for an unsecured credit card.
- Make consistent on-time payments. On-time payments play a significant role in improving your credit score. Pay your balance in full by the due date every month – either in one lump payment or multiple payments throughout the billing cycle.
- Keep your credit utilization low. Demonstrate responsible use of your credit card by using 30% or less of your available credit.
- Review your credit report. Check your credit report every 6-12 months to ensure it’s error-free and dispute any inaccuracies.
- Ask your issuer about unsecured cards. Some credit card issuers offer pathways to help you transition from a secured card to an unsecured one. Contact them to ask what your options are.
FAQ
Why is there a security deposit on a secured credit card?
The main reason is that a security deposit eliminates any financial risk for the company that issued you a secured credit card. If you miss your payments, they can simply close your account and keep your original deposit.
How can a secured credit card help me build credit?
A secured credit card can help users build credit by contributing to their credit history, credit mix, credit utilization score, and payment history – but it won’t work if you don’t pay your bills on time.
Do you need a credit check to get a secured credit card?
It depends, as certain secured credit cards don’t require a hard credit check, though others might. However, even secured credit cards that require credit checks are much easier to get approval for than a typical credit card.
Is a secured credit card the same as a prepaid credit card?
Secured and prepaid credit cards both limit the user's available credit to what they’ve already paid, but only secured credit cards can help build credit. Secured cards have bills you must pay on time while prepaid cards need to be recharged with debited funds.
How long should you keep a secured credit card?
It can take anywhere from three months to one year to improve your credit, so hold onto it until there's improvement. If it’s your oldest card, don’t close it as soon as your credit improves, or your score could drop.
Can you increase the credit limit on a secured credit card?
You can increase the amount of available credit on your secured credit card by adding to your security deposit account. Simply deposit money into your account for a higher credit limit and remember to keep topping off your balance.
Editorial Disclaimer: The content here reflects the author's opinion alone. No bank, credit card issuer, rewards program, or other entity has reviewed, approved, or endorsed this content. For complete and updated product information please visit the product issuer's website. Our credit card scores and rankings are based on our Rating Methodology that takes into account 126+ features for each of 227 Canadian credit cards.
