FinlyWealth Logo

FinlyWealth

Best Secured Credit Card

Best Secured Credit Cards in Canada For 2024

abid headshot photo

Abid Salahi

Author

5 min read

Whenever you want to build or rebuild your credit score, secured credit cards are one of the best options. Although putting down a deposit is not pleasant, in the meantime, until you are able to get an unsecured one, choosing the right secured card will save you a lot in annual fees and may even earn you some rewards. In this post, we will go through the best secured credit cards in Canada and help you choose the one that is best for you.

Best Overall Secured Credit Card in Canada

Neo Secured Credit Card
Apply NowMore Details

Neo Secured Mastercard®

4.5

Finly Rating

FinlyWealth Logo

$45 Cash Rebate From FinlyWealth

Welcome Bonus

N/A

First Year Value

$292.12

Based on $2,000/mo spending. Calculate your rewards.

Annual Fee

$60

Interest Rates

19.99% - 29.99% (for Quebec 19.99% - 24.99%) / 22.99% - 31.99% (for Quebec 22.99% - 25.99%)

RECOMMENDED CREDIT SCORE

300
Poor
560
Fair
660
Good
725
Very Good
760
Excellent
Get your free credit score

If you have a poor credit score and are looking to rebuild it with a secured card, then the Neo Financial Secured Credit Card is the best card to go for. This card offers so much more compared to other secured credit cards on the market, including no monthly fees, a low deposit amount needed to get started, and it is the only credit card that offers some rewards on your purchases!

Pros

  • Best Secured Credit Card in Canada voted by FinlyWealth.
  • Only Secured Card that you can earn rewards with!
  • Option to add additional benefits with a monthly fee.
  • Some benefits provided are exclusive to Neo Card holders.
  • Deposit of only $50 required to get started

Cons

  • Only reports credit activity to TransUnion® and not Equifax®

Rewards

    • 1% cash back on grocery purchases up to $6,000 spending per year (1.5% cash back with $1k in a Neo everyday account, 2% cash back with $3k in a Neo everyday account, 3% cash back with $5k in a Neo everyday account, and 4% cash back with $10k in a Neo everyday account) - drops to 0.5% cash back after hitting spend cap
    • 2% cash back on gas purchases up to $12,000 spending per year (1.5% cash back with $1k in a Neo everyday account, 2% cash back with $3k in a Neo everyday account, 3% cash back with $5k in a Neo everyday account, and 4% cash back with $10k in a Neo everyday account) - drops to 0.5% cash back after hitting spend cap
    • 0% cash back on all other purchases with $0 in a Neo everyday account, however you get 0.5% cash back with $1-3k in a Neo everyday account, and 1% cash back with $5k+ in a Neo everyday account - drops to 0% cash back again after spending $20,000 in this "other" category
    • +5% earned on average at Neo Partners.
    Note: our reward calculations use the assumption that you hold $1k in a Neo everyday account to earn 1.5% on grocery and gas, and 0.5% on everything else. Your true reward estimates may be lower or higher depending on the amount of money held in a Neo everyday account.
    In addition, the extra cashback rate from transactions made at Neo partners has been estimated at 0.7% in the calculator.

Benefits

Details

  • red diamond

    Neo Premium ($4.99/month)

  • travel

    Neo Travel Benefits ($4.99/month)

  • food location

    Neo Food Cashback boost ($1.99/month)

  • care day

    Neo Mind and Body Perks ($9.99/month)

Eligibility

  • Credit Score

    Poor

  • Annual Income

    N/A
The Neo Secured card is our top choice for the best secured credit card in Canada. A few things distinguish this card from others, as it’s the only one that is very similar to unsecured cards. In fact, it’s exactly like the non-secured version of the card, with the small difference of an annual fee, but otherwise, the benefits and rewards are the same. The rewards earned on this card will, for most people, more than cover the annual fee. Additionally, the required deposit amount is very minimal.

Best No Fee Secured Credit Card in Canada

Capital One Secured Mastercard
Apply NowMore Details

Capital One Secured Mastercard

4

Finly Rating

Welcome Bonus

N/A

Rewards Rate

No Rewards

Annual Fee

$0

Interest Rates

21.9% - 29.99% / 21.9% - 29.99%

RECOMMENDED CREDIT SCORE

300
Poor
560
Fair
660
Good
725
Very Good
760
Excellent
Get your free credit score

Secured cards typically come with no rewards or benefits, even the ones with annual fees. This card has broken the norm and provides many great benefits to secured cardholders without any fees. So, if you are looking to get benefits with a secured card, this card is your best choice.

Pros

  • No Annual fees
  • Great list of benefits for a card with no annual fee, especially the price protection benefit, which is not offered by many other credit cards.

Cons

  • No rewards earned on purchases

Rewards

No Rewards on this card

Insurance

Coverage

  • heart lock

    Travel Accident

    $250,000
  • hourglass timer

    Baggage Delay

    $100/day up to 3 days
  • car insurance

    Car Rental Damage & Theft

    Up to 31 days
  • purchase protection

    Purchase Protection

    120 days
  • extended warranty

    Extended Warranty

    double up to 2 years

Benefits

Details

  • price protection

    Price Protection

    60 days, Up to $100 per item, $500 per year

Eligibility

  • Credit Score

    Poor

  • Annual Income

    N/A
If you want to avoid paying any fees, then the Capital One card is your best choice. The best thing about this card is that, even though it has no annual fees, it provides many premium benefits such as price protection, etc. The only downside of this card is that you don't earn rewards on your purchases.

Honorable Secured Credit Card mentions

There aren't many secured credit cards available in Canada, therefore let's explore all the remaining ones just in case you might think they would be a better match for you.
Home Trust Secured Card
Apply NowMore Details

Home Trust Secured Visa

3

Finly Rating

Welcome Bonus

N/A

Rewards Rate

No Rewards

Annual Fee

$0

Interest Rates

19.99%, option to pay $59 Annual fee for %14.90 / 19.99%, option to pay $59 Annual fee for %14.90

RECOMMENDED CREDIT SCORE

300
Poor
560
Fair
660
Good
725
Very Good
760
Excellent
Get your free credit score

Although there are other better secured credit card options available in Canada, this card is the only no-fee secured credit card option, making it the choice for those who want to avoid fees.

Pros

  • No Annual Fee required

Cons

  • No rewards earned on purchases
  • No benefits provided by the card

Rewards

No Rewards

Eligibility

  • Credit Score

    Poor

  • Annual Income

    N/A
Although this card offers the option to pay no annual fees (or the option to pay a fee but get a higher interest rate), it provides no benefits or rewards. Therefore, it is a worse option than the cards previously discussed because it would be better to have at least one of the two, rather than none.
Neo Cathay World Elite® Mastercard® Secured
Apply NowMore Details

Neo Cathay World Elite® Mastercard® Secured

3.6

Finly Rating

Welcome Bonus

Up to 30,000 Asia Miles and 10% off flights (limited time)

First Year Value

$792.65

Based on $2,000/mo spending. Calculate your rewards.

Annual Fee

$180

Interest Rates

19.99% - 26.99% / 22.99% - 28.99%

RECOMMENDED CREDIT SCORE

300
Poor
560
Fair
660
Good
725
Very Good
760
Excellent
Get your free credit score

The Cathay World Elite Mastercard is a top choice for frequent travelers to Asia, offering up to 30,000 bonus Asia Miles, high earn rates at Neo retail partners, and exclusive Cathay Pacific benefits like priority check-in and lounge access. With 12 types of insurance coverage, airport lounge access through DragonPass, and the ability to earn up to 15 miles per dollar spent at select partners, this card provides substantial value for those who regularly fly with Cathay Pacific and its partners. However, the card does require a higher income and comes with a $180 annual fee.

Pros

  • Guaranteed Approval: The card is the same as regular but you’ll get guaranteed approval with a security deposit of at least $200 to open an account. No credit history required.
  • Generous Bonus: Earn up to 30,000 bonus Asia Miles.
  • High Earn Rates: Get an average of 5 miles, and up to 15 miles per $1 spent at Neo retail partners.
  • Cathay Pacific Perks: Enjoy several exclusive benefits with Cathay Pacific.
  • Comprehensive Insurance: Comes with 12 types of insurance coverage.
  • Airport Lounge Access: Gain entry to airport lounges with a Mastercard Travel Pass membership.

Cons

  • High Income Requirement: Requires a minimum personal income of $80,000 or $150,000 household income.
  • Annual Fee: The card comes with a high annual fee of $180.
  • Limited Redemption: Asia Miles cannot be redeemed for flights within Canada.

Rewards

  • Average of 5x Asia miles at Neo Partners
  • 2x Asia miles on Cathay Pacific and foreign purchases
  • 1x Asia miles at non-Neo Partners
  • Considering all the reward conditions, the average estimated cash back on all purchases comes to 1.0 cent per asia miles point by FinlyWealth

Insurance

Coverage

  • luggage insurance

    Car Rental Personal Effects

    $1,000/person, $2,000 combined
  • car accident

    Car Rental Accident

    $100K for Cardholder, $10K spouse and child
  • car insurance

    Car Rental Damage & Theft

    48 days
  • hourglass timer

    Baggage Delay

    $1,000 after 4 hours
  • lost baggage

    Lost or Stolen Baggage

    $1,000
  • travel accident medical

    Emergency Out of province Medical

    14 days
  • hourglass timer

    Flight Delay

    $250/day, $500 Maximum
  • burglar

    Hotel Burglary Insurance

    $1,000
  • purchase protection

    Purchase Protection

    90 days
  • extended warranty

    Extended Warranty

    1 year

Benefits

Details

  • alcohol cheers

    Airport Lounge - Dragon Pass

    Pass only. No Complimentary visits!
  • airport waiting room

    Priority Travel

    Online priority check-in and extra baggage redemption for Cathay Pacific, and Cathay Pacific Business class lounge redemption access
  • airport waiting room

    Priority Travel

    Airport Security Fast Track with and professional and punctual airport with Mastercard benefits
  • wifi signal

    Boingo Wi-Fi hotspot

Eligibility

  • Credit Score

    Poor

  • Annual Income

    $80,000 personal or $150,000 household
This card has a considerable annual fee, but for some users, it might actually be a great choice because it comes with many travel benefits and high rewards. You will earn Asia Miles on your purchases, so if you can use your points for Asia-related travel in the future, this card is a good choice.
The downsides are the high income requirements of the card and the rewards being limited to one specific purpose, lacking flexibility.

FAQ

What is a secured credit card

A secured credit card works similarly to a regular credit card but with a key difference: it requires a security deposit upfront. This deposit, usually refundable, acts as collateral for the card issuer and typically determines your credit limit. For example, if you deposit $500, your credit limit will generally be $500.
Here’s how it works in detail:
Application and Deposit: When applying for a secured credit card, you’ll be required to provide a cash deposit. The deposit reduces the risk for the card issuer, allowing them to approve the card even if you have no credit history or poor credit. This deposit acts as your collateral.
Credit Limit: The credit limit on a secured card is usually equal to the amount of the deposit. Some issuers may allow you to increase the credit limit by adding more to the deposit. Over time, responsible card use may lead the issuer to increase the limit without requiring an additional deposit.
Making Purchases: You can use the secured credit card just like a regular credit card for purchases, both in stores and online. You will receive a monthly statement with a balance, and you must make at least the minimum payment by the due date.
Building Credit: Secured cards are reported to the credit bureaus, meaning your payment history and credit utilization are tracked and used to build or improve your credit score. Making timely payments and keeping balances low helps improve your credit score over time.
Interest and Fees: Like unsecured credit cards, secured cards can carry interest on unpaid balances and may also have annual fees or other charges. Paying off the full balance each month avoids interest charges.
Refund of Deposit: If you demonstrate responsible use by making payments on time and improving your credit score, some issuers may offer to refund your deposit and upgrade you to an unsecured credit card. Alternatively, you may close the account and receive your deposit back, minus any outstanding balances.

Who should get a secured Credit Card

A secured credit card is ideal for individuals with no credit history, those rebuilding poor credit, or anyone rejected for traditional credit cards. It's a great option for people looking to establish or improve credit, as it requires a deposit, making it easier to get approved while promoting responsible financial habits.

Which financial institutions offer Secured Credit Cards

Surprisingly, none of the Big 5 banks of Canada (CIBC, BMO, TD, RBC, and Scotiabank) offer any secured credit cards. Therefore, to get one, you need to reach out to one of the financial institutions mentioned in the post to obtain a secured card.

What happens when you close your secured credit card

When you close a secured credit card, the following typically happens:
  1. Deposit Refund: If your account is in good standing with no outstanding balance, the card issuer will refund your security deposit. This can take a few weeks.
  2. Impact on Credit Score: Closing the card may temporarily lower your credit score, as it can reduce your available credit and affect your credit utilization ratio. However, if you've built good credit habits, the impact may be minimal.
  3. Credit History Retention: The account will remain on your credit report for up to 10 years, continuing to reflect your positive payment history even after the account is closed.
Before closing a secured credit card, it's essential to ensure there’s no remaining balance and consider how the closure may impact your credit.

Logo

FinlyWealth

QuickLinks
About UsBlogFinly RebatesBest Credit Card FinderCompare Credit Cards Side by SidePoints Calculator
Legal
Terms of ServicePrivacy PolicyDisclosure
General Inquiry
admin@finlywealth.com
Support
support@finlywealth.com

We may earn a commission for some of the products featured on this site. The content and reviews on FinlyWealth are independent and not influenced by advertisers. For the latest details on any product, please visit the advertiser's official website. The content provided on this website, including any credit card recommendations, is for informational and entertainment purposes only and does not constitute financial, legal, or tax advice. The owner and author(s) of this website are not financial, legal, or tax professionals. All views and opinions expressed herein are solely those of the author(s) and may not reflect the best choice for your unique situation. Always consult with a qualified professional before making any financial decisions. The owner and author(s) of this website shall not be held liable for any inaccuracies, errors, or omissions in the content or any resulting actions taken by readers.

Copyright © FinlyWealth 2024 All Rights Reserved.