Secured Credit Cards in Canada — Rebuild Your Credit

Secured cards are the fastest way to build or rebuild your credit score in Canada — even with bad credit or no credit history.

What Is a Secured Credit Card?

A secured credit card requires a cash deposit that becomes your credit limit. If you deposit $500, your credit limit is $500. The deposit protects the lender — which is why secured cards are approved even for people with bad credit, no credit, or past bankruptcies.

Your payment activity is reported to Equifax and TransUnion just like a regular credit card. That's how you build your credit score: by making small purchases and paying the balance in full every month.

Best Secured Credit Cards in Canada

Card	Min. Deposit	Annual Fee	Interest Rate
Home Trust Secured Visa	$500	$0 (no rewards) / $59 (rewards)	14.9% / 19.99%
Refresh Financial Secured Visa	$200	$12.95/month	17.99%
Capital One Guaranteed Secured MC	$75	$59	19.8%
Neo Secured Mastercard	$50	$0	19.99%–26.99%
KOHO Prepaid Visa + Credit Building	$0	$0 (+ $10/mo optional)	N/A

Home Trust Secured Visa — Best Low-Fee Option

The Home Trust Secured Visa is widely considered the best secured card in Canada. The no-fee version charges 14.9% interest (lower than most unsecured cards) and requires a $500 minimum deposit. There's no annual fee version — making it among the cheapest ways to build credit. The rewards version charges $59/year and earns 1% cash back on purchases.

Neo Secured Mastercard

Neo's secured card has a very low minimum deposit ($50) and no annual fee. You earn cash back at Neo's partner merchants (grocery stores, gas stations, restaurants). The interest rate is variable at 19.99%–26.99%, so carrying a balance is expensive — but if you pay in full monthly, the no-fee structure makes this a competitive option.

Capital One Guaranteed Secured Mastercard

Capital One's secured card is "guaranteed" — meaning you're approved regardless of credit history. The minimum deposit is just $75 to start. Annual fee is $59. It's a solid option if you need a guaranteed approval card and can't qualify elsewhere.

KOHO Credit Building Feature

KOHO offers an optional credit building add-on for $10/month. It works by having KOHO open a secured line of credit in your name, making on-time payments on your behalf, and reporting that positive payment history to Equifax. You don't need a credit check. This is not a credit card — but it builds your Equifax score systematically and works alongside KOHO's free spending account.

How to Use a Secured Card to Rebuild Credit

• Make 1–2 small purchases per month — Groceries or gas are ideal.
• Pay the full balance every month — Never pay just the minimum.
• Keep utilization under 30% — On a $500 limit, keep balance under $150.
• Don't close the card — Length of credit history matters.
• Wait 6–12 months — Then check if you qualify for an unsecured card upgrade.

How Long Does It Take to Rebuild Credit?

With consistent on-time payments and low utilization, most Canadians see meaningful credit score improvement within 6–12 months. Going from a score below 600 to above 650 typically takes 12–18 months of responsible secured card use. Equifax and TransUnion both update scores monthly based on reported payment activity.