Secured Credit Cards Canada 2025 — You deposit cash as collateral, which becomes your credit limit. The card reports to the credit bureaus just like a regular card, building your score with every on-time payment.

Best Secured Credit Cards in Canada 2025

A secured credit card is one of the most reliable tools for rebuilding credit in Canada. You provide a refundable security deposit (typically $200–$100) that becomes your credit limit. The issuer reports your payment history to Equifax and/or TransUnion each month — exactly like an unsecured card. Used correctly (pay in full, keep utilization low), a secured card can meaningfully improve your score within 12–18 months.

How Secured Credit Cards Work

You apply with a deposit (typically $200 minimum)
Your deposit becomes your credit limit
Use the card for regular purchases (gas, groceries, subscriptions)
Pay the full balance every month before the due date
The issuer reports your on-time payment to Equifax and/or TransUnion
After 12–24 months of good history, many issuers upgrade you to an unsecured card and return your deposit

Best Secured Credit Cards in Canada 2025

Home Trust Secured Visa

One of the most popular secured cards in Canada for credit rebuilding. Available in two versions: no annual fee (19.99% purchase rate) and a $59/year version (14.90% rate). Accepts applicants post-bankruptcy and post-consumer proposal. Minimum deposit: $500. Reports to both Equifax and TransUnion.

Capital One Secured Mastercard

No annual fee option available. Reports to both bureaus. Minimum deposit: $75. Available to those with very poor credit. Capital One is known for being accessible to borrowers others decline.

Refresh Financial Secured Visa

Specifically designed for credit rebuilding. Reports to both Equifax and TransUnion. Annual fee applies. Available to applicants regardless of credit history.

Scotiabank Value Visa Secured

Available through Scotiabank branches. Low purchase rate option. Reports to credit bureaus. May be easier to upgrade to an unsecured product once credit is established if you bank with Scotiabank.

Card	Annual Fee	Min. Deposit	Reports To
Home Trust Secured Visa (no fee)	$0	$500	Equifax + TransUnion
Capital One Secured	$0	$75	Equifax + TransUnion
Refresh Financial	~$48/yr	$200	Equifax + TransUnion

How to Use a Secured Card to Build Credit Fast

Keep utilization below 30% — if your limit is $500, never carry more than $150 at statement time. Below 10% is even better.
Pay in full every month — avoid interest charges entirely. You're using this card to build credit, not to borrow money.
Set up autopay — one missed payment can erase months of progress
Use it for a small recurring charge — a Netflix or Spotify subscription that you pay off monthly is perfect
Don't apply for multiple secured cards — one is enough. Multiple hard inquiries hurt your score.

Secured Cards vs. KOHO Credit Building

Secured credit cards and KOHO Credit Building serve the same goal (building credit history) through different mechanisms. A secured card is a revolving credit account (which helps your credit mix). KOHO Credit Building is a credit-builder loan structure that reports to Equifax. Many Canadians use both: a secured card for spending and KOHO Credit Building for an additional positive tradeline at low cost.

Rebuild Your Credit With KOHO

KOHO's Credit Building feature reports to Equifax monthly for just $7/month. Combined with no monthly banking fees, it's the smartest way to rebuild your credit score while getting your finances on track. Use code 45ET55JSYA for a bonus.

Get KOHO + Credit Building — Code 45ET55JSYA

When to Upgrade to an Unsecured Card

After 12–24 months of perfect payment history on your secured card, you'll typically be in a good position to apply for an unsecured card. Signs you're ready:

Your credit score has improved to 650+
You have 12+ months of clean payment history
You have no new negative marks on your report
Your income and employment are stable

Contact your secured card issuer first — many have an automatic upgrade path that doesn't require a new application or hard inquiry.