Updated: April 2025  |  bremo.io financial guides

Secured Credit Cards in Canada — Best Options

A secured credit card works exactly like a regular credit card, except you provide a cash deposit as collateral. That deposit typically becomes your credit limit. The key benefit for credit building is that your payment activity is reported to Equifax and TransUnion just like any other credit card — so responsible use directly builds your credit file.

How Secured Credit Cards Work in Canada

You apply for the card, provide a deposit (typically $200 to $500 or more), and receive a card with that amount as your credit limit. You use the card for everyday purchases and pay your statement balance on time each month. The card issuer reports your activity — balance, payment, status — to the credit bureaus monthly. After several months of clean history, your score improves.

When you close the account or upgrade to an unsecured card, your deposit is returned (assuming no outstanding balance).

Best Secured Credit Cards in Canada

Home Trust Secured Visa

One of the most widely recommended secured cards in Canada. It is accepted everywhere Visa is accepted, reports to both Equifax and TransUnion, and has a straightforward application. Available in a no-annual-fee version (slightly higher interest rate) or an annual fee version with a lower rate. Minimum deposit is $500. No credit check required for approval.

Capital One Guaranteed Secured Mastercard

As the name suggests, approval is guaranteed as long as you meet basic eligibility (Canadian resident, age of majority, not currently bankrupt). Minimum deposit of $75, which is among the lowest in Canada. Annual fee applies. Reports to both bureaus. A good option if you want to minimize the upfront deposit.

Refresh Financial Secured Visa

Designed specifically for credit rebuilding. Offers a secured Visa card and reports to both Equifax and TransUnion. Also combines with a savings program for those who want to build credit and savings simultaneously.

Scotiabank Secured Visa

Available to existing Scotiabank account holders. Decent terms, reports to bureaus. May be easier to access if you already bank with Scotiabank.

TD Secured Visa

Also primarily for existing TD clients. Allows a higher deposit for a higher credit limit, which can help with utilization management if needed.

What to Look For When Choosing a Secured Card

• Reports to both Equifax and TransUnion: Make sure the card reports to both, not just one bureau
• Minimum deposit: Lower deposit requirements give you more flexibility
• Annual fee: Some secured cards charge $30 to $60 per year. Factor this into your decision.
• Upgrade path: Does the card automatically convert to an unsecured card after good behaviour? This avoids a new application later.
• Interest rate: If you ever carry a balance (you should not), the interest rate matters

How to Use a Secured Card Effectively

The deposit is not the important part — the behaviour is. Here is how to get maximum credit-building value from a secured card:

1. Use the card for small, regular purchases (groceries, subscriptions, gas)
2. Pay the full balance before the statement closing date to keep utilization low
3. Never miss a payment — set up automatic minimum payments as a safety net
4. Keep the account open for at least 12 months before upgrading or closing
5. Monitor your credit score monthly to track progress

When Can You Switch to an Unsecured Card?

After 12 to 18 months of consistent on-time payments and low utilization with a secured card, your score should be high enough to qualify for a basic unsecured credit card. At that point, you can either ask your current card issuer to upgrade your account (which preserves your account history), or apply for a new unsecured card. If you close the secured card, you will get your deposit back.