Last updated on June 18th, 2022 to reflect Neo Secured Card.
Secured credit cards are designed to help people looking to rebuild or build credit. They work just like standard cards except that holders need to make a deposit as a guarantee for their account. The deposit amount determines the credit line. As with standard cards, when you get a secured credit card, you will need to make timely payments which are reported to Equifax and TransUnion. Financial institutions review activity after a certain period (6 – 8 months) to determine whether they can return holders the deposit while they keep using the card to enjoy all the benefits. Here are some of the options to consider if you are looking to apply for a secured credit card.
Offered by Refresh Financial, this card is a great choice for anyone with no or bad credit. It is easy to qualify even if you have a bankruptcy history provided that you make a security deposit. Through their Financial Intelligence Training program, Refresh also offers customers financial education to help them learn how to set goals, save money, manage credit wisely, and become debt-free.
- Annual fee: $12.95
- Maintenance fee: $3 a month
- Interest rate: 17.99 percent
- Credit limit: $200 – $10,000
Neo Secured Card
Neo Financial offers a secured credit card which presents no monthly or annual fees. The card demands a security deposit of $50 and does not put you through a hard credit check. Approval is guaranteed and immediate, so that you can begin building your credit score at anytime. Neo also gives you the ability to earn an average of 5% unlimited cashback at thousands of partners. They guarantee 1% cashback across all purchases, with the ability to earn up to 15% on your first purchase at Neo’s participating partners. This secured card is useful for anyone who wants a no nonsense way to build their credit score without monthly or annual fees.
- Annual fee: $0
- Interest rate: 19.99%-24.99%
- Rewards: 1% minimum cashback, average 5% cashback at partners
HomeTrust Secured Credit Card
This HomeTrust secured Visa is intended for anyone with tarnished credit who wants to reestablish good standing. Virtually anyone gets approved. You will be turned down if you fail to provide a deposit or are under the age of majority but not if you have less than stellar credit. In addition to easy approval, there are further benefits such as a scaling credit limit, purchase security, and the option to choose low interest or no annual fee.
- Annual fee: none
- Interest rate: 19.99 percent
- Annual fee: $59
- Interest rate: 14.90 percent
Credit limit: $500 – $10,000
RBC Secured Credit Card
Like other major Canadian banks, RBC does not offer secured credit cards but cards that are easy to get and come with favorable terms and rates. This is the case with RBC RateAdvantage Visa® which features a low interest rate and additional extras such as automatic payments, purchase security, and fuel savings. Cardholders also benefit from optional features such as travel insurance, RBC Road Assist, identity protection, and balance protector insurance.
- Interest rate: Prime + 4.99 – 8.99 percent based on credit rating
- Annual fee: none
TD Secured Credit Card
TD does not offer secured cards but a card that is easy to get is TD Emerald Flex Rate Visa® and is available to Canadian residents and citizens who are of the age of majority. It is a good choice for consumers who need to pay unexpected expenses or finance bigger purchases as well as those who tend to carry a balance. Added benefits for cardholders are trip interruption and trip cancellation insurance, travel medical insurance, TD Auto Club Membership, and car rental discounts.
- Interest rate: TD Prime + 4.50 to 12.75 percent
- Annual fee: $25
- Credit limit: $1,000 minimum
Scotiabank Secured Credit Card
ScotiaBank does not offer secured credit cards anymore. The best thing about Scotiabank Value Visa® Card is that it comes with an introductory interest rate of just 0.99 percent during the first 6 months. If you have high interest rate cards, this is a card not to miss. It is also an excellent choice if you are looking to rebuild credit or are new to Canada. Further benefits are 25 percent off rates at Avis locations, optional card protection, and supplementary cards.
- Interest rate: 12.99 percent
- Annual fee: $29
- Credit limit: $500 minimum
The Bank of Montreal offers the BMO Prepaid Mastercard® which is a reloadable credit card. You have to load funds before you can use it. This you can do via the BMO mobile app or your online banking. Once you run out of funds, you can just reload it to make purchases. The Prepaid MasterCard comes with no interest rate, extended warranty, and MasterCard Identity Check for added security when shopping online.
- Interest rate on purchases and cash advances: none
- Annual fee: $6.95
CIBC Secured Credit Card
CIBC discontinued their secured credit card offer however, if you have high interest-debt, CIBC Select Visa® Card is a great solution to transfer your outstanding balances and benefit from a promotional zero interest rate. As a cardholder, you also benefit from added extras such as emergency travel medical insurance and common carrier accident insurance. This card is easy to qualify for provided that you are a Canadian resident of legal age, have a minimum household income of $15,000, and have not been in bankruptcy over the last 7 years.
- Interest rate: 13.99 percent
- Annual fee: $29
CIBC also offers a prepaid VISA card that allows you to shop by phone, online, and in-store. You can load the card at CBC banking centers or via mobile or online banking. You can only use Canadian dollars from your line of credit, savings, or checking account.
Capital One Guaranteed Credit Card
This Capital One Guaranteed Mastercard® is an excellent choice for those looking to repair or build credit. Applicants are guaranteed approval provided that they are of legal age and haven’t had an account with Capital One that is of poor standing. The comes with travel and everyday benefits such as travel assistance, baggage delay and common carrier travel accident insurance, and price protection.
- Interest rate: 19.8 percent
- Annual fee: $59