2021's Best Secured Credit Cards for Canadians

Find the best secured credit card to help you rebuild your credit and improve your overall credit score.

What is a secured credit card?

If you have bad credit or little to no credit history at all and you’re ineligible for most credit cards, you can still improve your credit score with a secured credit card. Secured cards require you to put down a security deposit that is equal to or less than the limit of a card, depending on your credit history. The deposit acts as a security for lenders, protecting them against missed bill payments. As a credit card user with a low credit score, credit card provider’s view you as a risky borrower. By using a secured credit card, you have the advantage of using the deposit in case you can’t pay your credit card bill. In general, secured cards are usually not associated with the best rewards programs or the lowest interest, so you should always think of secured cards as a stepping-stone to other credit products. Once you’ve improved your credit, you can close your account, get your deposit back, and apply for a credit card with more benefits.

Home Trust Secured Credit Card

Home Trust Secured Visa Card

card image
Welcome bonus
Annual savings
Annual fee

Winner – Best Card for Rebuilding Credit
Low interest Secured card in exchange for a small fee
Details at a glance Collapse details
Welcome bonus
Annual savings
Winner – Best Card for Rebuilding Credit
Low interest Secured card in exchange for a small fee
Details at a glance Collapse details

The Home Trust Secured Visa* card has a low-interest rate of 14.90% on purchases. Cardholders can set their own limit with the amount of their secured deposit and build their credit rating. This card allows users to buy online, pay bills and shop anywhere Visa is accepted.

Credit score requirement for approval:

No credit: You currently do not have a credit card or loan in your name. You need to improve your credit due to a recent bankruptcy or default on a loan.

Annual fee:


Or, pay monthly: $5

Credit limit (deposit):

$500 to $10,000


  • Purchase security

*Rates, product information and rewards estimates are subject to change at any time and do not constitute financial advice.

4 tips for using a secured credit card

If used the right way, a secured credit card can help you rebuild your credit and become eligible for a higher limit and better rewards credit card in the future.

Here’s how to make your secured credit card work for you:

  • Make minimum payments: It’s important to pay the minimum payment on your secured credit card statement on time, as secured credit cards have high interest rates. You will only be able to improve your credit score by responsibly paying off your credit card balance.
  • Track your spending: You should regularly track your credit card statement to be aware of all the purchases you’re making and also the due date for the minimum payment. You can set up mobile/email alerts, so you can track all your credit card activity and understand your spending.
  • Pay in full: lf you have the means to pay off the total balance owing on your credit card statement, you should always do so. This can help improve your credit as it signals to lenders that you can manage to handle borrowed credit and pay it off timely.
  • Use the secured credit card: Just because you have bad credit, doesn’t mean that you have to limit your credit card usage. In fact, if you don’t use credit it’s going to be more difficult to improve your credit score. Try to responsibly use your credit card to cover transactions you can afford and pay off your balance before your due date. Don’t overspend, and be mindful of your purchases and credit score. A healthy payment history on your secured credit card will help you repair your credit. You should check your credit score frequently and track your progress.

Applying for a secured credit card? Here’s everything you need to know about secured credit cards.

What are the requirements for a secured credit card?

If you have no credit history in Canada or a low credit score, you are eligible to apply for a secured credit card. Unsecured credit cards may require a higher credit score (600 or more), so secured credit cards are a better option if you’re looking to rebuild or establish your credit history. In order to obtain a secured credit card, you are required to put down a security deposit. The security deposit can range from $200 to $1000 depending on your current credit score and credit requirements. This security amount determines your secured credit card’s limit and acts as insurance against your spending.

Do you need income for a secured credit card?

Typically, yes. Credit card lenders may not always require you to have an income for a secured card, but if you’re able to show some form of income, you have a higher chance of being approved. Your ability to pay off your credit card bill is tied directly to your income, making income a determining factor for your approval.

What is the difference between a secured credit card and a prepaid credit card?

It is easy to get secured credit cards and prepaid credit cards confused. The main feature that differentiates them is their function. When you use a prepaid card, you “prepay” the amount you are intending to spend. It is a reloadable credit card and it doesn’t help you rebuild your credit like a secured credit card does. If you want to avoid using traditional credit or debit cards, you can consider applying for a prepaid credit card. Prepaid cards are relatively easier to obtain and require no credit checks, but they won’t help you with your financial future.

If you want to improve your credit score, a secured credit card is a better option. A secured credit card functions more like a traditional credit card, but comes with the requirement of depositing a security amount.

How will a secured credit card help me rebuild my credit?

When you responsibly use a secured credit card, your credit card activity is reported to major credit bureaus like TransUnion and Equifax. As you pay off your secured credit card bill regularly, you begin to generate a positive impact on your credit, creating a good credit history. As long as you don’t miss payments, you can continue seeing a slow and steady increase in your credit score.

With your security deposit in place, you don't have to worry about debt collectors contacting you for missed payments on the card, but any late payments will hurt your credit score. Use your secured credit card in responsibly to rebuild your credit history.

Can I get my deposit back from a secured credit card?

When you apply for a secured credit card, you lay down a deposit which you are guaranteed to get back so long as your secured credit card bill is payed of when you close the account. Once you’ve decided that your secured credit card has helped you rebuild your credit score, you can close or upgrade your credit card and this will allow the lender to refund your security deposit.

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