Are you looking to build your credit score but struggling to get approved for a traditional credit card? Don’t worry, because secured credit cards are here to save the day! These little wonders offer a fantastic opportunity for individuals with limited or poor credit history to start rebuilding their financial standing. In this blog post, we will explore the top 9 best-secured credit cards available in Canada and help you choose the perfect option that suits your needs. So, let’s dive into the world of secured credit cards and unlock a brighter financial future together!
What is a Secured Credit Card?
A secured credit card is a type of credit card that requires the cardholder to provide a security deposit upfront. This deposit acts as collateral for the credit limit on the card and also serves as protection for the issuer in case of default.
Now, you might be wondering why anyone would opt for a secured credit card instead of a regular one. The answer lies in its ability to help individuals with limited or poor credit history establish or rebuild their credit scores. Since these cards are designed specifically for this purpose, they have more lenient approval criteria compared to traditional cards.
Secured credit cards work just like any other credit card – you can use them to make purchases online and in-store, pay bills, and even build your credit history by making timely payments. However, it’s important to note that these cards typically come with higher interest rates and fees than regular ones.
By using a secured credit card responsibly – paying off balances in full each month and keeping utilization low – you can gradually improve your creditworthiness over time. It’s like taking small steps toward financial independence while establishing healthy money habits along the way.
The Benefits of Using a Secured Credit Card
Using a secured credit card can offer numerous benefits for individuals looking to build or rebuild their credit history. One of the main advantages is that it allows you to establish a positive payment history, which is crucial when applying for other types of credit in the future.
With a secured credit card, you are required to make an initial deposit as collateral. This means that even if you have no credit or poor credit, you can still obtain a secured card and begin building your credit score. As long as you make regular payments on time and keep your balance low, this will reflect positively on your credit report.
Secured cards also provide a sense of financial security since they typically have lower credit limits than traditional unsecured cards. This helps prevent overspending and promotes responsible financial habits by forcing individuals to stay within their means.
Additionally, using a secured credit card responsibly can increase your chances of being approved for better terms and conditions on other types of loans in the future, such as mortgages or car loans. Lenders will see that you have taken steps toward improving your financial situation and may be more willing to extend favourable offers.
Utilizing a secured credit card can be an effective tool for rebuilding or establishing a good credit history. It provides an opportunity to demonstrate responsible financial behaviour while offering increased security and potential access to better lending options down the road.
How to Choose the Best Secured Credit Card?
When it comes to choosing the best-secured credit card in Canada, there are a few key factors to consider. First and foremost, you’ll want to look at the interest rate offered by the card. A lower interest rate means less money out of your pocket in the long run.
Next, take a look at any annual fees associated with the card. Some secured credit cards may have higher fees than others, so be sure to compare them carefully.
Another important factor to consider is the credit limit on the card. You’ll want to choose a secured credit card that offers a reasonable limit based on your needs and financial situation.
Additionally, it’s worth considering any additional benefits or perks that come with the card. For example, some secured credit cards offer cash-back rewards or travel insurance coverage.
Don’t forget to read reviews from other customers who have used the card. Their experiences can provide valuable insights into customer service quality and overall satisfaction with the card.
By carefully evaluating these factors and doing your research, you can find the best-secured credit card in Canada for your needs. Whether you’re looking to build or rebuild your credit history, having a well-chosen secured credit card can be an invaluable tool on your financial journey!
Top 9 Best Secured Credit Cards in Canada
1. Capital One Secured Mastercard
Capital One Secured Mastercard is a popular choice among individuals looking to build or rebuild their credit in Canada. With its secure nature, this card offers a great opportunity for those who may not have the best credit history.
One of the key benefits of the Capital One Secured Mastercard is that it reports to both Equifax and TransUnion, helping you establish a positive payment history and improve your credit score over time. This can be especially valuable if you’re trying to qualify for better financial opportunities in the future.
Another advantage of this card is that it comes with an initial minimum deposit requirement which acts as your credit limit. This deposit can range from $75 to $300 depending on your circumstances. It provides peace of mind knowing that you are in control of your spending while also building good credit habits.
The Capital One Secured Mastercard is an excellent option for those seeking to establish or rebuild their credit rating in Canada. Its reporting capabilities, customizable security deposits, and additional tools make it an attractive choice for anyone looking towards a brighter financial future.
2. KOHO Secured Credit Card
KOHO Secured Credit Card is one of the top choices for individuals looking to build or rebuild their credit in Canada. With its unique features and benefits, this secured credit card offers a safe and convenient way to manage your finances.
One of the standout features of the KOHO Secured Credit Card is its low annual fee. At just $84 per year, it is an affordable option for those who want to establish good credit without breaking the bank. Additionally, there are no hidden fees or surprises with this card, making it a transparent choice for consumers.
Another great aspect of the KOHO Secured Credit Card is that it reports to both Equifax and TransUnion, which can help boost your credit score over time. This means that responsible use of this card can have a positive impact on your overall creditworthiness.
The KOHO app also adds convenience and control to manage your finances. You can easily track your spending, set savings goals, and receive real-time notifications about transactions made with your card. This helps you stay on top of your budgeting and financial goals.
3. Neo Secured Card
Neo Secured Card is one of the top secured credit cards in Canada that offers a range of benefits to its users. With this card, you can build or rebuild your credit history while enjoying the convenience and security of a credit card.
One of the standout features of the Neo Secured Card is its low annual fee, making it an affordable option for those looking to establish or improve their credit rating. Additionally, this card allows you to set your credit limit based on the amount you are willing to deposit as collateral.
Another great advantage offered by Neo Secured Card is its cash-back rewards program. You can earn cash back on every purchase made with your card, helping you save money while building your credit.
Furthermore, Neo Secured Card provides access to helpful tools and resources that assist you in managing your finances effectively. This includes online banking services and regular updates on your credit score.
Neo Secured Card stands out as a reliable choice for individuals who want to take control of their financial future and improve their creditworthiness.
4. Scotiabank Value Visa
Scotiabank Value Visa is a top choice when it comes to secured credit cards in Canada. With its competitive features and benefits, this card stands out from the rest. One of the key advantages of the Scotiabank Value Visa is its low annual fee, making it an affordable option for those looking to build or rebuild their credit.
This secured credit card also offers a flexible credit limit that matches your security deposit, ranging from $500 to $50,000. This means you have control over how much you want to secure with the card, giving you peace of mind as you work towards improving your credit score.
Another great feature of the Scotiabank Value Visa is its ability to earn rewards on everyday purchases. You can earn Scotia Rewards points for every dollar spent with this card, which can be redeemed for travel rewards, merchandise, or even cash back.
In addition to these perks, the Scotiabank Value Visa provides purchase protection and extended warranty coverage on eligible items purchased with the card. This gives you added confidence knowing that your purchases are protected in case of damage or defects.
If you’re looking for a reliable and affordable secured credit card in Canada that offers rewards and additional benefits, consider applying for the Scotiabank Value Visa. It’s an excellent choice for building or rebuilding your credit while enjoying some extra perks along the way!
5. ATB Alberta Secured Mastercard
ATB Alberta Secured Mastercard is a secured credit card option that offers numerous benefits for individuals looking to build or rebuild their credit. With its secure features and flexible repayment options, this card provides an excellent opportunity to establish good credit habits.
One of the standout features of the ATB Alberta Secured Mastercard is its low annual fee. For just $29 per year, cardholders can enjoy access to a credit line that matches their security deposit. This means you can start with as little as $500 and gradually increase your limit over time as you demonstrate responsible usage.
Additionally, this secured credit card offers competitive interest rates, which can help save money on finance charges if you carry a balance from month to month. The ATB Alberta Secured Mastercard also reports your payment history to both TransUnion and Equifax, allowing you to improve your credit score with every timely payment.
Another notable feature of this card is the ability to earn rewards through the My Rewards program. Cardholders earn 1 point for every dollar spent on eligible purchases, which can be redeemed for travel and merchandise options.
ATB Alberta Secured Mastercard is an excellent option for individuals looking to establish or rebuild their credit in Canada. With its affordable fees, competitive interest rates, and rewards program, it’s worth considering when choosing a secured credit card.
6. Plastk Secured Credit Card
Plastk Secured Credit Card is a top choice for those looking to build or rebuild their credit in Canada. With its secure deposit feature, it offers peace of mind and financial flexibility.
One of the main benefits of the Plastk Secured Credit Card is that it reports to both Equifax and TransUnion, which means your responsible credit card usage will be reflected on your credit report. This can help boost your credit score over time.
Another advantage of this card is its low annual fee. For just $48 per year, you can enjoy all the benefits that come with having a secured credit card. Plus, there are no hidden fees or surprises when it comes to using this card.
The Plastk Secured Credit Card also offers a flexible security deposit requirement. You can choose to secure your card with as little as $200 or up to $10,000, depending on what works best for you.
Furthermore, this card provides contactless payment technology for added convenience and ease of use. Whether you’re making small purchases at the grocery store or paying bills online, the Plastk Secured Credit Card ensures seamless transactions.
If you’re looking for a reliable secured credit card option in Canada, look no further than the Plastk Secured Credit Card. It offers competitive features and benefits while helping you improve your creditworthiness.
7. KOHO Mastercard® Prepaid Credit Card
KOHO Mastercard® Prepaid Credit Card is a popular choice for individuals looking to build or rebuild their credit history. This secured credit card offers the convenience of a traditional credit card, while also providing the added security of being prepaid.
One of the key benefits of the KOHO Mastercard® Prepaid Credit Card is that it does not require a credit check or income verification. This means that even if you have poor credit or no credit history at all, you can still be approved for this card.
With the KOHO Mastercard® Prepaid Credit Card, users can load funds onto their card and then use it like any other credit card. The amount available for spending is limited to the amount loaded onto the card, which helps prevent overspending and accumulating debt.
The KOHO Mastercard® Prepaid Credit Card is an excellent option for those who want a secure way to make purchases while also working towards improving their credit score. With its easy approval process and beneficial features such as cash-back rewards and budgeting tools, this secured credit card stands out in Canada’s market.
8. Home Trust Secured Visa Card
Home Trust Secured Visa Card is one of the top secured credit cards available in Canada. This card offers individuals with limited or no credit history the opportunity to establish or rebuild their credit score.
With Home Trust Secured Visa Card, you can determine your own credit limit by providing a security deposit that is equal to your desired limit. This means that even if you have a low income or poor credit history, you can still qualify for this card.
One of the standout features of the Home Trust Secured Visa Card is its low annual fee, which makes it an affordable option for those looking to improve their creditworthiness. Additionally, this card reports to both Equifax and TransUnion, allowing you to build a positive payment history.
Another advantage of this secured credit card is that it comes with purchase protection and extended warranty coverage on eligible items. This provides peace of mind when making purchases using your Home Trust Secured Visa Card.
The Home Trust Secured Visa Card is an excellent choice for individuals who want to establish or rebuild their credit in Canada. With its flexible security deposit requirement and affordable fees, it provides a practical solution for improving your financial standing.
9. Vancity enviro Secured Card
Vancity enviro Secured Card is another excellent option for those looking to build or rebuild their credit in Canada. This secured credit card offers a low annual fee and competitive interest rates, making it a cost-effective choice for many individuals.
One of the standout features of the Vancity enviro Secured Card is its commitment to sustainability. As part of Vancity’s environmental mandate, this card supports initiatives that promote social and ecological well-being. So not only will you be improving your financial health with this card, but you’ll also be contributing to positive change in your community.
With responsible use and on-time payments, the Vancity enviro Secured Card can help improve your credit score over time. It reports to both Equifax and TransUnion, ensuring that your efforts are recognized by the major credit bureaus.
The application process for this secured card is straightforward, and approval decisions are typically made quickly. Plus, as a member of Vancity Credit Union, you’ll have access to additional benefits like personalized financial advice and exclusive promotions.
If you’re seeking a secured credit card that aligns with your values while providing opportunities for credit improvement, the Vancity enviro Secured Card could be an excellent fit for you.
Conclusion
Secured credit cards can be an excellent tool for building or rebuilding your credit in Canada. They offer a way to establish a positive credit history and improve your overall financial standing. By providing a security deposit, you can access all the benefits of a traditional credit card while minimizing risk.
When choosing the best-secured credit card for yourself, consider factors such as interest rates, fees, and any additional perks offered by the issuer. It’s important to find a card that aligns with your specific needs and goals.
In this article, we’ve highlighted 9 of the top secured credit cards available in Canada. Each card has its unique features and benefits to suit different individuals’ circumstances. Whether it’s Capital One Secured Mastercard for its low annual fee or Home Trust Secured Visa Card for its competitive interest rate, there is sure to be a secured credit card on this list that fits your requirements.
FAQs – 9 Best Secured Credit Cards in Canada
1. Can a 200 secured credit card build credit?
If you use a secured credit card appropriately, it can help you establish credit. Making all of your payments on time, for instance, and not exceeding your credit limit often assist raise your credit score.
2. Why would I be denied for a secured credit card?
If you have bankruptcy on your record, a history of missing payments, insufficient income, or other warning signs, you can be rejected. Don’t give up though. You can repair damaged credit and obtain credit card approval.
3. How quickly will a secured card build credit?
With a secured credit card, you can establish credit in as short as one to six months, but it can take many months or even years to establish credit that is consistently outstanding or excellent.
4. Does a secured credit card hurt your credit?
There is no differentiation between secured and unsecured cards on your credit record, despite their differences. Your credit score will rise if you make prompt payments on your regular bills and handle your account otherwise appropriately.
5. How many points will a secured card raise my score?
The exact number by which a secured credit card could improve your credit score is undetermined. Your credit score will increase based on how you use your card, how long you use it, and where your credit was at the beginning.
