Secured Credit Cards in Canada (2026): How They Work and Which to Consider

A secured credit card works like a regular credit card, except you put down a refundable deposit that usually becomes your credit limit. Because the issuer holds your deposit, approval is much easier, which makes secured cards one of the most common ways to build or rebuild credit in Canada. Your payments are reported to the credit bureaus, so paying on time every month builds your history. The main options differ a lot in fees and interest, so it’s worth comparing before you hand over a deposit.

This guide explains how secured cards work, what the main issuers charge (taken from their own pages), and how to move up to a regular card. If you’re new to Canada, start with our newcomers guide: bank newcomer programs often approve unsecured cards without a Canadian credit file.

How a secured card works

1. You apply and provide a deposit. The issuer holds it, and your credit limit is usually equal to it.
2. You use the card normally, for purchases, bills and online shopping.
3. You get a monthly statement and must pay it. The deposit isn’t used to pay your bill; it’s security in case you don’t. A secured card is not a prepaid card.
4. The issuer reports your account to the credit bureaus. On-time payments build your history; late payments hurt it.
5. When you close the account (or the issuer moves you to an unsecured card), you get the deposit back, minus anything you owe.

A secured card is a credit product, so interest applies to any balance you carry, just like a regular card. The cheapest way to use one is to pay the full statement balance every month. Our interest and grace period guide explains how that works.

Secured cards and credit-building products compared

All figures below come from each issuer’s own pages in October 2026. Fees and rates change, so confirm on the issuer’s site before you apply.

Product	Network	Annual or monthly fee	Purchase interest	Deposit
Home Trust Secured Visa (no-fee option)	Visa	$0	19.99%	$500 to $10,000
Home Trust Secured Visa (low-rate option)	Visa	$59 a year	14.90%	$500 to $10,000
Capital One Guaranteed Mastercard	Mastercard	$0	29.9% (21.9% in Quebec)	May be required
Secured Neo Mastercard	Mastercard	$0 card fee; Neo’s $9.99/month Build membership is required for secured credit	19.99% to 29.99%	$50 to $10,000
KOHO Credit Building	Not a credit card	Paid KOHO plan	No interest	None for Credit Building

Home Trust Secured Visa

According to Home Trust’s Secured Visa page:

• You choose between no annual fee with a 19.99% interest rate, or a $59 annual fee with a 14.90% rate. The lower-rate option only pays off if you expect to carry a balance.
• Your credit limit equals your deposit, from $500 to $10,000. Home Trust is a CDIC member, and it says your deposit is protected.
• Home Trust reports your account to the credit bureau every month.
• To apply, you need to be a permanent Canadian resident, at the age of majority in your province, not currently bankrupt, and able to pay the deposit from a Canadian account in your name.
• It’s not available in Quebec.
• Cash advances are limited to 20% of your credit limit, with fees.

Home Trust also issues the no-fee Home Trust Preferred Visa, a regular unsecured card with 1% cash back and no foreign exchange fees, which some people move to once their credit is established.

Capital One Guaranteed Mastercard

Capital One’s Guaranteed Mastercard page lists:

• $0 annual fee.
• Guaranteed approval if you meet four conditions: you’re at the age of majority, you’re legally able to have credit (no frozen credit profile), you have no existing Capital One account or pending application, and you haven’t had a Capital One account in bad standing in the last year.
• Security funds may be required. Capital One decides whether you need a deposit when you apply.
• A 29.9% interest rate on purchases, balance transfers and cash advances outside Quebec, and 21.9% for Quebec residents. That’s high, so this card only makes sense if you pay in full every month.
• Mastercard benefits including purchase assurance, extended warranty, car rental collision/loss damage waiver, price protection, common carrier travel accident and baggage delay insurance.

Neo secured cards

Neo Financial offers every one of its credit cards with a secured limit. According to Neo’s secured card page and its help centre:

• The Secured Neo Mastercard has no income or credit score requirement, and Neo says approval is guaranteed.
• There’s no annual card fee, but secured credit requires Neo’s Build membership at $9.99 a month. Neo’s application page says the first three months are free. That works out to about $120 a year after the trial, more than many secured cards’ annual fees.
• The deposit starts at $50 and can go up to $10,000, in $50 increments.
• Neo reports payments to both TransUnion and Equifax.
• Purchase interest is listed as 19.99% to 29.99%.
• Neo’s other cards, such as the Neo World Mastercard ($50,000 individual or $80,000 household income) and the Neo World Elite Mastercard ($149 a year), are also available secured if you meet their income requirements.

KOHO Credit Building (not a credit card)

KOHO Credit Building isn’t a secured credit card. It’s an interest-free credit-building line that you make monthly payments on, without spending from it. KOHO says there are no deposits, no hard credit check and approval is guaranteed, and it reports your payment activity to both Equifax and TransUnion. It’s paid for through a KOHO plan. It can help build payment history, but it doesn’t give you a credit card to spend with.

Secured cards at the big banks

Some big banks also offer secured versions of their cards. BMO says that if you don’t qualify for an unsecured card, it has secured credit card options, and TD says its secured cards can help you build credit history. Terms aren’t published the same way as the products above, so ask in a branch about the deposit, fees and how you graduate.

Which one makes sense?

• You want the lowest cost and will pay in full every month: a $0 annual fee secured card with no monthly fee, such as the no-fee Home Trust Secured Visa or the Capital One Guaranteed Mastercard. Interest rates don’t matter if you never carry a balance.
• You might carry a balance sometimes: compare the Home Trust low-rate option at 14.90% with the alternatives. Better still, try to avoid carrying a balance at all.
• You can only spare a small deposit: Neo’s $50 minimum is the lowest here, but count the $9.99 monthly membership in the cost.
• You don’t want a credit card at all: KOHO Credit Building reports payments without letting you run up a balance, but it isn’t a card for spending.

How to graduate to a regular card

The point of a secured card is to stop needing one. To get there:

1. Pay on time, every time. Set up an automatic payment for at least the minimum, and pay the full balance whenever you can.
2. Keep your balance low. Using a small share of your limit looks better on your credit file than maxing it out, even if you pay in full.
3. Check your credit report with Equifax and TransUnion after a few months to make sure the account is being reported. Our credit scores guide explains how to read it.
4. Ask your issuer about an upgrade after about a year of on-time payments, or apply for an unsecured starter card. Cards with low or no published income requirements, such as the PC Mastercard and the Scotiabank Scene+ Visa, are common next steps. Our low or no minimum income guide lists more.
5. Keep the old account open if it’s free. The age of your accounts helps your score, so closing your oldest card can work against you. Close a secured card that charges a fee once you have a no-fee replacement.

FAQ

Do secured credit cards build credit in Canada? Yes, as long as the issuer reports to the credit bureaus. Home Trust says it reports every month, and Neo says it reports to both TransUnion and Equifax. Confirm with any other issuer before you apply.

Is a secured card the same as a prepaid card? No. A prepaid card spends money you’ve loaded and isn’t reported as credit. A secured card is a real credit account with a monthly bill; the deposit is only security.

Do I get my deposit back? Yes, when you close the account or your issuer moves you to an unsecured card, minus any balance you still owe.

Can I get a secured card in Quebec? Some, not all. Home Trust’s Secured Visa isn’t available in Quebec. Capital One lists a separate 21.9% rate for Quebec residents.

What’s the cheapest secured card? For someone who pays in full every month, a $0 annual fee card with no monthly membership, such as the no-fee Home Trust Secured Visa or the Capital One Guaranteed Mastercard, costs nothing to hold.

What to do next

If you think you can qualify for a regular card, check the no annual fee hub and the student cards hub first; you may not need a deposit at all. If you were declined recently, our application declined guide explains what to do before you apply again.