Key takeaways
- Your deposit becomes your credit limit and is refunded when you close the card
- Neo: deposit from $50, free for 3 months then $9.99 a month, 19.99% to 29.99%
- Home Trust: deposit $500 to $10,000, $0 fee at 19.99% or $59 a year at 14.90%, not in Quebec
- Capital One: $0 annual fee, 29.9% (21.9% in Quebec)
- Use under 30% of the limit and pay in full every month
What is a secured credit card?
With a secured card you give the card company a security deposit. The deposit sets your credit limit: put down $500 and you can spend up to $500. You still get a monthly statement and must pay it, and the card company reports your payments to the credit bureaus. That is what builds your credit history.
A secured card is not the same as a prepaid card. A prepaid card spends your own loaded money and does not build credit. A secured card is real credit.
Most newcomers can get a regular unsecured card from a big bank through a newcomer program (see credit cards with no credit history). A secured card is the right choice if you were refused, have no income proof yet, or want a card while you wait to qualify.
Secured credit cards compared
From each issuer’s own page, as of October 5, 2026.
| Card | Deposit | Fee | Purchase interest | Notes |
|---|---|---|---|---|
| Secured Neo Mastercard | From $50; limit equals deposit | Free for 3 months, then $9.99 a month | 19.99% to 29.99% | Guaranteed approval, no credit score or income required; cash back with Neo partners |
| Home Trust Secured Visa (no fee) | $500 to $10,000 | $0 | 19.99% | Not available in Quebec; cash advances up to 20% of the limit |
| Home Trust Secured Visa (low rate) | $500 to $10,000 | $59 a year | 14.90% | Lower rate if you may carry a balance; not available in Quebec |
| Capital One Guaranteed Secured Mastercard | Required; amount set at approval | $0 annual fee | 29.9% (21.9% in Quebec) | Cash advances at the same rate |
A monthly fee adds up. Neo’s $9.99 a month is about $90 in the first year (after 3 free months) and about $120 a year after that. A $0 fee card costs nothing if you pay in full.
Which secured card should you choose?
- You have little cash for a deposit: Neo starts at $50. But a $50 limit is hard to keep under 30%: that is only $15 of spending. Aim for a deposit of a few hundred dollars if you can.
- You want no monthly or annual fee: Home Trust no-fee version or Capital One. Home Trust needs at least $500.
- You may carry a balance sometimes: the Home Trust low-rate version at 14.90% costs less in interest. Better still, pay in full.
- You live in Quebec: Home Trust is not available. Capital One has a lower 21.9% rate for Quebec residents.
Home Trust says applicants must be permanent residents of Canada and fund the deposit from a Canadian account in their own name. Ask the issuer what documents you need before you apply.
Before you apply, read the cardholder agreement for three things: how the deposit is held and returned, whether the issuer reports to both Equifax and TransUnion, and whether there is a path to an unsecured card without a new application. A card that reports to both bureaus builds your file faster with more lenders.
How to build credit with a secured card
- Keep use low. The Financial Consumer Agency of Canada (FCAC) recommends using less than 30% of your limit. Even if you pay in full, the balance on your statement is what gets reported.
- Pay on time, every time. Payment history is the biggest part of your score. Set up automatic payment of the full balance.
- Use it every month. One small regular bill, such as a phone plan, is enough.
- Keep it open. The age of your accounts helps your score.
Plan your limit and spending with the credit score builder or the credit utilization calculator.
Other ways to start a credit file
A secured card is the most common start, but not the only one:
- A newcomer card from a big bank. No deposit, often no fee, and higher limits. Try this first.
- Transfer an American Express card. If you already hold a foreign Amex card, Amex Canada can approve you without a Canadian credit report.
- A small loan or line of credit from your bank, if you can afford the payments. This adds a second type of credit, but do not borrow just to build credit.
Whatever you choose, the rules are the same: pay on time, keep balances low and avoid many applications in a short time. Newcomers who rent can also read renting without a guarantor, since landlords often check credit.
When can you move to a regular card?
Lenders often look for 6 to 12 months of on-time payments before offering an unsecured card or a higher limit. Neo says many users move up after 12 to 24 months. When you move up:
- Ask your issuer if they can convert the card to unsecured and return your deposit.
- Or apply for a no-fee card at your bank, then close the secured card once the new card is open. If the secured card has a monthly fee, closing it saves money. If it has no fee, keeping it open helps your credit age.
- Your deposit is returned when you close the card and pay any balance.
For the full plan, read building credit from zero. For the rest of your banking set-up, see the banking guide.
How we handle offers. Offers on this page come from each bank’s own website and were last checked on October 5, 2026. Banks change offers often, so confirm the details on the bank’s site before you apply. No bank pays to be included or ranked here. If a link on this page ever earns us a commission, we will label it next to the link.