Secured credit card for bad credit Canada: It can feel as though bad credit puts up a barrier when you want to rebuild your finances. Still, there is good news! A secured credit card in Canada is very helpful for those working to improve their credit score. Need a secured credit card with bad credit in Canada? You came to the right spot.
This guide covers:
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What a secured credit card is
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How it helps improve your credit
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Best secured credit card options in Canada (2025)
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How to apply (step-by-step)
What is a Secured credit card for bad credit Canada?
Like normal credit cards, secured credit cards are available, though you need to pay a security deposit before getting one. The money you deposit is most often the amount you can borrow on your loan. A deposit of $500 will give you a limit of $500.
✅ Your past payments are sent to credit bureaus (Equifax & TransUnion), helping you establish or improve your credit status.
Who Should Use a Secured Credit Card?
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People with bad credit history
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Newcomers to Canada with no credit score
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Students trying to build their credit
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Anyone who has been rejected for a regular credit card
Benefits of a Secured Credit Card in Canada
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Builds credit fast if used responsibly
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Accepted almost everywhere like a regular credit card
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Converts to unsecured card after positive usage
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Safer than prepaid cards (since reported to credit bureaus)
Best Secured Credit Cards for Bad Credit in Canada (2025)
Here are the top secured cards trusted by Canadians with low or no credit:
1. Home Trust Secured Visa
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Minimum Deposit: $500
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Annual Fee: $59 or No fee version available (higher interest)
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Credit Limit: Up to $10,000
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Credit Reporting: Yes, monthly to Equifax & TransUnion
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Why Choose: Flexible, low entry barrier, reliable
2. Neo Secured Credit Card
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Minimum Deposit: $50 (Lowest in Canada!)
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Annual Fee: $0
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Cashback Rewards: Yes (up to 5%)
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Mobile App: Excellent, modern interface
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Why Choose: Best for tech-savvy users who want rewards + credit building
3. Capital One Guaranteed Secured Mastercard
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Deposit: $75 to $300
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Annual Fee: $59
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Guaranteed Approval: Even with bankruptcy (in many cases)
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Reports to major credit bureaus
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Why Choose: Great for rebuilding after serious credit issues
4. KOHO Prepaid Mastercard with Credit Building
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No traditional credit card, but offers credit building
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Monthly Fee: $10 for Credit Building Tool
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No interest charges (spend from your account)
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Why Choose: Alternative to secured cards with added budgeting features
How to Choose the Right Secured Credit Card?
Before you apply, consider:
| Feature | Why It Matters |
|---|---|
| Minimum Deposit | Lower deposit means easier approval |
| Fees | Annual fees affect your total cost |
| Credit Reporting | Must report to Equifax & TransUnion |
| Interest Rates | Lower is better (if you carry a balance) |
| Upgrade Options | Some cards let you switch to unsecured |
How to Apply for a Secured Credit Card in Canada
Applying is simple, but you must meet basic criteria:
Eligibility:
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Canadian resident (18+)
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Valid government ID
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Security deposit (via debit or bank transfer)
Step-by-Step Process:
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Compare Cards – Use the list above
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Choose One – Based on your needs
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Apply Online – Through the bank or credit card provider’s site
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Submit Deposit – Pay your refundable security deposit
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Get Approved – Your card will arrive by mail within 5-10 days
How Long Does It Take to Improve Credit?
Most people see an improvement in 3-6 months — if you:
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Pay full balance on time
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Keep utilization under 30%
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Avoid applying for too many cards
Pro Tip: Check your credit report every 3 months via Equifax or TransUnion to track progress.
FAQs – Secured Credit Card for Bad Credit Canada
Q1. Is a secured card better than a prepaid card?
➡️ Yes! Secured cards build your credit — prepaid cards don’t.
Q2. Can I get a secured card with no job?
➡️ Possibly, if you can pay the deposit. Income isn’t always required.
Q3. Will I get my deposit back?
➡️ Yes, once your account is closed in good standing or upgraded to an unsecured card.
Q4. Can I have more than one secured card?
➡️ Yes, but too many can affect your credit inquiries. Start with one.
Final Thoughts
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Braj Verma is a resident of Rajgarh in Madhya Pradesh and is a content writer and freelancer by profession. He has a degree in Political Science from Barkatullah University, Bhopal. He has expertise in subjects like credit cards, banking, loan, insurance, political analysis and digital marketing.