Best Secured Credit Cards in Canada For 2024
Abid Salahi
•5 min read
Best Overall Secured Credit Card in Canada
Neo Secured Credit Card
4.7
Finly Rating
Welcome Bonus
N/A
Rewards Rate
1% - 15%
Annual Fee
$60
Interest Rates
19.99% - 29.99% / 22.99% - 31.99%
Why we like it
Why we like it
If you have a poor credit score and are looking to rebuild it with a secured card, then the Neo Financial Secured Credit Card is the best card to go for. This card offers so much more compared to other secured credit cards on the market, including no monthly fees, a low deposit amount needed to get started, and it is the only credit card that offers some rewards on your purchases!
Pros & Cons
Pros & Cons
Pros
- Best Secured Credit Card in Canada voted by FinlyWealth.
- Only Secured Card that you can earn rewards with!
- Option to add additional benefits with a monthly fee.
- Some benefits provided are exclusive to Neo Card holders.
- Deposit of only $50 required to get started
Cons
- Only reports credit activity to TransUnion® and not Equifax®
Product Details
Product Details
Rewards
- Average of 5% cashback at Neo Partners
- Up to 15% cashback on first purchases at Neo partners
- 1% cashback on gas and grocery
- 0% at Neo non-partners but with a 0.5% cashback guarantee on overall purchases
- With all these condition, the average estimated cashback on all purchases came to 1.2% by FinlyWealth
Benefits
Details
Neo Premium ($4.99/month)
Neo Travel Benefits ($4.99/month)
Neo Food Cashback boost ($1.99/month)
Neo Mind and Body Perks ($9.99/month)
Eligibility
Credit Score
PoorAnnual Income
N/A
Best No Fee Secured Credit Card in Canada
Capital One Secured Mastercard
4
Finly Rating
Welcome Bonus
N/A
Rewards Rate
No Rewards
Annual Fee
$0
Interest Rates
21.9% - 29.99% / 21.9% - 29.99%
Why we like it
Why we like it
Secured cards typically come with no rewards or benefits, even the ones with annual fees. This card has broken the norm and provides many great benefits to secured cardholders without any fees. So, if you are looking to get benefits with a secured card, this card is your best choice.
Pros & Cons
Pros & Cons
Pros
- No Annual fees
- Great list of benefits for a card with no annual fee, especially the price protection benefit, which is not offered by many other credit cards.
Cons
- No rewards earned on purchases
Product Details
Product Details
Rewards
Insurance
Coverage
Travel Accident
$250,000Baggage Delay
$100/day up to 3 daysCar Rental Damage & Theft
Up to 31 daysPurchase Protection
120 daysExtended Warranty
double up to 2 years
Benefits
Details
Price Protection
60 days, Up to $100 per item, $500 per year
Eligibility
Credit Score
PoorAnnual Income
N/A
Honorable Secured Credit Card mentions
Home Trust Secured Visa
3
Finly Rating
Welcome Bonus
N/A
Rewards Rate
No Rewards
Annual Fee
$0
Interest Rates
19.99%, option to pay $59 Annual fee for %14.90 / 19.99%, option to pay $59 Annual fee for %14.90
Why we like it
Why we like it
Although there are other better secured credit card options available in Canada, this card is the only no-fee secured credit card option, making it the choice for those who want to avoid fees.
Pros & Cons
Pros & Cons
Pros
- No Annual Fee required
Cons
- No rewards earned on purchases
- No benefits provided by the card
Product Details
Product Details
Rewards
Eligibility
Credit Score
PoorAnnual Income
N/A
Neo Cathay World Elite® Mastercard® Secured
3.6
Finly Rating
Welcome Bonus
Up to 30,000 Asia Miles and 10% off flights (limited time)
Rewards Rate
1x - 5x Asia Miles
Annual Fee
$180
Interest Rates
19.99% - 26.99% / 22.99% - 28.99%
Why we like it
Why we like it
The Cathay World Elite Mastercard is a top choice for frequent travelers to Asia, offering up to 30,000 bonus Asia Miles, high earn rates at Neo retail partners, and exclusive Cathay Pacific benefits like priority check-in and lounge access. With 12 types of insurance coverage, airport lounge access through DragonPass, and the ability to earn up to 15 miles per dollar spent at select partners, this card provides substantial value for those who regularly fly with Cathay Pacific and its partners. However, the card does require a higher income and comes with a $180 annual fee.
Pros & Cons
Pros & Cons
Pros
- Guaranteed Approval: The card is the same as regular but you’ll get guaranteed approval with a security deposit of at least $200 to open an account. No credit history required.
- Generous Bonus: Earn up to 30,000 bonus Asia Miles.
- High Earn Rates: Get an average of 5 miles, and up to 15 miles per $1 spent at Neo retail partners.
- Cathay Pacific Perks: Enjoy several exclusive benefits with Cathay Pacific.
- Comprehensive Insurance: Comes with 12 types of insurance coverage.
- Airport Lounge Access: Gain entry to airport lounges with a Mastercard Travel Pass membership.
Cons
- High Income Requirement: Requires a minimum personal income of $80,000 or $150,000 household income.
- Annual Fee: The card comes with a high annual fee of $180.
- Limited Redemption: Asia Miles cannot be redeemed for flights within Canada.
Product Details
Product Details
Rewards
- Average of 5x Asia miles at Neo Partners
- 2x Asia miles on Cathay Pacific and foreign purchases
- 1x Asia miles at non-Neo Partners
- Considering all the reward conditions, the average estimated cash back on all purchases comes to 1.0 cent per asia miles point by FinlyWealth
Insurance
Coverage
Car Rental Personal Effects
$1,000/person, $2,000 combinedCar Rental Accident
$100K for Cardholder, $10K spouse and childCar Rental Damage & Theft
48 daysBaggage Delay
$1,000 after 4 hoursLost or Stolen Baggage
$1,000Emergency Out of province Medical
14 daysFlight Delay
$250/day, $500 MaximumHotel Burglary Insurance
$1,000Purchase Protection
90 daysExtended Warranty
1 year
Benefits
Details
Airport Lounge - Dragon Pass
Pass only. No Complimentary visits!Priority Travel
Online priority check-in and extra baggage redemption for Cathay Pacific, and Cathay Pacific Business class lounge redemption accessPriority Travel
Airport Security Fast Track with and professional and punctual airport with Mastercard benefitsBoingo Wi-Fi hotspot
Eligibility
Credit Score
PoorAnnual Income
$80,000 personal or $150,000 household
FAQ
What is a secured credit card
Who should get a secured Credit Card
Which financial institutions offer Secured Credit Cards
What happens when you close your secured credit card
- Deposit Refund: If your account is in good standing with no outstanding balance, the card issuer will refund your security deposit. This can take a few weeks.
- Impact on Credit Score: Closing the card may temporarily lower your credit score, as it can reduce your available credit and affect your credit utilization ratio. However, if you've built good credit habits, the impact may be minimal.
- Credit History Retention: The account will remain on your credit report for up to 10 years, continuing to reflect your positive payment history even after the account is closed.
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