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Canada's 4 Best Secured Credit Cards of September 2025
Published Sep 16, 2025 8:51 AM UTC • 5 min read
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Lead WriterWhenever you want to build or rebuild your credit score, secured credit cards are one of the best options. Although putting down a deposit is not pleasant, in the meantime, until you are able to get an unsecured one, choosing the right secured card will save you a lot in annual fees and may even earn you some rewards
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Neo World Mastercard® Secured: Best Overall Secured Credit Card
Capital One Guaranteed Secured Mastercard®: Best for No-Income Applicants
Home Trust Secured Visa: Lower interest option
Neo Cathay World Elite® Mastercard® Secured: Travels to Asia
Our choice for: Best Overall Secured Credit Card
APPLY NOW
on Neo Financial's website
Welcome Bonus
N/A
Rewards Rate
0.5% - 4% cashback
Cash Back
Annual Fee
$60
$5 Paid Monthly
Interest Rates
19.99% - 29.99%□ / 22.99% - 31.99%□
Most secured cards give you very low to no rewards for using your card as you build your score over time. This card however offers balanced rewards for everyday purchases and with the cash back boost of up to 4% on groceries, it can easily beat most other no fee cash back credit cards as long as you're willing to keep 10k in a Neo everyday account. This is a fantastic card to help build your score while you also get to earn a high cash back rate.
Pros
- Higher approval rate with the low to no credit score requirement to help you build your credit score
- High cash back rate of 4% on grocery spending but only if you keep at least 10k in a Neo every day account
- Additional cash back earning at over 10,000 Neo partners
Cons
- Basic insurance coverage
- Cash back spend caps can limit your rewards
Rewards
- 2% cash back on grocery purchases up to $1,000 spending per month (3% cash back if you have $5k in a Neo everyday account, or 4% cash back with $10k in a Neo everyday account) - drops to the 0.5-1% cash back tier after hitting spend cap
- 2% cash back on EV charging and gas purchases up to $1,000 spending per month (3% cash back if you have $5k in a Neo everyday account, or 4% cash back with $10k in a Neo everyday account) - drops to the 0.5-1% cash back tier after hitting spend cap
- 2% cash back on recurring purchases up to $500 spending per month (3% cash back if you have $5k in a Neo everyday account, or 4% cash back with $10k in a Neo everyday account) - drops to the 0.5-1% cash back tier after hitting spend cap
- 0.5% cash back on all other purchases up to $2,500 spending per month (1% cash back if you have $10k in a Neo everyday account)
- 5% average cash back at Neo Partners
Insurance
Coverage
Purchase Protection
90 days
Extended Warranty
1 year
Eligibility
Credit Score
PoorAnnual Income
$50,000 personal or $80,000 household
Our choice for: Best for No-Income Applicants
Welcome Bonus
N/A
Rewards Rate
No Rewards
Annual Fee
$0
Interest Rates
29.9%□ / 29.9%□
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
- 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
Rewards
No Rewards on this card
Insurance
Coverage
Travel Accident
$250,000
Baggage Delay
$100/day up to 3 days.svg)
Car 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
Our choice for: Lower interest option
APPLY NOW
on Home Trust's website
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
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
- No Annual Fee required
Cons
- No rewards earned on purchases
- No benefits provided by the card
Rewards
No Rewards
Eligibility
Credit Score
PoorAnnual Income
N/A
Our choice for: Travels to Asia
Welcome Bonus
Up to 60,000 Asia Miles (35,000 upon approval)
Rewards Rate
1x - 5x Asia Miles
Points
Annual Fee
$180
Interest Rates
19.99% - 26.99%* / 22.99% - 28.99%*
The Cathay World Elite Mastercard is a top choice for frequent travelers to Asia, offering up to 60,000 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
- 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 60,000 bonus Asia Miles, read the full neo cathay review here.
- Discount on flights: Up to 15% discount on flights to Asia and beyond with code CXNEO15OFF (valid until Dec 31, 2025).
- High Earn Rates: Get an average of 5 miles, and up to 15 miles per $1 spent (first time purchases) 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.
Rewards
- Earn 4x Asia Miles per $1 spent on Cathay Pacific flights
- Earn 2x Asia Miles per $1 spent on purchases made in foreign currencies
- Earn 1x Asia Miles per $1 spent in Canada
- Earn an average of 5x the Asia Miles when you spend at thousands of Neo partners nationwide
- Save up to 15% off on flights to Asia and beyond when you pay with your Cathay World Elite Mastercard and enter the discount code CXNEO15OFF (valid until Dec 31, 2025), more details
Insurance
Coverage
.svg)
Car Rental Personal Effects
$1,000/person, $2,000 combined
Car Rental Accident
$100K for Cardholder, $10K spouse and childCar Rental Damage & Theft
Yes, 48 daysBaggage Delay
$1,000 after 4 hours
Lost or Stolen Baggage
$1,000
Trip Interruption
$5,000
Trip Cancellation
$5,000
Emergency Medical Term
14 daysFlight Delay
$500
Hotel Burglary Insurance
$1,000Purchase Protection
90 daysExtended Warranty
1 year
Benefits
Details
Airport Lounge - Dragon Pass
DragonPass 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 benefits
Boingo Wi-Fi hotspot
Discount
Save up to 15% off on flights to Asia and beyond when you pay with your Cathay World Elite Mastercard and enter the discount code CXNEO15OFF (valid until Dec 31, 2025)
Eligibility
Credit Score
PoorAnnual Income
$80,000 personal or $150,000 household
*The Cathay World Elite® Mastercard is issued by Neo Financial™ pursuant to license by Mastercard International Incorporated.
Mastercard, World Elite® and the circles design are registered trademarks of Mastercard International Incorporated.
The Cathay World Elite® Mastercard is not available in Quebec. Check here for full details and current product information.
How we picked these cards
The biggest factors in choosing these cards were the minimum deposit required, the annual fees, and whether the credit cards offered any rewards on purchases or included insurance. These are the most important considerations for secured cards and were the main criteria used to select the best secured credit cards.
From our editors: The full list of Best Secured Credit Cards in Canada For 2025
Choice for best overall secured credit card: Neo World Mastercard Secured
The Neo World Secured Mastercard is chosen as the best overall secured credit card in Canada for several reasons. It has no annual fee, requires a very low security deposit to get started, and uniquely offers the same rewards as its unsecured counterpart which is a rare feature among secured cards. Most secured cards offer limited or no rewards, but this one stands out by matching the benefits of its unsecured version. These features combined make it the top choice for anyone looking to build or rebuild credit without sacrificing everyday perks. To learn more read Neo World Mastercard Secured review.
Best for No-Income Applicants: Capital One Guaranteed Secured Mastercard
If you want to avoid paying any fees, then the Capital One Guaranteed Secured Mastercard is your best choice. The best thing about this card is that, even though it has no annual fees, it provides many premium benefits such as price protection, etc. In addition, many secured credit cards come with an income requirement, but with this card, you don’t need to worry as no income is required.
Choice for lower interest: Home Trust Secured Visa
Although not recommended, if you plan to carry a balance on your secured credit card, the Home Trust Preferred Visa card offers the option to reduce the interest paid compared to other options by paying a fee.
Choice for travel to Asia: Neo Cathay World Elite Mastercard Secured
This card has a considerable annual fee, but for some users, the Neo Cathay World Elite Mastercard Secured be a great choice because it comes with many travel benefits and high rewards. You will earn Asia Miles on your purchases, so if you can use your points for Asia-related travel in the future, this card is a good choice.
The downsides are the high income requirements of the card and the rewards being limited to one specific purpose, lacking flexibility.
What’s the difference between a secured and a regular (unsecured) credit card?
There are many differences between secured and unsecured credit cards.
In Canada, the two main types of credit cards are secured and unsecured (often called “regular”) credit cards, each serving different financial needs and credit profiles. Secured credit cards require a refundable security deposit, which typically determines your credit limit. They are designed for individuals with no credit history, a poor credit score, or newcomers to Canada looking to build or rebuild their credit. The deposit acts as collateral for the issuer in case of missed payments, which makes these cards more accessible.
On the other hand, unsecured credit cards do not require a deposit and are offered based on your creditworthiness, usually determined by your credit score and income level. These cards often come with higher credit limits, lower interest rates, and a variety of benefits such as cashback, travel rewards, insurance, and other perks. However, they can be harder to qualify for if your credit history isn’t strong. Choosing between the two depends on your current credit standing and financial goals.
How does building credit with secured credit cards work?
Building credit with a secured credit card works by using the card responsibly while your activity is reported to Canada’s major credit bureaus, Equifax and TransUnion. When you open a secured card, you provide a refundable security deposit, which usually becomes your credit limit. Although you’re using your own money as collateral, your purchases and payments are treated the same as with a regular credit card in terms of credit reporting.
Frequently Asked Questions
A secured credit card works similarly to a regular credit card but with a key difference: it requires a security deposit upfront. This deposit, usually refundable, acts as collateral for the card issuer and typically determines your credit limit. For example, if you deposit $500, your credit limit will generally be $500.
Here’s how it works in detail:
Application and Deposit: When applying for a secured credit card, you’ll be required to provide a cash deposit. The deposit reduces the risk for the card issuer, allowing them to approve the card even if you have no credit history or poor credit. This deposit acts as your collateral.
Credit Limit: The credit limit on a secured card is usually equal to the amount of the deposit. Some issuers may allow you to increase the credit limit by adding more to the deposit. Over time, responsible card use may lead the issuer to increase the limit without requiring an additional deposit.
Making Purchases: You can use the secured credit card just like a regular credit card for purchases, both in stores and online. You will receive a monthly statement with a balance, and you must make at least the minimum payment by the due date.
Building Credit: Secured cards are reported to the credit bureaus, meaning your payment history and credit utilization are tracked and used to build or improve your credit score. Making timely payments and keeping balances low helps improve your credit score over time.
Interest and Fees: Like unsecured credit cards, secured cards can carry interest on unpaid balances and may also have annual fees or other charges. Paying off the full balance each month avoids interest charges.
Refund of Deposit: If you demonstrate responsible use by making payments on time and improving your credit score, some issuers may offer to refund your deposit and upgrade you to an unsecured credit card. Alternatively, you may close the account and receive your deposit back, minus any outstanding balances.
A secured credit card is ideal for individuals with no credit history, those rebuilding poor credit, or anyone rejected for traditional credit cards. It's a great option for people looking to establish or improve credit, as it requires a deposit, making it easier to get approved while promoting responsible financial habits.
Surprisingly, none of the Big 5 banks of Canada (CIBC, BMO, TD, RBC, and Scotiabank) offer any secured credit cards. Therefore, to get one, you need to reach out to one of the financial institutions mentioned in the post to obtain a secured card.
Yes, the security deposit on a secured credit card is refundable, provided there’s no outstanding balance on your account. If you choose to close your secured card and have fully paid off what you owe, your deposit will be returned to you by the issuer.
When you close a secured credit card, the following typically happens:
- 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.
Before closing a secured credit card, it's essential to ensure there’s no remaining balance and consider how the closure may impact your credit.
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Since graduating from the University of Western Ontario, Sara has built a diverse writing portfolio, covering topics in the travel, business, and wellness sectors. As a self-started freelance content ...
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