The Best Secured Credit Cards of 2023
If you find yourself saddled with a poor credit score, there is a fast and easy way to begin the rebuilding process, by obtaining a secured credit card.
A secured credit card is one that requires the borrower to provide money upfront to guarantee the credit limit. In doing so, the customer agrees to alleviate the risk to the credit card issuer, in exchange for an opportunity to rebuild their credit.
Remember, a credit card is no different than any other type of loan. If you have a poor repayment history, or no previous credit, your chances of being approved decrease. This is where a secured credit card comes in.
If you are willing to provide a security deposit as collateral, you can receive a credit card. Better yet, If you make your payments on time, and demonstrate good habits, you can improve your credit to the point at which it is possible to qualify for an unsecured card. This means having your security deposit returned to you, and being able to once again use a “regular” credit card.
As you’ll see in our reviews below, secured credit cards offer a variety of features and benefits. Some issuers, like Refresh, for example, guarantee approval regardless of your credit status. Others, such as Capital One, provide ease of access by accepting minimum security deposits as low as $75.
To help you determine which secured credit card is best suited for you, we’ve chosen what we feel are the 5 best secured credit cards in Canada, and reviewed their features and benefits. Here are our selections, in the order in which we’ve ranked them.
DISCLAIMER: While we attempt to keep all credit card details current, the rates, fees, rewards and benefits may have changed since the last update. Please visit the credit card supplier through the “Apply Now” links to ensure you have the latest details for that card.
Which of the 3 credit cards would you recommend to build credit score as fast as possible. I do not mind the annual fee, as long as it is the right card to help me improve my credit.
Thank you for all the great information on each card.
I use Home Trust. They report to the credit agency every month as I am sure the others do as well.
The key is to limit how much you charge to 25% of your credit limit and make full payment on time.
What I find difficult to understand is the “risk premium”, or rather the interest rates. If these cards are fully secured, where is the risk to the FI? Nada, zero, nil…hence the rate on said cards, should reflect the risk…hence an interest rate more comparable to the “risk free” rate of 3%+/-. Just another example to how the FIs are making their generous spread.
Can you clarify my understanding of the 2 different Home Trust Visa cards.
I’m understanding that this card can only be used for purchases made online. Is this right? Or can either of these 2 cards be used for everyday purchases?
I have Home Trust Visa, you can use both of them for everyday purchases. The only difference is interest rate. You can pay $59 per year and have lover interest rate (14.9%), or get a card with interest rate of 19.99% and no annual fees. It’s a real card, you can use it in stores, not just online.
Scotiabank visa require very strict approval just as any other Scotia card. I spoke to the bank I was told approval and underwriting same any other card. No secured version.
Mike, the bank has to make (or recover – from perhaps a previous default) it’s $$, too. If you’re walking in with a bad credit history requesting a favor (I/E: -e paper), then they are going to squeeze you if they can.
Which secure cards do you recommend for someone in Toronto who need to use for paying bills for separate online stores?
what card is the best for me with at least 3000 limit?