Best Secured Credit Cards for Bad Credit in Canada 2026

Why a Secured Credit Card Is the Fastest Way to Rebuild Bad Credit in Canada

If your credit score is sitting somewhere between 300 and 600, you already know the frustration. Traditional credit card applications get declined. Loan offers come with sky-high interest rates. Even renting an apartment can feel like an uphill battle.

A secured credit card is the most reliable tool for digging yourself out of that hole. You put down a refundable security deposit, the issuer gives you a credit limit tied to that deposit, and every on-time payment you make gets reported to the credit bureaus. Over time, those positive reports push your score upward.

The beauty of a secured card is that approval does not depend on your credit history. Because the deposit eliminates the lender’s risk, most issuers will approve you regardless of past bankruptcies, consumer proposals, collections, or missed payments. You are essentially borrowing against your own money while proving to Equifax Canada and TransUnion Canada that you can handle credit responsibly.

Before we dive into specific cards, a quick note: you should know your current credit score before applying for anything. Borrowell gives you free weekly Equifax score updates without affecting your credit. Knowing your starting point helps you track your progress and choose the right card for your situation. You can also take our recovery quiz to get a personalized rebuilding plan based on your specific circumstances.

What to Look for in a Secured Credit Card

Not all secured cards are created equal. Here are the factors that matter most when you are rebuilding from bad credit:

Credit Bureau Reporting

This is the single most important feature. Your secured card must report your payment activity to at least one of Canada’s two major credit bureaus: Equifax Canada and TransUnion Canada. Ideally, it reports to both. A card that does not report to the bureaus is useless for rebuilding purposes.

Minimum Deposit

The deposit determines your credit limit. Some cards require as little as $75, while others ask for $200 or more. A lower minimum deposit is better if you are on a tight budget, but remember that a higher deposit gives you a higher limit, which makes it easier to keep your utilization ratio low.

Annual Fee

Many secured cards charge an annual fee ranging from $0 to $75. A card with no annual fee saves you money over time, but a modest fee is acceptable if the card has better bureau reporting or a path to graduating to an unsecured card.

Graduation Path

Some issuers will review your account after 12 to 18 months of responsible use and upgrade you to an unsecured card with your deposit refunded. This graduation path is a major advantage because it means you are not stuck with the secured card forever.

Approval Requirements

Most secured cards in Canada are designed for people with poor or no credit, so approval requirements are minimal. However, some cards do perform a soft or hard credit check, and a few may decline applicants with a recent bankruptcy that has not yet been discharged. Always check the specific requirements before applying.

The Best Secured Credit Cards in Canada for 2026

We evaluated every major secured credit card available to Canadians and narrowed the list to six options that are genuinely useful for rebuilding bad credit. Here is a detailed look at each one.

1. Capital One Secured Mastercard

The Capital One Secured Mastercard is one of the most popular secured cards in Canada, and for good reason. It combines a low minimum deposit with solid bureau reporting and a straightforward graduation path.

Minimum Deposit: $75, $200, or $300 depending on your creditworthiness. Your credit limit equals your deposit amount.

Annual Fee: $59

Credit Bureau Reporting: Reports to both Equifax Canada and TransUnion Canada monthly.

Approval Requirements: No minimum credit score required. Capital One performs a credit check but is known for approving applicants with very poor credit, including those who have been through bankruptcy (post-discharge).

Pros:

• Low minimum deposit of just $75 makes this accessible on a tight budget
• Reports to both major credit bureaus, maximizing your rebuilding impact
• Capital One reviews your account automatically for graduation to an unsecured card after responsible use
• Widely accepted Mastercard network
• Online account management and mobile app

Cons:

• $59 annual fee is higher than some competitors
• No rewards program
• The lowest deposit tier ($75) results in a very small credit limit, which makes keeping utilization below 30 percent more challenging

Best for: Anyone who needs the lowest possible entry point and wants dual bureau reporting from day one.

2. Home Trust Secured Visa

The Home Trust Secured Visa stands out for one compelling reason: it has no annual fee. Over two or three years of rebuilding, that saves you a meaningful amount compared to cards that charge $50 or more per year.

Minimum Deposit: $500

Annual Fee: $0

Credit Bureau Reporting: Reports to both Equifax Canada and TransUnion Canada.

Approval Requirements: Guaranteed approval with no credit check for the standard secured card. You do need to provide a valid Canadian address and be of legal age in your province.

Pros:

• No annual fee whatsoever, making it the most affordable option over time
• Guaranteed approval with no credit check means no hard inquiry on your report
• Reports to both Equifax and TransUnion
• Visa network accepted virtually everywhere in Canada
• You can deposit up to $10,000 for a higher credit limit

Cons:

• $500 minimum deposit is significantly higher than some competitors
• No graduation path to an unsecured card
• Customer service can be slower than the big banks
• No rewards or cashback

Best for: Anyone who can afford the $500 deposit upfront and wants to avoid annual fees during their rebuilding period.

3. Neo Secured Mastercard

The Neo Secured card is a newer entrant to the Canadian secured credit card market, and it brings a modern, app-first approach to credit rebuilding. What makes it unique is that it offers cashback rewards, something that is rare among secured cards.

Minimum Deposit: $50 (one of the lowest available in Canada)

Annual Fee: $0

Credit Bureau Reporting: Reports to both Equifax Canada and TransUnion Canada.

Approval Requirements: No credit check required. Guaranteed approval for Canadian residents aged 18 and older (19 in some provinces).

Pros:

• Just $50 minimum deposit, making it the most accessible option on this list
• No annual fee
• Cashback rewards at thousands of Neo partner merchants, which is unusual for a secured card
• Sleek mobile app with real-time spending notifications
• Reports to both bureaus

Cons:

• Neo is a fintech company, not a traditional bank, which may concern some applicants
• Cashback rates at non-partner merchants are lower
• Relatively new product with a shorter track record
• Mastercard acceptance is excellent but Visa is still slightly more widely accepted in some areas

Best for: Budget-conscious rebuilders who want the lowest possible deposit, no annual fee, and the bonus of earning cashback while they rebuild.

4. Refresh Financial Secured Visa

Refresh Financial has carved out a niche in serving Canadians with damaged credit. Their secured Visa card is designed specifically for rebuilding and pairs well with their credit-builder loan products.

Minimum Deposit: $200

Annual Fee: $48.95

Credit Bureau Reporting: Reports to both Equifax Canada and TransUnion Canada.

Approval Requirements: No minimum credit score. Refresh Financial performs a soft credit check that does not affect your score. Applicants with active bankruptcies (not yet discharged) may still be declined.

Pros:

• Designed specifically for people rebuilding credit
• Reports to both major bureaus
• Soft credit check does not impact your score
• Can be combined with a Refresh Financial credit-builder loan for a two-product credit mix
• $200 deposit is a reasonable middle ground

Cons:

• $48.95 annual fee adds ongoing cost
• No rewards or cashback
• Interest rate on carried balances is high (you should never carry a balance anyway)
• Less brand recognition than Capital One or Home Trust

Best for: Anyone who wants a purpose-built rebuilding card and is considering pairing it with a credit-builder loan for a diversified credit mix.

5. Canadian Tire Secured Mastercard

The Canadian Tire secured option appeals to Canadians who do a lot of their shopping at Canadian Tire, Sport Chek, Mark’s, or other Canadian Tire Corporation stores. It earns Canadian Tire Money (CT Money) on purchases, giving you tangible rewards while you rebuild.

Minimum Deposit: $200 (refundable)

Annual Fee: $0

Credit Bureau Reporting: Reports to both Equifax Canada and TransUnion Canada.

Approval Requirements: Canadian Tire performs a credit check. Applicants with very poor credit or recent undischarged bankruptcies may be declined, though the secured deposit significantly improves approval odds.

Pros:

• No annual fee
• Earns CT Money on all purchases, with bonus earning rates at Canadian Tire family of stores
• Reports to both credit bureaus
• Canadian Tire is a well-known, trusted brand
• Large acceptance network through Mastercard

Cons:

• CT Money rewards are only redeemable at Canadian Tire Corporation stores
• Credit check is required, which adds a hard inquiry to your report
• Not guaranteed approval, unlike some other secured cards on this list
• The rewards are modest compared to a premium unsecured card

Best for: Regular Canadian Tire shoppers who want to earn rewards while rebuilding and prefer a no-annual-fee card from a familiar brand.

6. KOHO (Prepaid Visa Alternative)

KOHO is not technically a secured credit card, but it deserves a place on this list because its Credit Building feature achieves a similar result. KOHO is a prepaid Visa card with an optional credit-building add-on that reports your activity to Equifax Canada.

Minimum Deposit: No deposit required for the prepaid card. The Credit Building feature costs $10/month (or less on higher-tier plans).

Annual Fee: $0 for the basic prepaid card. The Credit Building feature is $10/month on the Essential plan.

Credit Bureau Reporting: Reports to Equifax Canada through the Credit Building feature.

Approval Requirements: None. KOHO is a prepaid product, so there is no credit check and no possibility of being declined.

Pros:

• Zero chance of being declined since it is a prepaid product
• No security deposit required
• Cashback on all purchases (0.5% or higher depending on plan)
• Financial literacy tools, spending insights, and round-up savings built into the app
• No risk of overspending since you can only spend what you load

Cons:

• Only reports to Equifax, not TransUnion
• The Credit Building feature is a monthly subscription cost rather than a refundable deposit
• It is not a true credit card, so it may not carry the same weight as a secured card in the eyes of some lenders
• $10/month for credit building adds up to $120/year

Best for: Anyone who is not ready for even a secured credit card, has been declined everywhere else, or wants a simpler way to start building an Equifax payment history while managing their spending.

Comparison Summary

Here is a side-by-side look at all six options to help you decide:

Card	Min. Deposit	Annual Fee	Reports To	Guaranteed Approval	Rewards
Capital One Secured	$75	$59	Equifax + TransUnion	No (but high approval rate)	None
Home Trust Secured Visa	$500	$0	Equifax + TransUnion	Yes	None
Neo Secured	$50	$0	Equifax + TransUnion	Yes	Cashback
Refresh Financial Secured Visa	$200	$48.95	Equifax + TransUnion	No (soft check)	None
Canadian Tire Secured MC	$200	$0	Equifax + TransUnion	No (credit check)	CT Money
KOHO Credit Building	$0	$10/mo	Equifax only	Yes	Cashback

How to Use a Secured Card to Maximize Your Credit Score

Getting approved for a secured card is only step one. How you use it determines how quickly your score recovers. Follow these guidelines:

Keep Utilization Below 30 Percent

Your credit utilization ratio, the percentage of your available credit that you are actually using, accounts for a significant portion of your score. If your credit limit is $300, try to keep your balance below $90 at any given time. Below 10 percent is even better.

This is why a higher deposit (and therefore higher limit) can be advantageous. A $500 limit gives you more breathing room than a $75 limit when it comes to utilization.

Pay the Full Balance Every Month

Paying only the minimum keeps you in good standing, but paying the full balance is what you should aim for. It eliminates interest charges and demonstrates to lenders that you can manage credit responsibly. Set up automatic payments or calendar reminders so you never miss a due date.

Use the Card Regularly but Lightly

Put one or two small recurring expenses on the card each month, such as a streaming subscription or a gas fill-up. Then pay the balance in full. You do not need to use the card heavily. Consistent, small transactions followed by full payments is the ideal pattern.

Do Not Apply for Multiple Cards at Once

Each credit card application typically triggers a hard inquiry on your credit report. Multiple hard inquiries in a short period can lower your score and signal to lenders that you are desperate for credit. Choose one secured card, use it well for 12 months, and then consider adding a second credit product.

Use our credit recovery calculator to estimate how long it will take to reach your target score based on your current situation and rebuilding strategy.

Understanding Canadian Credit Bureau Reporting

In Canada, there are two major credit bureaus: Equifax Canada and TransUnion Canada. Each maintains its own file on you, and the information in those files can differ. Some lenders report to only one bureau, while others report to both.

This matters because when you apply for credit, the lender will pull your report from one or both bureaus. If your secured card only reports to Equifax but the mortgage lender pulls your TransUnion file, that positive payment history will not show up.

That is why we recommend choosing a secured card that reports to both bureaus whenever possible. Five of the six options on this list report to both Equifax and TransUnion. KOHO is the exception, reporting only to Equifax.

If you suspect errors on your credit report from either bureau, you have the right to dispute them under guidelines set by the Financial Consumer Agency of Canada (FCAC). Errors such as debts that have already been paid, accounts that do not belong to you, or incorrect balances can unfairly drag your score down. Our dispute letter template can help you draft a proper dispute to send to the bureaus.

When to Graduate from a Secured Card

Most Canadians who use a secured card responsibly can expect to see meaningful score improvement within 6 to 12 months. Here is a general timeline:

• Month 1-3: Your secured card appears on your credit report. Score movement may be minimal at first.
• Month 4-6: Consistent on-time payments begin to build a positive trend. You may see your score increase by 30 to 60 points.
• Month 7-12: Your payment history becomes more established. Scores in the 500s can often reach the 620-660 range by this point.
• Month 12-18: Some issuers will automatically review your account and offer a graduation to an unsecured card. Your deposit is returned.

Once your score crosses 650, you start qualifying for entry-level unsecured credit cards, better interest rates on loans, and improved approval odds across the board. The Canadian credit score range runs from 300 to 900, and most lenders consider anything above 660 to be a fair-to-good score.

Not sure where you stand or what your next step should be? Take our recovery quiz for a personalized action plan based on your current score and credit history.

Common Mistakes to Avoid When Rebuilding

Even with the right secured card in hand, a few common missteps can slow your progress or set you back:

Carrying a Balance to “Build Credit Faster”

This is a persistent myth. Carrying a balance does not help your credit score. It only costs you interest. Pay your full statement balance every month without exception.

Closing Old Accounts

If you have any older credit accounts that are still open, even if you are not using them, keep them open. The length of your credit history affects your score, and closing an old account shortens your average account age.

Ignoring Your Credit Report

Check your credit report from both bureaus at least once every three months. Look for errors, unauthorized accounts, or outdated information. Catching and disputing mistakes early can prevent unnecessary damage. Borrowell makes Equifax monitoring simple and free.

Falling for Credit Repair Scams

No company in Canada can legally remove accurate negative information from your credit report. The FCAC is clear on this. If a company promises to “wipe your record clean” for a fee, walk away. Legitimate credit counselling organizations accredited by Credit Counselling Canada can offer guidance, but the actual rebuilding work is something you do yourself through consistent, responsible credit use.

Frequently Asked Questions

Can I get a secured credit card with an active bankruptcy in Canada?

In most cases, no. Lenders typically require that your bankruptcy has been discharged before they will approve a secured credit card application. Once you receive your discharge, you become eligible for most secured cards on this list. If you are currently in a consumer proposal, some issuers may still approve you, but you should check with your Licensed Insolvency Trustee to make sure taking on a new credit product is permitted under the terms of your proposal.

How much should I deposit on a secured credit card?

Deposit as much as you can comfortably afford while still maintaining an emergency fund. A deposit of $300 to $500 is a good starting point because it gives you enough of a credit limit to keep your utilization ratio healthy. Remember, the deposit is fully refundable when you close the account or graduate to an unsecured card.

Will a secured credit card guarantee my score improves?

A secured card gives you the opportunity to rebuild, but it does not guarantee score improvement. Your score will only go up if you use the card responsibly: making on-time payments, keeping utilization low, and avoiding new negative items on your report. One missed payment can wipe out months of progress.

How many secured cards should I have at once?

Start with one. After six to twelve months of consistent on-time payments, you can consider adding a second credit product, whether that is another secured card from a different issuer, a credit-builder loan, or a product like KOHO. Having two active accounts reporting positive payment history is better than one, but avoid applying for three or four products at the same time.

Is there a difference between a secured card and a prepaid card for building credit?

Yes, and it is an important distinction. A secured credit card is a real credit product. You are borrowing money (up to your deposit amount) and repaying it, which gets reported to the credit bureaus as credit activity. A prepaid card, on the other hand, uses your own loaded funds and does not involve borrowing. Standard prepaid cards do not report to the bureaus and will not build your credit. KOHO is an exception because its optional Credit Building feature specifically reports to Equifax, but it is still not the same as a traditional secured credit card in terms of how lenders view it.

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The information in this article is for educational purposes and does not constitute financial advice. Credit card terms, fees, and features can change. Always verify current details directly with the card issuer before applying. Credit Score Hero may receive compensation through affiliate links, which helps support this free resource at no additional cost to you.