The best secured credit cards in Canada: A 2026 guide

When a credit card feels out of reach, hope isn’t lost. A secured credit card is a reliable tool you can use to build up your financial standing when you don’t qualify for a credit card just yet. In Canada, with a secured card, your credit limit is backed by an upfront security deposit—giving you the ability to build up your score without the traditional barriers that come with regular credit cards. 

This post breaks down the exact fees and requirements you need for the best secured credit cards in Canada (plus a few options that reward your purchases with some well-deserved cashback). 

What is a secured credit card?

A secured credit card is backed by a refundable cash deposit¹ that, for most issuers, determines your credit limit. For example, if you put down a deposit of $300, your card limit also becomes $300. Unlike prepaid cards, secured cards can help you build credit as you use and pay your balance every month. 

How to choose a secured credit card

Like other forms of credit, there are a few factors to keep in mind when selecting your a secured credit card. Ask yourself these questions while you explore your options:

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1. Annual or monthly fees: How much does it cost to keep the account open?
2. Minimum deposit required: How much upfront cash do you need to provide to unlock your credit limit?
3. Rewards: Do you earn cashback or points when you spend using your card?
4. Approval requirements: Does the card have minimum income requirements or other eligibility criteria?
5. Credit bureau reporting: Does the issuer report to both credit bureaus in Canada, TransUnion and Equifax? Some card issuers only report to one, but reporting to both credit bureaus gives lenders a more accurate picture of your financial history. 

What are the best secured credit cards in Canada?

Secured Neo Mastercard

The Secured Neo Mastercard simplifies credit-building to help you find your financial footing. There is no minimum credit score required, and approval is guaranteed². Plus, you can earn cashback on daily spends while building your credit file—all with a security deposit as low as $50.

Half of secured Neo Mastercard customers improve their credit score by an average of 36 points in just 3 months.³

• Fee: $7.99 a month 
• Minimum deposit: $50
• Cashback: 1%⁴ on gas and groceries, and even more cashback with Neo’s thousands of partners
• Credit bureau reporting: Reports to both TransUnion and Equifax
• Perks: 
• • Up to 15% bonus cashback⁵ at thousands of Neo partner merchants
  • Instant virtual card access upon approval
  • Option to apply for a supplemental card

Secured Neo World Elite Mastercard® – Gas & Grocery

If most of your income goes to paying your bills and household essentials, consider the secured version of the Neo Gas & Grocery card. This card makes sure your expenses at the pump, purchases at grocery stores and your monthly bills all work in your favour by putting cash back into your pocket. 

This card is available in two tiers: one, the no-fee World option; and two, a World Elite tier with an annual fee that unlocks higher cashback thresholds, comprehensive travel insurance and airport lounge access via DragonPass.⁶

• Fee: $149/year
• Minimum deposit: $200
• Cashback: 
• • 5%⁷ cashback on groceries up to $1,000 in monthly spending (1% thereafter)
  • 4%⁸ on recurring bill payments up to $500 in monthly spending (1% thereafter)
  • 3% on gas and EV charging on monthly spends of up to $1,000 (1% thereafter)
  • Unlimited 1% cashback on everything else
• Credit bureau reporting: Reports to both TransUnion and Equifax
• Perks: 
• • Up to 15% bonus cashback at thousands of Neo partner merchants
  • Comprehensive travel insurance9, including coverage for car rental, emergency medical, trip interruption and cancellation, flight delay, hotel and motel burglary 
  • Instant virtual card access upon approval
  • Option to apply for a supplemental card

Secured United® MileagePlus® Neo World Elite® Mastercard

Frequent flyers, this card’s for you. Who says you can’t enjoy premium airline perks while building your credit? Not Neo.

A partnership between Neo and United, the Secured United MileagePlus Neo World Elite Mastercard gives you access to top-tier airline benefits and robust insurance coverage on a secured credit limit.

• Fee: $89 a year
• Minimum deposit: $200
• Cashback: Earns United MileagePlus miles (1.25x miles on United and Star Alliance flights, 1x mile on dining and groceries, 0.75x miles elsewhere)
• Credit bureau reporting: Reports to both TransUnion and Equifax
• Perks: 
• • Free first checked bag
  • Group 2 priority boarding
  • Up to $120 USD NEXUS credit
  • Opportunity to earn 25,000 miles across account milestones: making your first purchase, every year your card stays open, and more
  • Mastercard zero liability⁹, extended warranty and purchase protection
  • Comprehensive travel insurance, including emergency medical, trip cancellation and interruption, flight delay, delayed and lost baggage, rental car collision and loss damage, and more
  • Instant virtual card access upon approval
  • Option to apply for a supplemental card

Capital One Guaranteed Secured Mastercard

The Capital One Guaranteed Secured Mastercard has no fees and no minimum income requirement. It comes with the same Mastercard protections as the Neo secured credit cards—purchase assistance and extended warranty—but there are no cashback perks to be had. 

• Fee: $0
• Minimum deposit: Starts at $75, may vary by applicant
• Cashback: None
• Credit bureau reporting: Reports to both TransUnion and Equifax
• Perks: 
• • Instant virtual card access upon approval
  • Mastercard zero liability, extended warranty and purchase protection
  • Insurance coverage for baggage delay, car rental and travel accidents

Home Trust Secured Visa

The Home Trust Secured Visa comes in two versions. The first is a no-annual-fee at a standard interest rate, or one with a lower interest rate with a $59 annual fee. However, both versions of the Home Trust Secured Visa have a steep minimum deposit requirement of $500. Also there is no app version, and pin changes require calling Home Trust to be mailed a form, which could take days.

• Fee: $0 annual fee at 19.99% purchase interest, or $59/year at a lower interest rate
• Minimum deposit: $500
• Cashback: None
• Credit bureau reporting: Reports to both TransUnion and Equifax
• Perks: 
• • Visa zero liability
  • Can be added to mobile wallets like Apple Pay, Google Pay and more

Why most secured cards don’t offer cashback

Legacy financial institutions typically view Canadians who need secured cards as high-risk clients. Because these institutions spend their margins managing administrative risks and collection structures, they rarely fund rewards programs for credit-building accounts.

Neo operates differently. We believe that a low credit score or thin credit history isn’t the full  story of someone’s financial habits. Whether you’re at the beginning of your financial journey, new to Canada, or rebuilding after a consumer proposal or bankruptcy, you have the opportunity to unlock perks and cashback rewards with secured Neo credit cards. 

Frequently asked questions 

What is the minimum deposit required to open a secured credit card in Canada?

The minimum deposit for a secured credit card in Canada depends on the issuer. Some, like Neo, offer secured cards with a deposit requirement starting at $50. Meanwhile, other issuers like Home Trust require a $500 minimum deposit. 

What’s the difference between a secured and prepaid card?

Secured cards report to credit bureaus and build your credit history; prepaid cards do not. Get the full comparison between prepaid versus secured credit cards. 

Can a secured card hurt your credit score?

If you miss any monthly payments or maintain a high utilization balance (how much credit you’ve used out of how much you have access to), a secured card will report those negative actions to Equifax and TransUnion, which can cause your score to drop. On the other hand, if you maintain good credit behaviour and regularly pay off your balance on-time, your credit score can continue to improve. 

How long does it take to graduate from a secured to unsecured card?

Typically 12 to 24 months of consistent on-time payments. For a full picture, including what score you need and what to do with your old card, see our guide on how to graduate from a secured credit card in Canada.