By Julien Brault, co-founder of MooseMoney.
Refresh Financial was a Kelowna-based fintech that used to offer secured cards and credit-building loans. It was acquired by Borrowell, known for its flagship credit monitoring app, in February 2021. Following the acquisition, its secured card was quickly discontinued. Borrowell, however, kept offering credit building loans under the Borrowell brand.
Secured credit cards differ from traditional cards in that consumers need to make a security deposit to start using the card; that’s how they got their name. Since the credit card company issuing those cards does not extend any credit to those customers, secured cards are known for being available to people with a bad credit score or no credit history at all.
When asked if secured cards are guaranteed approval products, Richard Goyder, Chief Credit Officer at Neo Financial, tempered that, while nobody gets declined because of their credit score, not 100% of applications go through : "While everyone should get approved for a secured card, regardless of their credit score, we do decline some applications in some rare cases that usually have to do with fraud risk. For example, if an applicant is deceased or looks like he is using a fake identity, we obviously won't approve his application," he said.
While Refresh Financial nor Borrowell currently offer secured cards, here are the three top secured credit cards according to most Canadian rankings:
1. Secured Neo Mastercard
Obviously, we are biased, but the Secured Neo Mastercard is the most robust offering for people looking to rebuild their credit while also getting cash back on their purchases. It also requires a minimum security deposit of just $50, making it one of the lowest-barrier secured cards in Canada. It charges a $7.99/month fee (which can be waived if you maintain a balance of $5,000 in your Neo accounts), but it earns 1% cash back on gas and groceries, plus up to 15% back at over 10,000 Neo partners. Most secured cards offer zero rewards, so the cash back component is a genuine differentiator. The purchase interest rate ranges from 19.99% to 29.99% depending on your credit profile and province. Neo Financial also bundles guided credit-building tools and built-in credit score tracking into the app.
2. Home Trust Secured Visa Card
The Home Trust Secured Visa Card is another option that has been on the market for years. It requires a minimum security deposit of $500, which is significantly higher than the Neo card. It does not charge an annual fee, but does not offer any cash back or rewards. That said, it provides basic Visa functionality, including access to over one million ATMs worldwide. It reports to the major Canadian credit bureaus, which is the essential feature for anyone trying to build a credit history. The card works well for people who want a straightforward, no-frills tool and who can afford the larger upfront deposit.
3. Capital One Guaranteed Secured Mastercard
The Capital One Guaranteed Secured Mastercard also offers guaranteed approval and its minimum security deposit is only $75. It carries no annual fee and reports to the major credit bureaus. It does not offer cash back or travel rewards, but it serves its primary purpose of helping you establish a positive payment history with the bureaus.
How to Pick the Right One for Your Situation
Your decision should come down to three factors. First, consider how much you can put down as a security deposit. Second, think about whether earning cash back or reward points matters to you. The Secured Neo Mastercard is the only card in this group that pays cash back.
Regardless of which card you pick, the strategy stays the same. Make small purchases each month, pay the full balance before the due date, and keep your credit utilisation low. A secured card is a temporary tool. After 12 to 18 months of consistent, on-time payments, most cardholders become eligible for an unsecured card with better terms. That was the whole point of Refresh Financial's products, and these alternatives accomplish the same goal.
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