- FCAC says a secured card deposit may range from a few hundred to a few thousand dollars, and the limit is normally equal to or higher than the deposit.
- Neo’s minimum security deposit is $50, and Neo says it reports to both Equifax and TransUnion.
- Capital One returns security funds within 60 days of closing the account, if the balance is paid in full and the account is in good standing.
- Payment history is the most important part of your credit score, according to FCAC, which also suggests using less than 30% of your credit limit.
Checked October 2026
What a secured credit card is
A secured credit card works like any other credit card: you buy things, get a monthly statement and pay the bill. The difference is that you give the issuer a security deposit first. That deposit is collateral the issuer can keep if you stop paying.
The Financial Consumer Agency of Canada (FCAC) says the deposit may range from a few hundred to a few thousand dollars, and that financial institutions normally set your credit limit at an amount equal to or higher than your deposit. Put down more and you usually get a bigger limit.
The deposit isn’t a prepayment. Capital One says you can’t use your security funds to pay off your balance, because they sit in a separate account. You still owe a bill every month, and unpaid balances still charge interest.
How a secured card builds credit
Canada has 2 main credit bureaus, Equifax and TransUnion. They turn what lenders report into your credit report and credit score. A secured card helps only because the issuer reports it like a normal credit card.
- Neo says it reports to both Equifax and TransUnion, and that using the card and paying in full and on time each month builds your credit history.
- Capital One says it reports your payment information to the credit reporting agencies each month. Its pages don’t name the bureaus.
- Home Trust’s site blocked our checks, so confirm its reporting with Home Trust before you apply.
Reporting to both bureaus matters because a lender might pull either one. Scores usually range from 300 to 900, and a higher score is better. There’s no fixed timeline: Neo says rebuilding bad credit can take anywhere from 3 months to several years, depending on how serious the problems were.
Secured cards we review
These are the secured cards in our reviews. Deposit and reporting details come from each issuer’s own pages. Where an issuer doesn’t publish a detail, the cell is left blank.
| Card | Annual fee | Minimum deposit | Credit reporting | Purchase rate |
|---|---|---|---|---|
| Neo Secured Card | $0, but a secured limit needs the Build membership ($9.99/month, with ways to get it free) | $50 | Equifax and TransUnion | 19.99% to 29.99%, based on Neo’s assessment |
| Capital One Guaranteed Secured Mastercard | $0 | Monthly, to the credit reporting agencies | 29.9% (21.9% in Quebec) | |
| Home Trust Secured Visa | $0 | 19.99% |
Rates and fees can change. Home Trust figures are from our review data; confirm them with Home Trust before applying.
Getting your deposit back
The deposit is refundable on the issuer’s terms, usually once you close the account with nothing owing.
- Neo says your security funds are returned if you close your account and your balance is paid off in full. It also says you can be eligible for higher limits in as little as 3 months.
- Capital One says security funds come back within 60 days of closing the account, as long as the balance is paid in full and the account is in good standing.
- Capital One lets you raise your limit by sending more security funds, $1 of limit for every $1, up to a maximum of $2,500.
Before you close a secured card, think about your credit history. FCAC says keeping accounts open and active for a long time may help your credit score. If a no-fee secured card is your oldest account, keeping it open while you add an unsecured card can help more than closing it.
What a secured card costs
- Set-up fees. FCAC says some secured cards charge a one-time application or set-up fee, and that fee isn’t part of your deposit.
- Annual or monthly fees. All three cards above list a $0 annual fee, but Neo’s secured limit requires its Build membership at $9.99/month unless you qualify for a free one.
- Interest. The cards above charge 19.99% to 29.99% on purchases. FCAC says federally regulated institutions must give a minimum 21-day grace period on new purchases, so paying the full balance by the due date avoids purchase interest.
- Cash advances. FCAC says interest on a cash advance runs from the day you take it, with no grace period.
Who a secured card suits
- No credit history. Students and anyone who has never borrowed have nothing on file for a lender to judge.
- Newcomers to Canada. FCAC says some lenders may look at your credit history from another country, but many will want Canadian history.
- Rebuilding after a bankruptcy or consumer proposal. FCAC says both bureaus usually remove a bankruptcy 6 years after discharge (7 years at TransUnion in some provinces). A consumer proposal goes 3 years after you pay it off, or 6 years after you sign it, whichever comes first.
- Anyone with recent missed payments. Late or unpaid credit cards and loans can stay on your report for up to 6 years.
If you already qualify for an unsecured card, a secured one ties up cash for no benefit. Compare cards for building credit first.
Prepaid card or secured card?
They look alike and both run on Visa or Mastercard, but they work differently. FCAC describes a prepaid card as a payment card where the merchant deducts each purchase from the balance you loaded. There’s no credit limit and no bill.
That’s why a prepaid card usually doesn’t build credit. Capital One says prepaid cards don’t give you the chance to build a credit history because no payment information is reported. If a prepaid card claims to help your credit, check that the issuer says it reports to Equifax or TransUnion. Watch prepaid fees too: FCAC’s example is a $50 card with a $4.95 activation fee, which leaves $45.05 to spend.
How to build credit with a secured card
These habits come from FCAC’s guidance on improving your credit score.
- Pay on time, every timePayment history is the most important part of your score. Pay at least the minimum if you can’t pay in full, and don’t skip a payment even while you dispute a charge.
- Use a small share of the limitTry to use less than 30% of your total credit limit, even if you pay the full balance each month.
- Apply only when you need creditAvoid several applications at once or close together. Shopping for a car loan or mortgage? Get quotes within a 2-week period.
- Keep accounts openA long history helps, and so does having different types of credit over time.
- Call early if you’ll miss a billFCAC says to contact the lender right away if you think you’ll have trouble paying.
Check your credit report from Equifax and TransUnion now and then to make sure the card shows up and the payments are recorded correctly.
Frequently Asked Questions
What is a secured credit card?
It’s a regular credit card backed by a security deposit you pay up front. The deposit usually sets your credit limit, and you pay a monthly bill like any credit card.
Does a secured credit card build credit in Canada?
Yes, if the issuer reports it to the credit bureaus. Neo says it reports to Equifax and TransUnion, and Capital One says it reports payment information to the credit reporting agencies each month.
How much is the deposit for a secured credit card?
FCAC says it may range from a few hundred to a few thousand dollars. Neo’s minimum is $50. Capital One and Home Trust didn’t publish a minimum on the pages we checked, so ask them.
What is the Neo secured credit card?
Neo offers a Mastercard with a secured credit limit to people starting out or rebuilding. It needs at least $50 in security funds and the Build membership at $9.99/month, and Neo reports to Equifax and TransUnion.
Do I get my secured card deposit back?
Yes, when you close the account with the balance paid in full. Capital One says within 60 days, if the account is in good standing. Neo says funds are returned once the balance is paid off.
Can I use my deposit to pay my secured card bill?
No. Capital One says security funds are held separately and can’t be used to pay off your balance. You pay the bill from your own account each month.
Is a prepaid card the same as a secured credit card?
No. A prepaid card spends money you load onto it, with no credit limit or bill. Capital One says prepaid cards don’t build credit history because no payment information is reported.
Can I get a secured credit card after bankruptcy or a consumer proposal?
Usually, yes, since your deposit backs the limit. FCAC says a bankruptcy usually leaves your credit report 6 years after discharge, and a consumer proposal 3 years after you pay it off.
How long does it take to build credit with a secured card?
There’s no set time. Neo says you can be eligible for a higher limit in as little as 3 months, and that rebuilding bad credit can take from 3 months to several years.
What is the best secured credit card in Canada?
It depends on the costs you care about. All three cards in our table have a $0 annual fee, Neo’s secured limit needs a $9.99/month membership, and the purchase rates differ. Compare the table and each issuer’s terms.
Try this next
Sources, checked October 2026
- FCAC: Choosing a credit card (secured credit cards) canada.ca
- FCAC: Improving your credit score canada.ca
- FCAC: Credit report and score basics canada.ca
- FCAC: How long information stays on your credit report canada.ca
- FCAC: How credit cards work canada.ca
- FCAC: Prepaid cards canada.ca
- Capital One Support: How the Capital One Secured Mastercard Is Different from a Prepaid Card support.capitalone.ca
- Neo Financial: Neo Mastercard (secured credit limit, FAQs) neofinancial.com
General information for Canadians, not financial, tax or legal advice. Rules and menus change, so confirm details with your bank, lender or the Government of Canada. See our methodology.