Find the best secure credit card


Ratehub’s Best Secure Credit Cards

You want to rebuild your credit with a secured credit card. Simply enter your income and preferences and the MoneySense Credit Card Finder will provide a comparison of some of the best secured credit cards in Canada from Ratehub partners.

To view more secure card options and MoneySense’s editor’s choices, read our blog on best credit cards for bad credit in Canada.

How does a secure credit card work?

You pay a deposit up front in order to be approved for a secure credit card. The deposit serves as a guarantee, so it is easy to get approved for these cards even if you have a bad credit rating. The spending limit on your secured credit card will be one to two times the security deposit you deposited. If you miss your minimum payments, then the issuer can take money from your deposit to cover what you owe, but you cannot use the deposit yourself to make payments on your card. If you decide to close your account or switch to an unsecured card, your deposit will be refunded to you.

Other than that, the card works like a regular unsecured credit card. You can use it to buy things online, in stores, or to cover regular monthly payments, such as utilities or internet service. If you carry a balance at the end of the month, you will be charged interest at the rate shown.

Do Secured Credit Cards Create Credit?

Yes. In fact, establishing a better credit rating is the main value of a secured credit card. Since payment history is such an important factor in determining a credit score, this is a great option for people new to the country, who have no credit, or whose credit is low, or have recently filed for bankruptcy. It’s important to remember to be as careful with your credit card payments as you would with any other loan or bill payment. Missed payments can hurt your credit rating more easily than payments can help.

If you make your minimum payment on time each month, it is possible to develop good credit in as little as a year. Once this happens, you may be able to qualify for an unsecured credit card and get your deposit back. It is recommended that you use your secured credit card regularly, but use it sparingly. You want to be sure that you can pay off your entire balance each month to avoid paying interest.


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