1.Neo Secured Mastercard
Neo Financial
- 5%Cash back at partner retailers
- 1%Cash back on gas and groceries
Get a $25 bonus upon approval for new clients.
Earn an average of 5% cash back at partner retailers and 1% cash back on gas and groceries.
19.99%-29.99%
22.99%-31.99%
The Neo Secured Mastercard stands out as the top choice because it offers guaranteed approval and a unique rewards structure for a secured card. With no annual fee and the ability to build credit while earning cash back, it provides a solid option for those looking to improve their credit history.
Pros:
- Guaranteed approval
- No annual fee
- Reports to credit bureaus
Cons:
- Requires a refundable security deposit
- Limited rewards compared to non-secured cards
2.Capital One Guaranteed Secured Mastercard
Capital One
- No rewards breakdown available
N/A
N/A
29.9%
29.9%
What sets the Capital One Guaranteed Secured Mastercard apart is its focus on providing a straightforward path to rebuilding credit without the burden of annual fees. While it lacks rewards, its guaranteed approval and essential benefits make it a reliable choice for those starting their credit journey.
Pros:
- Guaranteed approval
- No annual fee
- Includes basic Mastercard benefits
Cons:
- No rewards on purchases
- High-interest rates
3.Home Trust Secured Visa
Home Trust
- No rewards breakdown available
N/A
N/A
19.99%
19.99%
The Home Trust Secured Visa shines for its flexibility, offering both a no-fee option and a lower interest rate for those willing to pay an annual fee. This card is particularly beneficial for individuals with unconventional credit histories, making it a valuable tool for rebuilding credit.
Pros:
- No annual fee option
- Designed for credit rebuilding
- Reports to credit bureaus
Cons:
- No rewards program
- Requires a security deposit
4.Secured Tims Mastercard
Tims Financial
- 12%Points at Tim Hortons
- 2%Points on gas, groceries, and transit
- 1%Points on all other purchases
Get a $20 digital gift card upon first purchase.
Earn 12 points per $1 at Tim Hortons, 2 points per $1 on gas, groceries, and transit, and 1 point per $4 elsewhere.
20.99%-26.99%
22.99%-27.99%
The Secured Tims Mastercard is appealing for its unique rewards structure, allowing users to earn points on everyday purchases while building credit. With a welcome bonus of a digital gift card, it provides an engaging way to incentivize responsible spending.
Pros:
- No annual fee
- Earns rewards on purchases
- Guaranteed acceptance
Cons:
- Requires a security deposit
- Limited to specific categories for higher rewards
Final Words
As you explore the best secured credit cards available this February, remember that the right choice can help you build your credit effectively while also offering valuable rewards. Take the time to compare your options and make informed decisions that align with your financial goals.
Frequently Asked Questions
The Neo Secured Mastercard is a Canadian credit-building card with guaranteed approval, requiring a refundable security deposit (minimum $50) to set the limit. It offers a welcome bonus of 'Get a $25 bonus upon approval for new clients' and allows you to earn an average of 5% cash back at partner retailers and 1% cash back on gas and groceries.
The Capital One Guaranteed Secured Mastercard has an annual fee of CA$0 and does not offer any welcome bonus or rewards rate details. This makes it a straightforward option for those looking to build or rebuild their credit without incurring fees.
The Home Trust Secured Visa has no annual fee and does not offer a welcome bonus or reward rate details. It's designed to help individuals establish or rebuild their credit with a simple fee structure.
To build your credit with a secured credit card, make sure to use the card regularly and pay off your balance in full each month. This demonstrates responsible credit usage and helps improve your credit score over time.
When choosing a secured credit card, consider factors such as the annual fee, the required security deposit, any welcome bonuses, and the rewards structure. It's also important to check if the card reports to credit bureaus to ensure your credit activity is recognized.
Yes, there are several secured credit cards available in Canada with no annual fee, such as the Neo Secured Mastercard, Capital One Guaranteed Secured Mastercard, and Home Trust Secured Visa. This can make them more appealing for those looking to build credit without additional costs.
With the Neo Secured Mastercard, you can earn an average of 5% cash back at partner retailers and 1% cash back on gas and groceries. This reward structure allows you to maximize your benefits while building your credit.
