1.Neo Secured Mastercard
Neo Financial
- 15%Cash back at Neo partners
- 5%Cash back on groceries
- 1%Cash back on all other purchases
Get a $25 bonus upon approval for new clients.
Earn 1% cashback on gas & groceries, plus up to 15% back at over 10,000 Neo partners across Canada.
19.99%-29.99%
22.99%-31.99%
The Neo Secured Mastercard stands out as the top choice because it combines instant approval with a robust cashback rewards structure, making it an excellent option for those looking to build or repair their credit while earning rewards.
Pros:
- Low minimum deposit
- High partner cashback rates
- Instant approval
Cons:
- Fees depending on the plan
- Requires a refundable security deposit
2.Capital One Guaranteed Secured Mastercard
Capital One
- No rewards breakdown available
N/A
No rewards on purchases.
29.9%
29.9%
What sets the Capital One Guaranteed Secured Mastercard apart is its focus on building credit with guaranteed approval, making it a reliable option for individuals looking to establish or repair their credit history.
Pros:
- Guaranteed approval
- Includes everyday and travel benefits
Cons:
- No rewards on purchases
- High interest rates
3.ATB Gold My Rewards Mastercard
ATB Financial
- 3%Points on eligible purchases
- 1.5%Points on all other purchases
Earn 10,000 welcome bonus points ($50 value).
Earn 3 points per $1 spent on eligible purchases with select merchants and 1.5 points per $1 spent on any other purchases.
19.99%
22.99%
The ATB Gold My Rewards Mastercard shines for its generous points structure, allowing cardholders to earn accelerated rewards on eligible purchases, making it a great choice for newcomers looking to build credit while enjoying rewards.
Pros:
- No annual fee
- Accelerated points on eligible purchases
Cons:
- Limited to select merchants for higher points
- Requires in-person appointment to apply
4.TD Cash Back Visa
TD Canada Trust
- 1%Cash back on eligible purchases
- 0.5%Cash back on all other purchases
Earn up to $150 in Cash Back Dollars when you start by opening a new TD Cash Back Visa Card.
Earn 1% cash back on eligible purchases, 0.5% on everything else.
21.99%
22.99%
The TD Cash Back Visa is a solid option for newcomers, offering straightforward cash back rewards on all purchases, making it easy to earn while building credit.
Pros:
- No annual fee
- Cash back on all purchases
Cons:
- Lower cash back rate on non-eligible purchases
- Interest rates can be high
5.TD Rewards Visa
TD Canada Trust
- 1%Points on all purchases
- 0.5%Points on everything else
Earn 15,152 TD Rewards Points after you make $500 in Purchases.
Earn TD Reward Points on all purchases.
21.99%
22.99%
The TD Rewards Visa is particularly appealing for those who want to earn points on everyday spending, providing a flexible rewards structure that benefits newcomers looking to build credit.
Pros:
- No annual fee
- Earn points on all purchases
Cons:
- Interest rates can be high
- Lower points on non-eligible purchases
Final Words
As you embark on your journey to build credit, remember that selecting the right starter credit card is crucial for establishing a solid financial foundation. Take time to compare the available options, evaluate their features, and choose a card that aligns with your needs, ensuring you make informed decisions that benefit your credit history.
Frequently Asked Questions
The Neo Secured Mastercard offers a welcome bonus of $25 upon approval for new clients. You can earn 1% cashback on gas and groceries, plus up to 15% back at over 10,000 Neo partners across Canada.
The Capital One Guaranteed Secured Mastercard has no annual fee, making it an accessible choice for those with no credit history. However, it does not offer any rewards on purchases.
With the ATB Gold My Rewards Mastercard, you can earn 10,000 welcome bonus points ($50 value). Additionally, you earn 3 points per $1 spent on eligible purchases with select merchants and 1.5 points per $1 spent on any other purchases.
Secured credit cards require a refundable security deposit that acts as your credit limit, allowing you to make purchases and pay them off over time. This responsible usage is reported to major credit bureaus, helping you build a positive credit history.
When selecting a starter credit card, consider factors such as annual fees, rewards programs, and whether the card reports to credit bureaus. It’s also important to assess your spending habits to find a card that aligns with your financial goals.
Some starter credit cards may have annual fees, while others, like the Capital One Guaranteed Secured Mastercard, have no fees at all. Always review the fee structure before applying to ensure it fits your budget.
The application process for a starter credit card typically involves filling out an online form that includes your personal information, such as income and employment status. Once submitted, you may receive instant approval or a decision within a few days.
