secured credit cards

Neo Financial – Secured Credit Card and Money Account

Neo Financial is a new Canadian company created in 2019 by the founders of SkipTheDishes. Their goal is to disrupt the financial service industry the way they disrupted the food delivery industry. Neo doesn’t charge monthly or annual fees, offers substantial interest rates on savings and provides a completely digital experience with fast to instant approval. Financial Tech companies like Neo are important to the Canadian financial market because they create competition and lower the price of financial services for consumers. In essence, Neo is offering a fresh approach to managing your money, separate from traditional financial institutions.

Neo Credit Card

The Neo Financial Credit Card is Neo’s answer to traditional Canadian credit cards. The Neo Card is available Canada-wide and can be entirely digitally managed. It is a card for all Canadians, from spenders and savers to credit builders. There are three different account levels offered to cater to the wide audience, starting at $0 in monthly or annual fees. The only difference between the three levels is the amount of average cashback rewards and the monthly fees. If you decide to try out a different level, you can do so through the app at no annual cost. You only pay the monthly account fee which gives you continuous valuable flexibility.

At the base tier, the Neo Standard Card comes in at $0 in monthly or annual fees with an average of 4% unlimited cashback at thousands of Neo partners.
In the middle, you have the Neo Plus Card, with an average 5% cashback for a monthly fee of $2.99.
The highest tier available is the Neo Ultra Card. This account level costs substantially more at $8.99 per month, but earns you an average of 6% unlimited cashback at partners.

Other general Neo Card features include bonuses such as 15% cashback on your first purchase at most partners. There is also the guarantee of a minimum 1% cashback across all purchases. This means that if your overall cashback falls under 1%, Neo will top you up. The Neo Card also has no over-limit fees and can be frozen and unfrozen through the app at any time. Neo’s app is very convenient, notifying you about your account in real time, and can be used to apply through. Application only takes a few minutes and approval is instant, assuming your credit score is 600+. This means that you can use your digital card instantly, with a physical one usually delivered within a week or two. Something else to note is that the card is accepted anywhere where Mastercard® is accepted and it is backed by Mastercard’s® zero liability protection, meaning that you are fully protected from any unauthorized payments. There are some downsides to the card however, including the fact that there is no insurance included. The Purchase Credit Rate is also somewhat lofty at 19.99%- 24.99%. Neo’s Credit Card provides an interesting alternative to regular credit cards as it offers many cashback rewards with no monthly or annual fees.

Neo Secured Credit Card

For those who may have a lower credit score or are new to credit in Canada entirely, Neo offers the Neo Secured Card. This card comes with many of the same perks as the aforementioned Neo Credit Card. The key differences are that the secured card comes with guaranteed approval, regardless of current credit score or history. This means no hard credit checks. The card has no monthly or annual fees and requires a comparatively low security deposit of $50. This is so that anyone can start building their credit instantly regardless of their current financial status. The Secured Card comes with the same cashback¹ rewards as the Neo Credit Card save for the fact that there are no separate levels, just one account that earns an average of 5% unlimited cashback. Neo makes it easy to adjust your credit limit to your needs as well, with all you need to increase it is add security funds. The Purchase Credit Rate on the Secured Card is the same as on the traditional Neo Card and insurance is once again not included. Another benefit of Neo’s Secured Card is that your security funds will be returned to you if you close your account and the balance has been paid in full. Like its counterpart the Secured Card is MasterCard and has the same Purchase Credit Rate at 19.99%- 24.99%. All in all this card is a good alternative and competitor to the more traditional bank secured cards. It presents no monthly or annual fees with a low security deposit while rewarding you with high cashback earning opportunities, which is rare for a secured card.

Neo Money Account

Neo doesn’t only offer cards though, with the Neo Money Account serving as a blend between a chequing and savings account. The account does follow in the footsteps of Neo’s cards in the sense that it has no fees of any kind. Free transactions are unlimited and there is no minimum deposit or balance. The interest rate sits at 1.45%, much higher than the 0.05% average of high interest savings accounts at most banks. Anything you want to do, from bill payments to Interac e-Transfers® to bank to bank transfers – it’s all unlimited and free of transaction charges. Your interest is also daily calculated and paid out every month. You can track everything already mentioned and more from the app, making it once again convenient and easy to use. Neo’s Money Account is eligible for CDIC deposit protection and is provided by Concentra Bank which is a CDIC member institution. Lastly, the application process is simple and can be done entirely online just like with Neo’s cards. The money account is a nice mix between a savings and a chequing account that differs from its competitors as it imposes no fees of any kind along with a fantastic interest rate.

Neo Financial offers a small but high quality range of products. With their cards, you can earn high cashback rewards from the multitudes of Neo partners. Their high interest Money Account allows unlimited free transactions. Complete security also comes thanks to Neo’s partnerships with Concentra Bank and Mastercard. The best part is that all these benefits cost no monthly or annual fees. In today’s financial climate Neo presents a fresh new option for Canadians to build their credit and wealth, questioning and challenging the practices of traditional financial institutions for the customer’s benefit.

Legal Disclaimer

¹ See Merchant web site

Guaranteed, Easy to Get Credit Cards with Instant Approval in Canada

Sam 91 Comments

There are finance companies and establishments that feature easy to get cards with no credit checks and instant approval. They are ideal for Canadians with a history of late and missed payments, excessive borrowing, and delinquencies. Such customers are considered high risk by traditional providers.

Credit Cards Canada Instant Approval

Some companies and financial institutions feature products with instant approval, including Canadian Tire and Home Trust.

Home Trust features a Secured Visa card that allows customers to book a vacation and make in-store and online purchases. The best part is that anyone gets approved. The limit is equal to the deposit made, which can be as high as $10,000 and as low as just $500.

Interest rate: 14.99 percent
Annual fee: $59

Canadian Tire also advertises instant decision for customers who fill in the application for approval. The Triangle MasterCard^® allows customers to earn rewards that can be redeemed at Atmosphere, Mark’s/L’Équipeur, Sport Chek, and Canadian Tire. There is a host of benefits for holders, including access to exclusive events and offers, no-receipt returns, and 5 – 7 ¢ per litre in cash back in CT Money when making debit or cash purchases. Weekly flyer bonuses are also available. Like other instant approval credit cards, customers who are retired or employed, are of legal age, and are Canadian citizens are eligible to apply. Applicants are asked to provide details such as address and name of current employer, annual income, and previous address. (*Note that customers have reported that approval process may take 2 weeks.)

Interest rate on cash transactions: 22.99 percent
Purchase interest rate: 19.99 percent
Annual fee: none
Grace period: 21 days or longer
Grace period for residents of Quebec: 26 days or longer

Cards with No Credit Checks

The Bank of Nova Scotia and Refresh Financial feature products that target customers with bad or no credit.

Scotiabank offers the Scotia Momentum^® No-Fee VISA which is a great option for newcomers to Canada – no credit history is needed for newcomers to Canada. This card goes with perks such as discounts on car rentals, optional protection, and the option to add a family member or а friend as a supplementary holder. Customers earn 1 percent cash back on recurring bill payments, drug store and grocery store purchases, and at gas stations. All other purchases earn 0.5 percent money back. As an added benefit, the bank offers a low promotional rate of just 7.99 percent during the first 6 months. (*Note that customers have reported credit checks being done.)

Minimum credit limit: $500
Cash advance rate: 22.99 percent
Standard rate: 19.99 percent
Annual fee: none
Grace period: 21 days or longer

If looking for no credit checks credit cards, the Refresh Secured Visa is a great option for borrowers with blemished scores because no credit check is required. Applicants are asked to make a security deposit but there are benefits such as free financial education, easy approval, and the opportunity to rebuild credit. The Financial Intelligence Training program by Refresh Financial offers customers the chance to learn how to create a personal brand, set financial goals, build personal wealth, save money, and more. Customers are offered free short videos on a wealth of different topics. Refresh Financial also features useful guides and tools such as advice on building credit after bankruptcy or consumer proposal , ways to improve one’s financial literacy.

Interest rate: 17.99 percent
Annual fee: $48.95

Secured Card with no Annual Fee

Neo’s first secured credit card differs from its counterparts as it demands no monthly or annual fees. No matter the credit score or history Neo guarantees approval without conducting any hard credit checks. A low security deposit of $50 is also great for anyone who wants to begin building their credit score immediately. The ability to earn an average of 5% unlimited cashback² at thousands of Neo partners is yet another nice bonus. You can also earn up to 15% cashback² on your first purchase at participating partners, with 1% cashback across all other purchases. With all these advantages and low to no fees, it is an intriguing option for anyone with a lower credit score or no credit history.

Annual fee: $0
Interest rate: 19.99%-24.99%
Rewards: 1% minimum cashback, average 5% cashback at partners

Guaranteed Credit Card Canada

Some issuers advertise guaranteed credit card approval , among which Capital One and Home Trust. Capital One features three such products – Low Rate Guaranteed, Guaranteed Secured, and Guaranteed MasterCard.

Low Rate Guaranteed MasterCard^® requires a security deposit and goes with added incentives such as travel assistance, baggage delay insurance, and common carrier travel accident insurance. Other perks include emergency cash advances and card replacement and extended warranty. All applicants qualify provided that they do not have an account at the bank which was not in good standing and are of legal age.

Cash advance interest rate: 19.8 percent
Balance transfer and purchase rate: 14.9 percent
Annual fee: $79
Credit limit: $300 to $7,000

The Guaranteed MasterCard^® is another option for customers who are looking for a guaranteed credit card. This product comes with travel and everyday benefits such as car rental collision waiver, extended warranty, and others. Customers benefit from legal referrals, lost luggage assistance, lost ticket and documents replacements, medical referrals, and others.

Interest rate: 19.8 percent
Annual fee: $59

In general to get approved for a guaranteed credit card Canada based customers must make a security deposit which serves as a guarantee of repayment.

Unsecured Credit Cards for Bad Credit Canada

Getting an unsecured card is a great idea provided that security deposit is not required. Scotiabank and Capital One offer products that are designed for customers with tarnished scores.

The Scotiabank Value^® Visa is one product to look into, which also targets newcomers to Canada. There is an option to transfer and consolidate high-interest balances to make payments more affordable. Additional perks include optional protection, discounts on car rentals at Budget and Avis locations in the USA and Canada, Visa payWave.

Interest rate: 11.99 percent
Annual fee: $29
Credit limit: $500 or higher

Capital One also offers an unsecured bad credit card that is ideal for customers who are considered high risk. The Secured MasterCard^® is easy to get and features benefits such as price protection, 24/7 roadside assistance, travel assistance, travel accident and auto rental insurance, and more. Identity theft resolution services are also available. Customers are free to choose a preferred payment method and monthly due date and are offered three security deposit options ($200, $99, and $49).

Interest rate: 24.99 percent
Cash advance rate: 24.99 percent
Annual fee: none

Easy to Get Credit Cards

Different financial institutions feature cards that target borrowers with fair and average scores, including BMO, Home Trust and Scotiabank.

The Preferred Rate MasterCard^® by BMO^® is one option to look into, which comes with a low intro rate of 3.99 percent. This rate applies to balance transfers during a 9-month promotional period. There are add-ons such as balance protection and roadside assistance. BMO also advertises security features such as MasterCard SecureCode, zero liability, and chip technology. Customers are eligible to apply provided that they did not file for bankruptcy during the past seven years and are of the age of majority in their territory or province of residence. They are asked to bring photo identification such as their territorial or provincial health insurance card, certificate of Canadian citizenship, Permanent Resident Card, driver’s license, Immigration Canada Documents, etc. When applying for a card, customers are asked about their housing status, address, monthly payment, years of employment and employment information, income details, and more.

Cash advance rate: 11.9 percent
Interest rate: 11.9 percent
Annual fee: $20
Grace period: 21 days or longer

The Vancity enviro Secured Visa is also a good choice for customers with fair and tarnished scores, those with past financial problems, and recent immigrants. Those who deposit $500 or more in their TFSA, Jumpstart High Interest Savings Account or Vancity Term Deposit are offered an enviro Visa. The amount deposited determines the limit. The card goes with multiple benefits such as Visa payWave and Checkout, stolen and lost card protection, recurring payments, lost and delayed baggage insurance, travel accident insurance, and more. Optional coverage includes trip interruption, trip cancellation, and travel medical insurance as well as critical illness, life, and accidental dismemberment insurance. An added benefit is the option to set up automatic payments to avoid late and missed payments. Customers also have access to their online account information, including statement data, transactions, and current balance. Customers can apply by visiting a local branch.

Low interest rate: 11.25 percent
Regular interest rate: 19.5 percent
Annual fee: none

Toronto Dominion features the TD Cash Secured Credit Card which requires a deposit made into a TD Simple Savings Account. The deposit serves as collateral and can be as low as $500. On the good side, this card allows holders to earn money back on regular purchases, purchases at grocery stores, and dining. Holders earn 1 percent back on regular purchases, 2 percent on groceries, and 3 percent on fine and casual dining. Additional benefits include instant card replacement, chip technology protection, and digital wallet that allows customers to add their card to their phone. *Please note that this card is no longer available.

Balance transfer APR: 24.74 percent
Variable purchase APR: 24.74 percent
Cash advance APR: 26.99 percent
Foreign transaction fee: $0
Annual fee: $29
Credit limit: $500 – $5,000

The Canadian Imperial Bank of Commerce also offers secured cards to newcomers, Canadians trying to rebuild or build credit, and international students. Applicants are asked to make a security deposit which is held in an interest-bearing investment instrument. Newcomers to Canada can choose a card that is tailored to their requirements provided that they have another borrowing or banking product in good standing, including a mortgage, line of credit, loan, or savings or chequing account. A security deposit is not required, and customers with no credit history qualify provided that they meet the criteria.

There are plenty of options for customers who are looking for guaranteed and secured credit cards but in most cases, finance companies and banks require that borrowers provide proof of employment and income and make a security deposit. The reason is that customers with tarnished scores may have poor credit and money management skills, which often results in having delinquent accounts. The good news is that by making regular and timely payments on secured cards, customers manage to rebuild credit over time and are offered a wealth of borrowing options.

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² See Merchant web site

Canada’s Top Ten Secured Credit Cards

Sam 45 Comments

When it comes to considering secured credit cards in Canada, you have quite an array of options to choose from. They come with different interest rates, annual fees, rewards, benefits, and minimum deposits. Here are some factors to consider regarding guaranteed credit cards, and a side-by-side comparison of Canada’s top ten!

What is a Secured Credit Card?

A secured, or guaranteed, credit card works on the same principle as a secured loan. With a secured loan, the lender has some tangible guarantee (like a home or car) that can be taken as collateral if the borrower should default on the loan. That’s why mortgage companies and lenders are willing to loan out large sums of money to people—because they know they’ll get either the money (and interest) in payment, or else they’ll get the property that was put up to secure the loan.

In the case of a secured credit card, the collateral is a sum of money you deposit when you are issued the card. The lender can be confident that you’re not a risk, because they already have your money in hand.

What Are Secured Credit Cards Good For?

So why even get a secured card? If you have the cash-in-hand sufficient for a deposit, you could just use your cash, right? Well, maybe not. You can’t use cash to purchase merchandise online, to make reservations, or even to pay some bills. Where a check or credit card is required, you’ll be out of luck if you don’t have a bank account or a card.

If your poor credit prevents you from qualifying for a regular credit card, or if you don’t yet have a credit history in Canada, you can still enjoy the convenience of paying for goods and services that require credit cards. You can also use that card to build (or rebuild) that credit score so you qualify for bigger things in the future.

Rebuilding Your Credit with a Secured Credit Card

If you’re looking to repair your credit rating, a secured credit card is one of the best tools at your disposal. You might think it’s wiser to “play it safe” and use cash, but that actually hurts your credit score. You actually need credit transactions in order to build up your score, so it’s important to use your secured card with intentional care.

Make sure that you make all your payments on time. That’s the number one thing you can do to repair your credit. A late payment of even a few days will undo a lot of your work toward credit repair. After a period of time making punctual payments, however, you will see your credit score improving visibly.

Top Canadian secured credit cards

Refresh Secured Card

* Annual fee: $12.95
* Interest: 17.99%
* Maintenance fee: $3/month
* Credit limit: $200 – $10,000
This Secured Card from Refresh is easy to get and is a great option for people with less than perfect credit. It’s important to mention that no credit check is required to get approved. Clients are asked to provide personal information, email, choose a credit pack that matches their needs, and provide government issued ID and banking details. They also have to provide security deposit of at least $200. The main benefit for users is that timely payments are reported to the credit bureaus and this ultimately helps rebuilding your credit. There are also helpful videos offering financial advice.

Neo Secured Card

* Annual fee: $0
* Interest rates: 19.99%-24.99%
* Rewards: 1% minimum cashback, average 5% cashback at partners
This card is a great option for those who may have a lower credit score or are looking to begin their credit history. Neo guarantees immediate approval with no hard credit checks. The card requires a low security deposit of $50 with no monthly or annual fees, regardless of your current score or history. This means that you can start building your credit score quickly and with ease, even if you don’t want to spend a lot. Neo offers an average of 5% unlimited cashback² at their thousands of partners. You can also get up to 15% cashback² on your first purchase across participating partners, along with 1% cashback with all other purchases.

Peoples’ Trust Secured Credit Card

* Annual fee: $70
* Interest: 12.99% on purchases, 24.5% on cash advances
* Minimum required deposit: $500
The relatively low interest rate on this card makes it attractive to people who might be carrying a balance on the card. Applicants need to have a bank account and a verified income in order to apply for this card. This card charges a fee of $5 for cash advances, and a $5 fee if you overreach your credit limit. *Please note that this card is no longer available.

Home Trust Secured No Annual Fee Visa

* No annual fee
* Interest: 19.99%
* Minimum required deposit: $500
This card is ideal for people who expect to pay their balance in full every month. The interest rate is higher, compensating for the lack of annual fee, but this won’t affect you if you’re going to be paying your balance in full every month. The Home Trust card enables you to add another authorized user, and its credit limit may be as much as $10,000.

Home Trust Secured Low Interest Visa

* Annual fee $59
* Interest: 14.9%
* Minimum required deposit: $500

Of the two Home Trust cards, this version is preferable for people who might be carrying a balance from month to month, because the interest applied to that balance will be lower with this card. Applicants need to have a bank account in order to apply for this card.

Capital One Guaranteed Secured MasterCard

* Annual fee: $59
* Interest: 19.8%
* Minimum required deposit: $75

This easy to get credit card has one of the lowest minimum deposits, so it’s a good choice if you don’t have the $500 required by many of the other card companies. Its uses are less advantageous, since it has both an annual fee and a high interest rate, but it’s an option that’s open to you if you can’t afford the bigger deposit to get started.

Vancity Enviro Secured Visa

* No annual fee
* Interest: 19.5%
* Minimum required deposit: $500

Vancity offers a variety of extra perks, including insurance for travel accidents, price protection, and insurance for lost baggage. The card also has a system of reward-points for spending, called My Visa Reward Plus. The rewards include options like travel, redeeming for purchases, and charity donations.

The Vancity line of Classic credit cards includes several combinations of annual fee and interest rates, allowing you to choose the best solution for your situation. The options range from no annual fee and higher interest of 19.5% (for people who don’t plan to carry a balance) to a card with a $50 annual fee with lower interest of 11.25%.

Secured Credit Cards Offered by the Big 5 Canadian Banks

Secured cards are offered by all of the “Big Five” Canadian banks, and with relatively similar features. You will find that it’s difficult to uncover information on these cards online, and almost all of them require you to apply in person at the branch office.

You can inquire about details at the branch nearest you—and that’s not a bad thing. Although we’re accustomed these days to be able to do almost anything online, there’s something to be said for a face-to-face conversation with an expert who can talk to you about the pros and cons and details of the card for which you’re applying. So take the information below if it helps you to decide on which bank you’d like to visit, but know that any of these five banks will likely require you to apply in person.

Royal Bank of Canada (RBC) Secured Credit Card

* Annual fee $20
* Interest 11.99 on purchases & cash advances
* Minimum required deposit: $500

This low interest card with its modest annual fee is well suited for people who expect to be carrying a balance from month to month. Its optional extra features include travel insurance, roadside assistance, credit monitoring, and automatic payment options.

The RBC secured credit card charges fees of $3.50 for a cash advance ($5 if you’re out of the country) and an overlimit fee of $29 per statement period if your balance goes above your credit limit.

Bank of Montreal (BMO) Prepaid Credit Card

* Annual fee: $6.95
* No interest

The Bank of Montreal uses a prepaid model as its secured card option, meaning you can choose what amount you’d like to load to the card. It gives you more flexibility upfront (you don’t have the $500 minimum many other cards require) but doesn’t allow you to spend more money than you have on the card, or to take cash advances. The card itself operates much like a debit card, but without the associated checking account.

Toronto-Dominion (TD) Secured Credit Card

* Annual fee: $29
* Interest: 19.9%
* Minimum required deposit: $500

To apply for a Toronto-Dominion card, stop in at a TD branch office for an application. Your credit limit will be equal to whatever amount you are approved for, and deposit up front. If you maintain your TD secured credit card successfully for seven consecutive months, you can be eligible for an unsecured card as the next step toward repairing your credit.

Canadian Imperial Bank of Commerce (CIBC) Secured Credit Card

* Annual fee: $29
* Interest: 19.9%
* Minimum required deposit: $500

Like the TD card, you will need to apply in person for a CIBC secured credit card, by stopping in at a TD branch office for an application. Your credit limit will be equal to whatever amount you are approved for, and you make the deposit up front.

CIBC will give you a card for a specific term, usually two years. At the end of the two years they’ll refund your deposit—and by that time you will probably qualify for an unsecured card if you’ve used your secured card wisely.

Scotiabank Secured Credit Card

* No annual fee, no balance transfer fee
* Interest: 16.99%
* Minimum required deposit: $500

The no-fee Value Visa card is a great option if you’re looking to transfer balances from other credit cards. There’s no fee for balance transfer, and the introductory APR is a low 3.99 percent for the first six months. (That rate goes up to 16.99 percent after the introductory period, so try to pay off your balance before you hit the six-month mark.)

In Conclusion

Secured credit cards are the best way to improve your credit score, or to establish one if you are new to Canada and don’t have a financial history in this country. With your secured credit card you will enjoy all the benefits of credit card membership, like making purchases online and over the phone, or accessing cash from ATMs.

Your life will feel easier and your daily transactions will be smoother once you have a secured credit card at your disposal. Enjoy all the advantages of having a card, like being able to make reservations or purchase items online. And build your credit score as you go, by making sure to handle your card finances wisely.

Your secured credit card can serve as a stepping-stone to bigger things, like unsecured cards, car loans, or even a mortgage. Used wisely, the secured credit card is a gateway to your future. Let your credit score soar!

Legal Disclaimer

² See Merchant web site