{"id":774169,"date":"2021-03-29T14:35:02","date_gmt":"2021-03-29T18:35:02","guid":{"rendered":"https:\/\/www.fool.ca\/?page_id=774169&#038;preview_id=774169"},"modified":"2023-06-09T10:47:40","modified_gmt":"2023-06-09T14:47:40","slug":"best-secured-credit-cards","status":"publish","type":"page","link":"https:\/\/www.fool.ca\/personal-finance\/credit-cards\/best-secured-credit-cards\/","title":{"rendered":"Our Top Picks for Secured Credit Cards in Canada"},"content":{"rendered":"\n<nav class=\"pf-ribbon\">\n<ul class=\"pf-ribbon__list\">\n<li class=\"pf-ribbon__item\"><a class=\"pf-ribbon__link\" href=\"https:\/\/www.fool.ca\/personal-finance\/credit-cards\/best-credit-cards-canada\/\">Top picks for credit cards<\/a><\/li>\n<li class=\"pf-ribbon__item\"><a class=\"pf-ribbon__link\" href=\"https:\/\/www.fool.ca\/personal-finance\/credit-cards\/best-rewards-credit-cards\/\">Rewards credit cards<\/a><\/li>\n<li class=\"pf-ribbon__item\"><a class=\"pf-ribbon__link\" href=\"https:\/\/www.fool.ca\/personal-finance\/credit-cards\/best-cash-back-credit-cards\/\">Cash back credit cards<\/a><\/li>\n<li class=\"pf-ribbon__item\"><a class=\"pf-ribbon__link\" href=\"https:\/\/www.fool.ca\/personal-finance\/credit-cards\/best-balance-transfer-credit-cards\/\">Balance transfer credit cards<\/a><\/li>\n<li class=\"pf-ribbon__item\"><a class=\"pf-ribbon__link pf-ribbon__link--current\" href=\"https:\/\/www.fool.ca\/personal-finance\/credit-cards\/best-secured-credit-cards\/\">Secured credit cards<\/a><\/li>\n<li class=\"pf-ribbon__item\"><a class=\"pf-ribbon__link\" href=\"https:\/\/www.fool.ca\/personal-finance\/credit-cards\/best-travel-credit-cards\/\">Travel credit cards<\/a><\/li>\n<\/ul>\n<\/nav>\n\n\n\n<section style=\"background: #F0F0F0; padding: 7px; margin-bottom: 20px; font-family: sans-serif; line-height: 1.2em;\"><center><em>The Motley Fool Canada&#8217;s personal finance content is reader-supported: we may earn a commission from offers on this page. <a href=\"https:\/\/www.fool.ca\/personal-finance\/advertising-partners-on-motley-fool-canada\/\">It\u2019s how we make money<\/a>. But our editorial integrity ensures our experts\u2019 opinions aren\u2019t influenced by compensation.<\/em><\/center><\/section>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-motley-fool-canada-s-top-secured-credit-card-picks-at-a-glance\">The Motley Fool Canada&#8217;s top secured credit card picks at a glance:<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><td>Credit card<\/td><td>Fee<\/td><\/tr><\/thead><tbody><tr><td><a href=\"#KOHOPrepaidVisa\">KOHO Prepaid Visa<\/a><\/td><td>$7 \/ month for credit building option<\/td><\/tr><tr><td><a href=\"#HomeTrustNoFeeSecuredVisa\">Home Trust No Fee Secured Visa<\/a><\/td><td>$0.00<\/td><\/tr><tr><td><a href=\"#HomeTrustSecuredVisa\">Home Trust Secured Visa<\/a><\/td><td>$59.00<\/td><\/tr><tr><td><a href=\"#CapitalOneGuaranteedSecuredMastercard\">Capital One Guaranteed Secured Mastercard<\/a><\/td><td>$59.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-more-information-about-our-featured-secured-cards\">More information about our featured secured cards:<!--Plastk Secured Credit Card Tile --><\/h2>\n\n\n\n<div class=\"cc-tile\">\n<div class=\"cc-header\">\n<h3>KOHO Prepaid Visa<\/h3>\n<div class=\"cc-header-goodfor\">\n<h2>Good for: Earning cash back rewards with no fees<\/h2>\n<\/div>\n<\/div>\n<div class=\"row\">\n<div class=\"medium-12 large-3 columns unit-1\">\n<div class=\"logo-holder\"><img decoding=\"async\" class=\"cc-logo\" src=\"https:\/\/www.fool.ca\/wp-content\/uploads\/2021\/06\/Koho-standard.png\" alt=\"KOHO Prepaid Visa Logo\" width=\"100%\">\n<p>&nbsp;<\/p>\n<p class=\"star-rating-label\">Our Rating:<\/p>\n<figure><img decoding=\"async\" src=\"\/wp-content\/uploads\/2021\/03\/star_icon.svg\" alt=\"Star\"><\/figure><figure><img decoding=\"async\" src=\"\/wp-content\/uploads\/2021\/03\/star_icon.svg\" alt=\"Star\"><\/figure><figure><img decoding=\"async\" src=\"\/wp-content\/uploads\/2021\/03\/star_icon.svg\" alt=\"Star\"><\/figure><figure><img decoding=\"async\" src=\"\/wp-content\/uploads\/2021\/03\/star_icon.svg\" alt=\"Star\"><\/figure><figure><img decoding=\"async\" src=\"\/wp-content\/uploads\/2021\/03\/star_icon.svg\" alt=\"Star\"><\/figure><div class=\"star-rating\"><span class=\"star\"><\/span><span class=\"star\"><\/span><span class=\"star\"><\/span><span class=\"star\"><\/span><span class=\"star\"><\/span><\/div>\n<div class=\"star-rating-tool-tip\">\n<p><span class=\"star-text\">5.0 stars<\/span><\/p>\n<\/div>\n<p><!-- <a href=\"https:\/\/www.fool.ca\/\" class=\"button radius\">Open Account<\/a> --><br><!-- =\"\n\n\n<p class=\"\"apply-disclaimer\"\">On \"&Secured!$E$12&\"'s secure website.<\/p>\n\n\n\n\" --><\/p>\n<\/div>\n<\/div>\n<div class=\"medium-12 large-3 large-push-6 columns unit-2\">\n<div class=\"apply-button-holder\">\n<h6>Top Perks<\/h6>\n<ul class=\"features\">\n<li>Earn 0.5% cashback on all purchases and up to 5% cashback at select stores<\/li>\n<li>Use the KOHO app to get budget insights &amp; automate savings<\/li>\n<li>Increase savings with a RoundUp feature<\/li>\n<\/ul>\n<p><!-- <a href=\"#\" class=\"button radius\">Visit Card Website<\/a> --><br><!--\n\n\n<p class=\"apply-disclaimer\">On issuer secure website.<\/p>\n\n\n\n--><\/p>\n<\/div>\n<\/div>\n<div class=\"medium-12 large-6 large-pull-3 columns unit-3\">\n<div class=\"details-holder\">\n<h6>Credit limit<\/h6>\n<p>N\/A<\/p>\n<div class=\"cc-tile-details row\">\n<div class=\"small-6 columns\">\n<div class=\"cc-tile-detail\">\n<h6>Annual fee:<\/h6>\n<p>$7 \/ month for credit building option<\/p>\n<\/div>\n<\/div>\n<div class=\"small-6 columns\">\n<div class=\"cc-tile-detail\">\n<h6>Eligibility:<\/h6>\n<p style=\"font-size: 0.8em;\">No eligibility requirements<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<p><!--Home Trust No Fee Secured Visa Tile --><br><a name=\"HomeTrustNoFeeSecuredVisa\"><\/a><\/p>\n\n\n\n<div class=\"cc-tile\">\n<div class=\"cc-header\">\n<h3>Home Trust No Fee Secured Visa<\/h3>\n<div class=\"cc-header-goodfor\">\n<h2>Good for: Rebuilding credit with annual no fee<\/h2>\n<\/div>\n<\/div>\n<div class=\"row\">\n<div class=\"medium-12 large-3 columns unit-1\">\n<div class=\"logo-holder\"><img decoding=\"async\" class=\"cc-logo\" src=\"\/wp-content\/uploads\/2021\/03\/Home-Trust-Secured.png\" alt=\"Home Trust No Fee Secured Visa Logo\" width=\"100%\">\n<p>&nbsp;<\/p>\n<p class=\"star-rating-label\">Our Rating:<\/p>\n<figure><img decoding=\"async\" src=\"\/wp-content\/uploads\/2021\/03\/star_icon.svg\" alt=\"Star\"><\/figure><figure><img decoding=\"async\" src=\"\/wp-content\/uploads\/2021\/03\/star_icon.svg\" alt=\"Star\"><\/figure><figure><img decoding=\"async\" src=\"\/wp-content\/uploads\/2021\/03\/star_icon.svg\" alt=\"Star\"><\/figure><figure><img decoding=\"async\" src=\"\/wp-content\/uploads\/2021\/03\/star_icon.svg\" alt=\"Star\"><\/figure><figure><img decoding=\"async\" src=\"\/wp-content\/uploads\/2021\/03\/star_icon-gray.svg\" alt=\"Empty Star\"><\/figure><div class=\"star-rating\"><span class=\"star\"><\/span><span class=\"star\"><\/span><span class=\"star\"><\/span><span class=\"star\"><\/span><span class=\"star\"><\/span><\/div>\n<div class=\"star-rating-tool-tip\">\n<p><span class=\"star-text\">4.5 stars<\/span><\/p>\n<\/div>\n<p><!-- <a href=\"https:\/\/www.fool.ca\/\" class=\"button radius\">Open Account<\/a> --><br><!-- =\"\n\n\n<p class=\"\"apply-disclaimer\"\">On \"&Secured!$E$13&\"'s secure website.<\/p>\n\n\n\n\" --><\/p>\n<\/div>\n<\/div>\n<div class=\"medium-12 large-3 large-push-6 columns unit-2\">\n<div class=\"apply-button-holder\">\n<h6>Top Perks<\/h6>\n<ul class=\"features\">\n<li>Can help you build or rebuild your credit rating<\/li>\n<li>Insures eligible items against theft or damage for 90 days<\/li>\n<li>Use online and in stores like any other credit card<\/li>\n<\/ul>\n<p><!-- <a href=\"#\" class=\"button radius\">Visit Card Website<\/a> --><br><!--\n\n\n<p class=\"apply-disclaimer\">On issuer secure website.<\/p>\n\n\n\n--><\/p>\n<\/div>\n<\/div>\n<div class=\"medium-12 large-6 large-pull-3 columns unit-3\">\n<div class=\"details-holder\">\n<h6>Credit limit<\/h6>\n<p>Between $500 and $10,000<\/p>\n<div class=\"cc-tile-details row\">\n<div class=\"small-6 columns\">\n<div class=\"cc-tile-detail\">\n<h6>Annual fee:<\/h6>\n<p>$0<\/p>\n<\/div>\n<\/div>\n<div class=\"small-6 columns\">\n<div class=\"cc-tile-detail\">\n<h6>Eligibility:<\/h6>\n<p style=\"font-size: 0.8em;\">Must pay a security deposit from a Canadian account in your name<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<p><!--Home Trust Secured Visa Tile --><br><a name=\"HomeTrustSecuredVisa\"><\/a><\/p>\n\n\n\n<div class=\"cc-tile\">\n<div class=\"cc-header\">\n<h3>Home Trust Secured Visa<\/h3>\n<div class=\"cc-header-goodfor\">\n<h2>Good for: Rebuilding credit with lower interest rate<\/h2>\n<\/div>\n<\/div>\n<div class=\"row\">\n<div class=\"medium-12 large-3 columns unit-1\">\n<div class=\"logo-holder\"><img decoding=\"async\" class=\"cc-logo\" src=\"\/wp-content\/uploads\/2021\/03\/Scotia-Momentum-Visa-Infinite.jpg\" alt=\"Home Trust Secured Visa Logo\" width=\"100%\">\n<p>&nbsp;<\/p>\n<p class=\"star-rating-label\">Our Rating:<\/p>\n<figure><img decoding=\"async\" src=\"\/wp-content\/uploads\/2021\/03\/star_icon.svg\" alt=\"Star\"><\/figure><figure><img decoding=\"async\" src=\"\/wp-content\/uploads\/2021\/03\/star_icon.svg\" alt=\"Star\"><\/figure><figure><img decoding=\"async\" src=\"\/wp-content\/uploads\/2021\/03\/star_icon.svg\" alt=\"Star\"><\/figure><figure><img decoding=\"async\" src=\"\/wp-content\/uploads\/2021\/03\/star_icon.svg\" alt=\"Star\"><\/figure><figure><img decoding=\"async\" src=\"\/wp-content\/uploads\/2021\/03\/star_icon-gray.svg\" alt=\"Empty Star\"><\/figure><div class=\"star-rating\"><span class=\"star\"><\/span><span class=\"star\"><\/span><span class=\"star\"><\/span><span class=\"star\"><\/span><span class=\"star\"><\/span><\/div>\n<div class=\"star-rating-tool-tip\">\n<p><span class=\"star-text\">4.0 stars<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"medium-12 large-3 large-push-6 columns unit-2\">\n<div class=\"apply-button-holder\">\n<h6>Top Perks<\/h6>\n<ul class=\"features\">\n<li>Lower interest rate than no-fee card<\/li>\n<li>Can help you build or rebuild your credit rating<\/li>\n<li>Insures eligible items against theft or damage for 90 days<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<div class=\"medium-12 large-6 large-pull-3 columns unit-3\">\n<div class=\"details-holder\">\n<h6>Credit limit<\/h6>\n<p>Between $500 and $10,000<\/p>\n<div class=\"cc-tile-details row\">\n<div class=\"small-6 columns\">\n<div class=\"cc-tile-detail\">\n<h6>Annual fee:<\/h6>\n<p>$59<\/p>\n<\/div>\n<\/div>\n<div class=\"small-6 columns\">\n<div class=\"cc-tile-detail\">\n<h6>Eligibility:<\/h6>\n<p style=\"font-size: 0.8em;\">Must pay a security deposit from a Canadian account in your name<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<p><!--Capital One Guaranteed Secured Mastercard Tile --><br><a name=\"CapitalOneGuaranteedSecuredMastercard\"><\/a><\/p>\n\n\n\n<div class=\"cc-tile\">\n<div class=\"cc-header\">\n<h3>Capital One Guaranteed Secured Mastercard<\/h3>\n<div class=\"cc-header-goodfor\">\n<h2>Good for: Rebuilding credit<\/h2>\n<\/div>\n<\/div>\n<div class=\"row\">\n<div class=\"medium-12 large-3 columns unit-1\">\n<div class=\"logo-holder\"><img decoding=\"async\" class=\"cc-logo\" src=\"\/wp-content\/uploads\/2021\/03\/Capital-One-Guaranteed.png\" alt=\"Capital One Guaranteed Secured Mastercard Logo\" width=\"100%\">\n<p>&nbsp;<\/p>\n<p class=\"star-rating-label\">Our Rating:<\/p>\n<figure><img decoding=\"async\" src=\"\/wp-content\/uploads\/2021\/03\/star_icon.svg\" alt=\"Star\"><\/figure><figure><img decoding=\"async\" src=\"\/wp-content\/uploads\/2021\/03\/star_icon.svg\" alt=\"Star\"><\/figure><figure><img decoding=\"async\" src=\"\/wp-content\/uploads\/2021\/03\/star_icon.svg\" alt=\"Star\"><\/figure><figure><img decoding=\"async\" src=\"\/wp-content\/uploads\/2021\/03\/star_icon.svg\" alt=\"Star\"><\/figure><figure><img decoding=\"async\" src=\"\/wp-content\/uploads\/2021\/03\/star_icon-gray.svg\" alt=\"Empty Star\"><\/figure><div class=\"star-rating\"><span class=\"star\"><\/span><span class=\"star\"><\/span><span class=\"star\"><\/span><span class=\"star\"><\/span><span class=\"star\"><\/span><\/div>\n<div class=\"star-rating-tool-tip\">\n<p><span class=\"star-text\">4.0 stars<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"medium-12 large-3 large-push-6 columns unit-2\">\n<div class=\"apply-button-holder\">\n<h6>Top Perks<\/h6>\n<ul class=\"features\">\n<li>Can help you build or rebuild your credit rating<\/li>\n<li>Price protection and purchase assurance protections<\/li>\n<li>Valuable insurance including baggage delay, car rental, and travel accident insurance<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<div class=\"medium-12 large-6 large-pull-3 columns unit-3\">\n<div class=\"details-holder\">\n<h6>Credit limit<\/h6>\n<p>Set by the issuer<\/p>\n<div class=\"cc-tile-details row\">\n<div class=\"small-6 columns\">\n<div class=\"cc-tile-detail\">\n<h6>Annual fee:<\/h6>\n<p>$59<\/p>\n<\/div>\n<\/div>\n<div class=\"small-6 columns\">\n<div class=\"cc-tile-detail\">\n<h6>Eligibility:<\/h6>\n<p style=\"font-size: 0.8em;\">Must pay a security deposit of $75 or $300<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-a-secured-credit-card\">What is a secured credit card?<\/h2>\n\n\n\n<p>A secured credit card is any card that requires an initial deposit to open an account. The deposit, which is usually one to two times more than your requested <a href=\"https:\/\/www.fool.ca\/personal-finance\/credit-cards\/what-are-credit-limits\/\">credit limit<\/a>, acts as collateral. If you miss or fail to make a payment, your credit card company will use the deposit to cover the unpaid balance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-get-a-secured-credit-card\">Why get a secured credit card?<\/h2>\n\n\n\n<p>Because secured credit cards require an initial deposit, they\u2019re usually very easy to get. But why pay a deposit to use a credit card? Well, you may need one for these main reasons.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-you-don-t-have-a-credit-score\">1. You don\u2019t have a credit score<\/h3>\n\n\n\n<p>For those Canadians who don\u2019t have <a href=\"https:\/\/www.fool.ca\/personal-finance\/credit-cards\/what-is-a-credit-score\/\">credit scores<\/a> &#8212; and thus can\u2019t take out the majority of unsecured credit cards &#8212; secured cards can help you build one. Making payments on time, as well as keeping your balances low, can help you establish a solid track record of success, helping you establish a good score.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-you-have-bad-credit\">2. You have bad credit<\/h3>\n\n\n\n<p>Bad credit scores can make applying for an unsecured credit card much more complicated, if not downright impossible. Fortunately, because of the security deposit, you can take out a secured credit card fairly easily. Additionally, a secured credit card can help you rebuild your poor credit score, and after months or years of responsible use, you might be able to graduate to a more favourable card.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-you-don-t-want-to-go-into-debt\">3. You don\u2019t want to go into debt<\/h3>\n\n\n\n<p>If you\u2019re worried about overspending, a secured card can help you stay within your limits. Not only does the initial deposit ensure you\u2019ll always have enough to cover your maximum credit limit, but also most secured cards come with <em>low<\/em> credit limits, preventing you from making purchases outside your league.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-can-secured-credit-cards-help-your-credit-score\">Can secured credit cards help your credit score?<\/h2>\n\n\n\n<p>Yes. In fact, one of the main reasons for taking out a secured card is to build new credit or rebuild bad scores. Credit card companies will report activities to the major credit bureaus, such as Equifax and Transunion. Like any credit card, however, you want to pay at least the minimum balance before the end of each billing cycle, as missing the minimum can still hurt your credit score.<\/p>\n\n\n\n<p>Some secured credit cards will help you keep track of your credit-building progress by providing you ready access to your credit score. However, it&#8217;s also possible to <a href=\"https:\/\/www.fool.ca\/personal-finance\/credit-cards\/how-to-check-your-credit-score-in-canada-for-free\/\">check your credit score for free<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-do-secured-credit-cards-work\">How do secured credit cards work?<\/h2>\n\n\n\n<p>While getting a secured card is fairly simple, application approval isn\u2019t always guaranteed. Every credit card company assesses applications differently, and it\u2019s not uncommon to have your application denied. But, given the number of secured credit cards available in Canada, you\u2019re bound to find one that matches your credit situation.<\/p>\n\n\n\n<p>Once your application is approved, you\u2019ll pay the security deposit as a lump sum. Your security deposit is usually one to two times your credit limit, so the higher your requested limit, the more you\u2019ll have to pay upfront. In addition to your security deposit, you may have to pay set-up fees, which cover the cost of setting up your account and sending you your card.<\/p>\n\n\n\n<p>After you get your secured credit card, you can use it on everyday purchases, just like you would an unsecured card. You\u2019ll have credit limits you have to stay within, and a <a href=\"https:\/\/www.fool.ca\/personal-finance\/credit-cards\/what-is-a-minimum-payment-on-a-credit-card\/\">minimum payment<\/a> that you must pay in order to avoid damaging your credit score. For carried-over balances, you\u2019ll also pay interest, which your credit card company calculates by your card\u2019s APR (annual percentage rate).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-can-you-use-your-security-deposit-to-pay-off-your-balance\">Can you use your security deposit to pay off your balance?<\/h2>\n\n\n\n<p>No. At least not like you would with reward points. Your security deposit will only be used toward your balance if you miss a payment. It cannot be charged to your statement balance before your billing cycle ends.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-will-you-ever-get-your-security-deposit-back\">Will you ever get your security deposit back?<\/h2>\n\n\n\n<p>Most credit card companies will give your security deposit back after you close your account, or after you pay your balances on time for a long period of time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-are-secured-credit-cards-the-same-as-prepaid-cards\">Are secured credit cards the same as prepaid cards?<\/h2>\n\n\n\n<p><a href=\"https:\/\/www.fool.ca\/personal-finance\/credit-cards\/best-prepaid-cards\/\">Prepaid cards<\/a> are very different from secured credit cards. For one, prepaid cards don\u2019t have credit limits. Instead, you load your card with cash. Because it doesn\u2019t operate with credit, prepaid cards will not help your score.<\/p>\n\n\n\n<p>Secured credit cards, on the other hand, have credit limits and revolving lines of credit. As you repay what you borrow, you slowly improve your credit score, so long as you don\u2019t miss a payment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-should-you-look-for-in-a-secured-credit-card\">What should you look for in a secured credit card?<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-no-annual-fee\">1. No annual fee<\/h3>\n\n\n\n<p>The ideal situation is to pay no more than you have to for a credit card while attempting to rebuild your credit. And there are some secured credit cards that won\u2019t charge you monthly or <a href=\"https:\/\/www.fool.ca\/personal-finance\/credit-cards\/what-is-a-credit-card-annual-fee\/\">annual fees<\/a>.<\/p>\n\n\n\n<p>However, many do. That doesn\u2019t make these bad choices, but consider whether your budget can handle the fees and whether the extras that you\u2019re getting in exchange for the fees are worth it. These extras include lower interest rates, rewards points, or other valuable perks.<\/p>\n\n\n\n<p>Of course, if none of the no-annual-fee secured cards will accept your application, then paying a fee <em>may<\/em> be worth it. But, again, make sure that fee fits your budget.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-free-credit-scores\">2. Free credit scores<\/h3>\n\n\n\n<p>If your goal is to improve your credit score, look for secured credit cards that offer free credit scores.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-ability-to-graduate\">3. Ability to graduate<\/h3>\n\n\n\n<p>Many credit card companies will give you the option of graduating to an unsecured credit card once you have a track record of paying your debts on time. Check to be sure there is a path to a higher level, as you don\u2019t want to be stuck with a secured credit card forever.<\/p>\n\n\n\n<p>Of course, if you\u2019ve sufficiently improved your credit score, you may now qualify for some of <a href=\"https:\/\/www.fool.ca\/personal-finance\/credit-cards\/best-credit-cards-canada\/\">the top credit cards<\/a> on the market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-can-you-use-your-secured-credit-card-responsibly\">How can you use your secured credit card responsibly?<\/h2>\n\n\n\n<p>When it comes to secured credit cards, you want to be extra careful you\u2019re using it reasonably. Making mistakes on a secured card can be costly, as you not only lose your initial deposit, but also damage your credit score. Here are some tips on how to use yours responsibly.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-always-pay-at-least-the-minimum\">Always pay at least the minimum<\/h3>\n\n\n\n<p>Even though you hand over a lump sum in the beginning, you can still hurt your credit score by failing to pay at least the <a href=\"https:\/\/www.fool.ca\/personal-finance\/credit-cards\/what-is-a-minimum-payment-on-a-credit-card\/\">minimum payment<\/a> before the end of your billing cycle. Failing to pay at least the minimum can also lead to late fees, along with additional interest charges.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-but-aim-to-pay-off-the-entire-balance\">But \u2026 aim to pay off the entire balance<\/h3>\n\n\n\n<p>While paying off the minimum ensures you don\u2019t damage your credit score any further, paying the entire balance helps you avoid incurring hefty interest charges, which can really hurt you in the long-run. Additionally, by paying your balance in full, you show lenders you\u2019re not overextending yourself, which can also help indirectly improve your credit score.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-use-the-card-actively-without-overspending\">Use the card actively without overspending<\/h3>\n\n\n\n<p>With secured cards, your goal is to show lenders you can be trusted with money. If you\u2019re not borrowing frequently, however, you\u2019re not demonstrating you can repay your debts responsibly. To build your credit score, use your secured card for small purchases or certain recurring expenses, such as gym memberships or subscriptions.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><em>Some offers on The Motley Fool are from our partners \u2014 it\u2019s part of how we make money and keep this site going. But does that impact our reviews? Nope. Our commitment is to you. If a product isn\u2019t any good, our review will reflect that, or we won\u2019t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Top picks for credit cards Rewards credit cards Cash back credit cards Balance transfer credit cards Secured credit cards Travel &hellip;<\/p>\n","protected":false},"author":28430,"featured_media":1240799,"parent":746963,"menu_order":2,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"footnotes":""},"tickers_global":[],"class_list":["post-774169","page","type-page","status-publish","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v23.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Our Top Picks for Secured Credit Cards in Canada | The Motley Fool Canada<\/title>\n<meta name=\"description\" content=\"A secured credit card is any card that requires an initial deposit to open an account. 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