5 Credit Cards to Build Your Credit Score in Canada
Applying for a credit card and receiving a rejection notification is frustrating. Whether you are a newcomer to Canada, a student, or someone recovering from past financial difficulties, the "Big 5" banks often have strict requirements that can feel impossible to meet. However, the financial landscape in Canada has changed. In 2026, a credit score is essential for everything from renting an apartment to financing a car. The good news is that there are specific tools designed to help you access credit and build your history, even if you have been turned down before.
Building a strong credit profile in Canada is a step-by-step process that hinges on consistent on-time payments and responsible use of revolving credit. If you are just starting out or rebuilding after past challenges, secured products can help you establish a track record with Canada’s two major credit bureaus. Below, you’ll find plain-language guidance on approvals, how secured cards function, and five widely available Canadian options to consider, followed by an at-a-glance comparison of estimated costs.
What does a “no” from issuers really mean?
When you apply and receive a decline, it usually reflects risk factors in your file rather than a permanent barrier. Common reasons include a thin or new credit history, high balances relative to limits (utilization), missed or late payments, multiple recent hard inquiries, or limited income stability compared with requested limits. Lenders model these inputs differently, so one issuer’s “no” isn’t universal.
Understanding the “no” starts with reviewing your reports from Equifax Canada and TransUnion Canada and reading the adverse action reasons. Check for errors, confirm personal details, and look for outdated delinquencies that should have aged off. Consider whether prequalification tools with soft checks are available. Space out applications, reduce balances, and allow time for positive behaviours to be reflected before trying again.
How secured cards help in Canada
Secured credit cards require a refundable security deposit that typically equals your starting limit. The issuer holds the deposit while you use the card like any other Visa or Mastercard, and your payment history is reported monthly. Keeping utilization low (often under 30%), paying in full, and avoiding cash advances are practical habits that support score growth over time. Many cardholders begin with a modest deposit and request increases after several months of on-time payments.
Here are five credit cards commonly used in Canada for building credit, listed without preference. Capital One Guaranteed Secured Mastercard requires an upfront deposit and charges an annual fee; it reports to major bureaus and is designed for newcomers and rebuilders. Home Trust Secured Visa (No Annual Fee) offers a $0 annual fee option with a standard interest rate and a wide deposit range. Home Trust Secured Visa (Low Interest) trades an annual fee for a lower purchase APR, which may reduce interest if you occasionally carry a balance. Neo Secured Credit provides a $0 annual fee structure with a flexible deposit that can start low and scale as you build. Plastk Secured Visa includes rewards and credit education features and uses a combination of annual and monthly maintenance fees while reporting activity to bureaus.
Can prepaid cards help build credit?
Prepaid cards alone do not create a revolving credit trade line because there is no borrowing; you are spending your own loaded funds. However, some Canadian fintechs offer add-on “credit building” programs attached to a prepaid account that report a separate trade line. These programs can complement a secured card by adding positive payment history, though they are not substitutes for responsible use of revolving credit. Reporting methods vary, and not all lenders weigh these trade lines the same way, so review each program’s terms and confirm how it appears on your reports.
| Product/Service Name | Provider | Key Features | Cost Estimation (if applicable) |
|---|---|---|---|
| Guaranteed Secured Mastercard | Capital One (Canada) | Secured limit with refundable deposit; reports to major bureaus | Annual fee approx $59; deposit typically ~$75–$300+; purchase APR often ~19.8%–26.99% (varies by province and profile) |
| Secured Visa (No Annual Fee) | Home Trust Company | $0 annual fee; refundable deposit; reports monthly | Annual fee $0; deposit commonly ~$500–$10,000; purchase APR often ~19.99% |
| Secured Visa (Low Interest) | Home Trust Company | Lower purchase APR option; refundable deposit | Annual fee approx $59; deposit commonly ~$500–$10,000; purchase APR often ~14.90% |
| Secured Credit | Neo Financial | Flexible deposits starting low; $0 annual fee; reports monthly | Annual fee $0; deposit often starts around ~$50; purchase APR typically ~19.99%–29.99% (varies by province and profile) |
| Secured Visa | Plastk Financial | Rewards and credit education features; reports to bureaus | Annual fee approx $48 + monthly maintenance around ~$6; deposit often ~$300+; purchase APR typically ~17.99%–29.99% |
Prices, rates, or cost estimates mentioned in this article are based on the latest available information but may change over time. Independent research is advised before making financial decisions.
Practical steps with secured and prepaid options
Whether you choose a secured card or pair it with a prepaid card’s credit-building add-on, focus on behaviours that influence scores in Canada. Make at least the minimum payment on time every month, keep balances well below the limit, and avoid repeated applications in a short period. Set up automatic payments for the statement balance where possible, and monitor your reports for accuracy. If fees are a concern, look for $0 annual fee options and consider deposit sizes that keep utilization low without overcommitting cash.
A measured approach—starting with a single secured card, adding a second trade line only when stable, and reviewing progress every few months—tends to be sustainable. Over time, issuers may offer unsecured upgrades or limit increases, but there is no fixed timeline. Building credit in Canada is cumulative and shaped by consistent, low-risk usage rather than quick fixes or frequent product hopping. With realistic expectations and careful selection, the five cards outlined above can function as practical tools on the path to a stronger credit profile.
