10 most frequently asked questions about secured credit cards

Which card should I pick?
Compare the cards and pick the one that fits your needs the best. Annual fee, interest rate and the minimum required deposit amount are important factors to consider.

What is a secured credit card?
Secured credit cards are designed to help people with bad or no credit get a credit card while protecting the issuing financial institution. The lender requires the debtor to deposit a certain amount of money and issues a credit card for the debtor to make purchases. Usually the credit line equals to the amount of money that the debtor chooses to deposit to the account.

Who can qualify for a secured credit card?
Virtually anyone who is 18 years of age. If you are a Canadian citizen, permanent resident or a worker or student on temporary visa, you can get a secured credit card.

What is the difference between a secured and a regular credit card?
There is no difference between a secured credit card and a regular credit card. A secured credit card looks and works exactly as a credit card which does not require security deposit.

How long does it take to get the card?
Depending on the card you choose, it will take anywhere between 2-3 weeks for your application to be processed. Make sure you fully complete the application and submit all supporting documents required by the institution to avoid delays.

What happens to my deposit?
Your deposit is held in an account at the issuing institution. Your deposit will be returned once you close your account and pay the account balance in full.

How do I send in the security deposit?
You will be asked to submit a personal check for the secured credit amount along with your application.

Can I increase my credit limit after application?
Yes, both the Home Trust Secured Visa and Peoples Trust Secured Mastercard allow you to increase your credit limit by submitting additional deposit to your account.

How can I get my deposit back?
You can get your deposit back by paying your account balance in full and closing your credit card account.

How do I make payments?
You will receive monthly statements from the issuing institution like with any other credit card. You can then mail a personal check or money order, pay at a partnering financial institution, or use online or over the phone payment options to pay your balance.

Can I manage my account online?
Yes. You can manage your secured credit card transactions online.