If you’ve decided it’s time to get out of the poor credit slump and start building your score, you’re likely going to need a secured credit card. While there are other methods of building your credit up, a secured credit card is likely the easiest way to go about it. But with several secured credit cards on the market, which one should you choose?

First, let’s take a quick look at how secured credit cards work. The entire idea behind the secured credit card is to be able to extend credit to those who have poor credit with minimal risk to the lender. When a borrower has a poor credit score, he or she represents an increased risk to any potential lenders. This is why you often get turned down for credit when you have a poor score. With a secured credit card, it enables you to put down security funds that act as a sort of collateral. If the borrower ends up defaulting on what he or she owes, the lender can use the security funds to repay that amount. Because a secured credit card comes with reduced risk for the lender, more people are approved to be card holders, even if they have poor credit.

If you are a high-risk borrower, meaning that you have a poor credit score, and are looking to boost your credit, a secured credit card is a fantastic place to start. Your new card offers you the chance to show good credit habits and have them reported to the credit bureaus just like a regular credit card. You can actually see your score go up in a fairly short amount of time if you really put some effort into keeping it in good standing.

Now that we know that a secured credit card is one of the easiest and quickest way to a higher credit score, it’s time to choose which one you’ll apply for. There are many factors that should go into this decision such as interest rate, annual fees, approval rate, perks and more. We’ve taken the liberty of listing the top 5 secured credit cards in Canada with a specific focus on boosting your credit effectively.

#5. Capital One Guaranteed Secured MasterCard – Capital One has long been a popular choice for people looking to rebuild their credit. The good things about the Capital One Guaranteed Secured MasterCard are:

• Everyone is guaranteed approval.
• Minimum security funds required is $75
• Low Interest rate: 19.8%

Other features of the Capital One Guaranteed Secured MasterCard are:
Annual fee: $59

#4. Vancity enviro Secured Visa – Vancity’s offering to those without a credit history or with poor credit is a pretty decent. Here are some of the Vancity enviro Secured Visa highlights:
Make a positive impact – 5% of the enviro line of credit cards is given to environmental initiatives in the communities Vancity serves.

• Zero annual fee.
• Low Interest rate: 19.8%

Other features of the card include:
Not everyone is approved.

#3. DCU Visa Platinum Secured Credit Card – DCU has thrown its hat in the secured credit card ring with a great option. The good features of the DCU Visa Platinum Secured Credit Card are:

• Very low interest rate: 11.50%
• No annual fee
• Free cash advances and balance transfers
• Optional travel insurance

Other features of the DCU Visa Platinum Secured Credit Card:
Not everyone is accepted.

#2. No-Fee Scotiabank Value VISA Card – One of Canada’s biggest banks has a great option for those seeking a secured credit card to boost their credit. The highlighted features of the No-Fee Scotiabank Value VISA Card are:

• Interest rate: 16.99%
• No balance transfer fees
• Annual fee: none
• Discounts on select services

Other features of the No-Fee Scotiabank Value VISA Card:
Not everyone is accepted

#1. Refresh Financial Secured Visa – Refresh Financial is an organization dedicated to improving the credit of its clients. It’s new secured Visa is aimed at just that: improving your credit score. The highlighted features of this card are:

• Easiest approvals of the bunch – just put your security funds down and you’re approved.
• Low annual fee: $12.95
• Low interest rate: 17.99%
• Minimum of $200 and no Credit Check required
• Free financial intelligence training (F.I.T) – with your secured Refresh Financial card, you get access to online courses aimed at improving your money management skills.

We have rated these cards from a credit building perspective – they are in order of which cards will be most beneficial to improving your credit score. It comes as no shock that an organization that has, for years, dedicated itself to the improvement of its clients’ credit is at the top of the heap. It doesn’t matter how poor your credit it, you will still be accepted. Not only do you get to work towards a cleaner, more impressive credit report but your new good credit lifestyle will be sustainable after you’ve taken advantage of the free F.I.T. courses.

Which card would you choose and why? Let us know in the comments!