Poor or zero credit history could deter you from several opportunities, such as low-interest personal loans, mortgages, lines of credit and credit cards.
As a result, the importance of building or rebuilding your credit score can’t be over-emphasized.
While there are many ways of building/rebuilding credit scores, secured credit cards prove to be faster and more effective.
Secured credit cards allow you to build or rebuild your credit score by making a security deposit equal to your card’s credit limit.
After that, your monthly balance payments will be reported to the credit bureaus, which will likely increase your credit score.
Unfortunately, not all secured credit cards offer the best results. Hence, so many Canadians are asking, is there a BMO Secured Credit Card? If not, what are the best-secured credit cards in Canada?
This article answers all your questions about secured credit cards in Canada, helping you make the best decision.
What are Secured Credit Cards?
A secured credit card is a type of credit card that offers a credit limit equal to a collateral or security deposit. The collateral deposit protects the insurer against your balance payment default. Hence, your deposit is not withdrawable until you close your account.
For example, if a secured credit card has a $5,000 credit limit, you’ll have to make a security deposit of $5,000.
The sole aim of a secured credit card is to help you build or rebuild your credit score as all your balance payments are reported to credit bureaus.
Thus, paying your full monthly balance will help you get unsecured credit easily and recover your secured deposit.
However, you need to weigh the good and ugly sides of a secured credit card before subscribing. Let’s look at the pros and cons of secured credit cards.
Advantages and Disadvantages of Secured Credit Cards
Here are the top advantages and disadvantages of secured credit cards you should know about:
Advantages
- Build/Rebuild Credit History: A secured credit card helps you easily build or rebuild your credit history by promptly paying your full monthly balance.
- Easy Approval: Unlike other credit cards, secured credit cards don’t consider your credit score before approval because they’re after improving your credit score.
- Secured Savings: Your card insurer will not use your collateral deposit so long you keep paying the monthly balance. You can use the funds for anything you like after closing your secured credit card account.
- Rewards: Some secured credit cards offer cash back, gift cards and other rewards upon making eligible purchases. This offsets a percentage of your expenses, saving you money.
Disadvantages
- Security Deposit: $500 is the minimum security deposit of most secured cards. It may be challenging to meet this minimum, especially if you’re on a low budget.
- Limited Rewards: The majority of secured credit cards don’t offer rewards. So the overall value of the card is based on the credit limit.
- High Fees: Some secured credit cards tend to have high fees compared to other credit cards. This is because you may be required to pay an annual and maintenance fee.
- No Approval Guarantee: Even though secured credit cards don’t consider your credit score, you’ve no guarantee of approval.
About BMO
BMO stands for Bank of Montreal. This is the fourth-largest among the five big banks in Canada based on assets and market capitalization.
The Bank of Montreal was established in 1817, offering all-inclusive international banking and financial services.
As North America’s 8th largest bank by assets, BMO has over 12 million customers scattered across England, Germany, Singapore, India, Mexico, Barbados, Brazil, Australia, etc.
BMO offers competitive products and services on personal and commercial banking, investment services and wealth management.
However, so many Canadians like you are asking, does BMO offer secured credit cards? Let’s find out.
Does BMO Offer Secured Credit Cards?
Unlike other big banks in Canada, BMO does not offer secured credit cards at the moment. However, BMO offers competitive credit cards, such as:
- CashBack Mastercard
- Preferred Rate Mastercard
- World Elite Mastercard
- AIR MILES Mastercard
- CashBack World Elite Mastercard
- AIR MILES World Elite Mastercard
- Prepaid Travel Mastercard
- Rewards Mastercard
- Student BMO AIR MILES Mastercard
Nevertheless, the BMO Preferred Rate Mastercard is suitable for individuals looking for low-cost credit cards in Canada.
BMO Credit Card for Bad Credit
BMO Preferred Rate Mastercard
The BMO Preferred Rate Mastercard is a low-cost credit card with a 12.99% interest rate on purchases and cash advances.
This card offers up to nine months 3.99% introductory interest rates, one of the industry’s lowest.
With a $20 annual fee, individuals with good credit scores can save a lot with the BMO Preferred Rate Mastercard. The $20 annual fee is waived for cardholders with a BMO Performance chequing account.
Key Features of BMO Preferred Rate Mastercard
- Safety and security: You can lock and unlock your card at any time, helping you avoid unauthorized usage.
- Credit score: You can check your credit score through the BMO site or mobile app free without impacting your credit.
- Financial insights: BMO offers customized financial tips for cardholders, helping them stay on top of their finances.
- Detailed transaction view: You can track all your spendings on the go with the BMO mobile app.
- Extended warranty and purchase protection: The BMO Preferred Rate Mastercard has extended warranty and purchase protection, giving you peace of mind.
Requirements for BMO Preferred Rate Mastercard
The BMO Preferred Rate Mastercard is available for all, but not everyone is eligible for it. Besides having a decent credit score, here are other requirements to using this card:
- Reach the age of majority (18 or 19 depending on your province/territory)
- Be a Canadian citizen or permanent resident
- Meet the minimum income requirements
- Have no bankruptcy history in the past seven years.
That said, you will be required to provide the following information when applying for the BMO Preferred Rate Mastercard:
- Full name
- Date of birth
- SIN
- Address
- Contact info
- Income source(s)
- Employment status
- Rent or mortgage amount.
Other BMO Credit Cards
BMO MasterCards
1. BMO CashBack Mastercard
- Annual Interest Rate on Purchase: 19.99%
- Annual Fee: $0
- Rewards: 5% introductory cashback.
The BMO CashBack Mastercard is one of the best Mastercards in Canada, with a competitive introductory cashback rate and no annual fees.
This card offers a 5% introductory cashback rate for up to three months of new registration. Besides that, it offers competitive cashback on the following spendings:
- Grocery spending = 3% cashback
- Recurring bills spendings = 1% cashback
- All other spendings = 0.5%
2. BMO CashBack Business Mastercard
- Annual Interest Rate on Purchase: 19.99%
- Annual Fee: $0
- Rewards: Variable
If you’re a business owner, the BMO CashBack Business Mastercard is one of the best business credit cards in Canada to consider.
Besides zero annual fees, the BMO CashBack Business Mastercard offers variable cashback rates on the following spendings:
- Eligible purchases at Shell = 1.75% cashback
- Office supplies, gas stations, phones, or Internet spendings = 1.5% cashback
- Every other purchase. = 0.75% cashback
That said, you will earn 10% introductory cashback during your first three months of membership after spending on office supplies, cell, gas, or phone/internet bills.
Furthermore, you don’t have to worry about unauthorized purchases because the card has a Liability Waiver Program.
3. BMO Air Miles World Elite Mastercard
- Annual Interest Rate on Purchase: 20.99%
- Annual Fee: $120
- Rewards: 1 mile on all $12 spent on a credit card and 3 miles on all $12 eligible purchases.
The BMO Air Miles World Elite Mastercard could be your perfect Mastercard if you travel frequently.
While the card charges an annual fee and an above-average interest rate, it offers competing miles on eligible purchases.
The $120 annual fee is waived when you accumulate 2,000 bonus AIR Miles miles and activate a pop-up notification.
That said, you can enjoy 15% off on all your AIR MILES flights in North America with the BMO Air Miles World Elite Mastercard.
Note: The income requirement is $80,000+ annual personal income or $150,000+ household income.
Best BMO Visa Cards
1. BMO eclipse Visa Infinite
- Annual Interest Rate on Purchase: 20.99%
- Annual Fee: $120
- Rewards: 5 points on every $1 eligible purchase
The BMO eclipse Visa Infinite card is ideal for frequent travellers looking to offset a portion of their travel costs.
With this card, you will earn 5 points on every $1 eligible purchase. While it charges an annual fee, you will have it waived in your first year when you accumulate 40,000 points.
Note: The income requirement is $60,000+ personal annual income or $100,000 household annual income.
2. BMO eclipse Visa Infinite Privilege
- Annual Interest Rate on Purchase: 20.99%
- Annual Fee: $499
- Rewards: Variable
If you’re looking for a Visa card with a luxurious touch and advanced premium, the BMO eclipse Visa Infinite Privilege is what you need.
The BMO eclipse Visa Infinite Privilege of the best metal credit cards in Canada offering variable rewards.
Besides the 5-points reward on all $2 purchases on groceries, dining, gas, drugstore and travel, this card offers 25% additional points on all purchases when you add an authorized user.
Note: The income requirement is $150,000 personal annual income or $200,000 family annual income.
Best Secured Credit Cards in Canada
Since there’s no BMO Secured Credit Card, what are the available options in Canada?
Frankly speaking, there are different secured credit cards in Canada with varying interests rates, fees, rewards and benefits.
However, the following secured credit cards stand out in the competition in terms of annual interest rates and fees:
1. Home Trust Secured Visa
- Annual Interest Rate on Cash Advance Balance: 19.99%/14.90%
- Annual Fee: $0/$59
The Home Trust Secured Visa is a popular secured card in Canada, offering low-cost credit building solutions.
This card comes in two versions. The first version charges 19.99% annual interest rates on cash advance balance with no annual fee.
The second version charges 14.90% annual interest rates on cash advance balance with a $59 annual fee.
Whatever way you look at it, the Home Trust Secured Visa is cost-saving. This is because you can still save on fees by paying the 19.99% annual interest rates or pay the $59 annual fee and save on interest.
With this credit card, you can get a credit limit regardless of your credit history or whether you have filed for bankruptcy before.
However, the Home Trust Secured Visa is available in all Canadian provinces and territories except Quebec.
2. Plastk Secured Credit Card
- Annual Interest Rate on Purchase: 17.99%
- Annual Fee: $48
The Plastk Secured Credit Card offers robust credit-building solutions with competitive interest rates. With this can, you can:
- Check your credit score free
- Earn rewards points on eligible purchases
- Earn 5,000 points ($20 value) welcome bonus
- Enjoy your first three months with 0% APR on purchases
This all-inclusive secured credit card is cost-saving for new cardholders, students and individuals looking to rebuild their credit scores.
In addition to reaching the age of majority in your province/territory, you must be capable of paying the security deposit to qualify for this card.
3. Capital One Guaranteed Secured Mastercard
- Annual Interest Rate on Purchase: 19.8%
- Annual Fee: $59
The Capital One Guaranteed Secured Mastercard is one of the best Mastercards in Canada due to its wide range of credit-building solutions.
Unlike other secured credit cards, this card has guaranteed credit card approval for all eligible applicants. The requirements are:
- Reach the age of majority in your province or territory.
- Provide a $75 or $300 security deposit.
- Have no Capital One account, bad account, or more than one account application history in the last 30 days.
- Have no pending application.
Regardless of the interest rate and annual fee, Capital One Guaranteed Secured Mastercard sets itself apart in the competition with its low-security deposit requirements.
Unlike most secured cards that require a minimum deposit of $500, this card allows you to deposit a minimum of $75 or $300.
Moreover, this card has zero liability protection, protecting you against unauthorized card usage.
4. Refresh Financial Secured Card
- Annual Interest Rate on Purchase: 17.99%
- Annual Fee: $12.95
Refresh Financial Secured Card is another best secured credit card in Canada, offering competitive credit building solutions.
The 17.99% annual interest rates and $12.95 annual fees are less than those of the most secure cards in Canada.
That said, the Refresh Financial Secured Card is ideal if you’re looking for low-cost customized credit building solutions in Canada.
READ MORE: Refresh Financial Review
5. Scotiabank Value Visa Card
- Annual Interest Rate on Purchase: 12.99%
- Annual Fee: $29
The Scotiabank Value Visa Card is our overall best secured credit card with low-interest rates in Canada.
This card has one of the industry’s lowest standard interest rates of 12.99% on purchases and cash advances.
Furthermore, its 0.99% introductory interest rate on balance transfers is one of the industry’s lowest.
Like most secured credit cards, this card requires a $500 minimum security deposit. It also comes with basic and comprehensive insurance coverage on death, critical illness and job loss.
Which Best Secured Credit Card is Right For You?
Now that you know the best secured credit cards in Canada in the absence of a BMO Secured Credit Card, which should you choose? It’s your choice to make.
As you can see, each of the above secured cards has varying interest rates, fees and benefits.
Thus, it’s essential to narrow your selection to the best secured card that suits your current situation.
The major things to consider when choosing a secured card are the following:
- Interest rates
- Fees
- Minimum secured deposit
The lower the interest rates and fees, the easier you can to meet your monthly payments. The minimum secured deposit is also worthy of consideration as most secure cards require a $500 minimum deposit.
Furthermore, you may consider rewards and benefits such as cashback, gift cards and comprehensive insurance coverage. This will help you save costs and meet your monthly obligations.
Overall, you can’t make a wrong choice with any of the above secured credit cards so long it meets your current situation.
The following is Money Reverie’s selection of the best secured credit cards in Canada per category:
| Secured Card | Best For |
| Home Trust Secured Visa | Overall Best |
| Capital One Guaranteed Secured Mastercard | Low-Security Deposit |
| Scotiabank Value Visa Card | Outstanding Interest Rates |
| Refresh Financial Secured Card | Low Fees |
Verdict on BMO Secured Credit Card Review
There’s no BMO Secured Credit Card, but there are several secured credit cards in Canada to choose from.
Perhaps you’re a BMO customer and are looking for a secured credit card within the same circle. There’s nothing to worry about since you have several options to choose from.
However, you can subscribe to our newsletter to get updated when BMO Secured Credit Card is available.
In the meantime, you can’t make a wrong choice with any of the above best secured credit cards in Canada.
But remember to choose a secured card that suits your current situation by considering the interest rates and fees.
Overall, ensure you take practical steps toward building or rebuilding your credit score to qualify for low-cost credit cards, personal loans, lines of credit, mortgages, and other credit-based opportunities.
If you have any questions about this BMO Secured Credit Card review, don’t hesitate to drop them in the comment section.
All the best!
RECOMMENDED READINGS
FAQs On BMO Secured Credit Cards
What Happens to My Security Deposit?
Your security deposit is locked until you pay off your complete balance. This is to protect your card provider against payment default.
Once you pay off your complete balance, you can close your account and withdraw your complete deposit.
How Long Do You Have to Use a Secured Credit Card?
It depends on your credit card. You can use a secured card from 12 months to several years. However, it’s advisable to cancel your secured card only when you’ve built a good credit score to qualify for an unsecured card.
What is the Minimum Deposit for a Secured Credit Card?
$200 or $300 is the minimum deposit for most secured credit card providers. While you can deposit more than the minimum deposit limit, you can’t deposit more than the maximum limit.
Do I Have Any Other Options?
Yes. Unsecured credit cards for bad credit are the best alternatives to secured cards. Other options include secured personal loans, secured lines of credit and other bad-credit-based loans.
Furthermore, you can consider borrowing money from family or friends or becoming an authorized user of someone’s card.
If you have more questions on this BMO Secured Credit Cards review, drop them in the comment section.
