Home Trust Secured Visa review

What the Home Trust Secured Visa is designed to do

This card exists to help you build or rebuild credit. Instead of approving you based on a strong credit history, Home Trust asks for a security deposit, which lowers its risk and opens the door to applicants with poor or no credit history.

Because the account reports to the Canadian credit bureaus, each on-time payment adds to your credit history. Over time, that record is what can lift your score and help you qualify for unsecured cards.

How the security deposit works

The deposit starts at $500. It’s refundable, so it isn’t a fee, but the money is tied up while the account is secured, so only put down an amount you won’t need in the meantime.

Check Home Trust’s terms for how the deposit relates to your credit limit and when it can be returned. Knowing those details up front helps you plan how long you expect to keep the card.

Using the card to build credit

A secured card only helps if you use it well. Put a few regular purchases on it, such as a phone bill or a weekly grocery run, pay the full statement balance by the due date, and keep your balance low relative to your limit.

Late payments are reported too, so set up reminders or automatic payments to make sure the bill is paid on time every month. Steady, on-time payments month after month matter more than how much you spend.

Fees, interest and the fine print

This is the no-fee version of the card. Home Trust also offers a low-interest version that carries an annual fee. If you expect to carry a balance, compare the two on Home Trust’s website, since the fee may cost less than the extra interest.

Purchases and cash advances are both charged 19.99% interest. Carrying a $300 balance at that rate costs about $5 a month in interest, so paying in full is the cheapest way to use the card. Foreign currency purchases carry a 2.5% fee, which adds about $25 per $1,000 spent abroad.

Fraud protection

The card includes Visa’s zero-liability protection, which covers you if your card is used for purchases you didn’t make. Check Home Trust’s terms for how and when to report a problem.

• Visa zero-liability protection

Who it suits, and who should look elsewhere

The Secured Visa suits newcomers with no Canadian credit history, young adults starting out, and anyone recovering from missed payments or other credit problems who can set aside $500 or more for the deposit.

If your credit is already fair or better, you may qualify for an unsecured card that earns rewards, so there’s no need to tie up a deposit. And if you want something back for your spending while you build credit, a secured card with rewards may suit you better.

How it compares

The Neo Secured Card is another no-fee secured option, on the Mastercard network, and it earns up to 1% cash back on everyday spending, so you get some rewards while you build credit.

Home Trust’s own Preferred Visa has no annual fee and no foreign transaction fee and earns 1% cash back on eligible purchases. It’s worth comparing on Home Trust’s website if you want to earn cash back and avoid foreign transaction fees.

Before you apply

The recommended credit score is 560 or higher, which reflects that this card is meant for people building credit. Home Trust makes the final decision. Confirm the deposit requirements and current terms on Home Trust’s website before you apply.