For many Canadians, especially newcomers, students, or those rebuilding after a setback, the idea of a credit card that doesn’t rely on a hard credit check is highly appealing. In practice, true no‑credit‑check cards are rare. Most card issuers perform some form of credit assessment to determine risk. The workable reality in Canada is that the closest options fall into two broad categories: secured credit cards, which require a refundable deposit and report to the credit bureaus, and prepaid cards, which do not extend credit and therefore don’t affect your credit score. Understanding the difference matters because it shapes your ability to build credit, manage money, and access borrowing later on.
Secured credit cards are designed for credit building. They work exactly as the name implies: you provide a security deposit, and the card’s credit limit typically aligns with that deposit. The card issuer then reports your payment activity to the major credit bureaus, so timely payments can help you establish a positive credit history. If you ever want to close the account, the deposit is returned, provided you’ve settled any outstanding balance.
In Canada, several lenders offer secured cards with straightforward paths to approval, even when your credit history is thin or non-existent. Notable options include Home Trust Secured Visa, Refresh Financial Secured Visa, and Equitable Bank’s secured card variant. Here is what to know about each:
- Home Trust Secured Visa: A long-standing choice for building credit, this card typically requires a refundable security deposit, and your spending limit is linked to that deposit. It is widely accepted across merchants in Canada and can serve as a practical stepping stone toward more traditional plastic or a more robust unsecured card. Pros include clear reporting to Equifax and TransUnion, which helps you demonstrate responsible use over time. Cons can include annual fees and the obligation to maintain the deposit to preserve the line of credit.
- Refresh Financial Secured Visa: This option is geared toward those starting fresh or re-entering the credit system. The process is designed to be accessible with a deposit that sets your usable limit and a focus on helping you rebuild credit through regular reporting. Like other secured cards, it can be a solid tool for demonstrating reliable payments to lenders, which can unlock better terms down the road. Watch out for any maintenance fees or deposit requirements, and compare whether the ongoing costs fit your budgeting plan.
- Equitable Bank Secured Card: Offered through a partner structure, this card emphasizes straightforward credit-building with prompt reporting to major credit bureaus. The deposit model is predictable, and the card can provide a reliable way to establish a track record of on-time payments. As with all secured cards, weigh the balance between annual or monthly fees and the credit-building benefits.
Prepaid cards present a different approach. They do not extend credit, so they do not build credit by themselves. Instead, you load funds onto the card and use it like a debit card for everyday purchases. Prepaid cards can be effective budgeting tools and are useful for those who want to avoid credit risk entirely or who are trying to manage spending with a fixed balance. However, because they don’t report credit activity, they won’t help you improve your credit score directly. If your goal is credit-building rather than budgeting, focus on secured cards or personal credit-building products that do report.
Canadian prepaid options commonly seen in this space include Koho, Mogo, and STACK. These brands offer visually appealing, user-friendly prepaid cards and related budgeting tools. Key considerations include:
- Koho Visa Prepaid: Koho provides a prepaid card tied to a budgeting app. It’s a popular choice for controlling spending and separating everyday purchases from savings goals. Because it’s prepaid, it does not impact your credit score, but it can be a practical stepping stone toward disciplined financial habits and cash management.
- Mogo Prepaid Card: Similar to Koho, Mogo’s prepaid offering is designed for easy access and budgeting support. It’s important to note that, as a prepaid product, it does not affect your credit history directly. If you’re aiming to build credit, pair prepaid use with a secured card that reports activity.
- STACK Prepaid Card: STACK offers a prepaid solution that includes budgeting features and a user-friendly app. The same caveat applies: prepaid cards don’t report to credit bureaus, so they won’t boost your score. They are, however, helpful for spending discipline and everyday budgeting.
If you’re weighing secured cards versus prepaid options, start by asking the following: Do you want to build credit, or do you primarily need a budgeting tool and a payment method? If building credit is your priority, a secured card is the better long-term path. If you’re primarily managing finances and keeping spending under control, a prepaid card can be a useful companion.
