
The TD Bank Canada Secured Credit Card is a great option for those looking to build credit from scratch. It requires a security deposit, which becomes your credit limit.
This deposit is refundable, so you won't lose any money by applying. It's also a good way to establish a credit history, which is essential for future loan and credit applications.
The interest rate on this card is variable, but it's relatively low, ranging from 12.99% to 22.99% APR. This is competitive with other secured credit cards on the market.
By using this card responsibly and making regular payments, you can start to build a positive credit history that will serve you well in the long run.
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What is a Secured Credit Card?
A secured credit card is a type of credit card that requires a security deposit, which becomes your credit limit. This deposit is essentially a guarantee to the credit card issuer that you'll pay back any borrowed amount.

The security deposit amount defines your credit limit, so if you deposit $500, your credit limit will be $500. Secured credit cards are a popular choice for people trying to build credit.
To get a secured credit card, you'll need to make a security deposit, which is essentially a down payment on your credit limit. This deposit is refundable, but it's not always returned if you close the account.
Secured credit cards are a good method of establishing credit, and some even switch to regular credit cards after regular, on-time payments.
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How Credit Cards Build Credit History
Using a credit card correctly is key to building good credit history. This is because it shows creditors that you can manage money.
A good credit history leads to a good credit score, which can help with applying for mortgages and loans. This is a great benefit for anyone who wants to buy a home or start a business.
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Using a credit card allows you to borrow money to make purchases, which can help build credit history over time. By paying back the money on time and in full, you're showing lending companies that you're responsible with money.
If you don't have prior credit history or little credit, there are still options for a starter credit card. You can consider having someone add you to their existing credit card as an authorized user.
Secured credit cards are another option for people trying to build credit. With a secured card, you make a security deposit after opening the account, which defines your credit limit.
Here are some benefits of secured credit cards:
- They're a popular choice for people trying to build credit.
- After making regular, on-time payments, some secured cards increase your credit limit without requiring additional deposits.
- These cards, along with responsible credit management, are a good method of establishing credit.
TD Bank Secured Credit Card Options
TD Bank offers a great starter credit card that's a secured credit card with Cash Back rewards.
You can apply for any of TD's cards online and enjoy online access to your account.
This secured credit card option also comes with a Savings Account, which can be a great way to save and manage your finances.
You should review the Privacy and Security policies of any third-party website before you provide personal or confidential information, especially when applying for a credit card.
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Understanding Credit Scores

A credit score is a three-digit number summarizing your credit risk, based on your credit data.
It's calculated from the data on your credit reports at the three major consumer reporting agencies—Equifax, Experian, and TransUnion. These scores generally range from 300-850.
A higher credit score results in lower APRs and higher credit lines, making it a good idea to check your credit score before applying for a credit card.
To get your free annual credit report, visit the website of one of the three major credit bureaus, and review your information to ensure there's nothing to derail your application.
If you see any incorrect or missing information, file a dispute with the bureau responsible.
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Secured vs Unsecured Credit Cards
Secured credit cards are a type of credit card where the credit limit is secured by depositing money with the bank. This means your credit limit is equal to however much you deposited.
For example, if you deposit $500, you get a $500 credit limit. This type of card is a popular choice for people who are trying to build credit.

Secured credit cards are different from unsecured credit cards, which do not require a deposit but may result in a lower credit limit. If you don't have prior credit history or little credit, a secured credit card can be a good option.
In Canada, both secured and unsecured credit cards can help you build credit, as long as you make regular, on-time payments.
How Issuers Determine Your Score and Its Meaning
Credit issuers use a hard inquiry to obtain your credit report, which typically comes from one of the three major credit bureaus. This can cause a minor drop in your credit score, so it's a good idea to limit the number of applications you submit.
Your credit score is essentially a grade reflecting your credit report, which includes your credit history, loan types, account dates, credit limits, and account balances. It also shows your record of making on-time payments and late payments.
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A credit score is a crucial factor in determining the APR and credit limit that credit card companies offer. In general, a higher credit score results in lower APRs and higher credit lines.
It's a good idea to get your free annual credit report before applying for a credit card to review your information and ensure there's nothing that could derail your application. If you spot any incorrect or missing information, file a dispute with the responsible credit bureau.
Here's a rough idea of what credit scores can mean for your credit card offers:
What is a Score?
A credit score is a three-digit number, ranging from 300-850, that summarizes your credit risk based on your credit data. It's calculated from the data on your credit reports at the three major consumer reporting agencies—Equifax, Experian, and TransUnion.
A FICO score is the type of score that's commonly used by lenders. It's a number that helps lenders evaluate your credit profile and influences the credit that's available to you.
If you don't have a credit history, you're considered "credit invisible." This can happen even if you're a multimillionaire, as long as you don't have a recent credit account.
Your credit report usually comes from one of the three major credit bureaus: Experian, Equifax, and TransUnion.
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Choosing the Right Card

TD Bank offers a great starter credit card, a secured credit card that even includes Cash Back rewards.
You can apply for any of TD's cards online, and they offer online access to your account.
If you don't have prior credit history or little credit, there are still options for a starter credit card.
You can consider adding yourself to a family member or close friend's existing credit card as an authorized user.
Your available credit may be at the discretion of the primary account holder, and they may be able to set charge limits.
Another option is a secured credit card, which requires a security deposit to define your credit limit.
Secured credit cards are a popular choice for people trying to build credit, and some may increase your credit limit without requiring additional deposits.
Some secured cards may also switch to a regular credit card after you've made regular, on-time payments.
Here are the two main options for people with little to no credit:
- Adding yourself to a family member or close friend's existing credit card
- Applying for a secured credit card
Secured credit cards are a good method of establishing credit, especially when used responsibly.
Frequently Asked Questions
What is the credit score for a TD secured credit card?
The average credit score for a TD Cash Secured Credit Card is 659, with 747 being the most common score. Approval is based on multiple factors, not just credit score.
How to build credit in Canada as an American?
To build credit in Canada as an American, consider using KOHO's Credit Building tool or opening a secured credit card, and also explore newcomer-specific credit card options. Regularly checking your credit report and paying bills in full every month can also help establish a strong credit history.
How long does it take to get a TD Bank secured credit card?
Processing typically takes 2 business days, with delivery of your card arriving within 7-10 business days after that
Sources
- https://www.td.com/ca/en/personal-banking/solutions/new-to-canada/credit-cards-for-newcomers
- https://www.td.com/us/en/personal-banking/learning/how-to-apply-for-a-credit-card-with-no-credit
- https://www.nerdwallet.com/article/credit-cards/what-is-td-bank
- https://www.td.com/us/en/personal-banking/learning/how-to-apply-for-a-credit-card-for-the-first-time
- https://www.td.com/us/en/personal-banking/credit-cards/credit-card-agreements
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