Home Trust Secured Visa (Low Rate) Review

3.24

$59

Annual Fee

$0

Annual Rewards

N/A

Intro Offer

$59

Annual fee

$0

Annual rewards

N/A

Intro offer


Pros


  • Low annual interest rate of 14.9%
  • No annual fee
  • Virtually guaranteed approval process
  • Helps rebuild and improve credit score
  • Security of a Visa card with international acceptance
  • Option to add authorized users

Cons


  • Requires a security deposit equal to the credit limit
  • Foreign transaction fee of 3%
  • No rewards or cash-back options
  • Minimum credit limit of $500
  • Limited customer support options

Performance test results

At DollarWise, for each credit card we test 7 different factors including the rewards, value for money, perks, insurance, strengths and weaknesses of the card.

You can see our full testing methodology here to learn why we’re the most trusted source for credit card reviews.

The Home Trust Secured Visa (Low Rate) has earned a 3.24 DollarWise Rating out of 5. This score is based on a weighted average of the two highest scoring factors (excluding acceptance and approval).

Rewards

Fees

Perks

Interest rates

Insurance

Acceptance

Approval

The highest scoring categories for the Home Trust Secured Visa (Low Rate) are interest and fees.

These factors are weighted 70% to the highest scoring factor and 30% to the second highest score to get an overall review score.

This weighting allows us to judge cards on their merits and the customers they are designed for.

For the Home Trust Secured Visa (Low Rate) the most important factors for scoring this card are its interest and fees.

Rewards

With the Home Trust Secured Visa (Low Rate), here’s the rates at which you earn rewards for different spending categories per dollar you spend:

Calculating your annual rewards

We estimate that spending $2,000 per month with the Home Trust Secured Visa (Low Rate) would earn $0 in rewards over the year.

Our performance testing research uses an accurate estimation of the average Canadian households spending patterns to predict the rewards a card will earn.

We found that you’d earn this per category:

Our study investigating the value found that each dollar spent on the Home Trust Secured Visa (Low Rate) is worth up to $0.00, depending on how you redeem.

This $0 in rewards value puts the Home Trust Secured Visa (Low Rate) in the bottom 20% of credit cards in Canada based on rewards earned.

The average credit card in our database earns $337 in rewards for the same spend that the Home Trust Secured Visa (Low Rate) earns $0 in rewards value.

We can compare this card to other options by looking at the earn rate by category.

This earn rate is the percentage return that you would get when you spend on this card, assuming you redeem at the predicted maximum value.

For example, if a card earned 5 points per dollar on gas and each point is worth up to $0.02, then the earn rate is 5 points multiplied by $0.02 each, divided by the dollar you spent.

In this example, that’s a 10% earn rate on gas.

Above, we’ve calculated the earn rate for the Home Trust Secured Visa (Low Rate) for every spend category and compared it to the average for all Canadian credit cards.

For an annual spend of $24,000, we estimated annual rewards value at up to $0.

That’s equivalent to a 0.00% return on spending.

The Home Trust Secured Visa (Low Rate) has an annual fee of $59. After deducting this, we predicted net annual rewards of $-59.

This puts it in the bottom 10% of credit cards for net rewards after fees.

In comparison, the average card earns net annual rewards of $254.

Fees

The Home Trust Secured Visa (Low Rate) has a $59 annual fee.

The average card charges $85. So, the Home Trust Secured Visa (Low Rate) is in the top 50% of cards based on the cost of the annual fee.

Perks

We manually review the perks of each credit card to determine how they compare to other cards.

The Home Trust Secured Visa (Low Rate) scored a 0.0 out of 5 for perks, putting it in the bottom 10% of cards.

The average card scores 1.6 out of 5 for perks.

Interest Rates

Purchase14.9%
Cash Advance19.8%
Balance Transfer19.8%

The average (median) credit card has a purchase interest rate of 19.99% and so the Home Trust Secured Visa (Low Rate) charges 5.09% less than the average.

For cash advances it costs 19.8% compared to the average of 19.96%.

Testing the Home Trust Secured Visa (Low Rate) with a $2,000 starting balance, you can see in the graph how the 5.09% less in interest rates impacts the interest over a year, compared to the average card.

Insurance coverage

We scored it 0.0 out of 5 for insurance.

It offers 0 types of insurance, whereas the average card has 5 types of coverage.

Approval and qualifying

Do I qualify?
Estimated Credit Score300 – 559
Personal Income$0
Household Income$0
Fees
Annual Fee$59
Extra Card Fee$0
Card typeVisa

We scored it 5.0 out of 5 for approval.

We predict that you will require a credit score of at least 300 to qualify for the Home Trust Secured Visa (Low Rate), while the average card requires 652 to qualify.

This puts it in the top bottom 20% of cards by approval difficulty.

The personal income requirements are $0, while the average card requires $23,896.

This puts it in the top 50% of cards by the income required to qualify.

The Home Trust Secured Visa (Low Rate) credit card is designed for individuals who may have a prior negative credit history or insufficient credit score to obtain a conventional credit card.

This review will discuss the earning potential and reward rates of this card, as well as four benefits and two drawbacks.

Earning potential with the card

The Home Trust Secured Visa (Low Rate) credit card does not have any direct earning potential in the form of points or cash back rewards. Instead, the card is primarily aimed at helping cardholders rebuild their credit score while offering a competitive 14.9% annual interest rate.

Benefits

  1. Low Annual Interest Rate: This credit card offers a low annual interest rate of 14.9%, which is significantly lower than many other secured credit cards on the market.

    This lower interest rate can provide a substantial advantage for those looking to minimize interest expenses on their card balances.
  2. Rebuild Credit Score: The Home Trust Secured Visa (Low Rate) is intended for those looking to rebuild or establish their credit score.

    Cardholders demonstrate responsible credit use through timely payments and by maintaining a manageable balance, which can contribute to positive credit rate adjustments over time.
  3. No Monthly Account Maintenance Fee: Unlike some secured credit cards, there are no monthly account maintenance fees involved in this card, which helps reduce overall costs for the cardholder. However, there is an annual fee of $59 for this Low Rate option.
  4. Worldwide Acceptance: As a Visa card, the Home Trust Secured Visa (Low Rate) card offers worldwide acceptance.

    Cardholders can use the card to make purchases or access funds anywhere that Visa is accepted, providing them with the same convenience as a traditional credit card.

Drawbacks

  1. No Reward Program: A significant drawback of this card is the absence of any reward program, such as points or cash back. Cardholders looking for direct benefits or incentives based on their spending may find this to be a disadvantage.
  2. Limited Additional Card Features: Another drawback to the Home Trust Secured Visa (Low Rate) credit card is the limited range of additional features, such as insurance coverage or special discounts.

    Cardholders who prioritize reward programs or additional benefits may prefer a different card offering these features.

Additional Information

Potential users should be aware that the Home Trust Secured Visa (Low Rate) credit card requires a security deposit, ranging from $500 to $10,000, which will serve as their credit limit.

It is also important to note that a higher limit can only be established by increasing the security deposit. Lastly, this card is not available for residents of Quebec.

Is the Home Trust Secured Visa (Low Rate) not convincing you? Consider the Home Trust Preferred Visa or the Home Trust Secured Visa Card. Still not the right credit card? Make sure not to miss the Home Trust Secured Visa.

FAQ

The Home Trust Secured Visa (Low Rate) credit card does not offer a rewards or points program, making it unsuitable for those looking to redeem points for rewards.

Its main function is to help its cardholders build or rebuild their credit scores by reporting monthly to the credit bureaus and offering a lower interest rate compared to other secured credit cards.

The Home Trust Secured Visa (Low Rate) credit card does charge a foreign transaction fee for purchases made outside of Canada or in foreign currencies.

This fee is set at 2% of the transaction amount, which is applied in addition to the converted Canadian dollar amount of the transaction.

This means that any purchases made abroad or using foreign currencies, whether online or while travelling, will incur a 2% fee on top of the standard exchange rate.

There is no minimum income requirement for the Home Trust Secured Visa (Low Rate) credit card. This feature allows individuals with a variety of income levels to potentially qualify for this secured credit card.

Key benefits

  • 14.9% annual purchase interest rate
  • Grace period of 21 days for interest-free purchases
  • Visa card with global acceptance
  • 3% foreign currency conversion fee
  • Option for additional cardholders
  • Monthly reporting to credit bureaus
  • Emergency card replacement services
  • Zero liability for unauthorized use
  • No bankruptcy within past 7 years required
  • Paperless statements available
  • Fraud alerts and monitoring

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