Best Prepaid Credit Cards In Canada: KOHO Vs. Stack Mastercard

Are you looking to get a prepaid credit card in Canada? Do you know what prepaid credit cards are?Don’t worry I’ve got you covered in this article.

Let’s find out which prepaid credit card is right for your needs and help you decide on the best. Let’s get started. 

What Are Prepaid Credit Cards In Canada? 

People often look for a prepaid credit card because they want to increase their credit score while others prefer a hybrid card that allows you to preload funds and get rewards while using a credit card network.

Prepaid credit cards don’t give you nearly as many rewards as some of the best travel credit cards in Canada, but you don’t need to worry about having a high income or interest charges since you can only spend what you have.


If you haven’t heard of KOHO, it’s a Canadian reloadable Visa card and app that gives you real-time insights on your spending while helping you reach your financial goals by automating some of your savings. This no fee card even gives you 0.5% cash-back on your purchases which is amazing since most prepaid cards give you nothing for your spending.

KOHO is a reloadable Visa card so it can be used wherever Visa is accepted. You won’t improve your credit score by using KOHO, but you’ll only spend money that you have available.

There are a limited amount of benefits that come with this no fee card, but that’s not a bad thing since the idea here is to help you understand your spending. That being said, you’ll earn 0.5% in “power up” cash-back on all purchases you make which is impressive since this isn’t a credit card.

Read My Full Review on KOHO here – KOHO Review: The Alternative To Your Traditional Banking Experience

Every purchase you make can be rounded up to the nearest $1, $5, or $10. This micro-savings is then applied to your savings goal e.g. concert tickets, a new tv, a vacation etc. The idea is that you won’t notice this small transaction, but they’ll add up pretty quickly. You can set up as many savings goals as you want with an amount and KOHO will estimate how long it’ll take you to reach those goals. It’s basically teaching you delayed gratification.

KOHO Features:

  • No annual fee

  • 1% cash back bonus for 90 days with CASHMONEY referral code  

  • 0.5% cash-back on all purchases

  • Automated savings goals

  • Round up each purchase to the nearest $1, $5, or $10

  • Real-time spending insights

  • ApplePay compatible

Although KOHO uses the Visa network, they aren’t technically a credit card. You can still use your card to pay wherever Visa is accepted, but your history doesn’t get reported to the credit bureaus which means it won’t have any effect on your credit score.


How KOHO Compares To Others

The closest thing KOHO has to competition is the STACK Mastercard. With STACK, there are no foreign exchange fees, but all other aspects of the card are pretty much the same. I should note that STACK offers a $25 sign up bonus. If you wanted to see how they compare directly, I wrote a more detailed post about KOHO vs. STACK.

You could also argue that KOHO can be compared to a secured credit card from Capital One or Home Trust since they require security funds. This isn’t really a fair comparison since security funds on a secured card can’t be used to pay off your account balance. Secured cards are meant for people who want to improve their credit score whereas KOHO is a true prepaid card.

So Why Do People Use KOHO?

Well, first off, you’ll get an extra 1% cash back for a total of 1.5% cash back for the first 90 days when you use the KOHO referral code CASHMONEY, but most people like KOHO because it helps them keep their spending under control.

Obviously, you can only spend what you have preloaded onto your card, but the activity breakdown will help you analyze your spending so you can make adjustments as needed. Best of all, you’ll earn 0.5% cash-back on all your purchases. Read my KOHO review now for more details.

Home Trust Secured Annual Fee Visa Card

Home Trust Secured Annual Fee Visa Card is the The best way to get the credit you deserve.

Build or re-build your credit, even if you’ve had credit difficulties in the past, or have never had a credit card before! An excellent opportunity to establish your credit rating.

Virtually everyone is approved.

Get all the benefits of Visa while re-building your credit:

  • Make purchases over the phone or online

  • Plan and book a vacation

  • Access cash anytime, anywhere from over 1 million ATMs around the world displaying the Visa or Plus logo

  • Shop at over 24 million locations worldwide

Home Trust Mastercard

How Does It Work?

The Home Trust Secured VISA is a credit card that requires a security deposit for eligibility. Your credit limit is then set at the amount of the deposit. You can put down as little as $1,000, or as much as $10,000. Your security deposit earns interest*, while your Home Trust VISA card is open and in good-standing.

If you decide to cancel your card, you can just pay off your outstanding balance, and you’ll get your security deposit – plus interest earned – back from Home Trust. And Home Trust is a Member of Canada Deposit Insurance Corporation (CDIC).

The application process is very simple and almost everybody is approved! Of course, if your application is not approved, your security deposit will be immediately returned to you. * The current Security Deposit Interest Rate is 2.0%, and is subject to change


  • $59 annual fee

  • Make purchases wherever Visa is accepted

  • 14.90% interest rate

As you can see, the Home Trust Secured Annual Fee Visa Card has an annual fee and no benefits, but it’s still one of the best prepaid credit cards since your payment history gets reported to the credit bureaus. This is an ideal card for people who are looking to improve their credit score or currently don’t qualify for a traditional credit card.

Since this is a secured credit card, you have to put down security funds. Your credit limit will typically increase as you put down additional money. Think of those funds as a deposit which can’t be used to pay your balance.

This may seem odd, but it’s a way to show Home Trust and the credit bureaus that you’re being responsible with your money. Your funds will be returned if you ever decide to close your account so you’ll never lose that money.

STACK Mastercard

The STACK Mastercard is relatively new to Canadians, but let me assure you, it’s one of the best cards to enter the market in the last few years. First off, the STACK Mastercard is not a credit card, it’s actually a prepaid Mastercard. You load your funds via e-Transfer, or Visa Debit and then you can only spend what you have available.


What makes the STACK card really appealing is that it has no foreign transaction fees. To simply put it, there is no cheaper way to get cash in a foreign country. Sure, you can use a credit card without foreign transaction fees to pay for most of your purchases, but STACK would be a complement to your credit card since it allows you to withdraw cash from ATMs with no fees.

Keep reading my STACK Mastercard review to find out why this card will appeal to people who love to travel and the general public.


  • No annual fee

  • No foreign transaction fees

  • Discounts at select merchants

  • $25 free when you sign up with my referral link

Not only stack one of the best prepaid credit cards in Canada, but it’s also one of the best credit cards without foreign transaction fees. That’s right, with STACK, you don’t pay any exchange fees when you withdraw money from a foreign ATM. The local ATM might charge you a processing fee, but stack won’t. In other words, STACK is likely the cheapest way to get foreign currency.

What makes STACK unique is that they don’t focus on cash-back rewards. Instead, you get special offers such as $15 off your first order with Foodora, up to $3 off at McDonald’s, 15% off and more.

Quite often these offers are worth 20% more in cash-back so they can be quite lucrative. Read my STACK Mastercard review now or use my referral link and get $25 when you activate your card. This offer is $5 more than the standard referral of $20 which a great incentive to get you started. 

Please let me know your thoughts and comments below. 

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