Neo Advance Review: Is It Worth It?
- APR Range
- 0% + $9.99/month
- Loan Amount
- Up to $300
- Loan Term
- 34 days
Our verdict
Cover cash shortfalls, build credit and pay no interest with this cash advance, but you can only borrow up to $300 and fees apply.
Neo Advance is designed to provide a financial safety net when you run short on funds. Whenever your Neo Chequing Account balance drops below zero, Neo Advance provides automatic access to a line of credit of up to $300. There are no credit checks or interest charges to worry about, and you can use the money to cover bills or pay for essential purchases. And with your repayments reported to both Equifax and TransUnion, you can use your Neo cash advance to build credit. The only other cash advance app in Canada that offers this perk is Nyble.
There are drawbacks, most notably a minimum monthly fee of $9.99 and a small maximum loan amount of $300. But if you’d like protection against overdraft and NSF fees along with the potential to build credit at the same time, the Neo Advance might be worth checking out.
Pros
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Access up to $300 at 0% interest
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No hard credit check
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Build credit history with reporting to TransUnion and Equifax
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Free for bill payments and Neo Money card transactions
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Eligible for a Growth Check every 30 days
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No security deposit required
Cons
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Borrowing $300 may not be enough for some people
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The Neo Build membership comes with a monthly fee
Is the Neo Advance legit?
Yes. Neo Advance is offered by Canadian fintech Neo Financial.
Founded in 2019 and headquartered in Calgary, Neo Financial is a registered payment service provider under the Retail Payment Activities Act and a FINTRAC-registered money services business. It also offers cash back credit cards, chequing and savings accounts, and mortgages.
Neo Advance pros
- Instant access. Neo Advance provides access to a line of credit whenever your Neo account balance drops below $0, so you can access funds on-demand when you need them.
- 0% + $9.99/month. Neo advances are interest-free, which can make them more affordable than high-interest loans or traditional overdraft protection. However, a monthly fee applies.
- No hard credit check. You won’t need to undergo a hard credit check to qualify for an advance.
- Builds credit. Neo reports your advance usage to the Equifax and TransUnion credit bureaus, so making on-time payments could help you build credit.
- Avoid fees. There are no extra fees if you use Neo Advance to pay a bill or pay for purchases with the Neo Money card.
- Credit limit increases. You’re eligible for a credit limit review every 30 days, so repaying advances on time could help you qualify for a larger limit in the future.
- Other perks of Build membership. The Build membership that qualifies you for a Neo cash advance also provides access to perks such as credit score monitoring, Credit Builder, access to the Neo secured credit card and reimbursement of third-party ATM fees.
Cons
- $9.99/month Build membership required. You’ll need to pay a $9.99 monthly fee for a Build membership to qualify for a Neo cash advance, so it’s possible to get funded for less with other cash advance apps. Neo Advance is also available with a Grow membership, which costs $14.99/month.
- Small amount. The $300 maximum loan amount may not be enough for your needs.
- Automatic deductions. Rather than repaying your advance on a set date, the money you owe is automatically deducted from the next deposit into your account.
- Late payments are also reported. Failing to make on-time cash advance repayments could have a negative impact on your credit score.
Alternatives
Neo Advance is the latest arrival in the increasingly competitive cash advance market. If you’re not sure whether a Neo cash advance is right for you, check out these alternatives.
Summary of Neo reviews
| Platform | Details |
|---|---|
| Trustpilot | 3.2/5 based on 492 reviews |
| Apple App Store | 4.8/5 based on 56,000+ reviews |
| Google Play | 4.5/5 based on 21,000+ reviews |
| Better Business Bureau (BBB) | 1.04/5 based on 47 reviews |
| BBB accredited | No |
| BBB ratting | F |
What do Neo reviews say?
Opinions on Neo Financial across platforms like Trustpilot, Reddit and the Better Business Bureau are mixed. That said, the Neo app has picked up largely positive reviews across both app stores.
Positive reviews mention factors such as its user-friendly interface, the credit-building potential of Neo’s secured credit cards, and helpful customer support. Negative reviews mention issues with fraudulent transactions and poor customer support.
What is the application process like?
To qualify for Neo Advance, you will first need to open a Neo Chequing Account and sign up for a Build membership. You’ll need to be a Canadian resident and the age of majority in your province or territory to be eligible.
The online application requires you to provide:
- Personal information such as your name, date of birth and SIN.
- Contact details including your email address, phone number and residential address.
- Proof of ID, such as a passport or driver’s licence.
How does Neo compare with other cash advances?
| Neo | KOHO | Nyble | Bree | |
|---|---|---|---|---|
| Loan amount | Up to $300 | $20 – $500 | $30 – $250 | $20 – $750 |
| Loan term | 34 days | Flexible | 31 days, extendable | Next pay cycle (90 days max) |
| Interest rate | 0% | 0% | 0% | 0% |
| Fees | $9.99 for a Neo Build membership (required) | From $2 (required) + $0 – $22 KOHO account fee (waivable) | $11.99/month for a premium membership (optional) | $2.99 – $45.99 for instant transfers (optional) |
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Bottom line
Neo Advance looks like a solid option when compared to other cash advance apps. It excels in two main areas: offering instant access to money when you need it, and reporting to both major credit bureaus to help you build credit.
The $9.99 monthly fee is Neo Advance’s main drawback, and you can get cheaper funding elsewhere—but usually only if you’re happy to wait one to three business days to get funded.
So if you sometimes run short on cash in the lead-up to your next payday, and if you’re searching for ways to build credit history, Neo Advance is worth a look.
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