Neo Secured Credit Card review
- Welcome Offer
- N/A
- Rewards
- An average of 5% cash back
- Annual Fee
- $60
- Purchase Interest Rate
- 19.99%-29.99%
- Cash Advance Rate
- 22.99%-31.99%
Our verdict
Yes, it's a real credit card. Build your credit score and earn cash back with the Neo secured card.
The Neo Secured Card is a secured credit card that lets you build your credit score when you make on-time payments. You’ll simply need to secure your balance with a deposit that gets returned to you when you close out your card. This card comes with easy approval and the chance to earn cash back with Neo partners.
Pros
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Easy approval, no credit check
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Flexible credit limit (min. $50)
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Build your credit score
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Cashback rewards
Cons
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Deposit required to spend
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High interest if you have bad credit
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Accelerated cashback requires a high Neo Everyday Account balance or a paid Premium subscription
Designed for borrowers with less-than-good credit, this card does not require a credit check, and the amount of your security deposit determines your purchase limit.
Neo Financial is an online financial institution that offers credit cards, spending and savings accounts, investment solutions and mortgages. Neo gives Canada’s Big Banks a run for their money, but its secured credit card might not be right for everyone. Keep reading to find out why.Neo credit card plans
You can choose one of two plans when you get a Neo Secured Credit Card:
- Standard (free): Earn 5% cash back on average at Neo partner retailers, depending on the spending category. Earn 1% cash back on gas and groceries. You won’t earn cash back on any other spending.
- Premium ($9.99/month): You’ll earn accelerated cash back at Neo partner retailers (between 3% – 6%, depending on the spending category) and an extra 2% cash back on gas and groceries. Other benefits include purchase protection, priority customer support, credit score monitoring services, legal help and group life insurance.
How to boost your cash back with the Secured Neo Mastercard
Whether you have the standard or the Premium plan, it’s possible to boost your gas and grocery cash back rate to 3% by holding at least $5,000 on a Neo Money Account Prepaid Card or 4% with a balance of at least $10,000. Plus you’ll begin earning 0.5% cash back on all other purchases.
Premium plan perks apply on top of this—including the boosted cash back rates.
If you have a Secured Neo Mastercard with the Premium plan and $10,000+ in a Neo Money Account, you’ll earn 6% cash back on gas and groceries.
Neo credit card perks
- Easy to get approved. It’s fairly easy to get approved for a secured credit card, and there’s no credit check.
- Flexible spending limits. You control your purchase limit. Spend up to the amount deposited on your card in advance, which can be anywhere from $50 to $10,000.
- Improve your credit score. The Neo secured card is a real credit card, and your activity gets reported to Canadian credit bureaus. Using your card responsibly could improve your credit score.
- Accelerated cash back. Spend at Neo partner retailers to earn an average of 5% cash back. Tiered cash back applies when you spend on groceries, gas and EV charging—you could earn up to 6% with a Premium plan subscription and a $10,000+ Neo Money Account balance.
- Premium plan perks. If you’re willing to pay $9.99/month, you can get extra perks like purchase protection, priority customer support, credit score monitoring, 24/7 legal assistance and group life insurance.
- Multiple ways to add funds. Simply link an external account or send Neo an Interac e-Transfer to load funds into your account.
- Neo insights. Track your spending behaviour and get personalized financial insights powered by AI within the Neo app.
What to watch out for with the Neo Secured Credit Card
Unlike it’s counterpart, the Neo Mastercard, the Neo Secured Credit Card does not require a credit check, making it easy for those with bad credit to get approved. The tradeoff is that it doesn’t come with many perks or benefits, and you have to provide funds up front to spend.
- Deposit required. You can only spend funds deposited onto your card.
- High interest rates for bad credit cardholders. Neo determines your purchase rate when you sign up, and it could be 19.99%-29.99% for purchases and 22.99%-31.99% for cash advances.
- Limited cash back spending. You can’t earn more than $500 cash back per spending category per month.
- Limited benefits. Unlike some other rewards credit cards on the market, the Neo secured card doesn’t come with complimentary travel insurance, auto rental discounts or special balance transfer offers. Rewards are cash back only and can’t be redeemed for merchandise, gift cards or experiences.
- No balance transfers. You can’t initiate a balance transfer with the Neo credit card in Canada.
- No in-person service. As Neo Financial is an online insitution, you can’t get in-person service at a local branch.
Use this card regularly and make on-time payments to improve your credit score. Once your financial profile strengthens, you can apply for other cards with more features.
Neo Secured Credit Card interest rates
| Interest Type | Interest Rate |
|---|---|
Purchase interest rate | 19.99%-29.99% |
Cash advance rate | 22.99%-31.99% |
What should I know before I apply for the Neo Secured Mastercard?
Here’s what you should know before applying for the Neo Secured Credit Card in Canada.
Eligibility requirements
To apply for the Neo Secured Credit Card, you must:
- Be a resident of Canada
- Be at least the age of majority in your province or territory (18 or 19 years old)
- Have at least $50 to provide for a security deposit (max. $10,000)
Required documents and information
- Your full name and contact information
- Your Social Insurance Number (SIN) and date of birth
- Your employment details
- Your financial information, including any debts and assets
How to apply for the Neo Secured Credit Card
- Go to the Neo Financial website.
- Create a Neo Financial profile (if you don’t already have one) using your name, email address and phone number.
- Enter basic details such as your date of birth, address and employment information.
- Verify your identity by taking a photo of yourself and your photo identification such as a driver’s license, provincial ID card or Canadian/international passport.
- Set your preferred credit limit. Review and submit your application.
- If approved, you’ll receive your card within 15 business days (3-5 business days with rush delivery).
- Activate the Neo Secured Mastercard online without signing into your account. Go to the account login page, select the Activate button and follow the prompts.
Is the Neo Secured Credit Card safe?
As a Money Services Business, Neo Financial is regulated by FINTRAC (Financial Transactions and Reports Analysis Centre of Canada). The company partners with other well-known financial institutions to provide services, including Mastercard and Peoples Bank.
As an additional layer of protection for customers’ accounts, Neo uses verification codes. If someone gains unauthorized access to your card, it’s easy to login and freeze your card, disable certain transactions or request a replacement card.
I got the card… now what?
Follow these steps to make sure you get the most out of your Neo Secured Credit Card:
- Make on-time repayments to build your credit and avoid paying unnecessary interest charges.
- Read your service agreement carefully to know what fees you’ll need to pay before you use certain services.
- Keep an eye on your credit score to make sure it’s improving.
- Watch for deals on the Neo site or app to make sure you cash in on the best cashback rewards.
Bottom line
With cash back rewards, an easy online application and no credit check requirement, the Neo secured card is an attractive option for borrowers with all types of credit score.
If you want high cashback rewards on all your purchases or benefits like travel and entertainment discounts, the Neo Secured Credit Card might not be right for you. But it’s a solid option if you’re having trouble qualifying for other credit cards.
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