Related: Best secured credit cards
5 Neo Secured Credit Card Alternatives
Build credit or get an interest-free short-term loan with these alternatives to the Neo Financial Secured Mastercard.
The Neo secured credit card lets you build your credit history while also earning cashback on your spending. It’s worth a look if you want to build credit, but it’s not your only option.
In this guide, we’ll show you alternatives to the Neo secured credit card, including other secured cards as well as apps that offer interest-free cash advances. Keep reading to find out if one of these alternatives to the Neo Secured Mastercard is right for you.
How does the Neo secured credit card work?
The Neo Secured Mastercard requires a security deposit of up to $10,000. You can apply without meeting an income requirement and regardless of your credit history. The amount you deposit becomes your credit limit.
You can then use your Neo secured credit card to pay for purchases in store and online anywhere Mastercard is accepted. Neo pays 1% cashback for gas and grocery purchases, while you can also access cashback offers at over 10,000 Neo partners across the country. Neo offers an instant virtual card so you can start spending straight away, and it’s easy to manage your card via the Neo Financial app.
Neo then reports your card utilization and payment history to the Equifax and TransUnion credit bureaus. This can help you build your credit history.
You’ll need to pay a monthly fee of $7.99 for a Neo Build membership to qualify for this card. However, this fee is waived if you hold at least $5,000 in your Neo Everyday, Neo Savings, or Neo High-Interest Savings accounts.
Secured credit cards vs cash advance apps
| Feature | Secured credit cards | Cash advance apps |
|---|---|---|
| Loan amount range | Up to $10,000 | $20 – $750 |
| Repayment period |
| Next pay cycle or flexible |
| Interest and fees |
|
|
| Credit building | Yes | Some apps report payments to the credit bureaus, but not all apps do |
| Deposit requirements | Yes. The amount you deposit as security will become your credit limit. This amount will be refunded if you pay off your outstanding balance and close your account. | $0 |
| Eligibility criteria |
|
|
| Credit check requirements | Most cards require a credit check | No credit checks |
| Application process |
|
|
| Funding speed | Approx. 2-15 business days |
|
Cost example: Leah needs to cover a $200 tire repair
Leah is a full-time student in Ontario and needs $200 to replace a tire on her car. All her income is already being put towards essential expenses, so Leah will have to borrow money to cover the cost. She knows that her lack of credit history will make it hard to qualify for funding from a bank, and she wants to avoid taking on the very high cost of a payday loan.
So Leah decides to compare a cash advance app with a secured credit card. As you can see in the table below, a cash advance app offers faster access to funds, plus a longer interest-free repayment period. The secured credit card allows Leah to spread her repayments over a much longer period if required, but if she wants to avoid paying interest, she’ll need to pay the money back in the first 21 days.
| Cash advance app (Nyble in this example) | Secured credit card | |
|---|---|---|
| Amount | $200 | $200 |
| Turnaround time | 3 business days | 7 business days |
| Fees | $0 | $0 |
| Interest | 0% | 19.99% (or 0% if repaid in the 21-day interest-free grace period) |
| Repayment period | 30 days, can be extended with no charges | 21 days (to avoid interest) |
| Credit building | Yes | Yes |
Bottom line
The Neo secured credit card is just one of several options if you need to build credit or access a small loan amount. It’s well worth comparing the Neo card with other secured credit cards, plus interest-free cash advance apps, to find credit that suits your requirements.
Frequently asked questions
Sources
More resources on Finder
More guides on Finder
-
Tangerine Credit Cards – Get an $200 Gift Card
Finder | Tangerine credit cards March promotion.
-
Neo Secured Mastercard review
The Neo secured card has made waves across Canada, but is it worth the buzz? Find out in our review.
-
Neo Mastercard review
Shop with partners retailers to earn accelerated cashback with the Neo Mastercard.
-
No credit check credit cards
Despite your credit history, it is possible to get a credit card without a credit check. Here’s how.
-
6 best credit cards for fair credit in Canada
Check out the best credit cards for fair credit, and learn how a fair credit score of 560-659 can impact your card options.
-
US dollar credit cards in Canada
Do you travel, work or spend money in the US frequently? Find out if a US dollar credit card is the right fit for you.
-
Using a credit card internationally
Going abroad and wondering whether you can use your credit card while travelling? Here’s the lowdown on credit cards vs. cash, fees, and which cards to get.
-
What’s the best credit card for kids & teens under 18 years old?
Find out how old you have to be to get to get a credit card for teens in Canada, and learn how your child can qualify if they’re under 18.
-
Best credit cards in Canada with instant approval
Find out how you can apply for an instant approval credit card in Canada and get a response within 60 seconds.
-
Guaranteed Approval Credit Cards & Alternatives
Compare guaranteed approval credit cards for bad credit in Canada and learn how to qualify for a card.