This post covers Neo Financial secured card review and goes over its offerings and how to apply for it.
If you’re looking for a credit card but don’t have the best credit history, you may want to consider a secured card. Secured cards are designed for people who are looking to rebuild or establish credit.
Luckily, Canadians have a number of secured card options to choose from. But if you want a secured card that can help you improve your credit score and also earn you rewards on purchases, one of the best options is the Neo Financial Secured Mastercard.
In this Neo Financial Secured card review, I will cover what you can expect from this card, before giving my final thoughts on it. Keep reading if you’re interested in seeing how this card stacks up against others.
Overview of Neo Financial
Neo Financial is a Canadian FinTech company that offers credit cards and a high-interest savings account.
It uses technology to offer better services to its customers, including free-spending notifications, instant cashback, etc.
The company was founded in 2019 with its headquarters in Calgary, Alberta, Canada. Since then, they’ve quickly become one of the leading fintech companies in Canada.
They’re on a mission to create a new financial experience that helps Canadians make sense of their money and provides tools to help them achieve their life goals.
You can apply for a Neo Card or Neo Secured Mastercard online within minutes, while the high-yield savings account can also be opened through your mobile phone in just a couple of minutes.
All accounts have no monthly or annual fees and offer notifications for savings or spending, meaning you’ll always know where you stand financially.
What are Secured Cards?
A secured card is a credit card that is backed by a security deposit, which is usually equal to your credit limit. The deposit reduces the risk to the issuer, and in turn, allows consumers with poor or no credit history to be approved for a card.
Secured cards are a great way for people to establish or rebuild their credit history. Check here for the best secured card offerings in Canada.
What is Neo Financial Secured Mastercard?
The Neo Financial Secured Mastercard is one of the most flexible secured cards in Canada. You can use it as a digital card (virtual) or as a physical credit card.
The card is designed for people with no or poor credit who are looking for a way to build their credit scores, as well as for people who are unable to obtain an unsecured credit card.
Neo Financial Secured Mastercard guarantees approval and does not conduct a hard credit check, meaning that even people with poor or limited credit can get access to this card.
The idea behind Neo’s secured card is simple: You make a security deposit of at least $50. You then use that money as the limit for your new credit card. This way, there’s no risk on Neo Financial so they can give you the credit card without even checking your credit score.
With the Neo Financial Secured Mastercard, you can get an average of 5% cash back, with no limits, when you shop at several Neo partner stores in Canada. In addition, you’ll also earn 0.5% guaranteed cash back on all other purchases – no caps or limits.
Usually, secured cards don’t pay rewards on purchases. So this cash back reward sets the Neo Secured card apart from all other secured cards in Canada
Neo Financial Secured Mastercard Key Features
- No annual fee: It’s always nice to see a card without an annual fee, but especially so when it’s a secured card. So Neo’s no-fee option is a good choice if you’re looking for a secured card with no strings attached.
- Welcome offer: With this card, you can earn a welcome bonus of 15% cash back on your first purchase at Neo partner stores.
- Rewards: The Neo Financial Secured Mastercard can earn you at least a 5% cash back when you purchase at its partner stores and 0.5% cash back on all your other purchases.
- Interest on purchases: The purchase interest rate on the card is 19.99%-29.99%. This interest rate applies to purchases made on your card.
How Do You Get the Neo Secured Credit Card?
The Neo Secured Credit Card is an easy-to-get secured credit card that can help you build or rebuild your credit.
To get the Neo secured credit card, you must meet the following eligibility:
- Be a Canadian resident
- Reach the age of majority in your province or territory of residence;
- Be willing to provide security funds ($50 minimum)
You can apply for the Neo Secured Credit Card through this link. You’ll need to provide basic personal information, including your name and address.
One thing that makes this card so easy to get is that a hard credit check won’t be conducted before approval.
Therefore, you’re guaranteed approval and only need to put down a minimum security deposit of $50, which will become your credit limit.
Once you make the deposit, it’ll be verified, the card shipped to you and you’ll be able to use it just like any other credit card.
Benefits of the Neo Secured Mastercard
The Neo Financial Secured Mastercard lets you build your credit score and earn rewards at the same time. But its benefits go well beyond that.
Here are some other unique benefits of this card:
No Annual Fee
A secured credit card is a great way to build credit history and start establishing a good score.
However, most secured cards have high annual fees, defeating the purpose of building good credit by spending more money than you ever intended to.
Neo’s secured Mastercard charges no annual fee, meaning you can start rebuilding your credit without paying extra fees.
The Neo Financial Secured Card is a good option if you’ve had problems getting other credit cards.
The Card is one of the few credit cards that’s available to everyone, regardless of their credit history. No hard inquiry is required. Just apply and get approved for the card.
This is one of the few secured credit cards that offer a welcome bonus. After you make your first purchase at Neo partner stores, you get an average 15% cash back.
There’s no minimum spending requirement and no expiry date for this welcome bonus, so it’s well worth getting this card.
No Hard Credit Check
Neo Financial does not issue a hard pull on your credit report when you apply for their secured card.
This makes them an excellent option for rebuilding or establishing credit, as hard pulls can temporarily lower your score by a few points or more.
Cash Back Rewards
The Neo Financial Secured Mastercard is a secured card that offers cash back rewards for your purchases.
With this card, you will get an unlimited cash back reward of an average 5% when you make purchases at Neo Financial partner stores and also get a cash back of 0.5% on all other purchases.
Even better, you’ll be able to redeem the rewards anytime.
Drawbacks of the Neo Financial Secured Card
The Neo Financial Secured Mastercard is a good option for people who are new to credit or in the process of rebuilding their credit.
However, before you apply for the Neo secured card, there are some drawbacks of the card you need to be aware of. Here are some of its drawbacks:
No Insurance Coverage
The Neo Financial Secured Mastercard doesn’t have any insurance included with it. While this is worth noting, you should know that this is a drawback for secured cards in general, and not specific to Neo Financial’s offering.
Limit on Earning Rewards
Using the Neo Financial Secured Mastercard at non-partner locations will earn you a guaranteed 0.5% cash back.
If your cash back is below the 0.5% reward, Neo Financial will top up your rewards. This offer is low when you compare it to other credit secured cards.
High Interest Rates
The Neo Secured Card has a higher interest of 19.99% to 29.99% on purchases, and 22.99%-31.99% on cash advance.
This makes it expensive compared to other secured cards out there.
Neo Financial Secured Card Alternatives
The Neo Secured Credit Card was created to help Canadians get ahead, and help you build credit. But how does it compare to other secured cards?
In the following sections of this Neo Financial secured card review, we’ll check how the Neo Financial Secured card compares to some of the other secured cards in Canada in terms of cashback rewards and annual fees.
Neo Secured Card vs Plastk Secured Credit Card
Both of these cards are great options if you’re looking for a Canadian secured card to improve your credit score. However, they have their differences.
While the Neo Financial Secured Mastercard offers a welcome bonus of 15% cash back, the Plastk Secured Credit Card offers a welcome bonus of 5,000 redeemable points and 0% interest rate on purchases for the first 3 months
The Neo Financial Secured Mastercard credit card doesn’t charge an annual fee, while the Plastk Secured Credit Card has an annual fee of $48 and $6 maintenance fee.
Also, the Plastk card offers a credit limit based on a minimum deposit of $300, whereas with the Neo card you can start for as little as $50.
On the other hand, Plastk Card has a lower interest rate compared to the Neo Financial Secured Mastercard.
It charges an interest rate of 17.99% while the Neo Financial Secured Mastercard has an interest rate of 19.99%-29.99% on purchases and 22.99%-31.99% on cash advances.
The Neo Financial Secured Mastercard is a great choice if you’re looking for a secured card that doesn’t charge an annual fee.
Update: The Plastk Secured Credit Card is no longer available.
Neo Secured Card vs Refresh Financial Secured Card
The Neo Financial Secured Card and the Refresh Financial Secured Card are both great credit-building tools for Canadians looking to reestablish or build their credit.
While both offer many benefits, as well as a way to build one’s credit, they have their differences that may make one card more suitable than the other depending on one’s needs and situation.
The Neo Financial Secured Mastercard has no annual fee while the Refresh Financial Secured Card has an annual fee of $12.95 plus $3.00/month maintenance fee.
The required minimum security deposit for the Refresh Financial Secured Card is $200 while you can get started with a low minimum deposit of just $50 on the Neo Financial Secured Mastercard.
However, in terms of the annual interest rate, the Refresh Financial Secured Card is a better option than the Neo Financial Secured Mastercard.
The annual interest rate on the Refresh Financial Secured Card is just 17.99%, while the Neo Financial Secured Mastercard has an interest rate of 19.99%-29.99% on purchases, and 22.99%-31.99% on cash advances.
Update: The Refresh Financial Secured Credit Card is no longer available.
To be qualified for a Neo Mastercard, you need a credit score of just 600. However, there are no credit score requirements for the Neo Secured card.
Neo Financial is partnered with Concentra and other reputable financial institutions in Canada. Therefore, Neo financial is safe, secure and your funds are protected.
No. The master card offered by Neo Financial is not a prepaid card but a credit card.
You can use your Neo Financial Secured Mastercard anywhere Mastercard is accepted worldwide.
My Neo financial secured card review is positive. The Neo Financial secured credit card is a well-rounded product that is easy to get and use and offers competitive rewards.
It is well-suited for people with a poor credit score or people without a credit history. It has no annual fee and the perks are worthwhile.
You can’t go wrong with this card if you want to get back on your feet with your credit score as you can earn some rewards along the way.
So what are you waiting for? Click on this link to get your card today!
Neo Financial Secured Card Review
Neo Financial Secured Card is well-suited for people with a poor credit score or people without a credit history that are looking to build credit. It also offers competitive rewards.