Neo Secured Mastercard®
4.5/5
Card Details
Interest Rates
Purchase: 19.99% - 29.99%□
Cash Advance: 22.99% - 31.99%□
□ Cash advance rate for Quebec residents is 22.99% - 25.99%
Annual Fee
$60
Annual Income
Personal: N/A
Household: N/A
Credit Score Estimate
Welcome Bonus
N/A
Card & Reward Type
Card Type: Secured Credit
Reward Type: Cash Back
Our Rating
4.5/5
Institution
Neo Financial
Rewards
- 1% cash back on grocery purchases up to $500 spending per month (3% cash back with $5k in a Neo everyday account, and 4% cash back with $10k in a Neo everyday account) - drops to the 0.5-1% cash back tier after hitting spend cap
- 1% cash back on gas purchases up to $500 spending per month (3% cash back with $5k in a Neo everyday account, and 4% cash back with $10k in a Neo everyday account) - drops to the 0.5-1% cash back tier after hitting spend cap
- 0% cash back on all other purchases with $0 in a Neo everyday account, or 0.5% cash back with $5k in a Neo everyday account up to $1,667 spending per month, or 1% cash back with $10k in a Neo everyday account up to $1,667 spending per month - drops to 0% cash back again after hitting spend cap
- +5% earned on average at Neo Partners.
Note: our reward calculations use the base cash back rates assuming you do not hold any money in a Neo everyday account to earn the higher tier (boosted) cash back rates, otherwise the reward estimates may be higher.
Insurance & Benefits
No insurance coverage information available for this card.
Benefits
Details
Neo Premium ($4.99/month)
optional.svg)
Neo Travel Benefits ($4.99/month)
optional
Neo Food Cashback boost ($1.99/month)
optional
Neo Mind and Body Perks ($9.99/month)
optional
Pros & Cons
Pros
- The minimum deposit requirement is only $50, making it accessible to all consumers
- High cashback rates of up to 5% on average at Neo Partners
Cons
- Interest rate could go really high for some customers
- A monthly fee of $5
Neo Secured Mastercard® Review
The Neo secured credit card is Canada's Best Secured Credit Card, voted by the FinlyWealth Team. The card offers so much more than other secured credit cards, making it a no-brainer if you are looking for a secured credit card option.
The Rewards
One important thing about Neo Secured card is that it offers cashback rewards. If you compare the rewards to the other cards, you will find the reason this card has an excellent reward score.
Because other secured cards don't offer rewards on your purchases, this fact alone would make the card much better than the other cards already.
The Neo reward system is a bit different than standard credit cards.
In summary, Neo will give you cashback when you purchase from its partners. The rate could differ from partner to partner, and the rate could be anywhere from 1% all the way up to 15%.
If you buy at a Non-Neo partner and the merchant is a gas or grocery store, you will receive 1% cashback at the very least. This can go higher depending on the amount of deposit you hold in your Neo Everyday Account.
You will not earn any cashback on non-Neo partners (Except Gas and Groceries) unless you hold at least $5k in your Neo Everyday Account.
Even though the system is complicated, the reward rates are exceptionally good for a secured card because you will gain nothing with other Secured credit cards.
Approval
Because this is a secured card, Neo mentions that they instantly approve everyone. This is true for the majority of people, but there have been some rare cases reported that the approval was not instant, but that should not be of concern.
One other important note about Neo is that the deposit you can put in only starts with $50 whereas other secured cards require a much higher rate. This lower deposit requirement would help everyone get the secured card, without the need of locking a huge deposit.
2 Benefits of the Neo Secured Credit Card
1. Reports to both TransUnion and Equifax
This way your credit score will be updated on both credit bureaus as a result of your Neo secured card activity, and therefore, help to boost your score in the eyes of lenders that may pull from multiple credit bureaus.
2. Option to buy benefits and perks
Other no-annual fee-secured credit cards don't offer many benefits. The ones with annual fees have a few extra benefits, but the price paid to access them is usually not justifiable.
One of the unique things about the Neo Secured Credit card is that it allows you to buy the perks that you think are the most useful to you for a monthly fee. The best part is that after you are done using a specific perk, you can cancel the subscription to that specific perk.
To give you a quick glance at the five perks, here is a summary:
Premium ($4.99/Month):
Boosts cashback rate, get cashback on all non-Neo partners, Priority Support, Purchase protection and extended warranty, and group life insurance.
Travel ($4.99/Month):
Lounge access pass, complimentary lounge access in case of a flight delay, boosted cashback on hotel and foreign transactions, and comprehensive travel insurance.
Food and Drink ($1.99/Month):
Boosted cashback (1.25x) at partner restaurants, cafes and bars, and food delivery apps.
Mind and body ($9.99/Month):
Boosted cashback (1.25x) on wellness services and products, free classes at Oxygen Yoga and Fitness, FitOn Pro, and Headspace Plus.
Mobile & Personal Protection ($9.99/Month):
Damage and Theft protection for mobile, $1 million dollar coverage for fraud and identity theft.
1 Downside of the Neo Secured Card
Maybe the only and biggest downside Neo Secured Mastercard has compared to the other secured cards is the $5 monthly fee ($60 annually).
Most people struggling to build their credit or have a poor credit history and are tackling debt might be unwilling to pay an additional $5 out of pocket every month for a secured credit card.
Final Verdict
If you are looking for a secured credit card, the Neo card should be your go-to option.
The only exception would be if you really want your credit score to be reported to Equifax. In those cases, you have to think whether the rewards and advantages of Neo are worth giving up in favor of reporting or not.