Quick overview
The Neo Secured Credit Card stands above other secured credit cards with its no annual fee, low ($50) minimum security deposit (making it highly accessible), yet still finds a way to offer a cash back rewards program offering up to 5% cash back on purchases.
However, it's important to note that it only reports to TransUnion, not Equifax. As you build up your credit and look to move into unsecured credit cards, you may run into problems depending on which future lender prefers. Also, if there are errors or fraud, using both bureaus will help mitigate any problems with massive variations in your credit score.
Who’s the Neo Secured Credit Card for?
This card is designed for people starting to build credit or looking to rebuild it. Its low deposit requirement and no annual fee are great. If you're keen on earning rewards while building credit, this card's cashback feature adds a layer of benefit not commonly found in secured cards.
Pros and cons
Pros
-
No annual fee
-
Low minimum security deposit
-
Cash back rewards on purchases
-
Instant approval regardless of credit score
Cons
-
Only reports to TransUnion
-
High APR range
Welcome bonus
- Up to 15% cash back on first purchases with select Neo partners including Amazon, Canadian Tire, Loblaws and Netflix (see all partners in the Neo app)
How to earn points
Neo offers a basic free plan and a paid premium plan for $4.99 per month. The extra money paid means you can earn more cash back.
After spending $300 in any category in a month, your cash back is capped. However, your cash back will never fall below 0.5% total.
So long as you’re spending at least $165 on restaurants, cafes, good delivery, gas or groceries per month (at 3%-6% cash back), then the card cost is covered. If you spend less, you may want to go with the basic card.
| Feature/Plan | Basic (Free) | Premium ($4.99 CAD/mo) |
|---|---|---|
| Plan overview | Everyday spending more rewarding | More cash back, exclusive perks and features |
| Annual fee | Free | $4.99 CAD/month (first 3 months free) |
| Cash back on gas and grocery | 1% | 3% |
| Monthly minimum cash back | 0.5% | 0.5% on everything else |
| Cash back at Neo partners | Exclusive offers | Boosted exclusive offers |
| Restaurants, bars, cafes | 5% average cash back | 6% average cash back |
| Streaming services | 3% | 4% |
| Ride sharing services | 3% | 4% |
| Food delivery services | 3% | 4% |
| Retail partners | 2%+ (online and in-store) | 3%+ (online and in-store) |
| Additional features | Personalized AI insights (coming soon), Digital card, Cash back at partners | All basic features, Credit score monitoring, $2,500 group life insurance, 24/7 legal assistance, Purchase protection with extended warranty, Priority support |
Key benefits
- Cashback rewards program
- Low minimum security deposit requirement
- Instant approval with no credit score impact
Insurance coverage
- Purchase protection: 90 days after the date of purchase for any item purchased with the card that is lost, stolen or damaged.
- Extended warranty: One full year following the expiry of the applicable Manufacturer’s Warranty
- $2,500 group life insurance: In case of death
Extra benefits
- Real-time spending notifications
- Ability to adjust credit limit
How this card compares
Neo Secured Credit Card vs. Home Trust Secured Visa
The Neo Secured Credit Card, with its no annual fee and low deposit requirement, is more accessible compared to the Home Trust Secured Visa, which requires a $500 minimum deposit. However, Home Trust reports to both TransUnion and Equifax, offering broader credit building compared to Neo's reporting only to TransUnion.
Neo Secured Credit Card vs. Capital One Guaranteed Secured Mastercard
Compared to the Capital One Guaranteed Secured Mastercard, the Neo Secured Credit Card offers more flexibility with its lower deposit requirement and the added benefit of cashback rewards. Capital One's card, however, might be more suitable for those who prefer a card that reports to multiple credit bureaus.
Is the Neo Secured Credit Card worth it?
For those starting out or rebuilding credit, this card offers a unique advantage with its rewards program and low entry barrier. However, if your goal is to build credit across multiple bureaus, you might want to consider other options since it only reports to TransUnion.
FAQs
Tyler Wade has worked in personal finance for over 5 years writing for brands like Ratehub, Forbes, KOHO, and now Money.ca.
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