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Neo Financial has two credit cards in its lineup: the Neo Credit card and Neo Secured Credit card. Both earn cash back and have no annual fees.
Best Neo credit cards in Canada
Neo Credit
Pros
- High average cashback rate of 5%.
- No annual fee.
Cons
- Perks can be added, but for a fee.
- Purchase interest rate can reach as high as 29.99%, and cash advance rate can reach 31.99%.
- No annual fees.
- Earn instant unlimited cashback at thousands of partners that you can save for later or use immediately.
- Earn an average of 5% cashback at 10,000+ partners across the country.
- Pay with Neo Credit to earn cashback. Then split the bill in the app to send multiple Interac e-Transfer® requests instantly. The payments will be directly deposited into your Neo Everyday account.
- Cash out the cashback you’ve earned with Neo Credit to a Neo Everyday account to take advantage of one of the highest everyday interest rates.
- Depending on plan (base or premium), customers can earn up to 6% on restaurants and bars, 4% on apps like DoorDash and Disney+, 3% on gas and groceries, and 0.5% on all other purchases.
Neo Secured Credit
Pros
- A small $50 minimum deposit makes this card accessible to consumers of all budgets.
- High average cashback rate of 5%.
Cons
- Interest rates could be as high as 29.99% for some users.
- Build credit history with on-time payments.
- Set your credit limit and get started with as little as $50.
- Guaranteed approval with no credit score needed to apply.
- 0.5% guaranteed monthly minimum cashback.
- No monthly or annual fees.
- Depending on plan (base or premium), customers can earn up to 6% on restaurants and bars, 4% on apps like DoorDash and Disney+, 3% on gas and groceries, and 0.5% on all other purchases.
- Personalized Insights AI generates tailored information and recommendations designed specifically for you.
What to know about Neo Financial’s credit cards
Neo Financial is a newcomer to the Canadian financial services landscape. Founded in 2019, the digital bank has a handful of products in its roster, including credit cards, mortgages, a hybrid high-interest bank account and an investment platform.
Neo’s credit card offerings are limited to two cash-back cards: the Neo Credit card and the Neo Secured Credit card. Cardholders pay no annual fees for the base plan. However, a premium plan is also available that offers higher cash-back rates and other bonuses for a monthly fee. Cardholders can also customize their card with add-on perks like additional cash-back rates in certain categories, travel insurance coverage and more.
Common Neo credit card features
The Neo Credit card and the Neo Secured Credit card have plenty in common.
Up to 5% cash back on certain spending.
Neo cardholders receive up to 5% cash back on spending at participating restaurant and bar partners, and up to 3% cash back on streaming, ride-sharing and food-delivery services.
Purchase interest rates start at 19%.
Neo credit cards carry purchase interest rates of 19.99% to 29.99% and cash advance rates of 22.99% to 31.99%, as of this writing.
No annual fees.
Neither of Neo’s credit cards charge an annual fee — for the base plan.
Optional premium plan.
For $4.99 a month, cardholders can boost their cash-back rates and add features like purchase protection, group life insurance and credit score monitoring.
Customizable add-on perks.
Perks, like bonus cash-back rates at gyms, mobile device insurance coverage and more, are available as separate add-on subscriptions. Perks cost $4.99 to $9.99 per month each and can be added to the base or premium plans. For example, the “travel” perk includes 2% cash back on foreign transactions, airport lounge access and travel insurance coverage, and costs $4.99 per month.
Pros and cons of Neo credit cards
Pros
- Up to 5% cash back with base plan. Receive cash-back rewards of up to 5% on purchases at restaurants and bars.
- Optional customizations. Upgrade to premium or add perks to tailor the card to your life and spending.
- No annual fee. Enjoy the cash-back rewards of a Neo Credit or Neo Secured Credit card and pay no annual fee (though premium benefits and perks come with fees).
Cons
- Limited cash-back partners. Cash-back rewards are limited to eligible purchases made with Neo retail partners, and this list doesn’t appear to be public, which means you can’t check it before applying for the card.
- Potentially high interest rates. Purchase interest rates for Neo credit cards reach as high as 29.99%.
- Fees could add up. While there’s officially no annual fee for Neo credit cards, adding premium features or perks could eat into your cash-back rewards.
How to earn cash back with a Neo credit card
Cardholders earn cash back by making purchases from retailers on the Neo reward network. Eligible cash-back rewards appear instantly in your Neo account.
Cash-back rates vary by retail partner and spending category. With the base plan, you’ll earn:
- 1% on gas and groceries.
- 2% on retail purchases.
- 3% on streaming, ride-sharing and food-delivery services.
- Up to 5% on restaurants, cafes and bars.
Neo retail partners
To see Neo’s retail partners, you’ll need to log into the Neo app and check the “Rewards” or “Discovery” pages.
How to redeem cash-back rewards
Neo cash-back rewards can be redeemed at any time via the following methods:
- Neo bank account. Move your cash-back rewards to your Neo Money account to earn interest on your funds.
- Neo credit card balance. Apply accumulated cash back to your Neo credit card balance.
- Neo online store credit. Use your cash-back rewards for purchases through Neo’s online store.
How to compare Neo Financial credit cards
The Neo Credit card is a standard card, while the Neo Secured Credit card — as the name suggests — is a secured card. Secured credit cards require a cash deposit to open and may offer guaranteed approval. These cards report to Canadian credit bureaus, so they can help improve your credit score if used responsibly.
The Neo Secured Credit card requires a cash deposit, which becomes your credit limit. Approval for the Neo Secured Credit card is guaranteed. No cash deposit is needed for the standard Neo Credit card, but approval isn’t guaranteed.
Outside these differences, the Neo Credit and Neo Secured Credit cards are almost indistinguishable. Both charge no annual fees, offer cash-back rewards and allow you to add perks and premium benefits for a fee.
Who should consider a Neo credit card?
Anyone seeking a no-fee credit card that earns cash-back rewards may want to explore Neo’s card offerings. A Neo Credit or Neo Secured Credit card will be an even more convenient fit for those who frequently shop at Neo’s retail partners, as they will be best positioned to squeeze more value from Neo’s cash-back rewards program.
People who are building or rehabilitating their credit may be better suited to the Neo Secured Credit card.
How to apply for a Neo Financial credit card
To be eligible for a Neo Financial credit card, you must be a Canadian resident and at least the age of majority for your province or territory. To qualify for the Neo Secured Credit card, you must also provide a security funds deposit.
To apply for one of Neo’s credit cards, you must create a Neo profile by entering your email address, phone number and password. As part of the account verification process, you must confirm your phone number and email address.
Once your account is verified, select the Neo Credit card or Neo Secured Credit card to begin the card application process.
You’ll be asked to enter your personal information, like your full name and residential address, and information about your finances, like your monthly housing costs, annual income and more.
Neo Financial credit card alternatives
A Neo credit card won’t be suitable for everyone. Those who prefer to earn retailer or airline rewards points may want to explore rewards credit card options. Those who frequently travel may prefer a travel credit card with built-in insurance coverage.
Even if you have your heart set on cash-back rewards, there are numerous cash-back cards on the market that may be worth a look. Compare your options by features, fees and interest rates to find the credit card that best fits your lifestyle and spending habits.
Frequently asked questions about Neo credit cards
Yes, you can withdraw cash from an ATM using your Neo Credit or Neo Secured Credit card. Doing so is considered a cash advance and is subject to a $2.50 to $5 fee per transaction. Cash advances are also subject to interest rates of 22.99% – 31.99%, and there is no interest-free grace period on cash advances, as of this writing.
The Neo Money™ Card is a hybrid debit card that earns cash-back rewards and generates 1% interest on deposited funds.
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