5 Things to Know About the Secured Neo Mastercard
Nerdy Verdict
Best for:
People who want to build/rebuild their credit with a low security deposit while earning cash back.
Not ideal for:
People who want a no-fee credit-building card or don’t want to lock away a refundable security deposit.
Why we like it:
This is one of the few secured cards in Canada that earns cash back, and its $50 minimum deposit makes it relatively accessible.
The Secured Neo Mastercard is a secured credit card that’s designed to help improve your credit. The card is also a rarity in Canada as it is one of the few secured cards that earns rewards on purchases.
Because of this, it stands out in the secured credit card space. However, there are some fees and things to look out for if you choose to apply. Here are five things that you’ll want to keep in mind.
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This cash-back earning secured card offers 1% back on gas and grocery purchases alongside credit monitoring tools and ATM fee reimbursements. Less appealing is its monthly fee that amounts to near $100 annually. Neo says that you may be able to have the monthly fee waived by maintaining a minimum balance in a Neo Chequing or Neo Savings account, though it doesn’t state what the minimum is. For cash-strapped credit-builders on a budget, the cost of this card could be a dealbreaker. Best for: Anyone building their credit who doesn’t mind paying for some nice-to-have extras.
Pros
- Earns 1% cash back on gas and grocery purchases.
- Credit score monitoring and credit building tools.
Cons
- $7.99 monthly fee.
- Purchase interest rates as high as 29.99%.
- No income or credit score requirements
- Guaranteed, instant approval* with access to your virtual card to start using immediately
- You can be eligible for higher credit limits in as little as 3 months
- Up to 15% boosted cashback at thousands of partners across Canada
- Guided credit building tools with built-in credit score tracking
- Helps build or rebuild your credit history with comprehensive, guided tools
- Start with a $50–$10,000 credit limit
- Be considered for a higher credit limit in as little as 3 months, with no additional security funds needed
- International IDs accepted
- Get started with refundable security funds to set your credit limit
- Track your credit score in the Neo app
- Build your credit history with reporting to both major credit bureaus: Equifax & TransUnion
1. This card can be used to build your credit score
Secured credit cards like the Secured Neo Mastercard can be a great way to build credit if you’ve got a poor credit score or are starting from the ground floor.
Your security deposit acts as your credit limit, and as you continue to spend money and pay it back, Neo reports the activity to both of Canada’s major credit bureaus, Equifax and TransUnion.
Having a bigger deposit can help with credit utilization by keeping it under 30%, but you can’t actually reduce your deposit without taking all of the money out and closing your account.
A small deposit of $50 can be constricting as 30% of that is only $15. What you can do instead is pay off your balance more than once a month rather than waiting for a statement.
2. You’ll start getting charged after 3 months
Building your credit score isn’t totally free — after three months with no fees, you’ll be charged $7.99 per month to hold this card. That would equate to an annual fee of $95.88 per year (or a total of $71.91 for the first year).
Neo offers two ways to skip the charge, but they are largely not meant for people who would need credit building.
Keep $5,000 in your Neo accounts.
Hold a secured World Elite Mastercard.
If you have $5,000 kicking around that you can comfortably just park in a chequing or savings account or can meet the $80,000 personal income requirement for a World Elite Mastercard, this specific credit card won’t be for you.
3. This secured card earns rewards; most others don’t
The Secured Neo Mastercard earns cash back the same way as the regular Neo Mastercard does — 1% back on groceries and gas, as well as eligible partners.
Heads up: there are spending caps on both categories. If you spend more than you’re allowed, your 1% cash back rate will evaporate to 0% for the rest of the month. Both gas and groceries have a hard limit of $500 each per month, and for all other types of purchases, the red line sits at $1,667.
Regardless of the cap, this sets itself apart from other secured cards in the market that don’t earn rewards. And as an added bonus, you can redeem your cash back rewards at any time (minimum $1) to your credit card balance, your chequing account, or for merchandise at the Neo store.
Second heads up: if you close your account, you won’t be able to redeem your cash back rewards!
4. Easy to get access
Secured credit cards are among the easiest to get approval because of the security deposit. The deposit acts as collateral, so Neo isn’t taking on the risk of an unsecured loan.
Neo themselves boast that approval is guaranteed, subject to their eligibility and identity-verification requirements. If you’re not sure, Neo also lets you check what you’re pre-approved for without a hard credit check, so you can decide before fully committing to the application.
Secured Neo Mastercards are also known for their low minimum security deposit of $50, one of the lowest in Canada. This can be compared to some other secured cards, which may have minimum deposits of $500 or more.
5. If you qualify, you may be offered a higher-tier credit card
Neo offers secured credit card options for all of its cards, including the World and World Elite tiers. You may qualify for a more rewarding Neo card with a secured limit if you meet the income requirements.
The minimum security deposit for World Elite cards is $200, which is quite a bit higher, but this can prove useful to help give your credit utilization ratio some breathing room. The World Elite Mastercards also come with higher earn rates, lounge membership (no free passes) and travel insurance coverage.
The catch is that you will need to have a personal income of $50,000 (Neo World Mastercard) or $80,000 (Neo World Elite Mastercard) or a household income of $80,000 (World) or $150,000 (World Elite).
| Card | NerdWallet rating | Annual fee | Rewards rate | Apply Now |
|---|---|---|---|---|
| Neo World Elite® Mastercard* | APPLY NOW on Neo's website | |||
 APPLY NOW on Neo's website | 4.5/5 | $149 Waived first year free | 1%-15% | |
| Neo World Elite® Mastercard* - Everywhere | APPLY NOW on Neo's website | |||
APPLY NOW on Neo's website | 4.5/5 | $149 Waived first year free | 2% | |
| Neo World Elite® Mastercard* - Gas & Grocery | APPLY NOW on Neo's website | |||
APPLY NOW on Neo's website | 4.5/5 | $149 Waived first year free | 1%-5% | |
| Neo World Elite® Mastercard* - Shop & Dine | APPLY NOW on Neo's website | |||
APPLY NOW on Neo's website | 4.5/5 | $149 Waived first year free | 1%-5% | |
| Neo World Mastercard®* | APPLY NOW on Neo's website | |||
 APPLY NOW on Neo's website | 4.6/5 | $0 | 0.5%-15% | |
Other cards to consider
You don’t have many options for secured credit cards, so here are three popular options with slight advantages in some areas.
Choose the Home Trust Secured Visa if you anticipate carrying a balance. For $59 per year, you can get a reduced 14.9% interest rate instead of the standard 19.99%. Note that this card doesn’t come with any rewards, and the reduced interest rate is optional.
Choose the Neo World Mastercard (Everywhere variant) if you want to earn unlimited cash back on all purchases. You will need a personal income of $50,000 to qualify, though. You can also switch to this or any other unsecured credit card through your app or online. Just note that you’ll be subject to a hard credit check.
Choose the Capital One Guaranteed Secured Mastercard if you don’t want to pay any monthly or annual fees. Note this card does not come with any rewards, but it does come with insurance, including a helpful price protection service.
| Card | NerdWallet rating | Annual fee | Apply Now |
|---|---|---|---|
| Home Trust Secured Visa Card | APPLY NOW on Home Trust's website | ||
 APPLY NOW on Home Trust's website | 2.8/5 | $59 | |
| Neo World Mastercard®* - Everywhere | APPLY NOW on Neo's website | ||
APPLY NOW on Neo's website | 4.6/5 | $0 | |
| Capital One Guaranteed Secured Mastercard | |||
 | 3.8/5 | $0 | |
Conclusion
This card currently sits atop the rest on the list of the best secured credit cards in Canada, and with good reason. Its easy approval and low minimums makes it accessible to virtually anyone, and the earn rates are surprisingly strong.
However, the downsides bring the card back down to Earth. You’ll need to pay almost $100 in fees annually, won’t be able to get any of your deposit back without cancelling the card and lose access to rewards if you blow past the spending caps.
The main tradeoff is that the low barrier to entry and all of the rewards are locked behind a $7.99/month paywall. However, if you’re rebuilding your credit by carrying small balances and always paying them on time, it can bridge the gap between your first card and your forever card.
Nerdy Verdict
Best for:
People who want to build/rebuild their credit with a low security deposit while earning cash back.
Not ideal for:
People who want a no-fee credit-building card or don’t want to lock away a refundable security deposit.
Why we like it:
This is one of the few secured cards in Canada that earns cash back, and its $50 minimum deposit makes it relatively accessible.
DIVE EVEN DEEPER
Helen Burnett-Nichols