Best Neo Financial Credit Cards in Canada for 2024
Aug 2, 2024Its card lineup is limited, but this digital bank offers elevated cash-back rewards and customizable add-on perks.
Neo Financial has two credit cards in its lineup: the Neo Mastercard card and Secured Neo Mastercard card. Both cards earn cash back rewards.
Best Neo credit cards in Canada
Rewards breakdown
Rewards breakdown
NerdWallet's take
NerdWallet's take
Card details
Card details
Rewards breakdown
Rewards breakdownNerdWallet's take
NerdWallet's takeCard details
Card detailsWhat 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 Mastercard card and the Secured Neo Mastercard card. Cardholders pay no annual fees for the Neo Mastercard‘s 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 Mastercard card and the Secured Neo Mastercard card have plenty in common.
Up to 4% cash back on certain spending.
Neo cardholders receive up to 4% cash back on spending on gas and groceries, and up to 1% cash back on everything else.
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.
Optional premium plan.
For $9.99 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 $1.99 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 4% cash back with base plan. Receive cash-back rewards of up to 4% on purchases at gas stations and grocery stories.
Optional customizations. Upgrade to premium or add perks to tailor the card to your life and spending.
Low annual fee. Enjoy the cash-back rewards of a Neo Mastercard or Secured Neo Mastercard card and pay a max of $5/month in fees (though premium benefits and perks come with additional monthly 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. Though the Neo Mastercard does not charge an annual fee, 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:
4% on gas.
4% on groceries.
1% on all other purchases.
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 Mastercard card is a standard card, while the Secured Neo Mastercard 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 Secured Neo Mastercard card requires a cash deposit, which becomes your credit limit. Approval for the Secured Neo Mastercard card is guaranteed. No cash deposit is needed for the standard Neo Mastercard card, but approval isn’t guaranteed.
Outside these differences, the Neo Mastercard and Secured Neo Mastercard cards are almost indistinguishable. Both 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- or low-fee credit card that earns cash-back rewards may want to explore Neo’s card offerings. A Neo Mastercard or Secured Neo Mastercard 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 Secured Neo Mastercard 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 Secured Neo Mastercard 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 Mastercard card or Secured Neo Mastercard 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
Can I withdraw money from a Neo credit card?
Can I withdraw money from a Neo credit card?
Yes, you can withdraw cash from an ATM using your Neo Mastercard or Secured Neo Mastercard 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.
Is there a Neo debit card?
Is there a Neo debit card?
The Neo Money™ Card is a hybrid debit card that earns cash-back rewards and generates 0.1% interest on deposited funds.
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