If you’re trying to build or rebuild your credit and need a new credit card, you might consider applying for the Neo secured credit card. This credit card is designed to reward Canadian for their daily spending.
With a secured card, you’ll need to pay for the privilege of having it. When you do that, it’s considered a loan and will be reported to the three major credit bureaus. If you pay on time and avoid going over your limit, this can help improve your credit history faster.
Here’s everything you need to know about the Neo secured credit card.
Key card details
- No annual fee
- Earns cashback on everyday spending
- 15% welcome bonus on first purchase
- Guaranteed approval for all Canadians
- $50 security funds
- Apply through this secure link for a $35 cash back rebate
Neo Secured Credit Card Benefits
1. No annual fee
One of the biggest benefits of this card is that it comes with no annual fee. When you have a card with no annual fee, you’ll be able to use it and not worry about paying extra fees or adding to an already-large balance.
2. Guaranteed approval
If you’ve been denied credit cards in the past, you may find that the neo secured card is a good option.
With this card, it doesn’t matter what your current credit score is—you can apply. The card is designed to help people build good financial habits and establish a solid payment history to improve their chances of being approved for other forms of credit down the road.
3. No hard credit check
The Neo secured credit card is great because it won’t ruin your chances of getting a better card in the future. With a secured credit card, you deposit money into an account and use that as collateral for your line of credit. The amount you deposited depends on how much you want to be approved for — if you put down $500, then you’ll have $500 available to spend on the card until it runs out.
Here’s where things get interesting: since this is technically considered “payment in advance,” there’s no hard inquiry on your credit score! That means taking out a secured credit card is like paying cash instead of using plastic.
4. Cash back rewards
Cash back rewards are a great way to earn money on everyday purchases. On top of that, they encourage spending. The Neo secured card offers 15% cash back rewards for new cardholders on their first purchase. After that, you’ll earn 5% cash back at Neo partner stores and 1% on every other purchase
Downsides of Neo Secured Credit Card
1. No insurance coverage
One of the major drawbacks of this card is that it offers no insurance coverage. In reality, most secured credit cards do not offer any insurance coverage.
2. Limit on earning rewards
The rewards with the neo secured card are capped at $5000 per month. After that, you won’t earn any cash back from purchases.
In conclusion
Neo is a great way to get started with credit cards. If you’re new to the world of credit cards or just want something basic, then Neo secured credit card can help you build your credit history quickly and easily.