Quick overview
The Neo Secured Mastercard is a secured credit card with a $5 monthly fee, low ($50) minimum security deposit (making it highly accessible) and reports to both TransUnion and Equifax.
So, as a secured credit card, it starts solid and gets even better with cash back rewards.
It's a tiered earning system where the more money you have on the card, the more you'll get in cash back rewards—all the way up to 4% cash back on gas and groceries and 1% on everything else.
Who’s the Neo Secured Mastercard for?
This card is designed for people starting to build credit or looking to rebuild it. Its low deposit requirement is 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
-
Low minimum security deposit
-
Cash back rewards on purchases
-
No hard credit check
Cons
-
High APR range
-
$5 monthly fee
-
Best cash back offer requires high balance
How to earn cash back with Neo Secured Mastercard
For $5 monthly fee, you can start building your credit history and harness the potential to earn cash back for your everyday purchases.
Cash back for the highest earn rates is capped yearly at $6,000 per year on groceries and $10,000 per year on gas. Finally, you get $30,000 per year on everything else.
Now, here's where it gets a bit tricky, but I'm here to simplify.
You earn 4% on gas and groceries and 1% on everything else with when you have $10,000 in your Neo Everyday Money account (like your chequing account).
If you have $0 in your bank account (Neo Everyday Money), you earn 2% on gas and groceries and, well, nothing else (or 0% on your other purchases).
Of course, it's a range. So to simplify even further, I'll create a table. Scroll to the right to see all the ranges.
| Neo Secured Mastercard cash back earn rates | $0 in your account | $1,000 in your account | $3,000 in your account | $5,000 in your account | $10,000 in your account |
|---|---|---|---|---|---|
| Gas | 1% | 1.5% | 2% | 3% | 4% |
| Groceries | 1% | 1.5% | 2% | 3% | 4% |
| Everything else | 0% | 0.5% | 0.5% | 1% | 1% |
Key benefits
- Cashback rewards program
- Low minimum security deposit requirement
- Instant approval with no credit score impact
Insurance coverage
The Neo Secured Mastercard does not include any travel or purchase insurance. You can opt to pay $1.39 per $100 of your average daily balance for credit balance protection.
However, if you were unable to pay your credit card due to a sudden illness or injury, you may want to explore critical illness insurance instead for the lump sum benefit and cash payment that goes to you instead of the provider.
Extra benefits
- Real-time spending notifications
- Ability to adjust credit limit
How the Neo Secured Mastercard compares
Neo Secured Mastercard vs. Home Trust Secured Visa
Home Trust Secured Visa*
Good
Suggested credit scoreNo annual fee
The Neo Secured Mastercard, with its low deposit requirement, is more accessible compared to the Home Trust Secured Visa, which requires a $500 minimum deposit.
Pros
-
Reports to credit bureaus every month, helping to quickly build your credit rating.
-
Requires a $500 minimum deposit, with the credit limit scaling on a 1:1 basis all the way up to $10,000.
-
High approval rate
-
Monthly credit reporting to major credit agencies every month, expediting the credit repair or improvement process
-
Low foreign transaction fee
-
Cardholders get a 21-day no-interest grace period
-
Low monthly minimum payment options; pay either the greater of $10 or 3% of the monthly balance.
Cons
-
Standard interest rate although, if you opt for the annual fee version of the card, it comes down
-
No rewards or perks
-
Charges a monthly inactivity fee of $12 if the card is not used for a period of 12 months.
-
Despite a high approval rate, there are still chances of being denied based on deal-breaking factors
-
No welcome bonus offer as it is designed for credit building
Eligibility
Good
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Recommended Credit Score
Good
Required Annual Personal Income
$0
Required Annual Household Income
$0
19.99%
Purchase APR
19.99%
Balance Transfer Rate
19.99%
Cash Advance APR
$0
Annual Fee Opt for $59 annual fee and pay 14.90% APR interest
2.5%
Foreign Transaction Fee 2.5% of the transaction in CDN
Purchase APR
19.99%
Balance Transfer Rate
19.99%
Cash Advance APR
19.99%
Annual Fee
$0
Foreign Transaction Fee
2.5%
The Neo Secured Mastercard, with its low deposit requirement, is more accessible compared to the Home Trust Secured Visa, which requires a $500 minimum deposit.
Pros
-
Reports to credit bureaus every month, helping to quickly build your credit rating.
-
Requires a $500 minimum deposit, with the credit limit scaling on a 1:1 basis all the way up to $10,000.
-
High approval rate
-
Monthly credit reporting to major credit agencies every month, expediting the credit repair or improvement process
-
Low foreign transaction fee
-
Cardholders get a 21-day no-interest grace period
-
Low monthly minimum payment options; pay either the greater of $10 or 3% of the monthly balance.
Cons
-
Standard interest rate although, if you opt for the annual fee version of the card, it comes down
-
No rewards or perks
-
Charges a monthly inactivity fee of $12 if the card is not used for a period of 12 months.
-
Despite a high approval rate, there are still chances of being denied based on deal-breaking factors
-
No welcome bonus offer as it is designed for credit building
Eligibility
Good
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Recommended Credit Score
Good
Required Annual Personal Income
$0
Required Annual Household Income
$0
19.99%
Purchase APR
19.99%
Balance Transfer Rate
19.99%
Cash Advance APR
$0
Annual Fee Opt for $59 annual fee and pay 14.90% APR interest
2.5%
Foreign Transaction Fee 2.5% of the transaction in CDN
Purchase APR
19.99%
Balance Transfer Rate
19.99%
Cash Advance APR
19.99%
Annual Fee
$0
Foreign Transaction Fee
2.5%
Neo Secured Mastercard vs. Capital One Guaranteed Secured Mastercard
Capital One Guaranteed Secured Mastercard®
Poor
Suggested credit scoreto receive the latest news, tips and offers by email
Compared to the Capital One Guaranteed Secured Mastercard, the Neo Secured Mastercard offers more flexibility with its lower deposit requirement and the added benefit of cashback rewards.
Pros
-
Guaranteed approval for those with weak credit
-
Helps build or repair credit history with responsible use
-
Low annual fee
-
Purchase and travel benefits for available for those who qualify for the unsecured card version
Cons
-
High interest rate
-
Limited extra features for secured cards
-
Security funds are required for the secured version
Eligibility
Poor
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Recommended Credit Score
Poor
Required Annual Personal Income
$0
Required Annual Household Income
$0
21.9%
Purchase APR
21.9%
Balance Transfer Rate
21.9%
Cash Advance APR
$59
Annual Fee
Purchase APR
21.9%
Balance Transfer Rate
21.9%
Cash Advance APR
21.9%
Annual Fee
$59
Compared to the Capital One Guaranteed Secured Mastercard, the Neo Secured Mastercard offers more flexibility with its lower deposit requirement and the added benefit of cashback rewards.
Pros
-
Guaranteed approval for those with weak credit
-
Helps build or repair credit history with responsible use
-
Low annual fee
-
Purchase and travel benefits for available for those who qualify for the unsecured card version
Cons
-
High interest rate
-
Limited extra features for secured cards
-
Security funds are required for the secured version
Eligibility
Poor
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Recommended Credit Score
Poor
Required Annual Personal Income
$0
Required Annual Household Income
$0
21.9%
Purchase APR
21.9%
Balance Transfer Rate
21.9%
Cash Advance APR
$59
Annual Fee
Purchase APR
21.9%
Balance Transfer Rate
21.9%
Cash Advance APR
21.9%
Annual Fee
$59
Is the Neo Secured Mastercard worth it?
For those starting out or rebuilding credit, this card offers a unique advantage with its rewards program and low entry barrier. Its cash back rewards is an awesome perk. And with the Neo Everyday account, you'll also earn extra cash back at Neo Partners you can find in their easy-to-use app.
If you need to build credit, this is arguably the best secured credit card available.
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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