I love exploring new credit cards and the opportunities they provide. This means I had to apply for one of Canada’s newest credit cards as soon as it became available to QC residents.
In this post, I am going to introduce you to Neo Financial, Neo Credit Card, and Neo Money Account. I will go in depth to provide a complete Neo Financial Credit Card review.
So, would you like to support local merchants (especially during the COVID-19 pandemic) while earning cashback? How about the opportunity to discover businesses in your area and get paid for spending there? If you answered yes (I hope you did), this article is for you!
As a bonus, I will provide a Neo Money Account review and a comparison between Neo and its competitors.
What Is Neo Financial
Neo is where technology meets finance. Neo Financial’s ideology is innovation and creativity. They are a Canadian company which was created to provide Canadians with more robust choices. It was founded by SkipTheDishes’ founders and currently involves a team of 200+ talented individuals with offices around Canada including Quebec.
Neo Financial simplifies the usage of credit cards to optimize spending and saving through cashback programs offered directly or through partners.
Neo is 100% digital. This means you can pay bills, make deposits, send Interac e-Transfers, and earn rewards wherever you are and at any time, all from one place.
Is Neo Financial legit? Yes, 100% which also offers up to $100,000 CDIC insurance on your savings account.
What Is Neo Financial Credit Card
Neo offers a great cashback credit card which is called Neo Card. This section will cover Neo Card review which is a Mastercard credit card that can be used anywhere Mastercard is accepted.
The credit card focus is building partnership and empowering local communities and businesses. It is fantastic way to get to know local businesses by exploring Neo partners through the app.
Neo credit card comes with a minimum guaranteed 1% cashback for up to $5,000 of monthly spending. This means you can get $50 in cashback every month without spending a penny in credit card fees (BUT please don’t spend $5,000 monthly, that is just excessive for most people)!
This means, no matter where you shop or what you purchase, your 1% cashback is guaranteed. However, this is just the beginning.
What Is So Special About Neo Card
If average 5% doesn’t sound enough to inspire you, how about earning an enormous bonuses, like 15% cashback, on your first purchase at many partners? Do I have your attention?
In addition to all the great cashback rates, you can use the card immediately after getting your application approved by adding Neo Credit Card to Google Play or Apple Pay directly.
Who Can Apply for Neo Credit Card
Any Canadian resident with the age of majority in their province is eligible to apply for Neo credit card. However, you’d need a credit score of around 600 or higher to get this card. What if you don’t have this credit score? Don’t you worry! Neo’s got you covered.
How to Build Up Your Credit Score with Neo Secured Card
If your credit score isn’t eligible for Neo Credit Card, Neo will offer a Neo Card with Credit Builder functionality. This is a great option for newcomers to Canada in building up their Canadian credit history.
The acceptance in this program is guaranteed. Credit Builder provides the flexibility on deciding your credit limit by depositing a security deposit of minimum $50 which is locked safely in Neo Financial. You can change this limit at anytime and withdraw your locked funds if needed. There is no hard credit check for Neo Secured Card.
However, keep the fund there for at least a year to build up a year of great credit history while getting cashback from Neo Card.
Reminder: Always make sure to pay your credit balance completely and on-time every single month.
How Much Cashback Can You Earn from Neo Card Cashback
As explained, 1% is a guaranteed cashback. However, partners and special partners offers can get you up to 15% in cashback.
Neo offers 3 models for their Neo Mastercard. Standard, Plus, and Ultra. The only difference between these cards is the average cashback on partners. Standard which is free offers 4% average cashback, Plus costs $2.99 monthly and offers 5% average cashback, and finally Ultra costs $8.99 with a whooping average 6% cashback at Neo partners.
Neo Financial recommends the Plus to whoever spends more than $750 monthly while Ultra is recommended for customers with a spending higher than $1,000 a month.
Neo Financial Credit Card and App Features
Main feature is to have your rewards at your fingertips. You can see all your rewards, your Neo Card details, and your spending information in one tap directly with some clicks.
Next is instant notification. You get notified after making a purchase, scoring a cash-back, or when it’s time to pay your statement.
You can also freeze or unfreeze your card directly in the app. I love this functionality as it gives me peace of mind if I can’t locate my card. Instead of running around trying to find the card in-time or doing a panic call requesting a cancellation of the current card and a replacement, I can easily go in the app, freeze the card so nobody can make any unauthorized payments and peacefully try to locate my card.
I am sure this happened to you, right? Where is my card! Call the bank! Then there you go! It was in front of you all the time.
What Are Neo Credit Card Fees
Well, there is nothing except the interest rate which varies between 19.99% and 24.99%. The interest rate is based on your credit history and score.
However, it is worth mentioning that Neo Credit Card comes with a higher interest of 21.99% to 26.99% for Cash Advance credit balance.
To simplify, Neo Mastercard is a free card with no annual, overlimit, or inactivity fee. Get your card, spend wisely, get cashback, pay your balance, repeat!
How Is Neo Credit Card Compared with Other Credit Cards
Well, it depends on your spending. If you spend mostly on grocery and gas, it might be better to go with a card that pays 2% cashback on grocery and gas.
Is Neo Credit Card Worth It
Absolutely. I can’t think of any reason not getting this card and having it in your wallet as long as you know you are good at spending habits. For me personally, I love the card as it offers a minimum 1% cashback for all categories while many other cards don’t give anything for many categories.
In addition, if you can take advantage of special rates offered by local partners, you will earn much more cashback while supporting local businesses.
Neo offers many double digit special cashbacks especially for new partners. Occasionally you see special offers for minimum spendings with a partner or special cashback offers on return visits to restaurants.
Here is an example of how the partner rewards look like in Neo Financial App. How about a 10% cashback on a healthy Super Salad?
How Can I Cash Out my Neo Cashback Rewards
Cashing Neo cashback can easily be done from the app. Go to the app, choose the amount you’d like to cash and choose to either have it redeemed for Neo Credit balance or to Neo Money Accounts.
What are Neo Credit Card Benefits and limitations (Neo Mastercard Pros and Cons)
Let’s talk about Neo Mastercard’s pros first
- Minimum 1% guaranteed cashback with a potential of up to 15% cashback
- Free credit card with lower required credit score
- Unlimited cashback from Neo partners
- No minimum limit for redeeming cashbacks toward credit balance or Savings account
- Opportunity to support local businesses while earning more cashback
- Efficient application approval process with a professional and friendly support team
- Compatibility with Apple Pay and Google Play
- Monthly instead of Annual fees to earn higher cashbacks from Neo partners
- A fantastic app to track and categorize your spending
And here is the short list of Neo Mastercard’s cons
- Maximum $10,000 credit limit which is more than enough for most Canadians
- A maximum $5000 monthly spending cashback cap on Neo Card
- The highest cashback is only offered on Neo partners
- No medical or travel insurance, no car rental insurance, and no extended warranty
- A 2.5% foreign currency conversion fee (FX)
Does Neo Credit Card Charge FX Fee
Unfortunately, YES! When the foreign transaction is posted, in addition to the conversion rate calculated by Mastercard, you will be charged a foreign currency conversion fee of 2.5%
How to Apply for Neo Credit Card
Signing up for Neo Card is a very easy and straight forward process by using this link. You will also receive a $50 welcome bonus. The application process takes approximately 3 minutes, and it will be approved automatically if all your KYC (Know Your Customer) information including a photo ID (Driver license, Health card, Passport) and Selfie get accepted by the automatic verification system.
You can do a manual verification by contacting Neo Financial’s amazing support team via email.
What Is Neo Money Account
Neo Money Account is one of Canada’s best savings account. I’d highly recommend using Neo Money Account for your emergency fund.
This account currently offers a nice 1.8% interest which is one of the highest in Canada. Neo Financial is backed up by ATB Financial, a financial institution in Alberta with assets of over $55.1 billion. It also offers CDIC coverage for up to $100,000 CAD.
Join Neo Money and receive a CDIC insured account paying 1.8% with no monthly fees and no minimum balance. You can also send and receive Interac e-Transfers freely.
The past part of Neo Money Account is its no fee feature. Savers like yourself don’t have to pay fees for Interac e-Transfers and Inactive accounts anymore.
Unfortunately, Neo Money account isn’t available in QC but work is in progress so hopefully we in QC will have access to this amazing savings rates soon.
Brim Financial vs. Neo Financial (Brim vs. Neo Mastercard)
Honestly, this is a very close competition. As I wrote in my Brim Financial Review, I adore my Brim Mastercard, and I take it whenever I travel. It also offers a guaranteed 1% cashback. But the selling point of Brim is its no foreign exchange (FX) transaction fees and the Global WiFi which comes with the free Brim Credit Card.
On the other hand, Neo Mastercard is very interesting as in addition to its guaranteed 1%, customers can make a juicy cashback of up to 15% which can’t be found in Brim.
So the choice is yours including getting both cards as I did! Yes, that is an excellent option as long as you don’t go spending just because you have credit cards. Control your spending!
Neo Money vs. EQ Savings Plus Account (Neo Financial vs. EQ Bank)
Both banks and accounts are great in customer service and they both operate based on customer’s best interest principle.
However, Neo Money account pays 1.8% while EQ currently pays 1.65%. Both are CDIC insured so your deposit is insured up to $100K in each account. If you deposit, the full insured $100K, you’ll earn $100 annually more in Neo Financial than EQ Bank.
In addition, if you have the Neo Card, having the Neo Money account naturally makes sense to deposit the cashback directly into your savings account to earn an additional 1.8%, right?
My Thoughts on Neo Financial, Neo Credit Card, and Neo Money Accounts
Neo Financial is a great local company to be a part of which simplicity and innovation. I recommend applying for the Neo Mastercard and exploring your back yard businesses. Take advantage of those extra juicy cashbacks while supporting your neighbors.
In addition, open a Neo Money Account to deposit your cashback into the account and start earning 1.8% annually. I call this “Free Money, Making You More Free Money”
Complete Neo Financial Credit Card Review Summary
I am personally enjoying my new Neo Mastercard and can’t wait to explore more restaurants and local businesses with my Neo card. However, I don’t personally use the card for grocery or gas expenses as I have other cards paying higher interest rates.
This card is suitable for everyday random purchases. After all, you are in control. Get the card and use it whenever you want to. It can be once a month or a year. There is no annual fees of any kind. I am taking advantage of this opportunity and I think you should too.
In addition, if you have some cash sitting around, don’t let those big banks eat your money! Open a Neo Money account and start earning 1.8% interest.
Here are the links to apply for Neo products including Neo Credit Card, Neo Secure Card, and Neo Money Account.
Get Neo Credit Card (Earn $50 Bonus & Up to 15%): Neo Financial Credit Card
Get Neo Secure Card (Build your Credit History & Credit Score): https://link.vibrantdreamer.com/NeoSecureCard
Get Neo Money Account (No fee HISA Account with 1.8% Interest): https://link.vibrantdreamer.com/NeoHISA
It is your turn! Tell me what you think about Neo Financial. Show us some of your best cashbacks.