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What is Neo Secured Credit?

  • Updated

Neo Secured Credit can help you build your credit. You can add security funds to set your credit limit.

The Neo Secured Credit card is ideal if you’re new to credit or Canada as it does not require a credit check.

How to use a secured credit card

Secured credit cards are just like standard credit cards, except they have a security fund so you can set your own credit limit.

Here's how it works:

  • Set your credit limit by transferring funds to your security fund
  • Use your card to make purchases and earn rewards
  • Receive your statement online or on the Neo app
  • Pay off your balance from the Neo Everyday account or from an external financial institution

Your usage of the card will be reported to TransUnion. By using the card and paying it off regularly, you can improve your credit history.

If your statement is not paid off by the due date, you are subject to interest charges.

Secured and standard credit 

Similarities

Rewards

Rewards and perks are the same for secured and standard credit. 

Transactions

You can use both of these cards anywhere Mastercard is accepted. Any transactions you make with your standard credit can be made with your secured card. This includes cash advances, payments, and refunds.

Build credit

Using both standard and secured credit can help you build your credit history. Here’s what makes up your credit score.

Differences

Secured cards have a security fund

With secured credit, you decide your credit limit. The amount of funds secured will be your credit limit.

As this isn’t a prepaid card, your security fund won’t be used to pay off the balance on your card. You will have to initiate payments externally or from your Neo Everyday account.

The funds are safely stored in your Neo account and will be returned if you close your card and have paid off your balance.

No credit history required

Applying for a secured credit card does not require a credit check. It is the perfect card for you if you have no credit history.

Increase your credit limit when you want

Your security funds can be increased after the initial setup. Here’s how to add funds for your secured credit card.

You can only add increments of $50 when adding funds to your security fund.

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