Should I get NEO Mastercard?

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My short journey of applying and getting Neo Mastercard 👇

What’s the Neo finance and Card?

Neo Financial is a completely digital fintech company that began in 2019 in Alberta, Canada. Despite being a new company, it offers various products and services such as credit cards, saving and checking accounts, and now mortgage. But here, we will talk about the credit card side of Neo finance.

Taken form Neo Finance Mastercard page

The card is called Neo card and comes with 2 versions standard credit and secured credit. Neo is recommended if you have a good credit score then go for credit but if you are new to credit or Canada or avoiding hard inquiries then go for a secured credit card.

Tips: What is a secured credit card? It’s basically card issuers want you to deposit any amount which will your credit limit, in case you default your credit card payment.

How about the app?

As we said before Neo is a fintech firm that tries to a bank of a new generation. So its app has everything you need to do your daily banking, cards and account management. Its design is simple, handy and user-friendly. For example, what is the credit card bill for this mount and how much is due? The accounts page which is the main page, by the way, it shows the statement amount due and how many days are left to pay without paying any interest.

Taken form Neo Finance Mastercard page

Get $50 when you sign up for a credit account with my link, plus cashback when you pay with Neo. https://neo.cc/refer/V4S2J8L6👈

PROS:

  • Great cash-back rate and instant cash out of cash-back rewards
  • Great app and fully automated smooth service (no need to talk people), great card packaging
Taken form Neo Finance Mastercard page

CONS:

  • Low-credit limit range($250–$10,000)
  • The lower limit can cause higher utilization rates
  • No insurance at all
  • limited places to earn cash-back rewards and some weird requirements to obtain the cash-backs (spent up to $15 to get 2% cash-back)

Low Credit limits (250–10,000) and instant approval up to $8,000. Neo MasterCard has a minimum and maximum amount of the credit line that you can be approved for. The limit starts with $250 and up to $10,000 but according to their Instagram Ads I encountered is said that “Get a credit limit of up to $8,000 in minutes.” I think you can be approved for $8,000 as an initial limit then you can go up as much as $10,000.

In my case, I have been approved for $8,000 credit limit when I apply on the Neo Finance app with a $50 sign-up bonus with the referral link I have. 👇

Get $50 when you sign up for a credit account with my link, plus cashback when you pay with Neo. https://neo.cc/refer/V4S2J8L6👈

Neo MasterCard provides a small amount of credit line in comparison to most of the other Canadian banks, which put this card entry or low-medium level Credit card. This makes a perfect match for new graduates, new immigrants temporary workers and students because of their thin credit files. Major banks don’t show enough love for those people like the rest of the population such as lower credit limits or not being approved for the card they met the all requirement otherwise😞. I can understand banks’ side of the story like risk management but unless they approved the credit lines how people can prove their creditworthiness’ for them, which is a very common loop-hole.

The low range of limits may affect your utilization rate which can slow the growth or decrease of your credit score overall. For example, if you have been approved for a $5,000 limit then you spent $1,000 in a month. In the second example, you have been approved for $20,000 and spent the same amount in a month.

Utilization rate: Total Debt(your spending) / Total Available Credit (your limit)

The first example rate is 20% and the second rate is 5%. As you can see in the example, how higher your credit card limit will cause a lower utilization rate as long as you did spend a similar amount.🤣 Lower utilization boosts your credit score higher and higher.

However, Neo finance wants to give a chance to everyone who is gen-z, has a thin-credit file or is ready to retire. If you are a member of this group, it free to try and see how great it is.😊

Taken form Neo Finance Mastercard page

Recommendations for Neo Card:

I think the credit limit range could increase as high as $20,000 or design a new card with high limits ($10,000–$40,000 limit range)and classify it as a premium version of the existing card for those who want higher limits and upper-tier card benefits.

In short

Everything into consideration, neo finance has a great understating of the new generation’s banking and all other financial service needs but Neo is at the beginning of its journey and they need to expand its service and product lines. I will apply for the Neo Card and give try for a couple of months and then I will write my verdict about the Neo card. Stay tuned!

Get $50 when you sign up for a credit account with my link, plus cashback when you pay with Neo. https://neo.cc/refer/V4S2J8L6👈

Disclaimer: Every information and number I provided are good by the time I am writing, in the future, that information and number are subject to change by the card issuer. Do your research about numbers and information before you decide. All credit cards I’ve been mentioning here are Canadian Cards🍁.

Don’t forget to click the clap icon and if you have anything to say, there is a responses section to express your ideas below👇

Follow#️⃣https://twitter.com/mege35mehmet for more!✔️

You can find more detailed info at the link below ( Official Neo MasterCard page) https://neo.cc/refer/V4S2J8L6👈