Competition among Canadian banks has heated up in recent years owing to new fintech companies. Neo Financial is a challenger banking brand that provides a variety of services to Canadians, including credit cards, and is one of the newest entrants in the market. When compared to the major Canadian chartered banks, how do Neo credit card and secured credit card fare?
To get the answer, we’ll need to compare Neo Financial’s offerings against those of the country’s main financial institutions. Neo Financial’s credit cards include no annual charge and superior benefits like cash back and points over standard credit cards. Additionally, the Neo Financial credit card offers no international transaction fees and up to 3.5% reward on purchases, much as the cards issued by the Big Five licenced banks in Canada.
However, Neo Financial offers a secured credit card to customers who may not have an extensive credit history or who are working to improve their current score. Users with limited credit histories are still eligible for the card and may lock in a $19 annual cost. This includes the availability of a free credit score report once every month, simplifying the process of keeping tabs on one’s credit standing. The yearly fees for the secured cards provided by Canada’s Big Five banks are often over $100 more.
In addition, Neo Financial has tools that may speed up the debt repayment process for its clients. By automatically moving funds from a user’s account on a monthly basis, the platform’s Autopilot function may be utilised to reduce debt more quickly. There is currently no such service offered by any of Canada’s “Big Five” banks.
When compared to the products of the main Canadian licenced banks, Neo Financial’s credit cards and secure credit cards provide a number of benefits to Canadians. Neo Financial’s credit card and secure credit card are ideal options for consumers who would rather avoid the more demanding incentives connected with the Big Five banks, despite the lack of some of the amenities and privileges afforded by the Big Five, such as Airport Lounges. Furthermore, Neo Financial’s secured credit card is much more reasonable than the ones supplied by the large chartered banks in Canada, making it an excellent alternative for anyone seeking to create or increase their credit score. So, it’s evident that Neo Financial’s credit cards can hold their own against those from Canada’s big licenced banks.