secured credit cards

Neo Financial MasterCard – Standard and Secured Credit Cards for Canadians

July 2, 2022 by James Todorov 7 Comments

The Neo Financial MasterCard is a secured credit card offered in Canada by Neo Financial. Founded in 2019, Neo is a Canadian company brought to you by the creators of SkipTheDishes. By being entirely digital, they allow you to comfortably control your finances from anywhere. Neo is partnered with and backed by MasterCard, ATB Financial and Concentra Bank who guarantee complete security as well as being recognized worldwide. Neo offer a good range of products with low costs and high rewards. For example the Neo Money Account offers unlimited free transactions with one of the highest interest rates in Canada at 1.8%. They also offer Neo Mortgage, Neo Invest, and the Neo Financial MasterCard.

The Neo MasterCard comes in a secured format and a regular unsecured version. Both variants are low cost and high reward.

Neo Financial MasterCard Review

The Neo Financial Mastercard is an intriguing option considering its many upsides and few and minor negatives. Neo’s Card is available across Canada and can be controlled and managed digitally from the Neo Financial App. The Neo Credit Card is meant for all Canadians. From those who want to save some money, to those who have a larger appetite for spending, anything is possible while building your credit score. To cater to these different audiences, the Neo Card has three different levels. The only distinguishing factor between the tiers is the average cashback rewards and their monthly fees. Moving through the tiers can be easily done through the app. It only costs the monthly fee of the given tier you are switching to, allowing flexibility to find the best level for you.

The Neo Standard Card is the base tier at $0 in monthly or annual fees with an average of 4% unlimited cashback at thousands of Neo partners.
Right above that you have the Neo Plus Card, averaging 5% cashback at partners with a monthly fee of $2.99.
At the top is the Neo Ultra Card. This level is considerably more expensive at $8.99 per month, however it comes in at an average of 6% unlimited cashback.

There are general rewards that go for all tiers as well. The Neo Credit Card guarantees a minimum 1% cashback across all purchases made. This basically means that if your cashback happens to fall under the 1% margin, Neo themselves will step in and push you up to that line. Other rewards include the 15% cashback on your first purchases at participating Neo partners. Applying for the Neo MasterCard is very easy and can be done through the Neo Financial App. Approval is instant as long as your credit score is 600 or above.

A physical Neo Card will then be sent to your door within a week or two. However, the app is absolutely enough to do everything including purchases, with notifications that notify you about your account live. The Neo Financial Mastercard is backed by Mastercard’s zero liability protection. In essence, you are completely safe from unauthorized payments at all times. Neo’s Credit Card only comes with a few downsides being that it does not include insurance. The other more noticeable downside is the higher Purchase Credit Rate of 19.99%-24.99%. With many rewards and the option of no monthly or annual fees, the Neo Financial Credit Card is fantastic and fresh competition to the usual credit cards.

Neo Financial Secured MasterCard Review

For anyone who is struggling with their credit score, is new to credit or is entirely new to Canada, Neo provides the Neo Secured Card. Neo’s secured card comes with no monthly or annual fees. This is just one of the reasons that it can work for anyone. With the secured card, the only fee you’ll encounter is a one-time security deposit of only $50. As the card is secured, no hard credit checks are performed so that your approval is guaranteed. As well as being assured, your approval is instant so that getting started is immediate and hassle free.

Just like with the Neo Credit Card, everything can be controlled from the Neo Financial App. From increasing credit limits by adding security funds to freezing cards, the Neo app can do it all. Unlike other secured cards, Neo has fantastic cashback opportunities. You can earn an average of 5% unlimited cashback with their secured card. If you ever decide to close your account, your security funds will be returned as long as the balance has been paid in full. The secured card has the same Purchase Credit Rate as its unsecured counterpart and is once again without insurance. As can be seen, Neo’s Secured Card comes with many upsides and caters to a wide audience. It is quite rewarding and doesn’t have many drawbacks.

Neo Financial MasterCard Partners

Neo is partnered with Mastercard, meaning that both the Neo Credit Card and the Neo Secured Card are valid anywhere Mastercard is accepted. As previously mentioned, they fall under Mastercard’s zero liability policy, keeping you safe from unauthorized payments. Neo is also partnered with Concentra Bank, which grants Neo clients absolute security along with Mastercard. Neo’s clients earn an average of 5% cashback at thousands of partners which is automatically redeemed. The range of partners is great too with Netflix, Amazon, Loblaws, Walmart, Sport Chek and many more in Neo’s lineup.

A Neo Financial Card is worth it for many reasons. For starters, everything can be managed digitally and is designed for convenience. The Neo cards are low cost, presenting no monthly or annual fees. This doesn’t prevent them from rewarding their customers though, with great cashback rewards everywhere. Their products are innovative and should be considered by anyone as they challenge the often archaic tenets of major Canadian banks for your benefit. For a limited time only, new Neo customers who get approved for the Neo Credit Card receive a $25 voucher.

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Best Secured Credit Cards in Canada

June 8, 2022 by Ben 15 Comments

This page was last updated on October 12, 2022

Credit cards are useful in that they help build good credit, book hotel accommodation, rent cars, and purchase goods and services online. Interest rates have been low since the onset of the Covid-19 pandemic but some people with bad or tarnished credit may not qualify for regular cards. This is where secured cards come handy in allowing users to build good credit and shop in-store or buy products online.

Best Secured Credit Cards for Canadians

Major banks no longer offer secured credit cards which means that choices are more limited for Canadians. Still there are some good offers to look into if you have no or blemished credit like the cards that Home Trust and Refresh Financial feature.

Neo Secured Credit Card

The first secured credit card from Neo Financial is made for those who want low cost way to build their credit. Neo charges no monthly or annual fees and does not run credit checks. This means that anyone is eligible for this secured card. The only fee that comes with the card is the modest $50 security deposit. Approval is instant and guaranteed, just like the 1% cashback across all purchases. In addition to the 1% guaranteed, you can earn an average of 5% unlimited cashback at thousands of Neo partners. At participating partners, you can even earn 15% cashback on your first purchase. Neo’s secured credit card is a great option, whether you are looking to repair your credit or just starting out.

Interest rate: 19.99%-24.99%
Annual fee: $0
Cashback: 1% minimum, average 5% at partners

Refresh Secured Card

This card is no longer available. Check out their Credit Builder Loan. Refresh Financial offers a secured card that helps users to get a credit boost by making timely monthly payments. There is even a feature that allows you to get an idea how your repayment and spending patterns affect your credit rating. You can use their handy online calculator to check your utilization rate. For example, if the balance is $100 and the limit $600, then you have an optimal credit utilization rate (17 percent). There are other benefits for users, one being that payments are reported to both bureaus. Another is that the higher your credit score is, the lower your interest rate.

Interest rate: 17.99 percent
Maintenance fee: $3/month
Annual fee: $12.95
Credit limit: $200 – $10,000

Home Trust Secured No-Fee Visa

Also a good choice to fix your score fast, the Home Trust Secured No-Fee Visa has been voted 2020’s Best Credit Card for Rebuilding Credit. You will not only benefit from a zero annual fee but you only pay interest on your outstanding balance. The card allows you to make purchases and pay online up to your deposit limit. Home Trust also allows you to choose a deposit limit that works for you, and it can be as low as $500 and as high as $10,000.

Purchase interest rate: 19.99 percent
Annual fee: none

Home Trust Secured Visa

This is a low interest option to rebuild credit as long as you keep your account active and make timely payments. There are many benefits for holders such as the option to set your limit, set accounts online, pay utility bills, and make purchases online. The card also comes with purchase security coverage so that all eligible purchases are insured against damage or theft for 90 days. You can use the card to make payments in more than 200 territories and countries and with merchants that accept Visa cards.

Interest rate on purchases: 14.90 percent
Fee: $5 per month or $59 annual fee

What Is a Secured Credit Card?

Secured cards work much like standard ones in that they allow holders to build a positive credit history and make purchases, whether they buy groceries, book flights or cruises, or repay other outstanding balances. The most common varieties are American Express, MasterCard, and Visa. Whatever the brand of choice, users have to make a deposit which is used as a safeguard by the issuer as to cover any outstanding balances in case of missed or late payments.

Are Secured Credit Cards for You?

If you have bad credit and can’t qualify for a standard unsecured card, this is a good option to rebuild credit by making small purchases and paying the balance in full and on time. Using the card responsibly also means that you won’t incur interest payments. Interest rates are higher on average, and paying more than the minimum will save you a lot of money.

Benefits of Secured Credit Cards

The main benefit of secured cards is that they offer the chance to rebuild credit and apply for a wide variety of products with preferential terms and affordable rates. Your account history is forwarded to the major bureaus and goes toward your credit report. Not only this but you can use the card to shop online and make secure payments. Some issuers also offer added incentives such as upgrading and rewards points.

Security Deposit, Credit Limits, and Card Fees

When you get approved for a secured card, you will be asked to make a cash deposit which is equal or larger than your credit line. This means that credit limit is based on the deposit made. Some issuers offer the option to increase the credit line after a certain period provided that you use the card responsibly. Secured cards typically come with annual fees but there are some issuers that advertise zero fees.

Alternatives to Secured Credit Cards

If you can’t get a secured card, one option is to apply for a prepaid card that you can use to pay for services and goods. It is not linked to a credit, checking, or savings account and allows you to keep cash for later use. A major drawback is the fact that your payment history will not be reported to the credit bureaus. Still, they offer some benefits such as ease of use and safe and secure payments. Prepaid cards are easy to reload, and there are different ways to do this – in person, online, by direct deposit, or via bank account transfer.

Getting an unsecured card for bad credit is also an option, albeit the choice is more limited. Some issuers offer unsecured cards to Canadians with fair and good credit, regardless of their annual income. Added benefits for customers are low annual fees and interest rates, no fees for supplementary cardholders, and zero fraud liability.

A third option to look into is payday loans, and there are some benefits to consider such as fast and easy application, borrowed amount based on income level, and no credit check guaranteed approval. Still, getting a payday loan can be risky because of the very high interest rates and short terms that finance providers offer.

Other alternatives that financial institutions offer include guarantor and short-term loans, secured loans, overdrafts, and debit cards. The choice of product depends on your credit score, income, occupation, and financial circumstances.

In general, getting a secured card is a good choice for customers with little or no credit exposure, including young people and newcomers to Canada. It is also an option for borrowers with blemished credit who are refused a loan or credit card because they have past delinquencies, recent missed or late payments, or for any other reason. Borrowers with low or no income and high balances on cards and loans are also likely to get their application denied. A secured credit card is a good alternative for borrowers with a tarnished credit history who need a fresh start and a card to make daily purchases. We all know what having poor credit means – higher home and auto insurance premiums, difficulty securing a home lease, higher loan rates, and even strained personal relationships. A secured credit card offers users the chance to master good money management skills by borrowing responsibly.

Refresh Financial – Improve Your Credit Score with Secured Credit Card

May 22, 2022 by Ben 10 Comments

This page was last updated on October 12, 2022

Refresh Financial offers a range of products, services, and tools, including AI-enabled product recommendations, automated credit coaching, credit report and score monitoring, and secured credit cards. By offering financial literacy programs, Refresh helps customers to improve their money management and savings skills to make better financial decisions and achieve their long-term goals. Common situations in which financial literacy helps are using credit cards, managing debt, investing, reducing expenses, purchasing a home or car, sticking to a budget, and saving for retirement.

Refresh Financial and Borrowell Acquisition

Refresh Financial takes a new approach to consumer financing. The company offers loans and credit cards to customers with poor or no credit to aid their credit improvement efforts. Established in 2010, Refresh has offices in Ottawa, Kelowna, and Hamilton. As of January 2021 Borrowell closed the acquisition of Refresh Financial and raised $25 million in funding. All-equity financing was secured by a group of new investors, among which iA Financial Group, BDC Capital, and Kensington Capital Partners. Existing investors such as Equitable Bank and White Star Capital also provided funding.

One of the largest financial tech companies in Canada, Borrowell specializes in digital wealth management, digital banking, and alternative lending solutions. Their online lending platform utilizes AI-powered technology to offer customers product recommendations, free credit scores, predictive cash advances, bill alerts, money management and monitoring solutions. Founded by Andrew Graham in 2014, Borrowell offers a wide range of financial tools and products, including mortgages, credit cards, and personal loans. The platform is backed by a network of mortgage brokers, investment funds, and institutional lenders such as FirstOntario Credit Union and Portag3 Ventures.

Canadian Market for Secured Credit Cards

Refresh Financial and Home Trust are among the few Canadian financial service providers that offer secured credit cards. Targeting subprime borrowers with average and poor credit scores, secured cards function much like standard ones, the only difference being that customers pay upfront cash deposit. The deposit serves as a guarantee for financial institutions should the borrower miss a payment. Issuers can keep the cash deposit when borrowers default on payments.

Essentially, a secured credit card can be a helpful tool to build or rebuild credit. Using a debit or prepaid card or cash to make purchases or pay bills will do nothing in terms of credit score improvement. That is because payments are not reported to the major bureaus. When used wisely, a secured credit card enables borrowers to reestablish credit and demonstrate responsible management to the reporting agencies and financial institutions. Once approved, borrowers can use the card for things like making purchases, paying everyday expenses, or booking a vacation.

Consumers who use their card responsibly build credit over time. Common reasons why this is not happening include having one type of credit only, errors on the customer’s credit report, missed payments, and a utilization rate above 35 percent.

Refresh Financial Products Offerings

Refresh offers a credit builder loan and a secured card, along with a suite of tools for responsible debt management. In addition to reporting customer payments to TransUnion Canada and Equifax, it also features useful financial tools such as score simulators, credit alerts, debt calculators, and goal managers.

Credit Builder Loan

This financial product by Refresh Financial is nothing like a traditional loan. Instead of borrowing a lump sum and paying the principal and interest over the loan term, customers are charged monthly fees plus interest. Basically, this is a form of installment credit whereby customers pay back the full amount in equal installments. The best part is that payments are reported to the major bureaus as proof of responsible debt management.

Customers are free to cancel their loan at any time by logging to their Refresh Dashboard. Once the loan has been cancelled, it cannot be reactivated. Clients are free to withdraw their available funds, and the money will be deposited in their bank account within 10 – 15 work days.

There are two package options for customers to choose from – apply for a credit card and cash loan or take a loan first and get a secured card later. With the first option, customers have access to two lines of credit and enjoy spending flexibility. The main benefit of having two lines is that responsible use shows financial institutions that the borrower can manage both.

Interest rate: 19.99 percent
Loan amount:
$25,000
$10,000
$5,000
$2,500
$1,500

There are further benefits to taking a credit builder loan, one being that customers are assigned a dedicated relationship manager. Relationship managers act as a single point of contact and help borrowers to build a financial plan to meet their long-term goals. The goal is to make the customer’s banking experience more convenient and smoother by bringing expertise across a range of financial solutions. With experience and knowledge of personal banking, borrowing, and credit management, dedicated financial managers offer clients finance-related recommendations based on their needs.

Refresh Secured Card

This card is no longer offered! This card is backed with a security deposit which determines the credit limit. The limit can be as low as $200 and as high as $10,000 depending on how much the borrower is willing to put on hold. The deposit aside, this card by Refresh works just like a standard card, allowing users to make in-store and online purchases while gradually rebuilding credit.

This secured Visa by Refresh Financial is a good choice for borrowers with no or bad credit who are turned down by brick-and-mortar banks. Virtually all applicants get approved as there is no minimum income requirement. This card is a particularly good fit for customers who want to make a small deposit and for people with a history of delinquencies and bankruptcies.

Refresh also offers a handy online calculator to help customers check their utilization rate. Customers with a credit limit of $1,000 and a balance of $400, for example, have a utilization rate of 40 percent. The optimal rate for credit building is 30 percent and should not exceed 35 percent.

Cardholders who pay the balance in full avoid interest charges. There are two options to make payments toward the card balance – either through online banking or via pre-authorized debit. Once the payment has been received, it is first applied to any interest due and then to cash advance, annual card, and other fees.

Interest rate: 17.99 percent
Maintenance fee: $3 per month
Annual fee: $12.95

Summing Up

Overall, Refresh Financial is a good choice for borrowers who got the short end of the stick and need to rebuild credit. Each of their products, the Refresh Secured Visa and credit builder loan are meant to help consumers, with payments being reported to the credit bureaus. Qualifying for a loan or credit card is simple and boils down to the customer’s ability to meet future payments, including product fees and interest charges.

Home Trust Credit Cards and Financial Solutions

September 2, 2021 by Ben 2 Comments

One of the largest trust companies in Canada, Home Trust features a selection of financial solutions, including credit cards, commercial and residential mortgages, and deposits. It is one of the few providers to offer secured cards to subprime borrowers who are looking to rebuild or improve their credit profile.

Company Overview

Established in 1987, Home Trust is a leading financial service provider with offices in Toronto, Winnipeg, Halifax, Montreal, Calgary, and Vancouver. It is a subsidiary of Home Capital Group, the largest provider of uninsured mortgages. Home Capital offers a wide choice of financial products, ranging from government-mortgage securities and TFSAs to investment certificates and short term deposits. Being a wholly owned subsidiary, Home Trust features a selection of guaranteed investment certificates tailored to the needs of commercial and individual customers. To clients who need to rebuild credit, Home Trust offers secured credit cards with cashback rewards, shopping security, and travel benefits.

Home Trust Credit Cards

Home Trust offers three types of credit cards, along with convenient online services to pay bills, access statements, and monitor spending behavior.

Home Trust Preferred Visa

Available nationwide except in Quebec, this card features a unique combination of benefits. It earns cash back on eligible purchases and charges no annual fees. The fact that this Visa card by Home Trust offers travel benefits such as guaranteed hotel reservations and no foreign transaction fees makes it a valuable asset for those who travel frequently, either for work or for leisure. While cash back is not offered on purchases in foreign currency, users earn 1 percent on all transactions at home in Canada. Money back is offered on daily purchases such as monthly bill payments, groceries, and gas. There is a convenient online calculator to check earnings based on approximate monthly spending. Added incentives for customers are emergency cash and card replacement, purchase security, and no cap on cashback earnings.

The Home Trust Preferred Visa is available to customers who are permanent residents of legal age and are not currently in bankruptcy. Only applicants with an annual income of $15,000 or higher quality for this card.

Annual fee: none
Interest Rate: 19.99 percent
Cash advances: 19.99 percent
Grace period: at least 21 days

Home Trust Equityline® Visa

For those who own their home, this is an option to tap into their home equity and access a secure line of credit. It can be used to pay for college, cover operating or start-up costs, finance home remodeling projects, or consolidate debt. Home Trust also offers an easy-to-use online calculator to calculate interest savings when consolidating debt. To determine their savings, users are asked to enter their current interest rate and balance. Consolidating $20,000 in debt with 22.99 percent interest, for example, saves $2,600 in annual interest payments.

With Home Trust’s Equityline® Visa, users benefit from a revolving line of credit that can be as high as $10,000. Added perks are low interest rates, no prepayment penalty, cash back on purchases, and no foreign exchange fees. Users get 1 percent back on qualifying purchases for no annual fee. This Equityline® Visa charges no foreign transaction fees, whether shopping online or using the card abroad.

Annual interest rate: 9.99 percent
Cash advance rate: 9.99 percent
Annual fee: none
Interest-free period: at least 21 days
Mortgage title fee: up to $781

Mortgage discharge fees vary by province as follows: Ontario – $295, the Maritime Provinces and Manitoba – $200, British Columbia – $75, and Alberta – $0.

To apply, customers are asked to provide employment and address information, along with details about their mortgage and property, including annual taxes, purchase price, and estimated home value. Additionally, applicants have to provide information about their liabilities and assets and the intended use of the funds, whether it is home improvement, debt consolidation, or anything else. Personal details to include in the application are number of dependents, marital status, and current residential address.

Home Trust Secured Visa

This card is a good choice for those who are looking to rebuild credit and for young people with limited or no credit exposure. It has been rated #1 secured card in 2021 by creditcardGenius and for a good reason. Users can choose from a no annual fee or low interest option and are free to set their own credit limit. The deposit amount can be as high as $10,000 and as low as $500. The best part is that almost everyone gets approved. The fact that monthly payments are reported to the major bureaus expedites credit improvement.

While customers with good or excellent scores could be better served by another card with travel or cashback benefits, Home Trust’s Secured Visa enables users to control their spending and works just like an unsecured credit card. Holders can use it to set up accounts, pay bills, and shop online.

Interest rate: 19.99 percent
Annual fee: none

Interest rate: 14.90
Annual fee: $59 percent

Interest-free period: at least 21 days
Foreign currency conversion: 2 percent

To apply, customers fill in an online application and provide details such as annual income, business phone number, employer name, occupation, and employment status. They are also asked to indicate a security deposit and confirm whether they are a close associate or family member of a head of international organization or a politically exposed domestic or foreign person. There is also an option to add an authorized user for a monthly fee of $2 or annual fee of $19.

Benefits for Users

Home Trust offers a number of benefits to card users, among which affordable interest rates, cash back, online account management, and access to home equity. All cards come with Visa purchase security by Alliance Company of Canada or Royal Sun.

Those who opt for the secured option can use it wherever VISA cards are accepted. Paying the balance on time allows users to build credit and apply for a range of financial products with lucrative rates and rewards. Secured cards are also a better alternative to prepaid cards which are not accepted by all retailers. Whether holders are up to date on their payments or not, prepaid cards have not effect on credit ratings.

Overall, Home Trust is a good financial services provider with a wide choice of product offerings. Perfect for basic banking and financing needs, Home Trust offers secured and unsecured VISA cards with no annual fee, hotel reservations, and other benefits. Online shoppers and travelers enjoy the double benefit of no foreign transaction fees and earning cash back on purchases. In addition to access to credit, customers are offered a range of business and residential mortgage products, including refinancing and renewals, together with high interest deposit solutions and guaranteed investment certificates. Additionally, Home Trust offers customers handy financial resources and information regarding home ownership, holiday spending on a tight budget, the impact of debt on credit rating, and plenty more.