Neo Financial Boosts Credit Profile Building for Canadian Newcomers

Neo Financial has made a significant announcement regarding its credit card products, specifically the Neo Secured Credit card. The company revealed that all Neo credit card products will now report to Equifax Canada, in addition to the existing reporting to TransUnion®. This move aims to provide Canadians with full credit profiles, ultimately leading to broader lender acceptance.

The Neo Secured Credit card is designed to be an accessible way for individuals to build their credit history. By adding credit reporting to Equifax Canada alongside TransUnion reporting, Neo ensures that both major credit bureaus in Canada can assist Neo Secured Credit card holders in establishing a solid financial foundation. This is particularly crucial for new Canadians who are working to establish themselves in the country, as a strong credit history is essential for tasks such as securing housing or financing a vehicle.

Statistics Canada released a report in 2023 based on Survey of Financial Security (SFS) data from 2016 and 2019, which highlighted the challenges faced by immigrant families in accessing lines of credit. The data revealed that immigrant families, regardless of their length of time in Canada, were less likely than Canadian-born families to have access to lines of credit other than home equity lines of credit. Additionally, approximately 26% of credit-invisible economic families were immigrants, with those who had been in Canada for less than two years being disproportionately credit invisible.

Neo Financial's initiative to report to Equifax Canada is a step towards empowering Canadian residents to take control of their financial futures. The Neo Secured Credit card offers quick approval and cashback on everyday purchases, providing immediate benefits to new and existing Canadian residents concerned about building credit. Furthermore, Neo is committed to supporting Canadians in various aspects of their financial journey, offering options such as the standard Neo Credit card, Neo High-Interest Savings, Neo Money™ card, and Neo Mortgage options.

The addition of Equifax Canada reporting will apply to all Neo Credit cards, including the Neo Secured Credit card, the standard Neo Standard Credit card, the Hudson’s Bay Mastercard—powered by Neo, the Tims® Credit Card—powered by Neo, and the Cathay World Elite® Mastercard® – powered by Neo. This enhancement aims to provide Neo customers with more opportunities to strengthen their credit profiles and achieve their financial goals.

Neo Financial's decision to report to Equifax Canada represents a significant step towards empowering Canadians to build strong credit histories and secure their financial futures. By offering accessible credit card products and reporting to both major credit bureaus in Canada, Neo is committed to supporting individuals in various stages of their financial journey.