These attributes all come with no annual fee, making it the no-brainer winner in this comparison. Applicants may be evaluated on their banking history and not just their credit score and the Petal 1 offers cash-back earnings at select merchants and $300 to $5,000 credit limits. The Petal® 1 “No Annual Fee” Visa® Credit Card, issued by WebBank, offers those with thin or fair credit histories another option with its unorthodox approval process. Petal® 1 “No Annual Fee” Visa® Credit Card The Bank of America Customized Cash Rewards Secured card is an example of a card that can help those with damaged credit rebuild and those without credit build healthy credit not only because of its reward-earning power, but because the issuer will review your account periodically to see if you qualify to have your deposit refunded. This, combined with its lack of an annual fee and expandable deposit limit (from the minimum of $200 up to $5,000) help the Bank of America Customized Cash Rewards Secured card outpace the competition. Earn 3% and 2% cash back on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1%. The Bank of America® Customized Cash Rewards Secured Credit Card * earns 3% cash back in a category of choice: gas, online shopping, dining, travel, drug stores or home improvement/furnishings 2% cash back at grocery stores and wholesale clubs unlimited cash back on all other purchases. Secured cards offer a safe way to keep spending in check with lending offered against a security deposit.
Bank of America® Customized Cash Rewards Secured Credit Card * The “perks” offered, like “multiple design options” are, at least in this case, quite literally shiny distractions for a bad option. The annual fee counts against this credit limit when the account is opened, as it’s charged to the account. None of the cards offer rewards, none offer low introductory APR and most versions of the card have a credit limit of only $300. The annual fees for the Indigo Mastercard range from $0-$99. What is “credit” when food on the table is at risk? But that’s where issuers can cash in: when consumers are stuck in the cycle of needing to pay high annual fees and high interest rates to afford necessities. In those cases, we’ve seen annual fees as high as $125.Ĭertainly, spending higher than 30% of a credit limit is an option and for those who need to do it at the cost of creditworthiness, that’s just survival. Note that you may receive an offer for another annual fee through another marketing channel, like mail. To the folks whose credit has been damaged, there is no perfect world. But those applying for a $300 line of credit likely need at least $100-they may not have $100 to pay down a balance that frees up another $100. How does one do this when presented with an annual fee as high as $99 on a credit limit of $300? Is it possible? Sure, in a perfect world. It’s advisable never to use more than about 30% of available credit in order to maintain a healthy credit score. The Indigo Mastercard advertises help to those with bad credit, but contributes to a system that keeps those with low and damaged credit in a vicious cycle of financial hardship.Ī major factor in the determination of a credit score is the credit utilization ratio which is the amount of debt incurred versus credit available.
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