The Applied Bank Unsecured Classic Visa Card offers consumers with poor or no credit history an opportunity to establish or rebuild their credit. While its easy application process and approval for those with poor credit scores may be an attractive feature, potential cardholders should be aware of the card’s high interest rates.
This credit card does not require a security deposit, making it accessible for individuals who may not have the funds for a secured card. However, the high APRs and fees associated with the card can be a significant drawback for some. It is essential for prospective cardholders to weigh the pros and cons of the Applied Bank Unsecured Classic Visa Card before making a decision.
As we delve deeper into the specifics of this credit card, we will discuss its features, fees, and how it compares to other cards in the market. This information aims to help readers make an informed decision when considering the Applied Bank Unsecured Classic Visa Card for their credit-building needs.
Overview of Applied Bank Unsecured Credit Card
The Applied Bank Unsecured Classic Visa Card is a credit card designed for people looking to build or repair their credit. It provides an opportunity to obtain a line of credit without putting down a security deposit.
Features and Benefits
- Unsecured Credit Line: The card offers a $300 unsecured credit line, which can be used at various locations such as grocery stores, gas stations, and online.
- Visa Network: As a Visa card, it is accepted at numerous merchants and ATMs worldwide.
- Credit Reporting: Applied Bank reports to all three major credit bureaus, allowing cardholders to build their credit history if they use the card responsibly and make timely payments.
- No Penalty Rate: The Applied Bank Unsecured Classic Visa Card does not increase the interest rate for late payments.
Pros and Cons
Pros
- Easy to obtain with a bank account and some income, even for those with bad credit
- Unsecured credit line without the need for a deposit
- Reports to all three major credit bureaus
- No penalty rate increases
Cons
- Relatively low credit limit of $300
- High annual fee and other associated fees
- Limited reward or cashback options
Application Process and Approval
Eligibility Requirements
The Applied Bank Unsecured Classic Visa Card is designed for people with bad or no credit history, making the eligibility requirements more lenient compared to other cards. While specific credit score requirements are not mentioned, the card primarily targets individuals looking to build their credit.
Approval Process
The approval process for the Applied Bank Unsecured Classic Visa Card is straightforward and fast. Applicants can get pre-qualified in less than a minute, allowing them to determine if they are eligible for the card without impacting their credit score.
When applying, potential cardholders will need to submit personal and financial information such as their income and Social Security number. The issuer then sets the initial credit limit, which starts from $300. Upon approval, additional fees may apply, such as a one-time fee of $89 before account opening and a first-year membership fee.
It’s important to note that despite the easy application and approval, this card comes with relatively high interest rates and fees compared to some other credit-building products. However, because it’s a Visa card, it offers worldwide acceptance, making it convenient for purchases both in-store and online.
Fees and Rates
Fixed APR and Annual Fee
The Applied Bank® Unsecured Classic Visa® Credit Card comes with a fixed purchase APR of 29.99%. It is not ideal for those who plan on carrying a balance, as the interest rate is quite high compared to other credit cards. The card has an annual fee structure as follows:
- First year: $75
- After the first year: $45
In addition to the annual fee, there is a one-time fee of $89 when opening an account.
Balance Transfer and Foreign Transaction Fees
Currently, the Applied Bank® Unsecured Classic Visa® Credit Card does not offer balance transfer options. For cardholders who travel abroad, it’s important to note that this card comes with a 3% foreign transaction fee. This fee applies to every transaction made outside the U.S, so it may not be an ideal card for those who frequently travel internationally.
Credit Limit and Reporting
Credit Limit and Increases
The Applied Bank Unsecured Credit Card provides a starting unsecured credit line of $300. This can be used at grocery stores, gas stations, discount stores, ATMs, and online. To increase your credit limit over time, it’s essential to maintain a positive payment history and responsibly manage your account. Ensuring timely payments, keeping your account balance low, and keeping your account in good standing will certainly increase your chances of receiving additional credit.
Automatic Reporting to Credit Bureaus
Applied Bank understands the importance of building and maintaining a good credit score. Therefore, the Applied Bank Unsecured Credit Card reports account information on a monthly basis to all three major credit bureaus: Experian, TransUnion, and Equifax. This means that your credit limit, account balance, and payment history will be automatically reported to these national credit bureaus, making it easier for responsible cardholders to improve their credit scores. By consistently practicing smart financial habits, you’re more likely to see a positive impact on your credit report.
Usage and Benefits
Accepted Locations and Categories
The Applied Bank Unsecured Classic Visa Card offers users flexibility with a $300 unsecured credit line that can be utilized for various purposes. This Visa credit card is accepted at a wide range of establishments, including grocery stores, gas stations, discount stores, and ATMs. Additionally, cardholders can use the card for online shopping, making it a convenient choice for everyday purchases.
Building Credit
One of the primary advantages of the Applied Bank Unsecured Classic Visa Card is its ability to help users build credit. As a real Visa credit card, it automatically reports to all three national credit bureaus. This means that making on-time payments and responsible usage of the card will positively contribute to one’s credit score.
Responsible Use
To make the most of the Applied Bank Unsecured Classic Visa Card, it is crucial to be mindful of responsible usage. Some key factors to consider are:
- Ensuring on-time payments to avoid late fees and maintain a good credit standing
- Keeping the balance low by not maxing out the card limit
- Monitoring and keeping track of the card usage to make informed financial decisions
By following these best practices and fully utilizing the card’s benefits, users can work towards improving their overall financial health.
Customer Service and Support
Contact Methods and Availability
Applied Bank offers various contact methods for customers seeking assistance with their unsecured credit cards. The primary way to reach their customer service is through phone. The customer service phone number for Applied Bank credit card holders is (800) 947-1090.
Additionally, Applied Bank provides assistance through their official website. Members can log in to their bank account to access more information and support related to their unsecured credit card.
Common Concerns and Questions
- Account management: Customers can manage their Applied Bank unsecured credit card accounts by logging in to the online platform or contacting customer service for assistance, if necessary.
- Credit card reporting: Applied Bank’s unsecured credit card automatically reports to all three national credit bureaus, ensuring members can build and maintain their credit history.
- Fees and rates: Unsecured credit cards from Applied Bank do not have a penalty rate. Even if customers are late on their payments, their rate won’t increase. However, it’s essential to review the card’s terms and fees to ensure they understand all associated costs.
Comparisons and Alternatives
Similar Credit Card Options
Although the Applied Bank Unsecured Classic Visa Card offers a credit solution for individuals with bad credit, there are alternative credit card options to consider as well:
- Capital One QuicksilverOne Cash Rewards Credit Card: This card is tailored for individuals with short credit histories, and offers cash-back rewards. The card has a higher annual fee than some alternatives, but the rewards may justify the cost for some users.
- Capital One Platinum Credit Card: With no annual fee, the Platinum Credit Card from Capital One is helpful for those looking to build their credit score without accumulating fees.
Determining the Best Fit
When comparing credit cards, especially for those with a limited or poor credit history, it’s essential to consider a few factors:
- Interest Rates: Credit cards come with varying APRs, which determines the interest rate on unpaid balances. The Applied Bank Unsecured Classic Visa Card has a high APR compared to other secured card options like the Applied Bank Secured Visa Gold Preferred Credit Card with a fixed APR of 9.99%.
- Fees: Avoid cards with unnecessary fees, such as the one-time fee of $89 with Applied Bank Unsecured Classic Visa Card. Other cards may have annual fees, balance transfer fees, or cash advance fees.
- Rewards: Some credit cards offer rewards for using them, such as cash-back or travel points. If a card provides rewards that are valuable to you, it may be worth considering.
- Secured vs. Unsecured: Cards like the Applied Bank Unsecured Classic Visa Card don’t require a security deposit, making them more accessible. However, secured cards generally have lower interest rates and fees, making them more cost-effective for those looking to build their credit score.
- Credit Score Range: Some cards are tailored for individuals with specific credit score ranges. Be sure to consider cards that are suitable for your specific credit situation.
By taking these factors into account, you can find the right credit card that meets your needs while helping to improve your credit score over time.
Frequently Asked Questions
Credit score requirement?
The Applied Bank Unsecured Classic Visa Card has fairly easy credit score requirements to meet. Even individuals with bad credit (300+) may qualify for the card. However, having a bank account and some income to balance out any debts is necessary.
Unsecured card benefits?
The Applied Bank Unsecured Classic Visa Card offers several benefits. It provides a $300 unsecured credit line that can be used at various places like grocery stores, gas stations, discount stores, ATMs, and online. Additionally, it is a real Visa Credit Card with automatic reporting to all three national credit bureaus. The card also doesn’t have any penalty rates, meaning your rate won’t go up even if you’re late on payments.
Approval process?
Although the Applied Bank Unsecured Classic Card doesn’t offer pre-approval, it does offer instant approval even for individuals with bad credit (300+). To be approved, your identity, address, and income must be easily verified.
Interest rates?
The Applied Bank Unsecured Classic Visa Card has a purchase APR of 9.99% Fixed APR. However, it does not provide any balance transfer options, so there’s no associated balance transfer APR.
Fees and charges?
For information on fees and charges associated with the Applied Bank Unsecured Classic Visa Card, it is recommended to consult the card’s terms and conditions or contact Applied Bank’s customer service for the most up-to-date and accurate information.
How to apply?
You can apply for the Applied Bank Unsecured Classic Visa Card online. Fill out the required information and submit the application. If your identity, address, and income can be easily verified, you may receive an instant approval.
