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Having poor credit can be one of the biggest barriers to achieving sound finances.
Unfortunately, once you have bad credit, it can be very difficult to get back to a good credit score.
One of the best ways to escape this situation is to use a credit card designed to help people build their credit. These cards are called credit-builders.
While there are plenty of credit-building cards on the market, today, we’ll be looking at one in particular: the Unique Platinum credit card.
One of the biggest strengths on offer with the Unique Platinum Card is the initial credit line. Cardholders start out with $1000 of credit immediately.
While this is nice, it’s a particularly helpful feature for those looking to increase their credit scores.
One of the elements that factor into your credit score is how much of your revolving credit you utilize. Having a smaller ratio of used credit to unused credit can help improve your score faster.
Because this card offers you $1000 immediately, it’s easy to keep the proportion of used credit to available credit low. This lets you boost your score even more than you would if you simply used the entirety of a smaller credit line.
This card is quite easy to get approved for. They don’t discriminate against applicants with bad credit or no credit history.
Other cards would make it difficult for you to start building your credit up. This card makes it simple and easy to get started.
All you have to do is fill out the easy application, and, barring any serious problems with your credit history, you’ll be approved in minutes. From there, you can start using your card to build back your credit score.
This makes the card ideally suited to its role as a credit-builder. If your credit is very poor, it gives you a second chance at fixing the issue.
Unlike many similar cards, the Unique Platinum card doesn’t charge an annual fee. This means you can get the card relatively cheaply initially.
That said, the card does charge a monthly membership fee. This fee comes out to be $19.95 a month. When calculated out, that is $239.40 a year.
That is way more expensive than many annual fees you’ll see, even for credit builder cards.
Still, the monthly fee offers you the flexibility to cancel at any time, something which other cards don’t always allow.
Additionally, the monthly fee is a membership fee that comes with exclusive deals and discounts on roadside assistance and a variety of other services.
With most other cards, the annual fee goes to the card only, so in some senses, the high fees for the Unique Platinum card go further than other card fees.
One of the biggest and most uncommon perks of using the Unique Platinum credit card is that it features 0 APR on all purchases.
This allows you to use the card to make purchases with 0 % financing. Because you won’t have to pay anything more than the initial cost on whatever you buy, you can buy items you can’t afford at the moment and pay nothing extra.
This is an extremely rare feature for a credit card.
If you’re using the card to try to repair your credit score, the last thing you want is a credit check. Credit checks hurt your credit each time an inquiry is made.
Luckily, the Unique Platinum credit card doesn’t inquire into your credit when you apply. This means you can get approved and start using the card to build your credit without facing an initial setback.
The Secured Mastercard® from Capital One® shares the same goal as the Unique Platinum card. Both want to help you build your credit.
One major difference is that the Capital One® secured credit card requires a deposit of $49. This deposit gives you access to an initial credit line of $200, meaning the credit line is significantly smaller than that of the Unique Platinum card.
The Capital One® secured card charges an annual fee of $75. Even with the deposit and the annual fee, this is still less than a year of Unique Platinum’s monthly fees.
That said, Capital One® secured credit card does charge interest. The standard APR is 26.99 %.
Ultimately, the Capital One® secured card is cheaper if you plan on paying off your balance each month.
If you are trying to take advantage of the revolving credit aspect of your credit score or don’t plan to pay your balances off immediately, the Unique Platinum card may be the better choice.
Like the card mentioned above, the Citi® Secured Mastercard® requires a deposit. Applicants pay $200 for the security deposit, which is then used as the initial line of credit.
There is no annual fee, though, meaning you can use this card completely for free if you are responsible with your payments.
The card does carry an APR of 22.49 %, though. It’s also a bit more difficult for those with bad credit to qualify for this card.
If you have very poor credit or don’t plan to pay off your balance each month, the Unique Platinum card will probably benefit you. If you want to build credit in the cheapest manner possible, go with the Citi® Secured Mastercard®.
Where some other secured credit cards won’t let you adjust your credit line, the OpenSky® Secured credit card allows you to make a deposit of anywhere north of $200. Your deposit establishes your line of credit, meaning you can go bigger to benefit from revolving utilization.
This card has a $35 annual fee, which is much cheaper than the monthly fees of the Unique Platinum Card.
While the APR is low at 17.39 %, it’s still more than the Unique Platinum cards 0 APR.
Ultimately the OpenSky® card is cheaper in the long run, but if you don’t know if you’ll be able to pay off your balance in full each month, the Unique Platinum card might be the better choice.
The Discover It® Secured credit card is another card that lets you choose your deposit amount. The deposit minimum is $200, but you can deposit more to increase your credit line.
Like the Unique Platinum card, the Discover It® card has no annual fee associated with it.
It also offers 1-2 % cashback on purchases, something many credit-builder cards don’t do.
That said, the Discover It® card is a bit more selective. They may not approve you if you have a very bad credit history.
If you can afford the deposit and have a high enough credit score to qualify, the Discover It® card is probably the better choice in most instances.
The Unique Platinum Credit Card charges very high monthly membership fees. As such, it’s better to use a different credit card to build your credit in most instances.
There is no minimum credit score needed to qualify for the Unique Platinum card.
While there is no annual fee for the Unique Platinum credit card, there is a monthly fee of $19.95. This equates to $239.40 annually.
The Unique Platinum Credit card is an extremely accessible credit-builder card.
That being, the monthly fees add up incredibly fast, making it one of the most expensive cards on the market.
If you plan to use it for an emergency purchase and can take advantage of the lack of interest on the card, it may be a good fit for you. Otherwise, it’s a good idea to look for a card with fewer mandatory fees.