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It can be tough to build your credit score when you don’t already have decent credit. One of the most common solutions is to seek out a secured credit card. These cards leverage a security deposit to offset your poor credit.
But what if you can’t afford the security deposit? Or what if you simply don’t want to pay a deposit?
That’s where credit building cards like the Verve Mastercard® come in.
The Verve Mastercard®’s primary aim is to help you build your credit. To do this, you need your activity reported to the three major credit bureaus.
These bureaus are the ones that determine your credit score. As such, they must have access to your credit activity, as this will allow them to update your credit score.
Luckily, the Verve Mastercard® reports to all three bureaus, ensuring your use of the card helps build your credit up.
Another benefit of using the Verve Mastercard® is that you have the potential to increase your line of credit through responsible and smart use.
The Verve Mastercard® automatically reviews your spending at the six-month mark. If you’ve been using the card wisely and paying off your balance on time, they will extend your credit line.
This is beneficial in a few ways.
For one, an extended credit line gives you more financial freedom. If an emergency pops up and you need access to funds, having an extended credit line can help you navigate that situation in the best possible manner.
Additionally, a larger line of credit can help your credit score. One of the factors that contribute to your score is your revolving utilization.
When you have a larger line of credit, the amount of credit you use can proportionally decrease. This can help your credit score increase faster, as your revolving utilization decreases as well.
The Verve Mastercard® offers free access to your credit score. This score is updated each month, ensuring you know exactly where you sit credit-wise.
This can help you in several ways.
For starters, accessing your credit score lets you see how your credit-building efforts are going. Being able to see changes in your score month-to-month lets you know if you’re successfully improving, and if not, what you need to do to fix it.
Over time, this keeps you on the path towards better credit and more financial stability.
Having access to your score also helps you know what you should apply for. Since many credit cards run a credit check on applicants, you must apply to cards you are likely to get approved for.
Credit checks for card applications hurt your credit score. If you are denied and have to apply for more cards, you risk dropping your credit score further with each new application.
By checking your credit score beforehand, you can make wise application decisions, keeping your credit score from taking any unnecessary damage.
The First Progress Platinum Prestige MasterCard® secured credit cardis another card that aims to help you increase your credit score.
Like all secured credit cards, the First Progress Platinum Prestige MasterCard® requires a security deposit. This deposit works as collateral to offset bad credit.
The deposit is $200, and there is a $49 annual fee. While this is initially more expensive than the Verve Mastercard®’s $99 annual fee, it’s cheaper in the long run, as you can get the $200 deposit back.
The APR for the First Progress Platinum Prestige card is significantly lower than that of the Verve Mastercard® at only 9.99 %.
Ultimately, the First Progress Platinum Prestige Mastercard® card is a better deal in the long run, but its limited credit line and deposit requirement might make it less ideal for those looking to build their credit as fast as possible without much of an up-front investment.
The Applied Bank® Secured Visa® Gold Preferred® credit card differs from the Verve Mastercard® in a few key ways.
The Applied Bank® Gold card requires a deposit which is then used to establish your line of credit. The deposit can be anywhere from $200 to $1000.
Both cards have an annual fee, but the Applied Bank® Gold cards are about half of the Verve cards at just $48 a year.
Applied Bank®’s card also has a lower interest rate, sitting at 9.99 %.
All of this makes the Applied Bank® Secured Visa® Gold Preferred® card a better deal in the long run. That said, the Verve card is less expensive initially, so if you’re strapped for cash, you may be better of with Verve.
The OpenSky® Secured credit card is a flexible secured card. You choose your initial deposit, and that deposit becomes your credit line.
The minimum deposit is $200, and there is a $35 annual fee as well. This means the card is more expensive up-front than the Verve Mastercard®, but since your deposit will eventually be returned if you use the card properly, it’s ultimately cheaper.
This card also has the benefit of not running a credit check on applicants. This means your credit won’t be hurt when you apply.
The OpenSky® card has an APR a bit below the Verve Mastercard® at 17.39 %. If you can’t pay off your balance, the OpenSky® card is a bit more forgiving.
Ultimately, you’ll save more using the OpenSky® Secured credit card, but the right card depends on your specific financial needs.
The Discover It® Secured Credit Card uses an initial deposit to secure your credit line like the cards mentioned above. The minimum deposit is $200, but you can deposit more if you’d like access to more funds with your card.
Unlike the Verve Mastercard®, there isn’t an annual fee for using the Discover It® secured card. Additionally, the Discover It® secured credit card offers rewards.
You can earn 1-2 % cashback when using the Discover It® secured card for any purchase. The Verve Mastercard® offers no rewards programs.
All of this makes the Discover It® secured credit card a better choice in nearly every instance. It is harder to qualify for than the Verve Mastercard®, though, so those with particularly bad credit may not be approved.
The Verve Credit Card can be worth it if you need a card to help build credit without requiring a security deposit. That said, most secured cards are ultimately kinder to your wallet in the long term.
You can qualify for the Verve Mastercard® with very poor credit. While there is no specific score recommended, almost everyone will get approved, regardless of their credit history.
The Verve Mastercard® has an annual fee of $99 per year. This fee holds steady regardless of how long you’ve been a cardholder.
The Verve Mastercard® is a card designed to help you build your credit without requiring a security deposit. Using it wisely can boost your credit score and help you achieve better financial wellbeing.
That said, it is almost always better to use a secured card if you can afford the deposit, as they generally offer lower APRs and annual fees.
If you can’t afford the deposit, the Verve Mastercard® is a decent choice for building your credit. Just make sure you pay off your balance to avoid accumulating interest.