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Better Choices For Bad Credit

Many cards have names like "Premier", "Platinum", or "Preferred", but that doesn't necessarily mean they're good for your wallet. Here we compare a popular secured card to more expensive options.

Chime Credit Builder Secured Visa®

There's a good reason this card is so popular.

This Chime secured card has No Program or Processing Fee, No Annual Fee, No Monthly Fee, No APR*... and No Credit Check either.

Chime reports to the credit bureaus just like any other credit card so you can build up your credit with on-time payments, plus it has an easy-to-use app to help you manage your account.

Because it’s a secured card, you would have to make a security deposit, but that amount gets refunded back to you when you close the account. No annual fees, no interest, and no credit check – in our opinion this is a far better option for people with bad credit!

Program Fee
$0
Annual Fees
$0
Monthly Fees
$0
APR
No Interest
Credit Check
No
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First PREMIER® Bank Mastercard®

This is one of the most expensive unsecured credit cards we've ever seen. With all its fees and high APR, we don't think this is a good option.

For example, if you’re approved for a $300 credit limit, you will need to pay a $95 Program Fee up front to open the account. Then you will be charged a $75 Annual Fee on the card for the first year, so before getting to use your card, you’ll start with only $225 credit available and a balance due of $75. In the 2ndyear, Monthly Fees will kick in along with the Annual Fee. In the first 2 years of having this account these fees would total $290. And with 36% APR, you better stay on top of your monthly payments.

Depending on your credit limit, these fees may vary.

Program Fee
$55 - $95 to open the account
Annual Fees
$50 - $125 first year,
$45 - $49 after that
Monthly Fees
$0 - $8.00 per month for first year,
$6.25 - $10.40 per month after that
APR
36%
Credit Check
Yes

NOTE: We are not affiliated with or authorized by First PREMIER Bank. The information herein has not been reviewed or approved by First PREMIER Bank.

Average Credit Cards for Bad Credit

With many subprime credit cards, including secured and unsecured cards, your application may be declined depending on your credit and other factors. Fees and high interest rates can add up.

Program Fee
Varies
Annual Fees
$32*
Monthly Fees
$0
APR
21%**
Credit Check
Yes
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This review is not provided or endorsed by any issuer. Opinions are our own.
* Average credit card annual fees: https://www.valuepenguin.com/average-credit-card-annual-fee#fee-by-type
** Average credit card interest rate: https://www.businessinsider.com/personal-finance/average-credit-card-interest-rate
Additional Disclosures for Chime Credit Builder Secured Visa® Credit Card:

*No Interest: Out of network ATM withdrawal fees and over the counter advance fees may apply. See here for details.

**No Minimum Security Deposit: Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.

The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.

To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.

**Safer Credit Building - On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.