Imagine Gold Mastercard Review

The Imagine Gold MasterCard is a sub prime credit card offered initially by First Bank of Delaware and CompuCredit, which is similar to many of the other cards that are offered by these institutions (Tribute and Continental Finance, for example). The idea of simply having a "Gold MasterCard" may seem to be a big plus to bad credit consumers, but there are a number of real points about the Imagine Gold MasterCard that need to be examined.

Interesting Imagine Gold MasterCard Checking Account Link? The biggest difference between the Imagine Gold card and other sub prime credit cards is that it requires an automatic payment plan from your checking account. Two plans are available- the EFT (Electronic Funds Transfer Plan) or a RCC (remotely created check) plan. An EFT electronically transfers funds from your checking account, while an RCC requires you to authorize First Bank to create paper drafts to process payments directly from your checking account.

Fees - Yes Those FeesIn keeping up with the rest of the standard sub prime cards, the Imagine Card also includes its higher than normal fees. The annual fee for the Imagine Card is $150. When you activate your card, you will then be billed a monthly maintenance fee of $6.50 which is another $78.00 a year for as long as you carry a balance. You will also need to pay a one time setup fee of $4.95 whether you choose the EFT plan or the RCC plan.

New cardholders receive a credit limit of $300. After deducting the fees, your initial limit will be $150 and you will be eligible for a credit limit increase after six months. Although the payment history is reported to all three credit bureaus and could help establish or re-establish your credit history, one must seriously consider whether a card with a $150 limit is really worth having. This is without mentioning that the annual fee and monthly maintenance fees add up to $228 per year just to have the card.

APR - The APR is prime rate plus 11.50%, with a minimum rate of 19.50%. The average daily balance method (including new purchase) is used to calculate monthly balance. The grace period given is 25 days.

Imagine Gold MasterCard vs All Other Sub Prime Cards - The exorbitant and seemingly scandalous fees are unfortunately typical of the credit cards available for people with no credit or bad credit. Even extremely high APR's are acceptable to quite a few people (see First Premier's 49.9% and 79.9%). The worst part about the Imagine card is the mandatory automatic payment plan that has to be connected to a person's bank account. Combining a sub prime card with a bunch of fees that most cardholders are oblivious to with a mandatory automatic payment plan is just asking for trouble. This practice alone resulted in a number of complaints of funds mistakenly being electronically transferred or paid when the cardholder wasn't expecting them to be paid. It is ironic, that while most cardholders were working on rebuilding their credit with this card, the payments and issues with the payments instead ended up causing more damage to their credit.

Update - In 2008, the FTC sued CompuCredit for deceptive credit card marketing and many of the complaints by cardholders including not understanding the fees and credit limit (or lack of) that were associated with the card.

The FTC alleges that CompuCredit violated the FTC Act by misrepresenting the amount of credit that would be available immediately to consumers, failing to disclose up-front fees, failing to disclose that certain purchases could reduce a consumer's credit limit, and misrepresenting a debt collection program as a credit card offer. -FTC

CompuCredit ending up settling for 114 million dollars and agreed to pay a $2.4 million civil penalty and issue credits to consumers for fees arising from deceptive marketing practices. Needless to say, the Imagine Gold MasterCard is no longer available.

Verdict - The Imagine Card is an incredibly expensive sub-prime card. While most subprime credit cards have high fees, the imagine credit card tips the upper end of the fee scale. The annual fee and total monthly maintenance fee adds up to $228.00 a year! If you are looking for an unsecured credit card, then I would suggest that you consider the Orchard Bank Classic MasterCards. You can also read our review of the Orchard Bank MasterCard here. , which has low APR on purchases.

The table below shows how much lower in fees the is.