Fit Mastercard vs Upgrade Select Visa

Slightly different card but one has dramatically lower cost

Both the Fit Mastercard and Upgrade Select Visa are targeted at people with less than perfect credit. Fit is a typical unsecured subprime credit card which charges an annual fee, a monthly fee from the second year onwards and also a one-time program fee. The Upgrade Select Card is a credit card that works like a loan and only charges an annual fee and is significantly cheaper to own than Fit.

In this comparison, I will highlight the similarities and differences between these two cards and you will see which is the better card.

What is Fit Mastercard?

Fit Mastercard is from Continental Finance and is an unsecured credit card that targets people with bad credit. Fit's ideal credit profile is a Vantage score of between 500 - 600. Having said that, most successful applicants have a Vantage score of 560 and above. Fit Mastercard will accept people who have just emerged from a bankruptcy and will even accept you if you have include other Continental Finance credit cards in your BK. Hence, it is a true second chance credit card.

Fees and Credit Limit

If you are approved for the Fit Mastercard, you will have to pay a one-time program fee of $95 to activate the card. The annual fee for the first year is $99. Hence, you will be paying $194 in fees during the first year. From the second year onwards, the annual fee rises to $125. In addition, you would have to pay a $12.50/month monthly fee (which works out to $150 annually). Hence, from the second year onwards, you will be paying $275 in fees.

The starting credit limit for Fit is $400. If you pay your first 6 bills on time, it will double to $800. The maximum credit limit you can get with Fit is $4,000.

What is Upgrade Select?

The Upgrade Select Visa is a credit card that is targeted to those with a FICO score of at least 580 and above. The Upgrade Select is different from regular credit cards in the following way. It is like a credit line in a credit card and you can take a series of loans. When you make a purchase on the Upgrade Select, it is considered a "draw". You can either pay it off in full in the next statement balance. Or you can pay it off in equal installments over a fixed period. The interest rate and payment period will be given to you if you a pre-approved and offered a card. The repayment period is usually 24 or 36 months.

The Upgrade Select Visa has a $39 annual fee. The credit limit ranges from $500 to $2,000.

Similarities

Both are unsecured credit cards targeting people with bad credit scores

Both Fit Mastercard and Upgrade Select Visa target people with less than ideal credit scores. The majority of consumers who are approved for the Fit Mastercard have a Vantage score of around 560. Most successful applicants of the Upgrade Select Card have FICO scores of at least 580 and above.

Quite similar starting credit limits

The starting credit limit of both card are quite similar. The Fit Mastercard has a starting credit limit of $400 while the minimum starting credit limit for the Upgrade Select Visa is $500.

Major Differences

Upgrade Select and Fit are fundamentally different in the following ways:

Fit is a regular unsecured card while Upgrade Select works like a loan in a credit card

The Fit Mastercard is a regular credit card. You can either pay your balance in full, or pay over time as long as you pay the minimum payment. The Upgrade Select works more like a loan. When you make a charge to the card, Upgrade calls it a draw. You will either have to pay your balance in full every month, or you have to pay them back in equal monthly installments over a period of either 2 or 3 years.

Upgrade Select has much lower fees

Upgrade Select has lower fees than Fit. Upgrade only charges a $39 annual fee. In contrast, during the first year, the Fit Mastercard charges a $99 annual fee together with a $95 one-time program fee. During the first year, you have to pay a total of $194. From the second year onwards, Fit's annual fee increases to $125 and in addition to that, they will begin charging a $12.50 monthly fee (which works out to $150 annually). So from the second year onwards, the total fees you have to pay for the Fit Mastercard is $275.

Fit Mastercard has potential higher maximum credit limits

The maximum credit limit that you can get with Fit is $4,000. For the Upgrade Select Card, the maximum credit limit you can get is $2,000. So with Fit, you can potentially get double the limit than if you went with Upgrade.

Upgrade Select has 10% Cash Back program

Upgrade has a cash back program where you can earn up to 10% cash back with their merchant partners when you shop at their online shopping portal. Fit does not have any cash back program.

Upgrade has soft pull pre-approval process, Fit does not

Upgrade requires you to create an account with them and go through a pre-approval process. This results in a soft-pull with no impact on your credit score. It is only when you decide to accept their offer and terms that you go through a hard inquiry. In contrast, when you apply for the Fit credit card, there is no pre-approval process and you will face a hard pull on your credit report straight away.

Which is Better? Fit or Upgrade Select?

Based on the comparisons above, the Upgrade Select Visa has significantly lower fees than Fit Mastercard and I would recommend rebuilder choose Upgrade over Fit simply from a fee perspective. The fees that you have to pay for the Fit Mastercard are really high and reach $275 from the second year onwards. During the first year, you have to pay a $194 fee (and all almost upfront).

Both Fit and Upgrade Select appear to target people of almost similar credit scores. The average Vantage score of successful Fit applicants is 560 and above whereas the average FICO score for successful Upgrade Select applicants is 580 and above. Paying only $39 in annual fee for a slightly higher credit limit on the Upgrade makes it a no-brainer over Fit.