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Verve Mastercard vs Arro Mastercard

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Card Name
Verve Platinum Mastercard
Arro Mastercard
Annual Fee
  • $125 for $500, $750 and $1,000 limit version
  • $75-$99 for $300 limit version
No annual fee
Monthly Fee
  • $0 for $750 and $1,000 limit version
  • $10/month for $300 and $500 limit version
  • Year 1 = $1/month
  • Then $3/month
APR
29.9%
16%
Starting credit limit
$300, $500, $750 or $1,000
$50 - $200
Credit limit increase
Doubles to $600, $1,000, $1,500 or $2,000 after 6 months of on-time payments
Immediate credit limit increase after completing financial literacy courses online.
Maximum credit limit
$4,000
$2,500
FICO score requirements
At least 600
Arro does not consider FICO score. There is hence no hard inquiry on credit report.
Other approval requirements
  • Need checking account
  • Min income of $1,800/month
  • At least $50 positive bank balance
  • Link bank account to Arro via PLAID
By : Mr Credit Card

Executive Summary

The Arro Mastercard and Verve Mastercard are unsecured credit cards aimed at individuals with bad credit or limited credit history. While both cards are unsecured, they differ in their application processes, fee structures, and approval criteria.


Similarities

The Arro and Verve credit cards share the following similarities:

  • Both Arro and Verve Mastercards are unsecured credit cards targeting individuals with bad or no credit history.
  • Both cards are issued under the Mastercard network.


Differences

The two cards are different in the following ways:

1. Fees

Arro's Fee: Arro Mastercard boasts significantly lower fees compared to Verve. Arro charges a monthly fee of $1 during the first year ($12 annually) and $3 per month thereafter ($36 annually). In contrast, Verve's fee structure varies depending on the version, with potential annual savings ranging from $89 to $139 with Arro.

Verve's Fee: Verve Mastercard offers different versions with varying fees. Annual fees for the $750 and $1,000 limit versions amount to $125, while the $500 limit version also incurs the same fee. From the second year onwards, fees increase to $10 per month ($120 annually) for the $500 limit version.

Card Annual Fee Monthly Fee Credit Limit
Verve $1,000 $125 $0* $1,000
$2,000 after 6 on-time payments
Verve $750 $125 $0* $$750
$1,500 after 6 on-time payments
Verve $500 $125 $0 - $10/month $500
$1,000 after 6 on-time payments
Verve $300 $75 Y1, then $99 $0 - $10/month $300
$600 after 6 on-time payments


2. Credit Limits

Arro's Initial Credit Limit: Arro offers a starting credit limit ranging from $50 to $200, with opportunities to increase it through financial literacy courses via the Arro mobile app.

Arro's Maximum Credit Limit: The maximum credit limit for Arro Mastercard is $2,500.
Verve's Initial Credit Limit: Verve Mastercard can offer you 4 initial credit limits ($300, $500, $750 and $1,000), which doubles to $600, $1,000, $1,500 and $2,000 respectively after six months of timely payments.

Verve's Maximum Credit Limit: The maximum credit limit for Verve Mastercard is $4,000.

3. APR

Arro features a lower APR of 16% compared to Verve's APR of 29.9%. Additionally, completing financial literacy courses through the Arro app may further reduce the APR.

4. Approval Criteria

Arro does not rely solely on FICO scores for approval. Instead, it considers factors such as a minimum monthly income of $1,800, a positive bank balance of at least $50, and the linking of the applicant's bank account to Arro via PLAID.

Verve, on the other hand, typically requires a FICO score of at least 600 for pre-approval and final approval. Verve also requires you to have a checking account.


Which is better? Verve or Arro?

Arro Mastercard emerges as the preferred choice for individuals with FICO scores below 600 or those seeking a credit card with lower fees and APR. While Verve offers advantages such as higher initial credit limits and the potential for limit doubling, Arro's lower fees, lower APR, and lenient approval criteria make it an appealing option for many consumers.

In conclusion, individuals with FICO scores of at least 600 seeking higher initial credit limits may find Verve Mastercard appealing. However, for those with lower scores or prioritizing lower fees and APR, Arro Mastercard presents a more advantageous option.