Introduction
Card Details
| Annual Fee |
$49-$175 1st Year Then $0-$49 |
| Monthly Maintenance Fee |
$0 for 1st Year Then $5-$12.50 per month |
| Regular APR | 22.74%-36% |
| Cash Advance APR | 25.74%-36% |
| Balance Transfer APR | 25.74%-36% |
| Penalty APR | None |
| Cash Advance Fee | Greater of $5 or 5% |
| Balance Transfer Fee | 3% |
| Foreign Transaction Fee | 3% |
| Late Payment Fee | Up to $40 |
| Returned Payment Fee | Up to $40 |
The table above shows the main terms and conditions of the card. The thing that stood out was the fact that you will be offered a range of annual fee and APR when you apply. So that means you really do not know the exact fees and rates you will get until you get approved.
Another interesting thing to note is that from the second year onwards, your annual fee will decline from $49-$175 to $0-$49. So your annual fee can actually go to $0 (though you would have to pay a monthly maintenance fee from the second year onwards).
Competition
| Card | Details |
|---|---|
| Fortiva Mastercard |
Annual Fee = $49-$175 1st Year, Then $0-$49 Upfront Fee=N.A. Monthly Fee=$0 1st Year, then $5-$12.50/month APR=22.74% - 36% Free Credit Score = Yes |
| First Digital |
Annual Fee = $75 1st Year, Then $48 Upfront Fee=$95 Monthly Fee=$0 1st Year, then $6.25/month APR=35.99% Free Credit Score = N.A. |
| Total Visa |
Annual Fee = $75 1st Year, Then $48 Upfront Fee = $89 Monthly Fee = $0 1st Year, Then $6.25/month APR = 34.99% Free Credit Score = N.A. |
| Surge Mastercard |
Annual Fee = $135 1st Year, then $96 Upfront Fee=N.A. Monthly Fee = $10/month APR = 29.90% Free Credit Score = Yes |
| Credit One Bank |
Annual Fee=$0 to $99 Upfront Fee=N.A. Monthly Fee = N.A. APR = 19.49% to 25.49% Free Credit Score = Yes |
| Indigo |
Annual Fee=$0 to $75 Upfront Fee=N.A. Monthly Fee = N.A. APR = 24.9% Free Credit Score = N.A. |
As you can see from the table above, the Fortiva Mastercard does not have the lowest fees or rates. It charges both an annual fee and a monthly maintenance fee (though they do not charge any one-time application fee). For example, there are cards like Credit One Bank and Indigo that only charge an annual fee with no monthly maintenance fees. But as you can also see, there are cards like Surge Mastercard that also charges both an annual fee and monthly maintenance fee.
The Fortiva Mastercard also offers a free credit score (which many of it's peers have also jumped on the bandwagon lately). It has no reward program though it does say under the card agreement that you "may" be offered one.
Pros and Cons
Pros
- No One-time Application Fee - Though Fortiva does charge a monthly maintenance fee on top of the annual fee, they do not charge any one-time application fee.
- Free Credit Score - Card members will also get a free credit score. The score is a Vantage 3.0 score provided by Equifax.
- Allows Balance Transfer - This card allows you to transfer a balance over. With a rate of between 22.74% and 36%, the APR is not exactly low. But perhaps if you have some sort of high rate payday loans and want a rate that is at least more tolerable, this maybe a consideration for you.
- Annual Fee Declines After Second Year - Tough the annual fee is high during the first year, it declines during the second year onwards from $49-$175 to $0-$49. That means that you could possibly pay no annual fee from the second year onwards. (you still have to pay a monthly maintenance fee).
-
Allows Automatic Payment - Many other subprime credit cards charge fees for depending on how you pay your bills. Very often automatic payment is not an option too. Having the automatic payment option is great because you will never have a late payment.
Cons
- Fees and Rates Quoted In A Range - Unlike other cards that will simply state their fees, Fortiva actually list a range of fees (whether it be annual fee or monthly maintenance fee). So as an applicant, you do not really know what your fees will be like when you apply. The same goes for the APR.
- Charge a Monthly Maintenance Fee - Aside from an annual fee, you will also be charged a monthly maintenance fee ranging from $5-$12.50 a month. This works out to between $60 and $159 a year.
- High Fees and Rates - The fees and rates of the Fortiva Mastercard are quite high compared to it's peers.
Our Take
Nevertheless, this does not mean that you should not consider this card. You should obviously try to get credit cards with lower fees to rebuild your credit. However, there is no guarantee that you will be approved for any credit card even though it is targeted at folks with bad credit. If you find that you have been denied for other credit cards, then it might make sense to consider the Fortiva Mastercard even though it does not have the lowest fees and features that some other subprime cards have.