By : 
Mr Credit Card
Mr Credit Card
The PerPay Mastercard is an unsecured credit card from PerPay, the online marketplace. It is issued by Celtic Bank and powered by Deserve Inc. The PerPay credit card allows you to earn 3% rewards on all payments that you make on the card. The rewards can be used as credits when you make purchases at the PerPay Marketplace.
To get the PerPay Mastercard, you would first have to sign up and be a member of the PerPay Marketplace. You would also have to activate a feature called PerPay+ which enables PerPay to report your payments to credit bureaus. If you have activated PerPay+, you would be eligible to get the PerPay Mastercard.
In this review, we will evaluate whether it is worth getting the PerPay credit card if you are already a PerPay member.
To get the PerPay Mastercard, you would first have to sign up and be a member of the PerPay Marketplace. You would also have to activate a feature called PerPay+ which enables PerPay to report your payments to credit bureaus. If you have activated PerPay+, you would be eligible to get the PerPay Mastercard.
In this review, we will evaluate whether it is worth getting the PerPay credit card if you are already a PerPay member.
Card Details
| Reward Program | Earn 3% Rewards on all payments |
| Credit Limit | Starting at $500 |
| Annual Fee | $0 |
| Account Opening Fee | $9 (one-time) |
| Monthly Account Service FeeFee | $9/month ($108 annually) |
| Foreign Transaction Fee | 3% |
| Penalty Fee |
Late Payment - $39.00 Returned Payment - $19.00 Over-The-Credit-Limit - $0 |
| APR | 29.49% |
| Bank Issuer | Celtic Bank |
| Serviced by | Deserve Inc |
One-Time Set Up Fee + Monthly Fee
The PerPay requires you to pay a one-time set up fee of $9. They also charge a monthly service fee of $9 per month. This works out to $108 a year. This amount is actually quite reasonable for a rebuilder credit card.Initial Credit Limits
The initial starting credit limit for the PerPay credit card is at least $500. You may get a much higher starting credit limit and as high as $1,000.3% Flat Rate Rewards Program
The PerPay credit card has a flat rate 3% rewards program whereby you will earn 3% rewards on all payments. The rewards will be applied within 10 days from statement closing date. The rewards do not expire and they can be used for purchases that you make in the PerPay marketplace.Requirements to Get the PerPay Credit Card
- Be employment with the same employer for at least the last 3 months
- Be paid via direct deposit
- Mobile Number
- No active bankruptcy
- No current delinquencies
Once you have signed up for the PerPay account, you will be given your credit limit. You can then shop at the PerPay marketplace and submit your order for approval. Once your order is approved, you can then check out. When you are checking out, you should enroll in PerPay+, which enables PerPay to report your payments and credit limit to the major credit bureaus. Enrolling in PerPay+ also allows you to apply for the PerPay credit card.
Setting or Splitting Payroll Direct Deposit to Pay PerPay
Both the PerPay marketplace and PerPay Mastercard requires you to pay them directly from your payroll direct deposit. After you have made your first purchase on the PerPay marketplace, checked out and activated PerPay+, you have to set up your direct deposit such that part of it goes to PerPay to pay for your purchase. This can be done if your employer allows you to split your direct deposit. If they do not, then you can get direct your payroll deposit to PerPay, who will then split it for you.If you do end up getting the PerPay Mastercard, you have to make some changes to the payroll direct deposit split to include payment to the PerPay credit card.
Analysis: Total Fee to Credit Limit Ratio
The Total Fee to Credit Limit ratio is a key measure we use to determine whether the fee you pay for a credit card is worth it relative to the credit limit that you are getting. This measure is particularly useful for comparing subprime credit cards, which tend to come with a lot of fees and a relatively low credit limit.
For the PerPay Mastercard, the monthly fee of $9 adds up to $108 a year. We know that the minimum starting credit limit is $500. But it could be higher, perhaps $700 or $1,000. The table shows the Total Fee to Credit Limit ratio at various credit limits.
| Card | Monthly Fee | Credit Limit | Total Fee to Credit Limit Ratio |
|---|---|---|---|
| PerPay $500 | $9/month | $500 | $(9 X 12)/$500 = 21.6% |
| PerPay $700 | $9/month | $700 | $(9 X 12)/$800 = 15.43% |
| PerPay $1,000 | $9/month | $1,000 | $(9 X 12)/$800 = 10.8% |
A Total Fee to Credit Limit (TFCL) ratio of 20% and below is good because it means you are only paying 20% of you credit limit in fees annually. A TFCL of 10% or less is even better. As you can see from the table aove, the TFCL ratios for PerPay credit card at various credit limits are low. That means that the fees you pay are reasonable considering the credit limit you are getting.
Benefits We Like
- Earn 3% Rewards - A flat rate of 3% rewards is very good for any flat rate rewards card.
- No Credit Checks and Easy to Get - Getting the PerPay Mastercard is very easy and there are no credit checks. You simply need to be a member of PerPay and activate PerPay+ to enable credit reporting to the three major credit bureaus on your PerPay account. And getting a PerPay account is easy as well. There are no credit checks as well and all you need to get approved is to be employed for 3 months, have no active bankruptcies and have no delinquent accounts.
- Decent Starting Credit Limit - PerPay's credit card minimum starting credit limit of $500 is very decent for a rebuilding credit card. In fact, many have gotten at least $1,000 in starting credit limits.
What We Don't Like
- Rewards Can Only Be Used For PerPay Marketplace Purchases - While earning 3% rewards for every dollar that you pay on the card is great, the rewards can only be used as credits when you make a purchase with PerPay.
Our Take: Great for PerPay members
Getting the PerPay credit card is easy as well. You simply have to join PerPay and activate PerPay+, which enables PerPay to report your payments to the three major credit bureaus. You will then be eligible to apply for the PerPay Mastercard. Unlike PerPay which is free to join, you do have to pay a one-time account opening fee of $9 and a monthly fee of $9 as well for the card. Nevertheless, the fee is reasonable and within range of fees typically charged by credit cards for people with bad credit.
Based on our evaluation and review of the PerPay credit card, we are giving a 4 star out of 5 because it is easy to get once you are approved for the PerPay market place, the reasonable credit limit and fees and also the 3% rewards that you will earn. The fact that you actually need to be a member of the PerPay and the rewards can only be used for purchases at PerPay marketplace prevents us from givng it a higher rating. If you are a PerPay member who shops regularly at their marketplace, then getting the PerPay Mastercard is an easy way to add another unsecured credit line to help you rebuild your credit.