Tribute Mastercard Credit Card Review - Old Relic of CompuCredit



 

Executive Summary - The Tribute® Gold MasterCard® is also a credit card issued by First Bank of Delaware and CompuCredit as well which explains why most of the details are similar to the Imagine Card that we have also looked at. Likewise, the Tribute Gold MasterCard is for consumers with no credit or bad credit that may be looking for a way to build or rebuild. However, the high fees associated with this card would present a financial challenge. We would instead recommend that you consider the Credit One Bank with Gas Rewards instead.

No Surprise Here. There are Fees - Most unsecured credit cards for people with bad credit carry fees that are not typical of other cards. In fact, most consumers that have bad credit and have been denied by other cards accept the additional fees in exchange for an opportunity to just have a credit card as well as the chance to rebuild their credit. The Tribute MasterCard includes an annual fee of $150.00 and a monthly fee of $9.95. This means that you will be paying a total of $269.40 per year just to carry the Tribute card. There is however, no application or processing fee.

APR - Again, when faced with bad or no credit, consumers also accept a high APR as par for the course. The APR for the Tribute Card is prime rate plus 24.5%. The average daily balance method (including new purchases) is used to calculate monthly balances. The grace period is 25 days. This is not the highest APR that is offered with a sub prime card however, so in this respect the Tribute Card can actually be considered better than some of the others.

Are There Any Benefits to the Tribute Gold MasterCard? - The Tribute card does report payments made to all three credit bureaus, Experian, Equifax and TransUnion. This is an important detail to examine when considering a sub prime credit card. No matter how good or bad your credit is, if your payment history is not reported to the credit bureaus, your credit cannot be affected positively or negatively. There is essentially no reason to bear the fees and high APR of a sub prime credit card if it does not at least assist you in rebuilding or building a positive credit history.

You will also have an available credit line with the Tribute card. If you are approved for the $300 Card, your initial line of credit will be $300. The Annual Fee of $150 will appear on your first statement and once your initial minimum payment of $30 has been received, cleared and posted on your credit card account, you will have a credit line of $180 available on your card. The Account Maintenance Fee of $9.95 per month will begin when you make your first purchase or cash advance.

Peer Comparisons - If you read this review years ago, we would have compared this card to quite a few cards. But right now, that number is dwindling. And the reason is because since the financial crisis in 2008, many sub-prime issuers have stopped issuing cards. First Premier Bank is one of their competitors though it does not really fare better in the area of fees. If you got a First Premier, you would be charged a one-time fee of $95. The annual fee for the first year is $75. From the second year onwards, the annual fee drops to $45 but they tagged on a monthly processing fee of $6.25 or $75 a year. So all in all, from the second year onwards, you are paying $110 in annual fee. The interest rate on FP is 36% which is way higher than Tribute.

The other card to compare with is the Credit One Visa With Gas Rewards. The annual fee will range from $35 to $75 and the APR ranges from 17.9% to 23.9%. Furthermore, you also earn points for gasoline spending! This appears to be a much better alternative.

Verdict - The Tribute® MasterCard® Gold Credit Card has significantly higher fees than other sup-prime cards. If you add up both the annual fee and the monthly maintenance fees, they total over two hundred dollar in addition to the high 24.5%* interest rate. We would not recommend this card given the very high fees.

If you have bad credit, the type of card that you should apply for depends on specific situations. For example, if you have just emerged from bankruptcy, or if your score has taken a hit due to recent charge offs and collections, then your best bet would be to start rebuilding your credit with a secured card like the First Progress Secured Card.

If you are really want to get an unsecured card after a credit hit, then whether you can get on with or without annual fees depends on various factors as well. For example, if you do not have any recent charge offs or collections or they have been paid off and settled a while ago, then you might have a shot at cards like the Barclaycard Rewards MasterCard or the NFL Visa. (Tip: Barclays does not like lots of recent inquiries so it is best to have very few inquiries on your report during the last 6 months. Barclays is also very open to reconsideration requests and your application stays on file for 90 days. If you are not approved, you could try calling their reconsideration line 866-408-4064).

If you have baddies on your credit report, and you really want an unsecured credit card, then you may have to settle for one with an annual fee. The Credit One Bank Visa with Gas Rewards is perhaps the best card today to consider. One thing we like about this card is that you get reward points for using your card for gas purchases. Tip: When you get to their site, you have to fill in your details and first be "pre-qualified". Many applicants have given feedback that your Experian report will get a soft pull. If you qualify, then the application will proceed. To give yourself the best chance for this card, you should have a score that is higher than 550 score, have a checking account, and preferably have existing credit lines like a secured card.

Update - Along with the Imagine Credit Card, the Tribute Gold MasterCard has run into quite a few problems including a lawsuit by the FTC for deceptive credit card marketing. CompuCredit ended up agreeing to a settlement of $114 million dollars and thus, the Tribute Gold MasterCard is no longer available either.

Although this may be viewed as a step in the right direction, it leaves many consumers searching for a creditor that will give them a chance to start over. As mentioned previously, the most reasonable option if you have bad credit is probably the Credit One Visa with Gas Rewards.