Green Dot is trying to offer secured credit card that will then report to three credit bureaus. Green Dot is unlike the other credit cards that require the users to create bank account. It gives more flexibility by allowing anyone even those who have no bank account to get access to Green Dot secured credit card.
A product established by Green Dot, the Platinum Visa, offers solid opportunity that lets anyone rebuilding or build new credit. That simple and secured card by this company uses security deposit that’s refundable as collateral. The security deposit will also be the credit limit for the Green Dot secured credit card holders.
Responsible spending and on-time payments done by holders of Green Dot platinum card will then be recorded. The company is going to report that record to three credit bureaus. The aim of this step is to help platinum card holders by Green Dot improving the creditworthiness. Owners of this platinum card are even allowed to do prequalify without a risk which affects their credit score.
Flexibility Offered by Green Dot for All Platinum Card Holders
Those who want to get Green Dot secured credit card must qualify security deposit that’s just $200. Since Green Dot will not require bank account, it is going to let its customers to pay their monthly bills through participating retailers. There is no rewarding system applied, yet the variable annual percentage rate of 19.99% is extremely low.
Green Dot secured credit card clearly is neither debit card nor prepaid card. That platinum card is credit card which has annual percentage rate between 3% and 5% lower compared to the other similar cards. The annual percentage rate above applies to both everyday spending and cash advances. Credit limit is defined by flexible deposit between $200 and $1,000
Before applying for Green Dot credit card, applicants must watch several crucial things in advance. First thing is annual fee. Annual fee will come from credit limit top and this is going to limit the future spending. The other cards from other providers don’t apply the annual fee system. Unfortunately, those competitors come with higher annual percentage rate.
Things to Consider Before Applying for Platinum Card from Green Dot
Since Green Dot secured credit card is not connected to any bank account, applicants will have to pay through retailers. This means there will be fee for retailer payment. Instead of paying $5 extra every month, it is always better to open checking account that helps saving unnecessary costs.
The company doesn’t apply the upgrading and rewarding system for Green Dot secured credit card. There will be no cash back or point rewards for any spending. The platinum card won’t also automatically upgrade its holder to unsecured card since it doesn’t reward its holder for any improved credit.
There will be fees for loading deposits onto the card at any participating retailers, about $5. Card holders can load their deposits through retailers but they can only load the Green Dot secured credit card for maximum $500. They have to use service provided by Walmart to load up to $1,000.