A credit card is a special card that allows you to borrow money from your financial institution to spend on shopping, payment of bills, as well as withdrawing cash from ATMs. Credit cards issuers mostly consider people with good credit records because they want to be sure that you will be able to pay back. However, some companies give unsecured credit cards. Among the cards is the total visa unsecured credit card.
Unsecured credit cards are mainly for people with bad credit records. However, the cards come with very high fees and turn out to be very expensive to use. Total Visa Unsecured Credit Card is a product of the Bank of Missouri. It aims at assisting people with bad credit access credit services as well as helping them to grow their credit limits. The bank submits credit records of individuals to Credit bureaus.
If you recently checked your FICO score and found out that things are bad, then do not worry as this article will show you how to get an unsecured credit card with bad credit. An unsecured card is better than a secured card since you do not have to deposit any amount of money. A secured card requires you to deposit any amount of money of which the money is going to be your credit limit.
Table of Contents
- What Are the General Characteristics of Unsecured Credit Cards?
- Why is Total Visa Unsecured Credit Card A Good Option?
- What Are Features Of The Total Visa Unsecured Credit Card?
- Is There Cash Advances For Total Visa Unsecured Credit Cards?
- How Do I Get the Visa Unsecured Credit Card?
- What Are The Advantages of A Total Visa Unsecured Credit Card?
- What Are The Shortcomings Of Total Visa Unsecured Credit Cards?
- Are There Alternatives to Unsecured Credit Cards?
- Bottom Line
What Are the General Characteristics of Unsecured Credit Cards?
Unsecured credit cards are unique in several ways. First of all, you do not need to pay any deposit while accessing the card. That is why the cards hold the term unsecured cards.
In addition, unsecured credit cards attract hefty fees. The interest rate charges are high since the issuer is risking giving the card without being sure that you will pay back what you spend.
Again, the credit limit is usually very low. Remember you have bad credit, and the issuer is only trying to help you climb the ladder and rectify your poor financial records. However, with time, you can get an increment and enjoy a higher credit limit. That is possible only when you pay your debts on time.
Why is Total Visa Unsecured Credit Card A Good Option?
Total Visa Unsecured Credit Card is useful because you do not have to pay any deposit to get the card. Moreover, you borrow money using the card to pay later at an agreed date.
As time goes by, you can build your credit records, thus increasing your credit limits. Since Total Visa Unsecured Credit Card is for helping poor credit record holders, the company does instant credit card approval for bad credit no deposit.
On the other hand, a secured credit card works the same as a debit card. You have to deposit to get the card. Remember that you get a credit limit equal to your deposit. Again, you cannot exceed the amount you deposited.
What Are Features Of The Total Visa Unsecured Credit Card?
Total Visa Credit Card has various characteristics and requirements that each applicant must adhere to. First of all, you need to know that the card charges very high fees.
To get the card, you have to pay a one-time $89 program fee. Moreover, the annual fee is still there. You need to pay a total of $75 as the yearly fee. When applying for the first time, it means that you will pay a total of $164 that year.
The good thing is that the following year, which is the second year, the annual fees drop drastically to $48. Do not rejoice either as there will be a monthly fee of $6.25. The monthly fee translates to $75 per year. Adding the annual fee, it means that you will be paying a total of $123 every year.
Having paid such a huge amount of cash per year, you still get a low credit limit. However, you have to withstand that since you aim to improve your credit score.
If you get an approval, then the credit limit will be $300. However, the company deducts the $75 annual fee to make the credit limit to reduce to $225. It calls for patience since you have to take 12 billing cycles to get an increment of your credit limit.
Moreover, a credit limit increase attracts a 20% fee on the increased amount. It’s fees, fees, fees. You do not need to go back to such a scenario once your records go straight.
Before you get the card, you must ensure that you have a checking account. Moreover, you cannot use the card outside the US.
Is There Cash Advances For Total Visa Unsecured Credit Cards?
For the first year, you will get cash advances at no fee. Your card must remain active for 90 days so that you can get the advance. That is equivalent to three billing cycles.
However, after the first year, you will be eligible for a Cash advance subject to a $5 or 5% of the cash advance amount. The company applies whichever is bigger.
I should mention to you that the card comes with a high APR of 34.99%. Again, you should always remember to pay your debt early in advance since late payments attract a $40 penalty.
How Do I Get the Visa Unsecured Credit Card?
Getting a Visa Unsecured Credit Card is easy. You can use an online application platform whereby you fill your details carefully. The application process is fast. Most applicants usually receive a decision instantly.
Upon succeeding in applying for this card, you will benefit from the monthly reports the company submits to the credit bureaus. Note that other credit companies give credit reports to the concerned bureaus as well.
What Are The Advantages of A Total Visa Unsecured Credit Card?
Despite the high fees you have to pay annually, the card has several benefits that will help you very much. They include the following.
1) Monthly reports to the Credit Bureaus
The company reports your financial statements every month to all the three credit bureaus of the United States of America. These are Experian, Equifax, and TransUnion. The move helps you grow your credit position fast so long as you make timely payments of your debts.
When accessing your credit reports, you should get the score analysis from all the three companies and compare them. There shouldn’t be a big difference.
2) Fast Application Process
It does not take a lot of time when applying for the credit card. As I mentioned before, the company gives instantaneous responses to applications. It is not like some companies which can keep you waiting for a long time.
3) Cash Advances
You are eligible to apply for cash advances even in the first year of application. You must stay active for 90 days or three billing cycles to qualify. Cash advances in the first year of application do not attract any fees. However, cash advances for consecutive years require you to pay a fee of either $5 or 5% of the amount you get as a cash advance.
What Are The Shortcomings Of Total Visa Unsecured Credit Cards?
Despite having some benefits to the users, the Total Visa Unsecured Credit Card has some drawbacks, including the following.
i) High charges
Total Visa Unsecured Credit Card has various charges which include a one-time $89 program fee and a $75 annual fee in the first year. For the consecutive years, you have to pay $48 as the yearly fee and a $6.25 monthly fee throughout the year. Cash advances attract either $5 or 5% of the total amount.
ii) Low credit limits
You will qualify for a low credit limit upon a successful application. For the first year, you get a $300 limit that drops down to $225 due to the annual fee of $75.
iii) High APR of 34.99%
APR means Annual percentage Rate. It refers to the charges banks make on borrowed or earned money on investments per year.
iv) Late Payments Charges
If you do not pay your debt on time, the company charges you $40. That is a lot of money for someone who is recovering from bad financial times.
Are There Alternatives to Unsecured Credit Cards?
There is always an alternative to doing things to achieve the same results. If you have a bad credit record, you cannot apply for unsecured personal loans. Various credit unions offer unsecured personal loans to those in need. Personal loans from a credit union can replace an unsecured credit card where possible.
The amount of loan you get from a credit union will significantly depend on your credit score. Even though people with poor credit records can get a personal loan from a credit union, there will be a difference in the amount of loans given to people of different credit scores.
Total Visa Unsecured Credit Card is a good credit card to help you build your credit score with time. However, the charges and the low credit limit to some extent make the card uneconomical to use. You might consider taking the card or going for other options with friendly terms. As for me, I will only recommend the card to those people who are seriously looking to improve their credit scores.