5 things to know about Green Dot credit cards

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Green Dot credit cards have relatively low interest rates compared to secured credit cards, and unlike most other issuers, applying for one won’t impact your credit. (The green dot does not Hard shot on your credit report.)

However, these cards have higher APRs, so if you have low to medium credit and also plan to keep a balance on the card, you may want to consider Green Dot credit cards despite those pesky fees.

Here are five things to know about these three Green Dot credit cards:

1. Cards require a refundable security deposit

A secure card works like a regular credit card – you can use it to make purchases and then pay off the balance, or part of it, each month – but you must first make a refundable security deposit.

Usually your credit limit will be equal to this deposit. For all these Green Point cards, the deposit can vary between $ 200 and $ 5,000; you can deposit a security deposit up to your approved credit limit.

2. You will also have to pay fees

While there is no processing or application fee, you will have to face other fees. First, you will need to pay an annual fee regardless of which card you choose:

  • the Green Dot primor® Visa® Classic secured credit card wear one $ 39 annual subscription.

  • the Green Dot Visa® secured credit card has a $ 39 annual subscription.

  • the Green Dot primor® Visa® Gold secured credit card has a $ 49 annual subscription.

(The Green Dot primor® Visa® Gold secured credit card has a lower potential ongoing APR. More on that later.)

The cards also charge a 3% overseas transaction fee, which means none of them are ideal for international use.

Consumers with little or no credit might instead consider other credit cards that don’t charge such fees, such as Visa® Petal® 2 “Cash Back, No Fee” credit card. It is an insecure card, which means that it does not require a security deposit and it offers rewards. His annual membership fee is $ 0.

3. The Green Dot Visa® secured credit card does not offer additional benefits

Although the word “platinum” appears prominently on the map, the Green Dot Visa® secured credit card does not offer additional benefits worthy of its more sophisticated appearance.

In fact, compared to the other two Green Dot options, its interest rate is significantly higher. The current APR is 19.99%.

the Green Dot primor® Visa® Classic secured credit card, for example, charges the same annual fee but offers a lower interest rate. The current APR is 13.99%.

the Green Dot primor® Visa® Gold secured credit card charges the highest annual fee, but has the lowest interest rate of the three. The current APR is 9.99%. A single digit APR is unusual among cards intended for people with low credit. That’s why it’s featured in our roundup of the best secure cards. Depending on how much credit card balance you need to carry, the slightly higher annual fee may be worth it.

4. You will not earn any rewards

While this is not unusual among secured cards aimed at people with low credit, it can also be frustrating for consumers who want to use credit cards to earn cash or reward points.

When you’re new to credit cards, the rewards aren’t the most important thing, but you can still find safe and alternative options that earn them. the Discover it® secure credit card, for example, earns 2% cash back at gas stations and restaurants on up to $ 1,000 in combined purchases each quarter, automatically (1% cash back on all other purchases). You will need to make a minimum deposit of $ 200, but unlike these Green Dot cards, the annual fee is $ 0. More, INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match any Cash Back Rewards you’ve earned at the end of your first year! There is no minimum spend or maximum rewards. Just a dollar-for-dollar match.

5. They can serve as a springboard to better maps

Just like with many regular credit cards, Green Dot reports credit card behavior to the three major credit bureaus, allowing you to build your credit history. And by doing so, you can become eligible for better cards i.e. regular unsecured products that don’t require a deposit. These cards may also have no annual fee and / or earn rewards.

However, you will not be able to switch to such a product with Green Dot, as the company does not offer such unsecured cards. You can, of course, request one from another issuer, but if you want to get your Green Dot deposit back – and stop paying the annual fee – you’ll need to close your Green Dot account. (And closing an account can affect your credit scores.)

Other secure card issuers (Discover and Capital One, for example) offer clear “upgrade paths”, potentially allowing you to upgrade to a better product within that issuer’s “family” of cards without having to upgrade. to close your account beforehand.

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