The first digital card is an unsecured credit card for people with bad credit. The users have to pay $95 as program fees and $75 as annual fees for the first year. In the second year, there is a slight drop in annual fees to $48 as $6.25 per month. The company provides a credit limit of $300. As the card is unsecured, there is no need for depositing the collateral. The interest rate is rocket high as $35.99%. This is much more than the average APR. Thus, carrying a balance to the next month is very costly. The best part of having the card is company reports usage to all the major credit bureaus. This way users can see quick growth in their credit scores. Before using this expensive card, users should check first digital nextgen MasterCard reviews. By doing this applicant can check out the strengths and weaknesses of the card discussed above:
Note: Users who find this card expensive should go for the secured credit cards. In these cards, they have to pay collateral equal to the credit limits. Also, the interest rates are low so they can carry a balance to the next month in cases of emergency.
•High initial fees: In many cases, users don’t have to pay high initial fees but first digital card charges initial one-time fees of $95. The only benefit here is no need for collateral. People who are running out of money in this pandemic can use this as an opportunity.
•High annual fees: Users have to pay $75 as annual program fees for the first year. After this, the fees are reduced to $48 on monthly basis i.e. $6.25. Here users should also understand that the average credit card annual fees are $19.50. Also, multiple credit cards are offering $0 annual fees. Users should also check them out.
•High APR (Annual Percentage Rate): The average APR is somewhere around 20% but while carrying a balance, users have to pay 35.99% APR. Users should use this card very carefully as APR has the power to influence the repayments. In many unsecured cards, users can find half the APR discussed above.
Users who are new to the credit card market should avoid purchasing this card as they don’t know how to deal with APR. They should first try prepaid cards so that they can have a good understanding of APR.
•Low credit limit: A user gets a credit limit of $300 and $75 is deducted as the first year annual fees. This means he can only use the card for the small purchases.
•No rewards: There are no such rewards offered by the company.
•High-approval: As the card is designed for people with bad or relatively no credit, there are high chances of approval. That’s the only difference as other companies may reject the applications.
What is a Prepaid Card?
In the prepaid card, the user has to load his money. It is not like a debit card as there is no involvement of bank account. The money is loaded into card and user can use it. Accordingly, he can understand the usage of credit. If he uses all the payment he can understand how APR would have been affected.
Do prepaid cards work for Lyft?
Yes, the company accepts credit cards, debit cards and prepaid cards. While paying, users have to load money into their account through prepaid cards, and they can use it.
Do prepaid cards work on cash app?
Yes, users can use their prepaid card to add money in their account.
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