If you’re trying to improve your poor credit, but don’t have the cash for a secured credit card, the Reflex Credit Card may be worth considering as an alternative.
This card does come with a number of high fees compared to other cards on the market. You could get a better deal if you go with a well-known secured credit card that has a low APR and no annual fee. Read on to learn more about the Reflex Credit Card and see what better credit cards we recommend in its place.
Reflex Credit Card Review
Here are some of the key details of the Reflex Credit Card:
- APR: 29.99%
- Credit Limit: $500 to $2,000
- Annual Fee: $125 for the first year, $96 for every year thereafter
- Payment Due Date: 25 days after the closing of the billing cycle
- Other Details: Reports to three major credit bureaus
Why to Apply for the Reflex Credit Card
The Reflex Credit Card may be a good option for you if you’re trying to improve your credit and don’t have the money for a deposit on a secured credit card. Here are some of its key benefits:
Can improve your creditworthiness: The Reflex Credit Card reports your payment history to the three major credit bureaus each month. Paying on time and not carrying a balance can improve your credit score, enabling you to get lower interest rates on loans and better credit card offers.
No deposit required for most users: Unlike secured credit cards, the Reflex Credit Card doesn’t require most of its users to put down a security deposit, so it’s a good option if you don’t have any extra cash to spare. In rare cases, you may be asked to put down a $50, $150 or $500 security deposit, but most users don’t have to do this. If you do, this amount will be refunded to you when you close your account.
Credit limit up to $2,000: Your initial credit limit will be $500, but if you show a good payment history, you may be eligible for a credit increase up to $2,000 after your first year. However, if your credit score has improved by this point, we recommend closing the account and choosing a new card with lower fees.
Reflex Credit Card: Drawbacks and Downsides
The Reflex Credit Card’s high APR and annual fees could actually hurt your credit, especially if you don’t stay on top of your payments. Here are some things you should know before signing up:
High fees: The Reflex Credit Card charges you a $125 fee upon opening the card, effectively reducing your $500 credit limit to $375. After your first year, the annual fee drops to $96, but you are charged a $10 monthly maintenance fee, which brings your yearly costs to $216. That’s more than most of the top rewards credit cards charge.
Here is the Reflex Credit Card’s full list of fees:
- $125 initial activation fee
- $10 monthly maintenance fee after first year
- $30 one-time fee for an additional card (optional)
- $27 fee for first late or returned payment
- $38 fee for any additional late or returned payments within six months of the first
- 3% foreign transaction fees
- $5 or 5% cash advance fee, whichever is greater
May hurt your credit if payments are late: Because the Reflex Credit Card reports to the credit bureaus, it has the potential to hurt your credit if you don’t make your payments on time. On top of that, you’ll get hit with late fees ranging from $27 to $38 per instance and you’ll have to pay nearly 30% in interest on any remaining balance. This, coupled with the outrageous annual fees, can make it difficult for some to keep up with the payments and could lead to even more financial problems.
No rewards program: Rewards programs are rare among credit cards for bad credit, but they do exist. Unfortunately, the Reflex Credit Card does not offer any rewards to its cardholders, so there is no way to recoup any of the money you’re paying in fees.
Reflex Credit Card Alternatives
There are better ways to rebuild your poor credit than the Reflex Credit Card. Consider one of these secured credit cards instead:
If you’re looking for a card with a low APR and no credit check, try the OpenSky Secured Visa Credit Card. There is an annual fee, but it’s only $35 and the 18.64% APR is low compared to most other secured credit cards. You do have to put down a refundable security deposit of at least $200. The amount that you put down is equal to your credit limit.
If you want a card with a small deposit and no annual fee, the Capital One Secured Mastercard may be a better fit. The APR is higher at 24.99%, but there’s no annual fee and you can put down a deposit as low as $49 for an initial $200 line of credit. You’ll be entitled to a higher credit limit after five months of on-time payments.
Bottom Line: Should I Apply for the Reflex Credit Card?
We recommend avoiding the Reflex Credit Card unless you have no other options. You’d be better off going with a highly rated secured credit card that has a lower annual fee and is more forgiving if you carry a balance.