Verve Credit Card Review: An Average Card for Credit Rebuilding

Verve Credit Card

The Verve Credit Card lets you apply for an unsecured card and a secured card at the same time so you can see which one you qualify for. While the unsecured version of the card isn’t a bad deal, there are many better secured cards available. You’ll need to decide whether to apply based on which version of the card you think you can get.

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Verve Credit Card Review

Here are the highlights of the Verve Credit Card:

  • Annual Fee: $99
  • APR: 22.15%
  • Sign-Up Bonus: None
  • Benefits:
    • One application is used for multiple versions of the card
    • People with no credit are encouraged to apply
    • Improve your credit score with reports to all three credit bureaus
  • Minimum Payment:
    • If your new balance is less than or equal to $35, then the full balance
    • Otherwise, 4% of the new balance plus late fees and any past due amounts
  • Other Fees:
    • $30 one-time fee for additional card
    • Up to $38 for late payments
    • Up to $38 for returned payments
    • The greater of $5 or 5% for cash advances
    • 3% for foreign transactions

Why to Apply for the Verve Credit Card

Here are a few reasons you may want to consider the Verve Credit Card:

You want to apply for one card and be done with it. When you apply for the Verve Credit Card, your application will initially be considered to see if you qualify for an unsecured card. If you aren’t, further checks will be made to see if you can qualify for a secured card with a deposit of $50, $100, $150, or $500. No matter which card you qualify for, your credit limit will start at $500. Having one application for multiple versions of the card increases your chances of getting approved.

You have poor or no credit and want to improve your credit score. The Verve Credit Card’s application offers a near immediate decision and it is easy to qualify for, so long as you are able to make a security deposit if required. Once you have the card, the card issuer will start reporting your payments to all three credit bureaus. That can help improve your credit score over time.

You want no-hassle payment options. You should have no trouble making timely payments thanks to the convenience of the Verve Credit Card’s website. You can use your Verve Credit Card login to make online payments or even set up automatic payments from your checking account.

Verve Credit Card: Drawbacks and Downsides

While the Verve Credit Card can help you rebuild your credit, here are a few reasons you may want to stay away.

You must pay to own this card. The Verve Credit Card charges a $99 annual fee, along with hefty fees for other services such as authorized users or cash advances. If you get the card, make payments on time to avoid the late or returned payment fees, and see if you can qualify for a card with no annual fee once your credit improves so you can close this card.

You won’t earn rewards. The Verve Credit Card doesn’t offer its cardholders any rewards, so you have no way to recoup the money you’re spending on the $99 annual fee. While it’s uncommon among subprime credit cards, there are some that offer rewards and one of these may be a better fit if you’re looking to get a little something back.

Verve Credit Card Alternatives

Here are some other cards you may want to consider if the Verve Credit Card isn’t right for you.

If you want a secured card that offers cash back, you should consider the Discover it Secured Credit Card. There’s no annual fee to have the card in your wallet, and you can qualify for the card with just a $200 security deposit. You can also make a larger deposit if you want a higher credit limit. The $200 deposit is less than the maximum deposit the Verve Credit Card asks for, so if you’re thinking about applying for the Verve Credit Card, you should be able to handle the deposit that the Discover it Secured Credit Card requires.

Once you have the card, you’ll earn 2% cash back on purchases made at restaurants and gas stations, and 1% cash back everywhere else. Your cash back will be doubled in the first year, giving you 4% cash back at restaurants and gas stations and 2% back everywhere else. As a bonus, your account will be automatically considered for an upgrade to an unsecured card once you’ve held the card for eight months.

Find the right card that fits your lifestyle.

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If you are focused on interest rates and want to pay a lower APR, consider the State Department Federal Credit Union Savings Secured Visa Platinum Card. To be eligible for the card, you must either work for the U.S. State Department or make a one-time $15 donation to the American Consumer Council.

You’ll need to have a security deposit to qualify, but the card’s interest rate is a relatively low 13.49%. That’s lower than the rates offered on many cards for people with excellent credit. You’ll also earn rewards when you use this card. You get 1% back on every purchase in the form of Flexpoints, which can be used on a variety of rewards, including travel and gift cards.

Bottom Line: Should You Apply for the Verve Credit Card?

The Verve Credit Card isn’t the worst credit-building card out there, but the fact that you might wind up with a secured card makes it less compelling for consumers. If you’re confident that you’ll qualify for the unsecured card, applying might not be a bad idea, but if you expect to have to provide a security deposit, there are cheaper secured cards with better features available.

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