Verve Credit Card Review: An Average Card for Credit Rebuilding
Verve Credit Card
The Verve Credit Card lets you apply for both an unsecured card and a secured card at the same time. Which one you get will depend on if you qualify for the unsecured card. While that version oisn’t a bad deal, a lot of secured credit cards are better than the secured version of the Verve Credit Card.
If you think you’ll qualify for the unsecured version of the Verve Credit Card, it’s worth considering. Otherwise, you’re probably better off applying for one of the best secured credit cards if you think you’d only qualify for the secured version. And of course, it’s worth your time to try out the CardCruncher tool to see what credit card will give you the best rewards for how you spend. Read on, though, to get the full scoop on the Verve Credit Card.
Verve Credit Card Highlights
Here are the highlights of the Verve Credit Card:
Annual Fee: $99
Sign-Up Bonus: None
Verve Credit Card 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
Verve Credit Card 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
Verve Credit Card 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 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 have to pay an annual fee
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 any rewards, so you have no way to recoup the $99 annual fee. Most subprime credit cards don’t offer rewards, but a few do. Even just 1% cash back beats nothing, so consider your alternatives before you apply for the Verve Credit Card.
Verve Credit Card Alternatives
Here are some other cards you may want to consider if the Verve Credit Card isn’t right for you.
Discover it Secured Credit Card
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. In addition, Discover will double your cash back 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 after eight months.
Find the right card that fits your lifestyle.
Verve Credit Card Review: An Average Card for Credit RebuildingGet your free Crunch Score
State Department Federal Credit Union Savings Secured Visa Platinum Card
If you want to pay a lower APR, consider the State Department Federal Credit Union Savings Secured Visa Platinum Card. To be eligible, 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 pay a security deposit to qualify, but the card’s interest rate is a relatively low. In fact, it’s lower than the APR offered on many cards for people with excellent credit. You’ll also earn 1% back on every purchase in the form of Flexpoints, which you can use 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. If you’re confident that you’ll qualify for the unsecured card, applying might not be a bad idea. But if you think you’ll have to provide a security deposit, look for a cheaper secured card with better features instead.