Citi Extends Brooks Brothers Credit Card Deal

by Cory Santos
citi-extends-brooks-brothers-credit-card-deal

Citi Retail Services and Brooks Brothers, the country’s oldest clothing retailer, are extending their consumer credit card relationship. The two parties announced a multi-year extension late last week. Here are all the new Citi and Brooks Brothers credit card extension details.

Citi and Brooks Brothers Extend Credit Card Partnership

Citi will continue to manage the Brooks Brothers credit card portfolio. The news follows the inking of a fresh extension to the partnership. This multi-year extension will see the relationship with Brooks Brothers extend a full decade, beginning in 2015.

The partnership includes the Brooks Brothers Platinum Mastercard. This no annual fee retail card offers accelerated opportunities to earn points through the My Brooks Rewards program. The card earns 3X points on gas and grocery store purchases, 2X points on dining and rideshare purchases, 1X on all other purchases, and offers Brooks Brothers discounts.

“Commitment to Innovation”

According to a press release announcing the partnership extension, Citi hailed the agreement as helping to “strengthen the bond between the two iconic American brands and marks a continued alignment of goals, including a steadfast commitment to driving omnichannel engagement and building multi-generational customer relationships.”

“Since 2015, Citi Retail Services has been a valued partner in powering the growth of our payments offerings – especially as we’ve expanded our omnichannel offerings,” said Brooks Brothers CEO, Ken Ohashi. “As we further transform for the future, we believe that this renewal will enable us to expand our vision of what is possible for cardmembers and valued customers.”

“We are excited to announce a multi-year renewal of our credit card partnership with Brooks Brothers,” added Leslie McNamara, Business Head, Partner Management, Citi Retail Services. “This agreement signifies our shared commitment to innovation and creating next-gen commerce solutions that will drive growth and engagement within an increasingly interconnected physical and digital landscape.”

About Citi

Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments, and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.

About Brooks Brothers

Established in 1818, Brooks Brothers was the first American brand to offer ready-to-wear clothing and has continued throughout history with iconic product introductions including seersucker, madras, argyle, the first successful non-iron shirt, and the original button-down collar. Since its founding 203 years ago in New York, Brooks Brothers has become a legendary international retailer while maintaining a steadfast commitment to exceptional service, quality, style, and innovation.

Related Article: Citi Adds “Ways to Save” to Banking Products

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Amex CEO Eyes Future Crypto Reward Options

by Cory Santos
amex crypto

American Express has hinted that cardmembers may be able to use Membership Rewards points for cryptocurrencies like Bitcoin, Ethereum, and others. Despite the dangling carrot of crypto rewards, however, Amex has no plans to introduce a crypto-linked credit card in the immediate future.

Amex Doesn’t See Short-Term Future for Crypto Rewards

Speaking with Yahoo! Finance earlier this week, Stephen Squeri, Amex’s CEO stated that while Amex had no intent of launching a crypto credit card anytime soon, the company was already involved in using cards for stablecoins and monitored by the U.S. government for central bank digital currency developments.

“You don’t have the service with [crypto], you don’t have the dispute rights with it, you’re not getting rewards, and you’re not extending credit,” said Squeri. “All of those values that occur within a credit card do not lend themselves to cryptocurrency.”

Instead, Squeri stated that Amex views cryptocurrencies in the same asset class as gold or silver – particularly given the extreme volatility in the crypto market. This volatility makes a credit card that earns points or cash back as cryptocurrency is currently unfeasible to Amex. “We’re exploring other ways, potentially, to redeem your membership rewards points, but I don’t think you’re going to see an American Express card linked to cryptocurrency anytime soon,” he added.

Amex Falling Behind Visa and Mastercard with Crypto

Both Visa and Mastercard appear miles ahead of American Express regarding crypto and credit cards. Mastercard and Visa both feature crypto rewards credit cards, including Mastercard’s Gemini Card and Visa’s BlockFi Rewards Visa® Signature and the Upgrade Visa® Card with Bitcoin Rewards.

Mastercard’s crypto-integration includes fast-tracking projects with digital currencies – especially stablecoins. According to Jessica Turner, Mastercard’s global head of new digital infrastructure and fintech, the preference for stablecoin is no accident. To Turner, stablecoin represents the best option in the world of volatile cryptocurrencies.

Visa’s Fintech Fast Track program seeks to accelerate the integration process of fintech companies into the traditional credit card space. The program has seen numerous product launches, including the BlockFi Rewards Visa® Signature Credit Card.

Related Article: The Best Fintech & Crypto Credit Cards of 2022

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Citi Adds “Ways to Save” to Banking Products

by Cory Santos
citi-adds-ways-to-save-to-banking-products

Last updated on April 5th, 2023

Citi is one of the largest credit card issuers in the United States and the fourth-largest bank in the United States by total deposits. With such an impressive banking clientele, ensuring customers remain satisfied is critical – and Citi is now launching a new suite of digital banking features to do just that. Called “Ways to Save,” the new banking features will empower customers to save more across all of Citi’s financial products.

Citi Introduces Suite of Features Designed for Savings

Research from the U.S. Bureau of Economic Analysis shows that saving money is a top priority for many Americans, with the agency reporting the nation’s personal savings rate spiked to 33% — the highest level since the government began keeping track – in the early months of the coronavirus pandemic.

Citi hopes to streamline its savings (and spending) services through a new suite of digital features to empower customers to save more. The new banking application offer automated capabilities, integration with existing Citi banking tools, and a comprehensive toolset for financial wellness.

Features of the New Program

Since launching the program, Citi has seen a nearly $1M increase per month in average monthly transfers to Citi savings accounts via “Ways to Save”, highlighting the new features’ popularity and capabilities. Eligible Citi checking and savings customers will see a new landing page on their app or online and can enroll in the following features:

citi ways to save banking
Citi "Ways to Save" interface

Spend & Save

Citi’s newly launched round-up-the-change feature rounds up Spend & Save a customer’s credit or debit transaction amount to the next whole dollar. Citi then transfers the funds to their savings account. This process makes it easier than ever to save as it happens automatically and invisibly as customers shop – and the initial response has been extremely positive. In fact, Spend & Save is now Citi’s most popular feature within the new interface, with over 21,000 enrollments since the program’s launch.

The Spend & Save feature is ideal for current Citi credit cardholders. It can provide additional savings on top of the lucrative cash back or ThankYou Point rewards that come with the bank’s proprietary credit cards.

Images courtesy of Citi

Earn & Save

Direct deposit is one of the most effective methods – consumers can easily adopt a powerful savings strategy by automatically setting aside a portion (either as a percentage or a set amount) of their direct deposit and saving more as their pay increases through the new Earn & Save feature. Citi is currently the only major bank to offer direct deposit setup within the mobile app. Citi customers can save significant amounts early, often, and automatically with this new savings feature. And with personalized insights, customers can make small adjustments to save more. Putting in a note to put aside an extra 2% of their deposit, for example, a Citi customer would save $100 more per month.

Set & Save

Citi Set & Save is the bank’s way of setting recurring transfers to a savings account into the new “Ways to Save” suite. This new integration provides seamless navigation so customers can digitally access a comprehensive savings toolset in one place.

And to drive more consistency by making it more straightforward for customers, Citi is now incorporating more gamification. Effective immediately, Citi “Ways to Save” customers can see a dynamic graph that projects future savings, benchmarks their progress, and incentivizes them to save more.

Related Article: The Best Credit Cards for Fair Credit

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Save Wealth Introduces High-Yield Credit Card

by Cory Santos
save-wealth-introduces-high-yield-credit-card

Fintech firm Save has introduced what they are calling the world’s first high-yield credit card. Dubbed the Save® Wealth credit card, the new card offers 6.04% cash back on average through its unique investments as rewards structure. Here’s what you need to know about the new Save Wealth Visa Signature credit card:

Save Launches Save Wealth Visa Signature Credit Card

Save is a fintech seeking to help consumers earn a higher yield on their investments. As such, the firm has partnered with Visa and SoFi to launch a new rewards credit card: the Save® Wealth Visa Signature.

The new Save Wealth credit card is actually two distinct credit cards, depending on which option the account holder opts for. The Save Wealth Premium credit card is expected to have the highest return potential of any premium credit card available, with an average return of 6.04%, according to Save. However, for that impressive return comes a steep annual fee of $750. The Save Wealth Plus is the “budget” option, featuring an average return on investment of 4.03% for a more manageable annual fee of $300.

The card will also provide access to specific premium card benefits, including increased investments and yield potential for purchases done with the select brands, like Tesla, Apple, Microsoft, Samsung, Amazon, Wholefoods, SoulCycle, and Peloton. Neither version of the card features any caps, category restrictions, or minimums.

How Does the Wealth Card Work?

The Wealth Card works differently from other types of rewards credit cards – and even other investment credit cards. Wealth matches a cardholder’s spending by investing in personalized portfolios.

For every $1 spent on purchases, Save Wealth invests $2.17 on the cardholder’s behalf. After sitting in the cardholder’s account for one year, all returns (minus Save’s fee) from the investment are deposited into the accountholder’s bank account as cash. Any investments made on the cardholder’s behalf will be charged a wealth management fee (0.79%) if there are returns. If returns are less than 0.79%, there’s no wealth management fee. There is no spending minimum required to earn investments.

Other investment credit cards, such as the Owner’s Rewards Card from M1, offer a streamlined approach to investing by offering automated funding of brokerage accounts through credit card rewards, but Save takes this a step further by investing for the client and offering even greater dividends.

“More Options to Maximize Spending Power”

“We are very pleased to partner with Visa on the rollout of the first Save Wealth credit cards,” said Michael Nelskyla, Founder and CEO of Save, in a press release. “The Wealth card is designed for consumers who are looking for the potential of better economic value from their credit card in a low-interest-rate environment, and with high inflation.”

“At Save, we believe the benefits of market returns should be expanded beyond traditional investment vehicles,” Added Adam Watts, Save’s president and COO.

“I’m excited Visa will be a partner for Save in this upcoming card launch,” said Patrick Williams, Head of North American Digital Partnerships at Visa. “With the Wealth card, Save is offering more options for consumers to maximize their spending power.”

Related Article: The Best Fintech & Crypto Credit Cards of 2022

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Capital One to Acquire BJ’s Credit Card Portfolio

by Cory Santos
capital-one-to-acquire-bjs-credit-card-portfolio

According to the Wall Street Journal, the BJ’s Wholesale credit card portfolio is switching to Capital One. The change will see Alliance Data Systems, the current card issuer, lose out on the $1.5 billion portfolio after a bitter falling out between the two brands. Here are all the known details:

BJ’s Credit Cards to Be Issued By Capital One: Report

The BJ’s Wholesale Club credit card portfolio is on the move if the Wall Street Journal is to be believed. The publication reports that BJ’s will switch to Capital One when its current deal with Alliance Data Systems ends this year.

BJ’s sued Alliance Data Systems (ADS) in Massachusetts Superior Court last week. The retail giant argued that ADS is intentionally slowing the transition process of moving existing accounts to Capital One. An ADS spokeswoman contested BJ’s claims, stating that “Alliance Data has a 30-year track record of delivering the highest level of service and support to our valued brand partners, including responsibly and with the utmost integrity.”

The BJ’s credit card portfolio loss is a significant blow to Alliance Data. As mentioned, the portfolio – which includes the BJ’s Perks Plus® Mastercard® and the BJ’s Perks Elite® Mastercard® – represent a significant chunk of the ADS credit card collection. All told the account currently features balances of approximately $1.5 billion, according to reports.

Capital One Rebounding from Loss of GM Portfolio

Capital One offers an impressive range of co-branded credit cards – both closed-loop store cards and open-loop cards that bear the Visa or Mastercard payment network. The bank’s most recent co-branded credit cards include the Key Rewards lineup, featuring Visa credit cards for all the brands that make up the Williams Sonoma/ Pottery Barn family.

However, it isn’t all smooth sailing for Capital One’s co-brand portfolio. The company is currently finalizing the transfer of the GM credit card portfolio to Goldman Sachs. That deal, worth $2.5 billion, also saw the My GM Rewards Mastercard launch through Goldman’s Marcus banking brand.

Related Article: Chase and Instacart to Launch Credit Card

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Credit One Touts Wander Card for 2022 Staycations

by Cory Santos

Last updated on February 8th, 2024

Credit One Bank is highlighting the upcoming National Plan for a Vacation Day by reminding consumers of the impressive rewards available from the bank’s Credit One Bank Wander Card. The card redefines travel rewards as a credit card to inspire Americans to explore new destinations and enjoy every day travel.

Credit One Touts Wander Card for Your Next Staycation

January 25 is National Plan for a Vacation Day. And Credit One Bank wants to know how Americans will take advantage of the holiday. Maybe Yellowstone National Park, Six Flags, or even Yankee Stadium?

Credit One’s Wander Visa is the ideal companion for a staycation on your next break. The Wander Card is Credit One Bank’s first travel-focused credit card and gives card members flexible ways to earn and redeem points for meaningful experiences. Perks for cardholders include up to 5X points for spending at national parks, recreational parks, museums, professional sporting arenas, and more.

Credit One Bank Wander Card perks include:

  • $80 statement credit for purchasing a qualifying National Park Pass, valid at more than 2,000 recreation areas across the U.S. This offer is available within the first year from account opening.
  • 5X points at recreational and amusement parks, including national parks, museums, and professional sporting arenas
  • 3X points at restaurants and lodging, including campgrounds and resorts
  • 1X points on all other purchases
  • Discount on Thousand Trails Camping Pass
  • Discount on regular-priced experiences with Maverick Helicopters

About Credit One Bank

Credit One Bank is a financial services company based in Las Vegas. Founded in 1984, Credit One Bank is one of the fastest-growing credit card providers in the United States. Driven by data, Credit One Bank offers a spectrum of products for people in all stages of their financial life, including credit cards through the Visa®, Mastercard®, and American Express® networks. Credit One Bank is the Official Credit Card of NASCAR®, the Las Vegas Raiders, the Vegas Golden Knights, and Best Friends Animal Society®, and is a proud partner of WWE® and Six Flags®.

Related Article: Bank of America Removes Amtrak Rewards Credit Card

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U.S. Bank to Offer Bonus Points for Winter Olympics

by Cory Santos

Last updated on January 26th, 2022

U.S. Bank and Visa are partnering to make watching the Winter Olympics even more enjoyable. New Altitude Connect Visa cardholders can earn up to 10,000 bonus points (up to 60,000 points overall) for meeting minimum spending requirements and cheering Team USA on to Olympic success – here’s how:

U.S. Bank Launches Olympic Winter Games Beijing 2022 Bonus Points Offer

U.S. Bank is giving Altitude Connect cardholders even more reasons to cheer on Team USA in this year’s winter Olympics. The bank is offering new accounts up to 10,000 bonus points for US Winter Olympic medals – on top of the already lucrative 50,000 points sign-up bonus.

New U.S. Bank Altitude® Connect Visa Signature® cardholders already enjoy 50,000 bonus points after spending $2,000 in the first 120 days (four months) from account opening. Given the modest spending requirement, that welcome offer is a $500 value and a fairly easy bonus to achieve.

Earn Up to 10,000 Points with Team USA Olympic Medals

Now, U.S. Bank is looking to boost the value of its Connect welcome offer while giving cardmembers a reason to cheer on the U.S. Olympic athletes in China this February. Thanks to Visa, a proud partner, and sponsor of Team USA, U.S. Bank is making each of Team USA’s Olympic Winter Games medals into even more bonus points.

New Connect cardholders earn between 5,000 and 10,000 additional points based on the total number of medals Team USA brings home in the winter Olympics. Cardholders earn the following bonus points based on Team USA’s performance at Beijing 2022:

  • 0-35 medals: 5,000 bonus points
  • 36+ medals: 10,000 bonus points

All told, new U.S. Bank Altitude® Connect Visa Signature® cardholders can earn up to 60,000 bonus points for meeting minimum spending goals within the first 120 days – with an extra up to $100 in rewards courtesy of our Olympic athletes.

The Olympic Winter Games Beijing 2022 bonus points are a limited-time offer available for new cardmembers from January 24, 2022, to February 20, 2022.

Related Article: Chase and Instacart to Launch Credit Card

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Chase Ink Survey Highlights Growing Travel Desires

by Cory Santos

Last updated on January 29th, 2024

Chase has released a new study highlighting the financial stressors on small businesses resulting from COVID-19. Despite this, more and more companies are looking to resume travel during 2022. Here are the full findings of Chase’s recent Chase Ink Small Business Spending Survey:

Study: Businesses Expect to Ramp Up Travel Despite Omicron Variant

The coronavirus pandemic has had a significant impact on businesses. The last two years have prompted companies to closely examine their expenses, which also means maximizing their rewards when choosing to spend.

Despite the recent surge in cases across the country, most business owners say they plan to re-engage in travel in the new year. And using a business credit card to manage daily expenses could help offset some of those costs.

Chase Ink Small Business Spending Survey Findings

Chase Ink recently launched a survey of more than 1,000 small business owners to understand how small businesses identify priorities and expectations for the year ahead. Key findings include:

  • 72% of small business owners use a business rewards credit card to pay for all or part of business expenses, with 77% using a cash back credit card
  • 65% of small business owners use their business credit card to earn rewards on business expenses so they can redeem for cash back or travel
  • More than half (59%) of small business owners say using their business credit card was essential for managing their expenses in 2021
  • 55% of small business owners say they are likely to take a business trip in 2022

You can view other findings from Chase Ink’s study in the following infographic:

Chase Ink Small Business Spending Survey
Chase Ink Small Business Spending Survey

About Chase Ink

Chase currently issues three Ink small business credit cards, all offering competitive rewards and lucrative welcome offers. The Chase Ink Business Preferred® is the bank’s small business travel card, offering up to 3X points on travel, shipping, search engine and social media advertising, and select utilities (Internet, cable, and phone services). The card also comes with 100,000 bonus points after companies spend $15,000 on purchases in the first three months after account opening – for a $95 annual fee.

 

Other Chase Ink business credit cards include:

 

All Chase Ink credit cards come with additional employee cards at no extra cost, meaning there has never been a better time to consider a new business credit card for firms planning to travel, invest in software, advertising, or other projects, and seeking to issue multiple employee cards to maximize savings.

Related Article: Chase Launches 5% Back on Gas for New Freedom Members

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Citi® Double Cash Card Switching to ThankYou Points

by Cory Santos
citi double cash thank you points

Last updated on January 2nd, 2024

Citi is making a major change to its popular Double Cash Card. Beginning at the end of March, Double Cash cardholders will earn double ThankYou points on every purchase instead of cash back – a huge change that provides significant value.

Citi Double Cash Converting to ThankYou Points

The Citi Double Cash Card is one of the more popular cash back cards on the market, thanks to its 2% cash back on all eligible purchases. That cash back works out to 1% back when you make a purchase and an additional 1% back when you pay off the balance on your card.

Now, Citi is giving cardholders even more options, thanks to the addition of ThankYou points to the Citi Double Cash Mastercard. Starting March 28, 2022, Citi Double Cash cardholders will continue to earn 1% cash back when they buy and 1% when they pay for their purchases; however, cash back will be earned in the form of ThankYou Points.

How to Earn (and Spend)  ThankYou Points

Cardholders earn one ThankYou point per $1 spent on purchases and an additional point for every $1 paid on the purchase balance. Citi Double Cash cardmembers can still redeem their points for cash back – through direct deposit, a statement credit, or check – at the same redemption value of one cent per point. Additionally, Citi is removing the $25 minimum to redeem for a statement credit or direct deposit.

Beyond cash back, ThankYou points offer a huge array of redemption options. Over the last year, ThankYou Rewards has grown exponentially to include more than 50,000 hotels and vacation rentals through Wyndham Rewards and Choice Privileges; new charitable redemption options with CODE (RED) and the Susan G. Komen Foundation; and 12 new gift card merchants to the now nearly 140 merchants within the ThankYou Gift Card catalog, including Nordstrom, Ace Hardware, and The Container Store.

Any existing cash rewards on a customer’s account will be automatically converted into ThankYou Points in a ratio of $0.01 to one point.

Citi’s First Major Change to the Card

This new refresh marks the first significant change to the card since 2019, when the Double Cash first gained the option to transfer cash back into ThankYou Points. Since then, Citi has seen significant interest from cardmembers in the flexibility that comes with redeeming ThankYou Points.

Related Article: Citi Double Cash Will Now Be a World Elite Mastercard

Featured image by Citi

Experts Warn of Buy Now, Pay Later (BNPL) Dangers

by Cory Santos
experts-warn-of-buy-now-pay-later-bnpl-dangers

Just because Buy Now, Pay Later services provide a streamlined lending and repayment process doesn’t mean millions of Americans aren’t falling behind on their BNPL payments. A new report highlights that over a third of BNPL customers are missing payments, with financial experts warning that the allure of BNPL doesn’t mean the service is without hidden dangers for consumers.

Report: 36% of Consumers Have Missed a Buy Now, Pay Later Payment

Buy Now, Pay Later (BNPL) services are quickly becoming the go-to way for budget-conscious shoppers to finance purchases. According to a study of 1,500 U.S. consumers by Breeze, roughly three-quarters of respondents state they have used a BNPL service in the past, with millennials most likely to opt for BNPL versus older generations.

BNPL services are quickly replacing layaway as the preferred financing method for stores. Shops receive their payment in full while consumers set up a payment plan and get the product without having to wait – a win-win for all involved – or so it seems.

While BNPL services are experiencing significant growth, there are worries about consumers’ risk of these loans. “It is sexy to think you can get something that you can’t afford,” Mark La Spisa, a certified financial planner and president of Vermillion Financial, told Acorns in an interview. “That’s the illusion that is going on.”

Breeze’s survey found that 36% of respondents had either missed a BNPL payment or were late meeting their financial obligations – both causing negative impacts to individual credit scores and maing obtaining other loan products in the future more challenging.

Be Wary of BNPL Fees

The biggest BNPL danger IS the ease of access the service offers. Consumers with limited credit history – and even damaged credit scores – enjoy greater access to financing through BNPL than via credit cards, personal loans, and other financial products. Despite this ease of access, however, many consumers might be unprepared for the associated costs of these BNPL loans.

McGrath suggests researching the fees and interest charges associated with a BNPL service, like Affirm, Klarna, AfterPay, or others, before agreeing to the terms and making a purchase. Some BNPL services do not charge interest, instead of focusing on late payments – with late fees running as high as 25% of the purchase price with Affirm.

“To use these programs safely, shoppers might consider putting a planned, budgeted-for, big-ticket purchase on a ‘Buy Now, Pay Later’ plan to give themselves some breathing room,” McGrath says. “But putting a slew of impulse buys on these plans throughout the season can get dangerous.”

Related Article: Visa Launches Visa Installment BNPL Service    

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Goldman Sachs to Take Over GM Accounts in February

by Cory Santos
goldman-sachs-to-take-over-gm-accounts-in-february

Existing General Motors credit cardholders have been left in limbo regarding the status of their GM Extended Family and BuyPower credit cards with the takeover of the GM credit card portfolio by Marcus by Goldman Sachs – until now. Goldman Sachs is alerting current GM cardholders that their accounts will switch to Goldman Sachs on February 22, 2022 – with new applications being accepted four days before that – here’s what you need to know:

Goldman Sachs Reveals Date of Complete GM Portfolio Takeover

Goldman Sachs purchases the GM credit card portfolio from Capital One in a deal worth more than $2 billion. The purchase has already resulted in the launch of a new credit card, the My GM Rewards Mastercard, last week – along with the new My GM Rewards loyalty program. Now, Marcus by Goldman Sachs is providing an update on the status of existing credit cardholders – as well as when other new GM credit cards will launch.

New Credit Cards Expected February 18, 2022

The major talking point from the news is that both the BuyPower and BuyPower Business cards will no longer be available to new applicants. Neither card is mentioned in the new release from Marcus, with the GM Business Card and My GM Rewards Card instead taking their places.

The new GM business Card is expected to launch on February 18, 2022, the same day all GM accounts transfer to Goldman Sachs. The new business credit card will offer the following benefits to account holders:

  • Get $250 credit to redeem at GM towards the purchase or lease of eligible new GM vehicles after you spend $2,500 on purchases in your first three months from account opening
  • No annual fee
  • Earn 5% back on dealership parts or service
  • Earn 3% back on gas, restaurants, office supply stores, and more
  • Unlimited 1% back everywhere else

The GM Extended Family Card will remain in the GM portfolio, with Goldman relaunching the card on February 18. The new GM Extended Family Card will earn 1% cash back on all purchases and will provide a $100 credit after spending $1,000 on purchases in the first three months – for no annual fee.

Related Article: Chase Launches Waitlist for New Ink Business Premier Card

Featured image by General Motors

 

What’s a Good Credit Card for Someone with Bad Credit?

by Jeannyn Gomez
whats a good credit card for someone with bad credit

Last updated on March 18th, 2024

If you have bad credit, the best credit card for you is one that helps you improve your financial standing. Though having poor credit is undesirable, it’s not an insurmountable hurdle. Most of the effort to build your credit lies on your part, but the right credit card can help speed up the process. So, what’s a good credit card for someone with bad credit? Here are a few of our top picks to get you started.

How to Choose a Good Credit Card if You Have Bad Credit

With a less-than-perfect credit history, you will notice your options are limited when browsing credit card options. Normally you will find that these cards have higher-than-average purchase APRs, multiple fees, and limited rewards or benefits. Naturally, these terms are laid out as such because you have to prove to card issuers that you are not a risky borrower of their money.

However, these limitations don’t necessarily have to intimidate hopeful applicants. As long as individuals make on-time payments and do not charge more than they can afford to pay back, a high interest rate or late fees should not be a big concern. Ideally, you will want to choose a card that reports your activity to one or more credit reporting bureau. This factor is key towards developing an attractive credit score and polishing one’s credit report.

You will also benefit from considering a card whose application will not perform a hard inquiry on your credit report. Avoiding this full credit check will spare your credit score from getting impacted by a few points. Thirdly, you should look to either secured credit cards or unsecured cards that specifically do not require perfect credit to apply.

The advantage of a secured card is that you set your own credit limit via a security deposit requirement. This process can help you build discipline in knowing how much you can spend on a credit card. An unsecured card will come with a pre-set credit line determined after your application is approved. Don’t expect that credit line to be in the thousands of dollars if your credit score is lacking. However, again, starting small is advantageous in the long run.

Credit Cards for Bad Credit to Consider

If you have poor credit and are looking for payment card solutions, consider the roundup below collected by the BestCards team of experts. Not only do these options give you the purchasing power to cover your financial needs; they may also help improve your credit score – provided that you exercise responsible use. And, with good financial habits you may be eligible for a higher credit limit in as little as six months.

Milestone® Mastercard®

Milestone® Mastercard®

Milestone® Mastercard®
Apply Now Terms & Conditions
Fair-Poor-Good
BestCards refers to a variation of FICO Score 9, which is one of many different types of credit scores. A financial institution may use a different score when deciding whether to approve you for a credit card. Please note that the range shown here is our own estimation and not a guarantee of credit needed to be approved for any given card. Recommended Credit: Fair / Poor / Good
Mastercard Processing Network
$175 for the first year, $49 thereafter. Monthly fee is $0 the first year (billed $0 each month); $150 annually thereafter (billed $12.50 each month) Annual Fee

Milestone® Mastercard®

  • See terms Regular Purchase APR
  • See terms Cash Advance APR

At a Glance

Designed for folks with less-than-stellar credit (or no credit at all), the Milestone® Mastercard® credit card is issued by the Bank of Missouri. Featuring the benefits of a Mastercard credit card, it allows customers to access a convenient and valuable tool in their wallet.

  • Best Benefits
  • Rates & Fees
  • Why Should You Apply?
  • Guaranteed $700 credit limit if approved.
  • Apply with Confidence! There is no impact to your credit score if you’re not approved. See terms.
  • Don't Have Perfect Credit? No Problem!
  • Join over a million consumers who are working on building their access to credit.
  • Zero Fraud Liability - Peace of mind that comes with having a Mastercard.
  • Get the credit you deserve, even with less-than-perfect history.
  • No security deposit, and a path to better credit.
  • Regular Purchase APR: See terms
  • Cash Advance APR: See terms
  • Cash Advance Transaction Fee: See terms
  • Penalty APR: See terms
  • Annual Fee: $175 for the first year, $49 thereafter. Monthly fee is $0 the first year (billed $0 each month); $150 annually thereafter (billed $12.50 each month)
  • Foreign Transaction Fee: 1% of the transaction in U.S. dollars
  • Late Payment Penalty Fee: See terms
  • Return Payment Penalty Fee: See terms
  • Over Limit Penalty Fee: See terms
  • You have low credit standing or have not yet begun your credit journey
  • You want a credit card that reports to the three major credit bureaus
  • You prefer the freedom of an unsecured credit card over a secured card
Milestone® Mastercard®

Milestone® Mastercard®

Terms & Conditions
Apply Now Terms & Conditions

The Milestone® Mastercard® is an unsecured credit card issued by The Bank of Missouri. Whether you have poor credit or are just starting on your financial path, Milestone is a worthy candidate. You can use the card at any merchant that accepts Mastercard, and the issuer reports to the major credit bureaus.

The Milestone Mastercard can make a good credit card for someone with bad credit, as it is aimed to work for those with less-than-perfect credit. It may not have a large credit limit compared to other higher-end credit cards like the ones from Chase or American Express but it offers enough to begin rebuilding your credit from the ground up. Additionally, you can use your Milestone card to shop confidently with features like fraud protection for peace of mind. 

Revvi Card

Revvi Card

Revvi Card
Apply Now Terms & Conditions
Poor-Fair
BestCards refers to a variation of FICO Score 9, which is one of many different types of credit scores. A financial institution may use a different score when deciding whether to approve you for a credit card. Please note that the range shown here is our own estimation and not a guarantee of credit needed to be approved for any given card. Recommended Credit: Poor / Fair
Visa Processing Network
See Terms* Annual Fee

Revvi Card

  • 35.99%* Regular Purchase APR
  • 35.99%* Cash Advance APR

At a Glance

Revvi is a full-fledged Visa® credit card that can help you improve your credit score with on-time payments and responsible use. The Revvi Card features a quick and easy application and doesn’t require perfect credit. Not only that, but Revvi also offers Cash Back Rewards^^ with on-time payments. The card also features an initial credit line of up to $500, with the chance of a credit limit increase after year one.

  • Best Benefits
  • Rates & Fees
  • Why Should You Apply?
  • 2X Rewards Power – Up To 10% Cash Back when you buy and 1% Cash Back when you pay!^^
  • An initial credit limit Up To $500 (See terms*)
  • Opportunity to request credit limit increase after twelve months, fee applies.
  • A Card That Works as Hard as You Do – Earn Up to 10% Cash Back Rewards at select merchants, 1% on Payments and Build¹ Your Credit Along the Way!^^
  • Reports monthly to all three major credit bureaus.
  • Regular Purchase APR: 35.99%*
  • Cash Advance APR: 35.99%*
  • Cash Advance Transaction Fee: Either $10, or 3% of the amount of the Cash Advance, whichever is greater
  • Annual Fee: See Terms*
  • You want to improve your credit score by making on-time payments and keeping credit use low
  • You want Visa® protections, like Zero Fraud Liability coverage
  • You're seeking manageable monthly payments
  • You want to earn 1% Cash Back Rewards^^, on payments made to the card as well as up to 10% cash back with select merchants
Revvi Card

Revvi Card

Terms & Conditions
Apply Now Terms & Conditions

You don’t need perfect credit for this credit card, which is why it has made our list. The Revvi Card is a cash back credit card for bad credit. It’s ideal for anyone looking to build up their credit score and earn rewards simultaneously. Revii cardholders get to enjoy 1% cash back rewards for making on-time monthly bill payments. In other words, responsible use of your card can earn you cash back for all your shopping, including groceries, utilities, fuel, and purchases.

Rack up your Revvi points and redeem them for statement credits which then get applied to your outstanding balance. However, points can not be redeemed right away. Your account must be in good standing and open for at least six months before you can make you can redeem your accrued rewards. Although the six-month wait may sound less than ideal, it can be a motivator to ensure good habits with your credit card usage and debt repayment.

Destiny™ Mastercard®

Destiny Mastercard®

Destiny Mastercard®
Apply Now Terms & Conditions
Fair-Poor-Good
BestCards refers to a variation of FICO Score 9, which is one of many different types of credit scores. A financial institution may use a different score when deciding whether to approve you for a credit card. Please note that the range shown here is our own estimation and not a guarantee of credit needed to be approved for any given card. Recommended Credit: Fair / Poor / Good
Mastercard Processing Network
$175 the first year; $49 thereafter. Monthly fee: $0 the first year (billed $0 each month); $150 annually thereafter (billed $12.50 each month) Annual Fee

Destiny Mastercard®

  • See terms Regular Purchase APR
  • See terms Cash Advance APR

At a Glance

The Destiny Mastercard is an ideal credit card for those with bad or fair credit who want the purchasing power of Mastercard but without the security deposit requirement of a secured credit card. With a modest annual fee and manageable initial credit limit, the Destiny Card doesn’t care about your credit past – instead, it helps you focus on your everyday expenses.

  • Best Benefits
  • Rates & Fees
  • Why Should You Apply?
  • A guaranteed $700 credit limit to help get your financial goals on track, if approved.
  • Apply with Confidence! There is no impact to your credit score if you’re not approved. See terms.
  • No security deposit, and a path to better credit.
  • Zero Fraud Liability - Peace of mind that comes with having a Mastercard.
  • Get the credit you deserve, even with less-than-perfect history.
  • An unsecured card great for everyday purchases
  • Regular Purchase APR: See terms
  • Cash Advance APR: See terms
  • Cash Advance Transaction Fee: See terms
  • Annual Fee: $175 the first year; $49 thereafter. Monthly fee: $0 the first year (billed $0 each month); $150 annually thereafter (billed $12.50 each month)
  • Foreign Transaction Fee: 1% of each transaction in U.S. dollars
  • Late Payment Penalty Fee: See terms
  • Return Payment Penalty Fee: See terms
  • Over Limit Penalty Fee: See terms
  • You have an imperfect credit history, which may include a past bankruptcy
  • You have less-than-perfect credit
  • You want a Mastercard but don’t want to pay a security deposit
  • You want a credit card with the versatility to make foreign purchases
  • You plan to pay your statement in full every month
Destiny Mastercard®

Destiny Mastercard®

Terms & Conditions
Apply Now Terms & Conditions

The Destiny Mastercard doesn’t care about your credit past. Instead, Destiny wants to be your go-to tool on your credit repair journey. Like the Milestone ® Mastercard®, the Destiny Card is an ideal option for those with bad credit – or even a bankruptcy in their past. The card offers a reasonable credit limit, regular reporting to the major credit bureaus, and the perfect platform for quickly raising your credit score.

Even better, the Destiny Mastercard has one of the lowest foreign transaction fees for a bad credit card – making it the perfect companion, both at home – and abroad!

Surge Platinum Mastercard®

Surge® Platinum Mastercard®

Surge® Platinum Mastercard®
Apply Now Terms & Conditions
Fair-Poor
BestCards refers to a variation of FICO Score 9, which is one of many different types of credit scores. A financial institution may use a different score when deciding whether to approve you for a credit card. Please note that the range shown here is our own estimation and not a guarantee of credit needed to be approved for any given card. Recommended Credit: Fair / Poor
Mastercard Processing Network
$75 - $125 Annual Fee

Surge® Platinum Mastercard®

  • 35.90% (Fixed) Regular Purchase APR
  • See website for details* Cash Advance APR
  • See website for details* Intro Purchase APR

At a Glance

The Surge Mastercard® can be an ideal pre-qualification option if you need to repair or continue building your less-than-perfect credit score. Though it bears annual and maintenance fees, it does, however, provide attractive perks for qualified cardholders.

  • Best Benefits
  • Rates & Fees
  • Why Should You Apply?
  • Up to $1,000 Initial Credit Limit • See if you Pre-Qualify with No Impact to your Credit Score • Less than perfect credit? We understand. The Surge Mastercard is ideal for people looking to rebuild their credit. • Unsecured credit card requires No Security Deposit • Perfect card for everyday purchases and unexpected expenses • Monthly reporting to the three major credit bureaus • Use your card everywhere Mastercard is accepted at millions of locations • Enjoy peace of mind with Mastercard Zero Liability Protection for unauthorized purchases (subject to Mastercard guidelines) • Apply with Confidence! There is no impact to your credit score if you’re not approved. See terms.
  • Intro Purchase APR: See website for details*
  • Regular Purchase APR: 35.90% (Fixed)
  • Cash Advance APR: See website for details*
  • Cash Advance Transaction Fee: Either $10 or 3% of the amount of each cash advance, whichever is greater
  • Annual Fee: $75 - $125
  • Foreign Transaction Fee: 3% of each transaction in U.S. dollars
  • Late Payment Penalty Fee: Up to $41
  • Return Payment Penalty Fee: Up to $41
  • You have fair or poor credit and need to build or repair your credit ratings
  • You prefer a pre-qualification card that will immediately inform you whether you would be approved prior to applying
  • You don’t want a secured credit card or can’t afford a security deposit
  • You want a card that reports activity to the three major credit bureaus
  • You want the security of an optional credit protection program
Surge® Platinum Mastercard®

Surge® Platinum Mastercard®

Terms & Conditions
Apply Now Terms & Conditions

The Surge Platinum Mastercard® is a credit card that offers rewards – and the ability to build credit – in one package. The card differs from most subprime cards on the market in that it earns 1% cash back rewards on every purchase and can help users build their credit score at most places in the United States where Mastercard is accepted.

That 1% cash back rewards places the card on a similar footing to the Discover It Secured card – a version of the bank’s Discover It Chrome Card. Having rewards and the ability to build credit however, is a great one-two punch towards establishing a positive financial history.

OpenSky® Secured Visa®

opensky® Secured Visa® Credit Card

opensky® Secured Visa® Credit Card
Apply Now Terms & Conditions
Poor-No Credit Required
BestCards refers to a variation of FICO Score 9, which is one of many different types of credit scores. A financial institution may use a different score when deciding whether to approve you for a credit card. Please note that the range shown here is our own estimation and not a guarantee of credit needed to be approved for any given card. Recommended Credit: Poor / No Credit Required
Visa Processing Network
$35 Annual Fee

opensky® Secured Visa® Credit Card

  • 23.89% (variable) Regular Purchase APR
  • 23.89% (variable) Cash Advance APR

At a Glance

The opensky® Secured Visa® is a secured credit card that offers requires a low minimum deposit and features no credit checks for approval. The card, issued by Capital Bank, provides an easy route to better credit by offering credit limits as low as $200, a moderate fixed-rate APR, and a reasonable $35 annual fee.

  • Best Benefits
  • Rates & Fees
  • Why Should You Apply?
  • Earn up to 10% cash back on everyday purchases
  • No credit check required – 89% approval rate with zero credit risk to apply!
  • Boost your credit score fast—2 out of 3 opensky® cardholders see an average increase of 47 points after 6 months
  • Track your progress with free access to your FICO® score in our mobile app
  • Build your credit history with reporting to all three major credit bureaus: Experian, Equifax, and TransUnion
  • Seamless payments—add your card to Apple Pay, Google Pay, and Samsung Pay
  • Start with just $200—secure your credit line with a refundable deposit
  • Fast and easy application—apply in minutes with our mobile-first experience
  • Flexible payment options—pick a due date that works for you
  • More time to fund—spread your security deposit over 60 days with layaway
  • Join 1.6 million+ cardholders who have used opensky® to build better credit!
  • Regular Purchase APR: 23.89% (variable)
  • Cash Advance APR: 23.89% (variable)
  • Cash Advance Transaction Fee: Either $6 or 5% of the amount of each cash advance, whichever is greater.
  • Annual Fee: $35
  • Foreign Transaction Fee: 3% of each transaction in U.S. dollars
  • Late Payment Penalty Fee: Up to $41
  • Return Payment Penalty Fee: Up to $25
  • Minimum Deposit Required: $200
  • You're struggling to get accepted for other secured credit cards
  • You don’t have a credit history
  • You have bad credit and want to improve your credit score
  • You have a large deposit and want a quick pick-me-up for their credit score
  • You want access to a useful knowledge base of credit information and resources
opensky® Secured Visa® Credit Card

opensky® Secured Visa® Credit Card

Terms & Conditions
Apply Now Terms & Conditions

There are lots of credit cards on the market for people with bad credit or no credit. One of the more popular options, however, is the OpenSky Secured Visa. Perhaps the best reason to consider adding the OpenSky Visa credit card to your wallet is that it requires no credit check and it harnesses the potential for a credit line increase after only six months. 

The application process with the OpenSky Secured Visa is straightforward and takes just a few minutes. Approval is equally quick, making the entire process as painless as possible. And, getting started without a credit check means there is no impact on your credit score – making it the perfect Visa for rebuilding credit. The odds of approval are in your favor as, according to OpenSky, the card has an 88% average approval rate. 

In addition to helping you take the initiative to build credit, the OpenSky Secured may earn you the pleasure of graduating with an unsecured credit card. In other words, you will no longer need to dish out a deposit to act as your credit limit. Instead, you can continue your credit journey with an unsecured credit line, without the inconvenience of using your savings for a deposit. 

Honorable Mentions

Want some more  credit card options for bad credit scores to consider? Here are a few extra card offers that just missed out on our top spots:

First Access Visa® Card

The First Access Visa® Card is an unsecured credit card that does not require perfect credit to apply. You can use it wherever Visa payment cards are accepted within the United States, and its application is also easy and quick to complete.

First Digital NextGen Mastercard®

The First Digital NextGen Mastercard® is a sleek and straightforward credit card for people with bad credit scores. NextGen receives its name from its streamlines – and easy – application process, creating a new way to look at repairing damaged credit. Start with a respectable, $300 credit limit, and work your way towards a credit line increase with on-time payments and financial responsibility.

Total Visa® Unsecured Credit Card

The Total Visa is another visa product for those with bad credit. The card prioritizes credit building over punishing those with a bad credit score, meaning even the worst credit scores can likely receive the card!

Related Article: What Are the Easiest Credit Cards for Bad Credit to Get?

Featured image by mohamed_hassan/ PixaBay

Advertiser Disclosure

BestCards is an independent, Florida-based credit card comparison platform. Many of the card offers that appear on this site are from companies from which BestCards receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). BestCards does not include all card companies or all card offers available in the marketplace.