Brief Description - The Purpose Advantage Card from First Bank of Delaware is a sub-prime credit card designed for those with bad credit. This card can be used anywhere Discover card is accepted. This is a very interesting card because it does not have an apr in a traditional sense but levies a finance charge via a transaction fee each time you use the card for a purchase. Find out more about this card.
Mandatory Automatic Payment Plan - The Purpose Advantage requires cardholders to sign up for automatic payment plan. Two types of plans are available. Firstly, you can choose the EFT (Electronic Funds Transfer Plan) or a RCC (remotely created check) plan. An EFT is a convenient, paperless electronic transfer of funds from your checking account, while a RCC requires you to authorize First Bank to create paper drafts on your behalf to process payments from your checking account.
Fees - Unlike most sub-prime cards, this card has one of the most reasonable fees. The one-time setup fee is only $4.99 versus some credit cards that require almost one hundred dollars. The annual fee is $9.99, significantly lower than most sub-prime credit cards.
Rates - Unlike regular credit cards, there is no apr. Instead, cardholders are charged $2.99 as a transaction fee for each purchase. This is considered a finance charge by the credit card and reported to the credit bureaus as such. After the first purchase in each month, you will be charged an account maintanence fee. The amount depends on whether you chose EFT or RCC as your direct payment option. If you chose
the EFT option, the account maintenance fee is $4.99. It is $6.99 for the RCC Option.
How to avoid the transaction and maintenance fee?
Cardholders can avoid having to pay the transaction and maintenance fee if you prepay before your payment date. This is how it works. If you prepay the purchase in full by 6:00 p.m. eastern time on the day after the purchase, Purpose Advantage will rebate and refund any applicable transaction fee and account maintenance fee. In order to do so, you must do TWO things. (1) Call the toll-free number at 1-888-618-9880 (Promo Code: 720) to inform them of your decision to prepay the purchase by the deadline; and (2) Give your authorization to deduct the amount of the purchase immediately from the deposit account identified in your application.
Credit Limits - New cardholders will be given a credit limit of $50, which will be periodically reviewed. Your credit card payments will be reported to the three major credit bureaus.
Verdict - The Purpose Advantage Card is a unique sub-prime credit card that those with bad credit should take a close look at. It has none of that exorbitant one-time setup (or application) fee that is so common in other such cards. Furthermore, the annual fee is only $9.99! Cardholders can also get around paying the transaction and account management fee by paying off their purchase almost immediately. In fact, given the amount of money one can save this way, you have every incentive to do so.
- low one time setup fee
- low annual fee