Surge Credit Card is suitable for someone with a bad credit who wants to rebuild or establish his credit score over time. Aside from its more relaxed approval requirements, you can also expect low upfront fees.
Despite some perks offered by Surge Credit Card, it remains advisable to look into other options to get the best deal and to rebuild your credit score with the least amount of risk. A good rule of thumb is to choose a card with very minimal fees (upfront, monthly, and annual fees), low annual percentage rate or APR, no hidden charges, no vague policies, and possibly comes with a grace period.
What Is Surge Credit Card?
As with most credit cards geared towards people with bad credit score, Surge comes with higher annual fees and APR, although these are compensated by more lenient approval requirements. In general, borrowers at the very low end of the FICO score spectrum may have better luck with this unsecured card.
Meanwhile, Surge is issued by Celtic Bank and backed by Continental Finance.
Other Features
One of the most notable perks of Surcharge Credit Card is that it will report to all three major credit bureaus. Consequently, when you use this responsibly, it can be a potent tool to improve your damaged credit.
To reiterate, Surge Credit Card is reserved for someone with the worse credit standing based on FICO credit score that ranges between 300 and 850. Simply put, if you have already been turned down by multiple non-traditional lenders, you may want to look into this line of credit.
Fees and Pricing
Not surprisingly, Surge Credit Card comes with a hefty annual fee of $125 that drops slightly after the first year. Another thing to consider is the additional monthly maintenance fee of $10 after the first 12 months, which defeats the purpose of the reduced annual fee.
Moreover, it comes with a high APR of almost 30%. APR is the interest you’re charged over a 12-month period. To put this into perspective, it costs 2.5% per month on balances that you carry from month to month.
To avoid the APR’s debilitating financial effects, you have to pay off your balance every month. This is sound advice whether you use traditional or non-traditional credit cards, although for cards geared towards borrowers with notorious records it becomes a more sacrosanct rule.
Additionally, it comes with an initial credit limit of $500, which is subject to available credit.
How It Compares to Other Credit Cards for Someone with a Bad Credit Score
To help you decide if Surge is a worthy tool to rebuild your credit score, it makes sense to look into other similar options that are available on the market. Products that come close to Surge include Verve Credit Card, First Premier Bank Credit Card, and Citi® Double Cash Card.
Surge Credit Card Overview
Fees
Three Star (APR of almost 30%, a monthly maintenance fee of $10 that is waived in the first year, the annual fee of $125 that slightly drops after a 12-month period, and credit limit of $500)
Application Process
Four Star (It comes with fast and easy online application process in which the results only take seconds. You may also call its customer service if you have any issue with your status or application.)
Ease of Use
Four Star (It can be used anywhere Mastercard is accepted, and it can also be accessed online anytime.)
Pros
Cons
Verve Credit Card
This line of credit is almost similar to Surge: Monthly reporting to the three major credit bureaus, quick and easy application process, lenient approval requirements, free online account access, and credit limit of $500, although this can be variable depending on your credit history.
Occasionally, it requires collateral in the form of a security deposit, sometimes up to the full amount of your credit limit, which you must pay in full before they agree to open your account.
Fees
3.5 Star (APR of almost 22% [although variable], no one-time upfront fee, monthly maintenance fee of $10 that is waived in the first year, a regular rate of 30.49%, an annual fee of $99, late payment fee of $38, foreign transaction fee of 3%, and cash advance fee of $5 or 5% of the amount, whichever is greater.)
Application Process
Four Star (The online application process is fast and easy.)
Ease of Use
Four Star (It can be used anywhere Mastercard is accepted, and it can also be accessed online anytime.)
Pros
Cons
First Premier Bank Credit Card
Arguably, its 36% APR is highest among credit cards of its kind. So basically, this is the worst card for someone who is not sure if he can pay off the balance on time. Another thing to keep in mind: The late payment fee is $35.
Simply put, only consider this credit card if you want to establish or rebuild your credit score, as opposed to keeping your finances afloat. The hefty penalty fees and APR are simply not worth the risk.
It also comes with a one-time upfront processing fee of $95, an annual fee of $75-$125 that is reduced to $45-$49 after a 12-month period, and a monthly servicing fee of $6.25 that is waived within the first year.
Fees
Two Star (You can pay up to a total of $220 in the first year which is significantly reduced to around $50 after a 12-month period. However, the real caveat is the 36% APR, which also applies to a cash advance.)
Application Process
Four Star
Ease of Use
Four Star (It can be used anywhere Mastercard is accepted.)
Pros
Cons
Citi® Double Cash Card
This card for bad credits arguably has the best rewards rate: It gives 1% cash back when you make your purchases and an additional 1% cash back when you pay off the balance on time. Another sweet deal: There is no limit to the rewards you can earn.
Furthermore, Citi® Double Cash Card comes with an introductory zero percent APR deal and another zero percent on balance transfer for 18 months. Only after this period will you have to pay for the 15.24% to 25.24% APR.
Meanwhile, the 0% annual fee continues even after the 18-month period.
Fees
4.5 Star (0% annual fee, no upfront cost, and introductory 0% APR deal for 18 months)
Application Process
3.5 Star (The reviews are highly variable—some customers have expressed satisfaction with their customer service support, while others have complained about it.)
Ease of Use
4.5 Star (While most people start off with a low credit limit, if you pay off the balance on time for several months or about a year, you may be approved for a higher credit limit.)
Pros
Cons
Conclusion
The Surge Credit Card may not be the best credit cards for someone with bad credit. However, this might be your last option if your credit score is low enough to spook even the most lenient credit providers. Of course, its lax approval requirements come with major caveats including a hefty APR and multiple fees.
Because of the hefty APR, Surge Credit Card is only reserved for someone whose main goal is to rebuild or establish his credit score, which of course is only possible if he pays off the balance on time. Meanwhile, failure to do so can further lead to financial disaster.
So basically, what we are trying to say is that Surge Credit Card only provides benefits if you use it responsibly. If not, you’re in for bigger financial woes.
Paying on time for a certain period of time, i.e., at least six months, some credit cards may return your security deposit and even raise your credit limit, which of course should not be used in an unscrupulous manner or else you’ll be back to the same place with the same old problem.
If possible, try other credit cards with lower APR and penalty fees, zero upfront cost, and rewards programs such as the Citi® Double Cash Card. Of course, anyone with a notorious credit score may not get approved.
If you were not able to get approval from Citi® Double Cash Card, you might consider other options such as First Premier Bank Credit Card and Verve Credit Card. These two cards almost have the same fees and rates offered by Surge Credit Card.
But if you are especially adverse to high APR, you may want to stay away from First Premier Bank Credit Card that comes with a whopping 36% APR, which is more than the standard rate offered by most credit cards geared towards people with poor credit scores.
Occasionally, non-standard credit cards require a collateral in the form of a security deposit, which can be as high as the full amount of its credit limit.
As a prudent borrower, you must always pay off your balance on time, lest you will deal with highly variable APR and possibly hefty fees, which are not uncommon in credit cards for people with poor credit scores.
These credit cards or “second chance” cards commonly target people who have recently filed Chapter 7 Bankruptcy, which can only be filed once every eight years. Meanwhile, the vast majority of people only file once in their lifetime.
Other Helpful Tips
Paying off your balance every month is not the end all be all of being a responsible credit card holder. Another sacrosanct rule is to use your line of credit for needs and not wants. So basically, it should serve as a budgeting tool that will pave the way for your financial freedom.
Also, protect yourself from credit card fraud by reading the fine print and only choosing lenders with a good reputation.
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