Total Visa® Unsecured Credit Card: A Practical Choice for Building Credit

In the realm of credit cards, the Total Visa® Unsecured Credit Card stands out as an accessible option for individuals looking to build or rebuild their credit without the need for a security deposit. This card is designed for those with less-than-perfect credit who may find it challenging to qualify for other types of credit cards.

In this detailed guide, we will explore the essential features of the Total Visa® Unsecured Credit Card, its benefits, potential drawbacks, and how to apply for it. By understanding these aspects, you can make an informed decision about whether this card is the right tool for your credit-building journey.

Key Features of the Total Visa® Unsecured Credit Card

1. No Security Deposit Required
   • Unlike secured credit cards, which require a security deposit as collateral, the Total Visa® Unsecured Credit Card does not require any deposit. This feature makes it an attractive option for individuals who may not have the upfront cash necessary for a secured card.
2. Designed for Building Credit
   • The Total Visa® Unsecured Credit Card is specifically designed for those with less-than-perfect credit. Whether you have a limited credit history or have faced financial difficulties in the past, this card provides a way to start rebuilding your credit profile.
   • The card issuer reports your payment history and card usage to the three major credit bureaus: Equifax, Experian, and TransUnion. By using the card responsibly and making on-time payments, you can gradually improve your credit score over time.
3. Application Process
   • One of the key advantages of the Total Visa® Unsecured Credit Card is its easy and fast application process. Applicants with low or no credit scores can often qualify, making it accessible to a broader range of individuals.
   • Pre-qualification is available, allowing you to check your eligibility without impacting your credit score. This soft inquiry helps you assess whether you are likely to be approved before formally applying.
4. Initial Credit Limit
   • The initial credit limit for the Total Visa® Unsecured Credit Card is typically $300. While this is a modest limit, it is a good starting point for individuals who need to establish or rebuild credit. The card issuer may offer credit limit increases over time based on your account activity and payment history, although this is not guaranteed.
5. Annual Fee
   • The Total Visa® Unsecured Credit Card comes with a $75 annual fee for the first year. After the first year, the annual fee increases to $99, billed at $8.25 per month. This fee structure is relatively standard for unsecured credit cards aimed at individuals with low credit scores.
6. APR (Annual Percentage Rate)
   • The Total Visa® Unsecured Credit Card has a 29.99% variable APR for purchases. This rate is higher than what you might find with traditional credit cards, reflecting the card’s target audience of high-risk borrowers. To avoid interest charges, it is advisable to pay your balance in full each month.
7. Additional Fees
   • In addition to the annual fee, there are other fees associated with the Total Visa® Unsecured Credit Card:
     • Program Fee: A one-time fee of $89 is required to open your account.
     • Monthly Servicing Fee: After the first year, you will be charged a $6.25 monthly servicing fee ($75 annually).
     • Late Payment Fee: If you miss a payment, you may be charged up to $41.
     • Returned Payment Fee: A fee of up to $41 applies if a payment is returned.
8. Mobile and Online Account Management
   • The Total Visa® Unsecured Credit Card offers convenient online and mobile account management tools. Cardholders can monitor their balances, make payments, and set up alerts through the issuer’s website or mobile app. This feature is essential for staying on top of your payments and managing your credit responsibly.

Benefits of the Total Visa® Unsecured Credit Card

1. Credit Building Without a Deposit
   • One of the primary benefits of the Total Visa® Unsecured Credit Card is the ability to build or rebuild credit without the need for a security deposit. This makes the card accessible to a broader audience, especially those who may not have the upfront funds required for a secured credit card.
2. Reports to Major Credit Bureaus
   • The Total Visa® Unsecured Credit Card reports to all three major credit bureaus, making it a useful tool for improving your credit score. Responsible usage, such as making on-time payments and keeping your balance low, will positively impact your credit report over time.
3. Easy Approval Process
   • The card is designed to cater to individuals with less-than-perfect credit, so the approval process is relatively straightforward. Even if you have a low credit score or no credit history, you have a good chance of being approved.
4. Access to Credit
   • With an initial credit limit of $300, the Total Visa® Unsecured Credit Card provides access to credit that can be used for everyday expenses, emergencies, or unexpected needs. While the limit is modest, it is a step towards rebuilding your credit and increasing your financial options.
5. Pre-Qualification Without Impacting Credit
   • The option to pre-qualify without affecting your credit score is a significant benefit. This allows you to check your eligibility before applying, giving you confidence that you are likely to be approved.

Potential Drawbacks of the Total Visa® Unsecured Credit Card

1. High Fees
   • The card’s fees, including the annual fee, program fee, and monthly servicing fee after the first year, can add up quickly. These costs may be a drawback for some users, particularly if they do not plan to use the card frequently.
2. High APR
   • The 29.99% variable APR is relatively high compared to other credit cards. If you carry a balance from month to month, interest charges can accumulate rapidly, making it more challenging to pay off your debt.
3. Low Initial Credit Limit
   • The initial credit limit of $300 is low, which may limit the card’s usefulness for larger purchases. While this limit can help you avoid overspending, it also means you’ll need to be diligent about keeping your balance below 30% of your limit to maintain a positive credit utilization ratio.
4. Limited Rewards or Benefits
   • Unlike some other credit cards, the Total Visa® Unsecured Credit Card does not offer rewards or cashback programs. The card’s primary function is to help you build or rebuild credit, so it lacks the perks that other cards might provide.

How to Apply for the Total Visa® Unsecured Credit Card

Applying for the Total Visa® Unsecured Credit Card is a straightforward process. Follow these steps to complete your application:

Step 1: Pre-Qualification

Before formally applying, you can check if you pre-qualify for the card. This step involves a soft credit inquiry, which does not affect your credit score. Pre-qualification helps you determine if you’re likely to be approved and avoids unnecessary hard inquiries on your credit report.

Step 2: Complete the Online Application

If you pre-qualify, you can proceed with the full application. You will need to provide personal information, including your name, address, Social Security Number, and employment details. The online application is quick and can be completed in just a few minutes.

Step 3: Pay the Program Fee

Once your application is approved, you will need to pay the one-time $89 program fee to open your account. This fee must be paid before your card can be issued.

Step 4: Receive and Activate Your Card

After paying the program fee, your Total Visa® Unsecured Credit Card will be mailed to you. You should receive it within 7-10 business days. Once you receive the card, follow the instructions provided to activate it.

Step 5: Start Using Your Card

After activation, you can start using your card for purchases. Remember to use it responsibly by making on-time payments and keeping your balance low to maximize the card’s credit-building potential.

Tips for Using the Total Visa® Unsecured Credit Card

To make the most of your Total Visa® Unsecured Credit Card, consider the following tips:

1. Pay Your Bill On Time
   • Timely payments are critical for building credit. Late payments can harm your credit score and result in additional fees.
2. Keep Your Credit Utilization Low
   • Aim to keep your credit utilization below 30% of your credit limit. For a $300 limit, this means keeping your balance under $90. Low utilization is a positive factor in your credit score calculation.
3. Monitor Your Account
   • Use the online or mobile account management tools to keep track of your spending, payments, and due dates. This will help you stay organized and avoid missing payments.
4. Plan for the Fees
   • Be aware of the card’s fees and factor them into your budget. Make sure you’re comfortable with the costs associated with the card before applying.
5. Avoid Carrying a Balance
   • If possible, pay off your balance in full each month to avoid interest charges. Carrying a balance with a high APR can lead to significant interest costs.

Conclusion

The Total Visa® Unsecured Credit Card is a viable option for individuals with low or no credit who are looking to build or rebuild their credit history. With no security deposit required, it offers a pathway to establishing credit, although it comes with higher fees and a modest credit limit.