The FIT® Mastercard® Credit Card is specifically designed for individuals with less-than-perfect credit who are looking to rebuild or establish their credit history. Issued by The Bank of Missouri, this card provides an opportunity for those who have been turned down by other lenders to access a line of credit and work towards improving their financial standing. While it does come with certain fees and a higher-than-average APR, the FIT® Mastercard® Credit Card offers a pathway to better credit and more financial opportunities in the future. In this article, we’ll explore the key features, fees, benefits, and the application process for the FIT® Mastercard® Credit Card.
Key Features and Benefits
1. Credit Building Potential
The FIT® Mastercard® Credit Card is a valuable tool for individuals looking to build or rebuild their credit. It reports to all three major credit bureaus—Experian, Equifax, and TransUnion—allowing you to establish a positive payment history, provided you manage your account responsibly. Over time, consistent on-time payments and responsible credit usage can lead to an improved credit score, opening doors to better credit products and terms.
2. Initial Credit Limit
Upon approval, cardholders receive an initial credit limit of $400. This is a relatively low limit, but it’s designed to help you manage your credit usage effectively. It’s important to note that keeping your credit utilization ratio below 30% is a key factor in improving your credit score, so managing your spending on this card is crucial.
3. Potential for Credit Limit Increases
The FIT® Mastercard® Credit Card offers the opportunity for credit limit increases after six months of responsible card use. This feature can be particularly beneficial as a higher credit limit can lower your credit utilization ratio, further aiding in credit score improvement.
4. Worldwide Acceptance
As a Mastercard, the FIT® Credit Card is accepted at millions of locations worldwide, making it a reliable option for day-to-day purchases, whether in-store or online. This global acceptance is a significant advantage for cardholders who travel frequently or make international purchases.
5. Online Account Management
The FIT® Mastercard® Credit Card provides convenient online account management tools, allowing you to monitor your balance, make payments, view statements, and track your spending habits from the comfort of your home. This feature is essential for staying on top of your finances and ensuring timely payments, which is critical for credit building.
Fees and Rates
While the FIT® Mastercard® Credit Card is a valuable tool for credit building, it’s important to be aware of the fees and rates associated with the card. Understanding these costs will help you manage your account effectively and avoid unnecessary expenses.
- Annual Fee: The FIT® Mastercard® Credit Card has an annual fee of $99, which is charged to your account upon card activation. This fee reduces your initial available credit from $400 to $301.
- Monthly Maintenance Fee: After the first year, a monthly maintenance fee of $6.25 is assessed, totaling $75 annually. This fee is waived for the first 12 months.
- APR: The card comes with a high variable APR of 29.99% for purchases. This means that carrying a balance from month to month can lead to significant interest charges, so it’s advisable to pay off your balance in full each month to avoid these costs.
- Processing Fee: There is a one-time processing fee of $89, which must be paid before your account can be opened.
- Additional Card Fee: If you wish to add an authorized user to your account, there is a $30 annual fee for each additional card.
- Late Payment Fee: If you miss a payment, a late payment fee of up to $40 may be charged.
- Overlimit Fee: The card also carries an overlimit fee of up to $40 if your spending exceeds your credit limit.
Eligibility and Application Process
1. Eligibility Criteria
To qualify for the FIT® Mastercard® Credit Card, you must meet the following criteria:
- Age: You must be at least 18 years old (19 in Alabama).
- Residency: You must be a U.S. citizen or permanent resident.
- Income: You should have a verifiable source of income, as this will be considered when determining your ability to manage the credit line.
- Credit Score: While the card is designed for those with less-than-perfect credit, having a steady income and demonstrating the ability to manage credit responsibly can improve your chances of approval.
2. How to Apply
The application process for the FIT® Mastercard® Credit Card is straightforward and can be completed online. Here’s a step-by-step guide:
- Visit the FIT® Mastercard® Website: Navigate to the official FIT® Mastercard® Credit Card application page.
- Complete the Application Form: You will need to provide personal information such as your name, address, Social Security number, and income details. It’s important to fill out this information accurately, as it will be used to assess your eligibility.
- Review the Terms and Conditions: Before submitting your application, review the card’s terms and conditions, including the fees, APR, and other charges associated with the card. Understanding these details is crucial to managing the card effectively.
- Submit the Application: Once you’ve completed the form and reviewed the terms, submit your application. In most cases, you will receive an instant decision. If additional information is required, you may be asked to provide further documentation.
- Pay the Processing Fee: If approved, you will need to pay the $89 processing fee to open your account. This fee must be paid before the card can be activated.
- Receive and Activate Your Card: After paying the processing fee, your card will be mailed to you. Once you receive it, activate the card online or by phone to begin using it.
Managing Your FIT® Mastercard® Credit Card
Properly managing your FIT® Mastercard® Credit Card is essential to maximizing its benefits and building your credit. Here are some tips to help you manage your account effectively:
- Make On-Time Payments: Your payment history is the most significant factor affecting your credit score. Set up automatic payments or calendar reminders to ensure you never miss a payment.
- Monitor Your Spending: Keep your credit utilization low by spending within your means. Aim to use no more than 30% of your available credit at any given time.
- Check Your Statements Regularly: Review your monthly statements to ensure there are no unauthorized charges and that your account is in good standing.
- Request Credit Limit Increases: After six months of responsible use, consider requesting a credit limit increase to further improve your credit utilization ratio.
Conclusion
The FIT® Mastercard® Credit Card can be a valuable tool for those looking to build or rebuild their credit, particularly if you’ve struggled with poor credit in the past. While the card does come with several fees and a high APR, its ability to report to all three major credit bureaus and offer credit limit increases can help you improve your credit score over time. By managing your account responsibly and staying aware of the associated costs, the FIT® Mastercard® Credit Card can serve as a stepping stone towards better financial health.
