The Prosper Card Review account, issued by Coastal Community Bank, is a full credit building, perfect fit for credit utilization for the customers working to build their credit score. the Prosper card review account isn’t a secured credit card, as it doesn’t require anything as a security deposit. This makes the Prosper Card the best option for customers who want to experience traditional credit cards while they are building their credit.
The Prosper Card has an annual fee, which may be a big problem if you want to keep costs down, though there is a way to eliminate the first-year annual fee except for the very first statement each year. The card doesn’t offer any type of reward. So, after the first statement, if your financial situation changes, you can switch to other credit cards that offer the benefit of having no annual fee.
The Prosper Card Review Basics
Bonus: None.
Rewards: None.
Card type: Bad credit score:.
Foreign transaction fee: 1%.
Annual fee: $0 for the first year, later $39 per year.
APR: The ongoing annual percentage rate ranges from 24.24% to 35.24% and is Variable.
Benefits and Perks
No security deposit
Pledging enough money for a security deposit on a secured credit card can be challenging, and you won’t get that deposit back until you close the account with good statistics. Some secured credit cards require minimum deposits of $200 or more. However, the Prosper Card is an unsecured card, so no security deposit required or is needed when you open the account. (You will need to pay an annual fee, which, unlike a security deposit on secured card, is not refundable.)
Prosper® Card vs. Discover it® Secured Credit Card
Its Secured Credit Cards require a deposit, but they can’t. The Discover® Secured credit card deposit is reversible in full, and no annual fee is charged. Discover Secured Credit Cards offer rewards on financial products regardless of all the cash of the unsecured credit card issued online and their security. You’ll get a 1% free bonus for all purchases. To sweeten the deal further, Discover offers a free cash-back match. This is matched with any cash back you receive in 1st year automatically.
Prosper® Card vs. Petal® 1 “No Annual Fee” Visa® Credit Card
Petal® 1 Visa® Credit Cards offer two unsecured credit card options with no annual fees and limited rewards for selected retailers. Although the reward isn’t particularly fantastic or is heavily regional dependent, a bank can still consider your creditworthiness if you don’t already have any available credit already.
A Petal1 secured Visa® card has several benefits that Petal2 cannot offer. The Petal1 card is essentially the same for a similar group of people with a much higher potential for building credit for the long term.
Will I be charged an annual fee?
The annual fee for this card is $39 and is waived for less-than-perfect credit after your initial enrollment. You may pay automatically at the beginning and then automatically match the credit limit until the balance transfers to the credit building at the end of the application or at another moment.
Pre-qualify without affecting your credit score
When you apply for a credit card, you usually don’t know if you’ll be approved without a hard credit inquiry, which can temporarily lower your credit scores. The Prosper Card lets you see what you’d be offered an automatic credit line without affecting your credit scores, helping you decide if it’s the right card for you. If you continue with the full application process, building credit, and getting the credit line approved, your credit scores may drop slightly and temporarily once the card appears on your credit report.
Instant access to the credit limit
You don’t need to wait for the physical card to use the credit line adjustments on your Prosper Card. After approval, you can get a digital card by logging into your account online or through the Prosper app, available on the Apple App Store and Google Play Store. You can add the digital card to your digital wallet. With the digital card, you can use your credit line up to 50% of your automatic credit line and limit until the physical card arrives.
Credit limit increases
Based on your qualifications, your initial credit line will range from $500 to $3,000. This credit line can change quickly as Prosper automatically reviews your account for a few credit limits, automatic credit line increases, or a credit line increase once every three months. However, these automatic reviews can also result in your credit line staying the same or even decreasing.
Drawbacks and Considerations
An annual fee
The Prosper Card has an annual fee of $0 for the first year with auto pay, then $39 after the first year without the first statement with autopay. To get the first-year auto pay waiver, you must sign up for autopay before issuing your first statement with a Prosper card. Autopay can be challenging if you’re concerned about having enough money in your bank account, but the Prosper Card lets you choose your monthly payment date to align automatic payments with your payday.
If you’re working on building your credit scores, a secured card might be a better option if you want a high enough score to earn rewards and a credit limit with no annual fee. The Capital One Platinum Secured Credit Card has no annual fee, and if you qualify, you can get a $200 credit limit with a security deposit starting at $49.
No cash advance fee
The Prosper Card does not charge annual fees or an ATM fee for cash advances, as highlighted on its website. However, while the Prosper card won’t charge a fee for cash withdrawals, the ATM owner might charge a transaction amount or a small fee. Additionally, the Prosper credit card has a high interest rate on cash advances, which starts accruing immediately when you withdraw the cash. This differs from the interest on purchases, which starts accruing only after the payment due date. Cash advances are very expensive and should be considered a last resort in emergencies.
No rewards
Credit-building cards often lack perks like cash-back rewards, and the Prosper Card is no exception. If you are open to a secured card, the Discover it Secured Credit Card, which has no annual fee, offers 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, and 1% cash back on all other purchases.
Additionally waived for the first one, new cardholders get a sign-up bonus: Discover will match all access half the cash back earned in waived for the first full year with their “Unlimited Cashback Match” offer. There is no minimum spending or maximum credit limit for rewards. Note that this credit card requires a $200 minimum security deposit.
No card to graduate to
Prosper credit cards help you build your credit score but have low fees and aren’t typically used long-term. a: Prosper card this credit card doesn’t offer a more advanced card to switch to, so when you’re ready, you’ll need to find a new card from a different issuer. At that point, you’ll need to decide what to do with your Prosper Card. Closing it might affect your credit scores, but keeping it open means paying an annual fee for a card you no longer need or use.
Frequently Asked Questions
Is the Prosper credit card a good card?
No, it’s not an ideal credit card for first users as it has a high limit and is only offered for those with a decent credit history. A person without a credit card will not likely be accepted until they build their credit, build a strong credit history, and get a good score. There are many other cards and good new card brands to consider, though.
Is Prosper trustworthy?
Are prospers legit? Prosper Personal Finance has an Excellent rating with BBB and was BBB-affiliated in 2012. Prosper personal finance loans have been rated by Trader WalletHub as having competitive rates and no fees to pay back before the loan is due.
What bank owns Prosper credit card?
The Prosper card is an unsecured card from Coastal CommunityBank, a member FDIC-issued card issuer licensed by Mastercard International.
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