Prosper Card Review: Card with no Security Deposit
The Prosper Card Review, issued by Coastal Community Bank, is a perfect fit for the customers working to build their credit score. Prosper isn’t a secured credit card, as it doesn’t require anything as a security deposit. This makes the Prosper Card considered as a best option for the customers who want to experience traditional credit cards while they are in condition of 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 get rid of the fee for the first year. The card doesn’t offer any type of rewards. So after your financial condition changes you can switch to other credit cards which offer a benefit of having no annual fee.
Credit Repair
01
Credit Repair
02
4.5
Credit Repair
03
Credit Repair
04
Credit Repair
05
Credit Repair
06
Credit Repair
07
Credit Repair
08
5
Average Review
Credit Repair
- Certified pre-approval Process
- Online Application Available 24/7
- Find a Quote Easily
4.5
Average Review
Credit Repair
- Certified pre-approval Process
- Online Application Available 24/7
- Find a Quote Easily
- 100% Online Refinance
4
Average Review
Credit Repair
- High approval rates
- Financial guidance
- Unlimited access to credit options
5
Average Review
Credit Repair
- Credit monitoring
- Personalized credit tips
- TransUnion® credit report and score
5
Average Review
Credit Repair
- Provide tax advice
- Debt relief services
- Credit repair services
The Prosper Card Basics
Bonus: None.
Rewards: None.
Card type: Bad credit.
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 cards require minimum deposits of $200 or more. However, the Prosper Card is an unsecured card, so no deposit is needed when you open the account. (You will need to pay an annual fee, which, unlike a security deposit, is not refundable.)
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 without affecting your credit scores, helping you decide if it’s the right card for you. If you continue with the application and get 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 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 up to 50% of your credit limit until the physical card arrives.
Credit limit increases
Your initial credit line will range from $500 to $3,000, based on your qualifications. This can change quickly as Prosper automatically reviews your account for a credit line increase every three months. However, these 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. To get the first-year waiver, you need to sign up for autopay before your first statement is issued. Auto pay 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 with your payday.
If you’re working on building your credit scores, a secured card might be a better option if you want 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 an ATM fee for cash advances, as highlighted on its website. However, while Prosper won’t charge a fee, the ATM owner might charge a little fee. Additionally, the 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, new cardholders get a sign-up bonus: Discover will match all the cash back earned in the first year with their “Unlimited Cashback Match” offer. There is no minimum spending or maximum rewards. Note that this card requires a $200 minimum security deposit.
No card to graduate to
Prosper credit cards help you build credit but aren’t typically used long term. Prosper 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.
