What Is Continental Finance, and Are Its Credit Cards Right for You?

Continental Finance is a bank card firm that companies bank cards for shoppers with restricted, honest or spotty credit (FICO scores of 300-689). Its portfolio contains the next playing cards:

These merchandise all share some essential similarities. They’re unsecured playing cards, so a safety deposit isn’t required to open the account. All playing cards report person exercise to the three main credit score bureaus, so by spending under your credit score restrict and paying off balances in full each month, you might be able to assist your credit score scores. And as an incentive, any one in every of these playing cards will double the preliminary credit score restrict after the primary six month-to-month minimal funds are made on time. 

That’s the excellent news — nevertheless it doesn’t outweigh the unhealthy. Main drawbacks of Continental Finance bank cards embody myriad costly charges, dizzying rates of interest and no improve path to a greater product while you’re prepared. And to get any of those playing cards, you may want a checking account, which might current its personal hurdles.

Right here’s an summary of Continental Finance bank cards, plus some suggestions for options which can be less expensive and extra rewarding, even you probably have spotty credit.

The Cerulean bank card fees a hefty annual charge for a card with little upside. The annual charge is $125, and also you received’t obtain a credit score restrict larger than $1,000 upon account opening. And in contrast to an upfront deposit required for a secured bank card, annual charges will not be refundable. As unappealing as these phrases are, they’re hardly the worst compared with a few of the different playing cards serviced by Continental Finance. (That dishonor might go to the following card on this listing, the Match bank card.)

Different decide: Chime Credit score Builder Visa® Credit score Card acts like a pay as you go debit card in some methods, nevertheless it reviews person exercise to all three credit score bureaus like a bank card. This card doesn’t cost an annual charge or APR, however you want a Chime account to get it.  

The Match bank card fees an annual charge of $99, which at a look appears higher than the Cerulean. However the charges don’t cease there. If you would like the Match bank card, you’ll must pay a one-time $89 processing charge to open the account. Due to these two charges, you’ll instantly owe $188 earlier than you even use the cardboard to your personal purchases. After the primary 12 months of getting the Match bank card, you’ll even be assessed a $6.25 month-to-month charge ($75 for the 12 months), which is along with the annual charge. The Match bank card might provide a credit score restrict as excessive as $3,000, however that seems like a meager reward in alternate for a whole bunch of {dollars} price of charges.  

Different decide: Petal® 1 “No Annual Price” Visa® Credit score Card places the Match bank card to disgrace, with its lack of annual charges, international transaction charges, month-to-month charges or activation charges. (Variable APRs vary from 24.49%- 33.99%.)

The Reflex® Platinum Mastercard® earned a 1.8-star ranking out of 5 from FinanceGrabber’s bank card workforce, and it’s simple to see why. It has an annual charge from $75 as much as $125 within the first 12 months, then from $99 as much as $125 yearly, plus a $10 month-to-month charge, which is waived the primary 12 months. Preliminary credit score limits vary from $300 to $1,000.

Different decide: Contemplate as an alternative the Uncover it® Secured Credit score Card. Its annual charge is $0, and whereas it does have a $200 safety deposit requirement, it is refundable. The cardboard additionally earns rewards, and it even has a sign-up bonus, which Uncover phrases this fashion: INTRO OFFER: Limitless Cashback Match – solely from Uncover. Uncover will routinely match all of the money again you’ve earned on the finish of your first 12 months! There’s no minimal spending or most rewards. Only a dollar-for-dollar match. And on high of that, you may finally qualify to improve to a greater Uncover card.

The Surge bank card sings the identical music as its Continental Finance siblings: It fees a steep annual charge of $75-$125 within the first 12 months, after which $99-$125. After the primary 12 months of opening the account, you might also must pay a month-to-month charge of as much as $10 per thirty days. This implies you may owe as a lot as $245 yearly to carry this card, which is outrageous. Just like the Reflex® Platinum Mastercard®, you additionally will need to have a checking account to be able to open a Surge bank card.  

The Verve bank card is virtually an identical to the Surge bank card; the one significant distinction is the cardboard issuer. That apart, the Verve and Surge bank cards have the identical annual charge of $75-$125 within the first 12 months, then $99-$125 after that. The preliminary credit score restrict on the Verve bank card is $300-$1,000, the identical vary because the Surge bank card. Month-to-month charges on the Verve bank card are waived for the primary 12 months, however can value as a lot as $10 thereafter.

Different decide: Tomo Credit score Card contains a number of standout options, together with probably beneficiant credit score limits; you possibly can qualify for a restrict as excessive as $10,000, and also you don’t must undergo a credit score examine to get the cardboard. The cardboard’s annual charge is $0, and it additionally earns rewards.

Given their varied outlandish charges, Continental Finance bank cards shall be a poor match for many shoppers. If you have already got one of many playing cards on this listing, pay attention to when the annual and month-to-month charges are due and attempt to pay them off instantly to keep away from curiosity fees. Contemplate, too, canceling the cardboard and changing it with one thing higher, in case your credit score scores are excessive sufficient. Closing a bank card can ding your credit score scores, however that penalty could also be price it if it means eliminating a bank card with extreme charges. 

You may cancel your bank card and get a refund of the annual charge by notifying the issuer that you just need to shut the account inside 30 days from the date of the month-to-month billing assertion on which the annual charge seems. As a result of the annual charge for all of those Continental Finance bank cards is assessed upon account opening, you’d want to shut the account inside the first 30 days to obtain a refund.