At face value, any credit card that is marketed toward individuals with bad credit is helping those who can’t get approved elsewhere. However, that’s not always the case. Even when in the position of fewer options, it’s important to do your research as the consumer.
So we’ve done a deep dive of the Legacy Visa Card issued by First National Bank to help you make the best decision for your finances.
The main perk for those with bad credit or little credit history is that they’ve been known to approve individuals with credit scores in the 400-500 range.
When you understand how credit works and why credit matters, you’ll know how important having at least one credit card can be in building positive credit.
What are the Pros of the Legacy Visa Card?
The first feature which is nice for credit-challenged individuals is that the Legacy Visa card is unsecured. which means you don’t have to come up with a deposit in advance to use the card.
The Legacy card is a Visa whichallows cardholders to use it at most merchants within the U.S. and around the world.
Legacy Visa is easy to get an approval for as you can get approved with a FICO score as low as 400. This makes Legacy Visa a good option for consumers with bad credit.
You can have a Credit limit of up to $1,500 initially, which will be based on your FICO score.
There is also the optional Payment Protection Plan that costs you $0.89 for every $100 of the monthly balance. However, in order to qualify for the plan to make your minimum monthly payment you must have already been enrolled in the program prior to the qualifying need.
In addition, the need must be due to one of the following reasons: unemployment, disability, hospitalization, military leave, certified family medical leave, or jury duty.
Many members are pleased with the ease of the online payment portal.
What are the Cons of the Legacy Credit Card?
While the online portal may be simple to use, the talking to customer service reps part seems to be lacking. There are many complaints about rude and delayed response to customer’s needs.
Their application process is cumbersome and is by invitation only where you need a prequalification letter, via mail, to apply.
A credit line issued can be as low as $350, which is dependent on your FICO score.
Legacy Visa is not a touchless card which is very convenient and the safer option.
Their overall fees are high such as the high-interest rate at 29.9%. As well as the yearly cost to use the card which comes in at $75 annual fee which is billed monthly of $6.25. This is much higher than the average.
Here are all of their additional fees broken down in the table below:
What are the fees of the Legacy Visa Card?
| Annual Fee: $75 (billed at $6.25 per month) |
| $25 for late payments |
| $25 for returned payments |
| 2% of the amount for cash advances (minimum $20) |
| $20 authorized user fee (optional) |
| Optional PREMIUM Club membership: ($4.95/month) gives you discounts on prescriptions, dining, rental cars, hotels and entertainment |
| Payment Protection Plan: ($0.89/$100 of monthly balance) makes the minimum payment and prevents you from incurring late fees if you are unable to pay for a qualified reason (unemployment, disability, hospitalization, military leave, certified family medical leave, jury duty) |
How does the Legacy Visa card compare to other cards?
1 | OpenSky® Secured Visa® Credit Card vs Legacy Visa Credit Card
The OpenSky® Secured Visa® Credit Card has an annual fee of $35, which is about half the cost of Legacy Visa.
The interest rate is 18.99% which is low compared to Legacy’s 29.9%. OpenSky gives the cardholder the option to choose a security deposit, as much as $3,000, which is based on creditworthiness.
2 | Discover it® Secured Credit Card vs Legacy Visa Card
Discover it is a secured credit card that has no annual fee. You do have to put down a security deposit which then acts as your credit line.
The APR is right in the middle of most cards at 24.49%. You will be hard-pressed to find a better rewards program, especially the first year than Discover it, where you earn 2% cashback on most dining and fuel and then 1% for everything else.
During the first year, Discover will match your rewards 1 for 1.
3 | Secured Mastercard® from Capital One vs Legacy Visa Credit Card
Secured Mastercard by Capital one is a secured credit with no annual fee. Initially, you get to decide the deposit you put down of $49, $99, or $200.
Although the APR is higher at 26.99%, you will receive automatic credit limit increases without the need for additional deposits as long as you are not late nor miss payments in the first 5 months.
As you can see, it’ll cost you much more out of your pocket to use the Legacy Visa card in comparison to other cards that work with those seeking to build or rebuild their credit rating.
Their rewards program may make it worth it to you to if you plan to use it for the travel rewards.
