Rise Credit Card CostsPosted on September 6, 2012 by Amy in Bad Credit, Credit card debt, Credit Rating, Granite
Rise bridges the gap between bad credit and credit cards, but there is a cost for this convenience.
While most standard credit cards are out of reach when you have bad credit, there are some credit cards designed specifically for this situation.
The main appeal with cards like the Rise Visa is that you can rebuild your credit rating by having access to minimal credit funds.
Unfortunately, “bad credit credit cards” often have higher costs through some or all of the following features:
- Annual fees
- Monthly fees; and
- High APRs
The Rise Visa is slightly different to other poor credit options – such as the Granite credit card – in that it is marketed as having “no interest charges”.
But you would be right if you thought there was a catch here: rather than having an APR, Rise has monthly fees that are tiered based on the balance of the account.
There is a minimum monthly fee of £3.50, which is due even if you pay your balance in full every month.
Above that amount you are charged £15 for every £100 of your balance – so if you owed £100.01 – £200, for example, you would pay £30. The credit limit is capped at £300 pounds, however, which means the most you will have to pay for this fee is £45.
At minimum levels, you would be paying £42 per year for this card – which may end up worth it if you want to rebuild your credit score.
Other Rise Visa Fees
As well as the monthly fees, there are a few other costs that you should consider before applying for this card.
The fist is an “activation charge” of £20 when you get the card, though that money is then credited to your account.
There is also a cash advance fee of 2.5% or a minimum £2.50, but if you use the account responsibly there will be no other charges.
It is worth noting, though, that going over your credit limit will lead to extra charges.
In the representative example given on the Rise website, a card with a limit of £100 and a balance of £150 would lead to a representative APR rate of 925% – not to mention impact on your credit rating.
This means it is essential that you factor in the monthly service fees when working out your credit card balance, so that you do not have to pay more for this card.
While the Rise Visa may not have the most competitive features around, it is a good option when other issuers reject your applications due to bad credit.
By understanding the charges that can come with a Rise Visa card, you should also be able to get a better idea of whether or not this option will work for you.