If you or someone you know has no credit history, you might be credit invisible. Credit-builder credit cards are a great first step to establishing credit, and many offer helpful tools and resources for cardholders. But some are better than others.
What Is the Atlas Credit Card?
The Atlas Credit Card, issued by Patriot Bank, is a legitimate credit card geared toward credit-invisible consumers since Atlas doesn’t check credit history. The application process isn’t necessarily an application. To be approved for the credit card, you only need to create an Atlas account, validate your identity and link your bank account.
Your credit limit is tied to your bank account balance, making this more of a charge card than a credit card. Your limit isn’t based on your credit score or payment history, so if you want a higher limit, you need to deposit funds into your Atlas customer account.
What’s more, Atlas is mobile-first. Its website is pretty limited, so if you want extra support, you need to find it in the app. Terms of service are also only visible during the application process. If you want to know more about the credit card and the help center isn’t enough, you have to open an Atlas account via the app.
Atlas is only available in 41 states and the District of Columbia. But that information also isn’t readily available on its website.
[READ: Best Credit Cards for No Credit.]
Rewards Program
The Atlas rewards program is a little convoluted. Broken down by tiers, you can either be in the Gold, Blue or Platinum based on your ongoing spending and deposits into your Atlas account.
There’s also something called “Lucky Swipe,” which allows cardholders the “chance to win 100% cash back on purchases.” But again, if you want more information, you’ll have to create an account (or dig through a mountain of articles in the help center).
With the Atlas credit card, you can access:
— 5% cash back on subscriptions, like Netflix or Spotify, that total less than $30
— Up to 4% cash back on ride-hailing services, internet and transit
— Up to 3% cash back at gas stations, coffee shops and pharmacies
— Increased Lucky Swipe winning chances
— Cash back at over 50,000 locations
What’s frustrating about the rewards is you don’t know what locations are part of the program until after you’ve opened an account and applied for the card. The amount of rewards you earn is directly tied to the amount you spend, which is counterintuitive for a credit-builder credit card.
Membership Fee
Atlas charges an annual fee of $89. However, the fee isn’t mentioned right away when you visit the Atlas website. It is painted as a membership fee, you have to scroll down quite a bit, and the fee is lumped inside a category titled “integrated bundle.”
If you opt for a monthly plan, you’re charged $8.99 every four weeks, which comes out to $116.87 per year.
While it’s true some credit-invisible consumers might not be able to afford a security deposit on a secured credit card, and a low monthly payment might be appealing, you should not have to pay a fee to use a credit-builder credit card.
To entice consumers to opt for the annual plan, Atlas offers priority support as an added perk, guaranteeing replies in under 15 minutes. Without it, your expected wait time for customer service support is “a few business hours.” Atlas doesn’t offer live phone support, so all correspondence will be via email or chat.
[Read: Best Secured Credit Cards.]
Alternatives to the Atlas Credit Card
If you’re a credit-invisible consumer, you might be better off with a more traditional credit card. There are plenty of credit cards from major issuers that don’t charge a monthly or annual fee and provide the opportunity to grow your credit limit with responsible use.
Discover it® Secured Credit Card
The Discover it® Secured Credit Card requires a minimum security deposit of $200, but you get that back when you upgrade your credit card. It has no annual fee and earns 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.
What’s great about traditional credit cards is they grow with you. After seven months of responsible card use, Discover will review your account to determine if you can transition to an unsecured credit card. And if you can, you get your deposit back. Plus, Discover matches all the cash back you earn at the end of your first year, so that’s extra rewards.
Capital One Quicksilver Secured Cash Rewards Credit Card
The Capital One Quicksilver Secured Cash Rewards Credit Card has no annual fee and earns 1.5% cash back on all purchases. It also earns 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel.
It does require a minimum security deposit of $200, as well, but you also have the opportunity to upgrade your card to an unsecured credit card after several months of responsible card use.
More from U.S. News
How to Build Credit Without a Credit Card
Survey: Almost 60% of Credit-Invisible Consumers Want to Build Credit
Clever Credit: I Graduated From College. What Should Be My Next Credit Card?
Is the Atlas Credit Card Right for People With No Credit History? originally appeared on usnews.com
