Good for some but not for everyone!
Written: Dec 26 '00
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Product Rating:
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Pros: Will give most anyone credit, excellent customer service!
Cons: Rates are a bit high and fees can be costly!
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| moneymaker2000's Full Review: Visa Classic (Providian Bank) |
Since there is so much talk lately about the credit cards that Providian offers, I thought that it was time to give you my take on this card. I deal with Providian on a regular basis because I've been a member for over two years now so I feel that I'm qualified enough to tell you how their business operates.
It should be noted that this company issues Mastercard or Visa and offers three different types of cards which are Classic, Gold and Platinum but I've only had dealings with the first two and can't offer information on the Platinum card.
First off, although I don't know this to be true, I feel that most people that are offered a credit card from this company either have bad credit or no credit. Most of my friends that have good credit have never heard of Providian except for seeing the commercials on television so this is what I base my theory on.
There are a variety of things that you should know about this company before taking them up on their offers for credit. I've divided this into three categories that I'd like to call the good, the bad and the ugly as I perceive them.
The Good
1. First and foremost, Providian is known for giving credit to people that have either bad or no credit. While most credit card companies would tell you no, I've yet to hear about anyone getting turned down through them.
2. As with most credit card companies, they will review your account on a regular basis and usually increase your credit limit if you've acted like a responsible adult by staying within your limits and paying on time.
3. Customer service has been nothing short of excellent each and every time that I've dealt with them. They're always very friendly and more than willing to help me in any way they can.
4. Providian is the type of company that is competitive and because of this, is willing to go the extra mile to keep your business. Some of the ways that they strived to keep my business was by waiving late fees, lowering interest rates and increasing my credit limit at no additional cost to me.
The Bad
1. Normal policy when you sign up for their card is to charge you a fee of $49.00 for processing your request. This to me is like a good faith payment and is requested from those people with less than perfect credit. They will also charge you for credit line increases (if you let them), which vary in dollar amounts but on average is $49.00 as well.
2. Their annual fee for me was $59.00 for the first year but I've been told that this varies from person to person. Depending on how good or bad your credit is, it may be higher or it may be lower.
3. The interest rate started at 23.99% for me but it should be noted that I have heard of people with a higher or a lower rate and I personally believe this is based on your existing credit.
4. They charge you an overlimit fee as well as a late fee (whichever applies) of $29.00 and as far as I know, this is standard policy for them.
The Ugly
1. The first thing that I'd like to mention is the fact that you'll find most companies that charge a processing fee are the same companies that will offer you credit when no one else will. This may or may not be wrong but no one will twist your arm and say, you have to accept their offer.
2. Most companies charge people, that they feel are a credit risk, an annual fee because they're taking a chance on you and thus feel that it is only fair that they charge something. There are places that will offer you a card with no annual fee but it's usually offered to those people that don't need the credit to begin with.
3. Interest rates vary with every company and it's usually based on what kind of credit you have. If your credit is good, you'll more than likely get an offer for a card with a lower interest rate but if your credit is bad, expect to be paying a higher rate. Some will even charge you an introductory rate that is considerably lower but read the fine print before accepting this type of offer.
4. Late fees and overlimit fees seem to be a way of life with most companies and the only thing that may differ from company to company is how much they'll charge you when you screw up. Even the bank where you have your checking account will charge you a fee if you don't have the funds to cover for checks written.
My Experience
1. Now, I'll admit that this company did charge me a processing fee (which I paid) and even tried charging me a fee for increasing my credit limit but after talking with them on the phone about it, they were more than happy to waive the fee.
2. I did pay an annual fee as well for my first year but when they charged me an annual fee on my anniversary date, a simple phone call solved the problem without incident.
3. Although my interest rate started at 23.99%, I'm happy to say that after (yes, you guessed it) I called and made them aware of my discontent, I now pay only 16.99%. This is still kind of high but they also promised to lower the rate in 2001 if I continue being a responsible cardholder.
4. I never have gone over my limit but due to circumstances beyond my control (I was broke), I was late with a payment and as outlined, my next bill reflected a $29.00 late fee added in but they did remove it, after I talked to them and without hesitation.
My Opinion
Providian is not for everyone because of all the different charges that you'll either pay up front or along the way but they did right by me and I'm happy that they were there when I needed them. If your credit is less than perfect or you don't have any credit at all and if you're a responsible individual then this is one way to get credit. Now I'll grant you that this isn't the cheapest way to get credit but, in my case, it was the only way to get credit.
Some may say that the easiest way to go and reestablish credit is to apply for a secured card through the bank of your choice. While I firmly believe this is in fact a good idea, I should tell you that I tried that before I chose to go with Providian and got turned down through my bank. This was for a secured Visa with a credit limit of only $250.00 and yet, they turned me down cold so it may not be that easy.
If you're not the type of person that is constantly late with payments or one who is always going over your limit then this card will help you in the long run. The things that you must decide for yourself is if you're willing to pay to get your credit back and if you really need the credit that bad. Although some people may think that they prey on unsuspecting victims such as people with bad credit or no credit at all, the bottom line is, the choice is still yours!
Recommended:
Yes
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moneymaker2000
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Member: Don...
Location: Pittsfield, Mass.
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