The Cerulean Credit Card does have some favorable features for individuals with poor credit, but its steep annual fee and APR make it costlier than other cards in its category.
At first glance, the Cerulean credit card, issued by The Bank of Missouri and serviced by Continental Finance, might be attractive, especially if your credit isn’t perfect.
It doesn’t require a security deposit, and it has a potentially very high credit limit if you’re approved. And it’s a Mastercard, so you’ll be able to use it anywhere that Mastercards are accepted, and your payments will also be reported to the three major credit bureaus, a requirement in a credit-building scheme.
All the perks appear fine until you see the high annual charge and sky-high interest rate. Compared to some other poor credit unsecured credit cards (FICO scores 629 and lower), it does have fewer overall fees.
But then, there are cheaper options available that can help build your credit. And also, the card is only available through limited partner channels at present.
What is the Cerulean Credit Card All About?
Even if the Cerulean credit card does not impose monthly “maintenance fees” like some other cards in its category, its annual fee alone should make you think twice. Card members can expect to pay the following fees:
- Annual fee: $125.
- Late payment fee: Up to $41.
- Additional card fee: $30.
- Potential credit limit boost fee
The card’s terms and conditions indicate that “if you qualify for and agree to receive a credit limit increase, we may charge you a fee.
Unless you can afford to pay the $125 annual fee to maintain the Cerulean credit card, you’re likely to be better off saving for a security deposit for a secured credit card.
You’ll get that deposit refunded with a good payment history when you close the account. But with the Cerulean card, that $125 you pay every year is lost forever.
Is there an APR?
Yes! But it’s not unusual to have high charges on credit cards if you have less-than-perfect credit, but it’s a recipe for debt when you’re paying a yearly fee, too.
As of this writing, the APR on purchases and cash advances on the card was around 36%, so it’s an expensive option if you’re carrying a balance or taking a cash advance. (You’ll also be charged a $10 or 3% fee on cash advances, whichever is greater.)
Are there Requirements to Get a Curelean Credit Card?
For no interest, try instead: A card like the Chime Secured Credit Builder Visa® Credit Card allows you to build credit safely with no risk of high-interest borrowing.
You can’t carry a balance on the card, so it charges neither fees nor interest. (Out-of-network ATM withdrawal fees apply except at MoneyPass ATMs in a 7-Eleven store or any Allpoint or Visa Plus Alliance ATM.)
You must have a Chime checking account to finance the card’s revolving security deposit, but it could be worth obtaining the account if you ever need to bridge a gap in your cash flow.
Chime’s checking account includes a benefit that allows customers to overdraft up to $200 for free if they can meet account requirements.
Last Lines
The Cerulean credit card does not provide the ability to upgrade to an unsecured credit card or lower the fee for the yearly charge. If you’re establishing credit, it’s more advantageous to have something you can move up to once you build your way up the good credit ladder.
For an upgrade path to an unsecured card, instead consider: With the Discover it Secured Credit Card, the issuer begins performing regular monthly checks after seven months to see if you qualify to transfer to an unsecured variant.
The card features a $200 security deposit, but the issuer will refund it with positive payment history when you close the card or upgrade to the issuer’s unsecured variant.
The card’s initial bonus and ongoing cash-back awards 2% at restaurants and gas stations for up to $1,000 in combined purchases within a quarter, and 1% on all other purchases can also make some money back while the deposit is being held.
