UNITY Visa® Secured Credit Card review: Access to a high credit limit and low APR

The UNITY Visa Secured card can be a decent option if you want to build credit for a year or two before upgrading to a more rewarding credit card.

Low APR: Below-average fixed rate and balance transfer offer

This card’s fixed APR is lower than the national average credit card interest, and void of any risks that you’ll qualify for an APR that’s higher than the average. Secured cards or cards for fair credit typically offer a variable APR. You won’t know your rate until you apply and are approved for the card. The UNITY Visa has the same fixed APR for everyone, so there’s no mystery about how much interest you’ll be subject to when you carry a balance.

Knowledge and understanding is a huge part of building or rebuilding credit. Spending is sometimes spontaneous and hard to plan, so the fewer random variables involved the better. By knowing what your APR will be prior to applying, you can compare cards more effectively and plan accordingly. If this card’s fixed rate is lower than what you’d be subjected to on another card, it might be the right choice for you — especially if you carry a balance now and then.

This card also has a low, six-month introductory APR for balance transfers. Although it doesn’t compare with the introductory offers you’ll find on some cards for good credit, it is a fairly decent offer that can minimize your interest payments for your first six months. When you’re getting on top of debt management, every dollar saved counts.

Build credit: Access a line of credit and educational resources

Along with reporting to the three major credit bureaus, UNITY claims to offer access to its “How to Rebuild Credit Program,” which starts by offering advice about knowing where your credit stands and what actions you can take to get started on improving it. It doesn’t say much more about this program on its website or in any of the credit card documentation, however, so there are a limited number of details to go off of.

Despite that, a program like this — even if it’s just advice — can help you get on the right track and stay motivated. If it helps to consolidate all of your credit positive insights and habits in one place, like your card issuer’s app or online portal, then you should stick with what’s comfortable. Navigating bad credit is hard enough; complicating it with multiple resources could just lead to confusion.

Credit limit: Deposit up to $10,000 for your credit limit

You can deposit up to $10,000 to fund your initial credit limit, a fairly substantial sum compared to other secured cards’ deposit maximums. A deposit of this size will give you plenty of flexibility when making purchases and will help you keep your credit utilization low if you need to use your card for a few thousands of dollars worth of purchases each billing cycle.

A good rule of thumb is to keep your utilization below 30 percent. With a $10,000 credit limit, you can keep a $3,000 or less card balance and still be exercising good credit habits.

If you want to earn rewards and avoid an annual fee, the UNITY Visa probably isn’t the best pick for you. Most of its benefits are limited to credit-building advice that you can probably find on any financial education website, and a low fixed APR — the latter of which won’t impact your credit-building if you never carry a balance.

Rewards: Lacks cash back or points for offsetting spending

Rewards are one of the most lucrative parts of any credit card, whether you have perfect credit or no credit. However, the UNITY Visa skips rewards, which sets it back from competing options. Although rewards shouldn’t be the focus of credit-builders, if you’re otherwise responsible and motivated enough to stay on top of your debt you may want to consider one of the secured cards that offer rewards.

Annual fee: Charges a fee in addition to your security deposit

You’ll need to pay a $39 annual fee to open this card, which will be subtracted from your initial credit limit (determined by your security deposit). If you deposit the minimum of $300, your starting credit limit will be $300, but your available credit will be $261 until you pay your statement. A $39 charge on a $300 balance is already nearly half of the recommended credit utilization ratio of 30 percent. If you’re getting started with a secured card to build credit, and you can only afford the minimum deposit amount, you might want to consider a secured card that doesn’t charge an annual fee.

When you’re comparing cards for credit-building or credit cards for bad credit, you may be better off with a card that avoids an annual fee. An extra fee like this can make managing debt more difficult — but it’s also unnecessary. Other secured cards avoid annual fees and also offer rewards. Here are alternatives worth considering.

The only people who can make this card worth its annual fee are credit-builders with few other options.