A Review of the Fit Mastercard

A Review of the Fit Mastercard

October 2, 2020         Written By Bill Hardekopf

If you are a consumer who has poor credit or very little credit, it may seem like you will be facing an uphill battle to build your credit. But one of the better tools for you to achieve this goal is the proper use of a credit card. Prudent use of a credit card over a period of time may help you slowly build your credit, and that will pay dividends for you in the long run.

Fortunately, there are a number of cards for people with bad or limited credit. One of those cards is the Fit Mastercard® Credit Card. It was specifically designed to help people with less than perfect credit. Since the Fit Mastercard reports to all three major credit bureaus, consumers who make their payments on time and keep their balance under their designated credit limit may begin to see their credit increase over time.

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Top Features:

Reports to major credit bureaus; initial credit limit of $400; fast application process with results in seconds

 

The Fit Mastercard At A Glance

Some of the benefits that make Fit Mastercard® Credit Card a great option for consumers with poor or bad credit include:

  • Fit welcomes all credit types to apply for the card, including those with no credit, bad credit, limited credit, and poor credit.  Additionally, the card reports to Experian, Equifax, and TransUnion, the three largest credit bureaus, which with proper use will help improve your credit profile and score.
  • The card offers an initial credit limit of $400 and is accepted anywhere Mastercard is accepted.
  • The Fit Mastercard also offers free 24/7 online access and a fast and easy application process.

What Bank Issues The Fit Mastercard?

The Fit Mastercard is issued by the Bank of Missouri. This bank is an independent community bank that began in 1891 as the Bank of Perryville. It changed its name to the Bank of Missouri in 1997 and now has 23 branches throughout the state of Missouri.

The Fit Mastercard Review by LowCards

The Fit Mastercard® Credit Card does not require a security deposit upon approval since it is an unsecured card. And if you are approved for the card, your initial credit limit may be as high as $400. When you submit your application, you will be treated to a fairly easy application process and should hear if you are approved in just a few minutes. Cardholders will have no trouble using the card since it is backed by Mastercard.

Potential applicants need to be aware that the card has one of the steepest APRs on the market. In addition, the fees on the card are significant. The annual fee is assessed upon approval, so it lowers your credit line during your first month. There is also a one-time processing fee which is fairly high that will be charged to your account. In year two of being a cardholder, the processing fee is replaced by a steep monthly maintenance fee.

Is The Fit Mastercard Card Right For Me?

The Fit Mastercard® Credit Card can help build your credit since it reports to the three main credit bureaus. But the cardholder must use the card properly: payments must be made on time and you must keep within your credit limit. Consumers will have no problem using this card since it is in the Mastercard network. But cardholders must be fully aware of the steep annual fee, processing fee and, beginning in year two, the monthly maintenance fee. Weigh these costs against the benefits of building your credit with proper use of the card.

Improving Your Credit

One of the steps you can take to increase your chances on getting approved for the Fit Mastercard® Credit Card, or truly any credit card, is to improve your financial situation by building your credit. There are a number of steps to this:

Step 1: Create a Budget

The first step would be to take a realistic look at your financial situation and develop a budget. This should be the basis of any financial plan. Begin with an Excel spreadsheet or just a pencil and paper. Keep track of every penny you spend for a couple of months, as well as how much money you bring in. This will show a true picture of where your money may be going on a monthly basis. It will also give some insight into where you may be able to cut your expenses. Once you have developed a monthly budget, you will see the amount of money you can dedicate to your outstanding debts.

Step 2: Take Stock of Your Current Credit

Everyone in America has the ability to receive a free credit report every year from each of the three credit reporting bureaus: Equifax, Experian, and TransUnion. You can request these reports from annualcreditreport.com or directly from the three agencies. When you receive your report, analyze it closely to make sure there are no errors or suspicious accounts. If you see any incorrect information, contact the credit agency in writing, asking them to remove the information. This is not an overnight process and can actually take up to two months.

Analyzing these reports will help you discover what issues may be lowering your credit. Take into account the five factors that make up your credit score: Payment History (35%), Amounts Owed (30%), Length of Credit History (15%), New Credit (10%), and Credit Mix (10%). Dive into each of these areas to see where you might be able to improve.

Payment History
The biggest factor in a credit score is your payment history. Making timely payments on every bill is one of the most important things you can do to improve your credit score. If you have had trouble with this in the past, vow to make every payment of each bill on time from this point forward. It is critical to make at least the minimum payments by the due date each month. Give yourself some leeway and pay the bill early. Once you begin to build a positive payment history, you may start to see your credit score creep up.

Amounts Owed
Your credit utilization is the next-most important factor in determining your score. This is the amount of debt you have divided by your available credit. It is important to use no more than 30% of your available credit. So if you have $8,000 available on your credit cards, you should not carry a balance over $2,400. If you are carrying debt, it is wise to put as much money as possible toward paying off the debt as quickly as you can. Since you have developed a budget, you can see how much money you can devote to your debt repayment. If you have some money left at the end of the month, put more toward paying off the debt. If you are carrying a balance on more than one credit card, make the minimum payment on every card each month, but put as much money as you can on paying off the balance on the card with the highest interest rate. This is the most costly debt you have, so pay it off as quickly as possible. Once that card is paid off, put that money toward the card with the next highest interest rate, and so on, until all your cards are paid off.

Length of Credit History
Since you are trying to build your credit, there may be an inclination to close some of your accounts. If you can avoid charging anything on these credit card accounts, it is much wiser to leave the accounts open, especially on accounts you have had for a long period of time. The credit bureaus look at the age of all your credit accounts and create an “average age.” If some of these older accounts are closed, it will lower the average age of your accounts and could lower your credit score. In addition, if you close a credit card account, you will lose the available credit (the credit limit) on that account which will, in turn, hurt your debt utilization score.

New Credit
If you can, avoid applying for any new credit cards until your score improves. There are a couple of reasons for this. If you have a low credit score, you probably will not be approved for a new card, and if you were, it would be at a very high-interest rate. In addition, each time you apply for new credit, the issuer will do a “hard pull” on your credit report. If you have too many of these inquiries in a short period of time, it may lower your credit score.

Credit Mix
The credit mix is the variety of accounts you have on your credit report. Issuers look for a good mix of credit cards, mortgages, and other loans.

The information contained within this article was accurate as of October 2, 2020. For up-to-date information on any of the terms, cards or offers mentioned above, visit the issuer's website. Many of the offers on this article are from our affiliate partners, and LowCards.com may be compensated if you take action with any of our affiliate partners.

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bill-hardekopf

About Bill Hardekopf

Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.