Imagine Visa Credit Card Review: A Pricey Way to Build Credit
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
2.8
It allows you to build credit without making a security deposit, but it’s worth considering other starter credit cards with lower fees.
Pros
Qualify with limited/bad credit
Earns rewards
Reports to the three major credit bureaus
Cons
High fees
High APR
No upgrade option
on WebBank's website
Compare to Other Cards
Annual feeAs low as $99 | Annual fee$0 |
Regular APR29.99%-36.00% Fixed APR | |
Intro APRN/A | Intro APR10.99% intro APR on Balance Transfers for 6 months |
Detailed review: Imagine® Visa® Credit Card
The Imagine® Visa® Credit Card, issued by WebBank, is an unsecured credit card for consumers who are looking to build their credit without having to make a security deposit. Unlike other starter credit cards, it offers decent cash-back rewards on useful spending categories.
There’s a big catch, though. The card’s fees (and interest rate, if you carry a balance) will eat into any rewards you earn and may wipe out that cash back entirely. Other credit-building cards with lower fees may be a better fit, even if their rewards programs aren’t as robust.
Imagine® Visa® Credit Card: The basics
Card type: Starter.
Annual fee: As low as $99.
Account maintenance fee: $180 per year after the first year (billed monthly at $15).
Rewards:
3% cash back on gas, groceries and utility bill payments.
1% cash back on all other eligible purchases.
Interest rate: The ongoing APR is 29.99%-36.00% Fixed APR.
Foreign transaction fees: 3%.
Other features: No security deposit required.
Benefits and perks
No security deposit
Secured credit cards require an upfront deposit that becomes your credit limit, which can be a hardship if the minimum deposit requirement is high. The Imagine® Visa® Credit Card has no such requirement and offers credit limits of $400, $500, $700 or $1,000, depending on what you qualify for.
Cash-back rewards
The Imagine® Visa® Credit Card earns:
3% cash back on gas, groceries and utility bill payments.
1% cash back on all other eligible purchases.
That’s a respectable cash-back rate for everyday purchases and monthly bills, especially for a credit-building card. Many other cards for this purpose offer little to no rewards.
Prequalify without affecting your credit scores
You can prequalify for the card without affecting your credit scores. Only if you accept the offer will you be subject to a hard credit inquiry, which will have an impact on your score.
If you get the Imagine® Visa® Credit Card, your payment activity will be reported to the major credit bureaus.
Drawbacks and considerations
High fees
The Imagine® Visa® Credit Card charges not just an annual fee, but it also charges a monthly account maintenance fee after the first year. Fee amounts differ depending on the credit limit you qualify for.
Initial credit limit | Annual fee | Account maintenance fee (billed after the first year) |
|---|---|---|
$1,000 | $175 for the first year, then $49 per year. | $180 annually, billed at $15 per month. |
$700 | $175 for the first year, then $49 per year. | $180 annually, billed at $15 per month. |
$500 | $125 for the first year, then $49 per year. | $180 annually, billed at $15 per month. |
$400 | $99 for the first year, then $49 per year. | $180 annually, billed at $15 per month. |
Let’s say you’re granted a $500 credit limit. That means in the first year, the card will cost $125 to carry (that’s just the first-year annual fee; the account maintenance fee won’t kick in until year two). You would need to spend $347.22 per month, or around $86.81 per week, on gas and groceries to earn $125 in cash back.
Now let’s look at the second year with the same $500 credit limit. The annual fee will now be $49, and the account maintenance fee will cost $180 for the year, so the card now costs $229. Now, you’ll need to spend $636.11 per month, or around $159.03 per week, on gas and groceries to earn $229 in cash back.
Depending on your typical food and transportation spending, it could be possible to more than offset the card’s cost. But if you don’t usually spend that much, those fees will exceed the value of the cash back you would earn.
Secured card may cost less over time
While the initial security deposit on a secured credit card can be steep, you’ll get it back once you’re ready to graduate to an unsecured card. Annual fees, on the other hand, are nonrefundable, so any money you sink into carrying the Imagine® Visa® Credit Card is gone forever.
The $0-annual-fee Discover it® Secured Credit Card could be a better alternative. It requires a $200 minimum security deposit, but and after seven months, Discover will begin reviewing your account monthly to determine if you’d be eligible to switch to an unsecured card and get your deposit back. You’ll earn 2% cash back at gas stations and restaurants on up to $1,000 in combined spending each quarter, and 1% cash back on all other purchases. Plus, new cardholders can get a welcome bonus: INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
The $0-annual-fee Capital One Quicksilver Secured Cash Rewards Credit Card also requires a $200 minimum security deposit that’s refundable once you switch to an unsecured card. Capital One will consider you for a higher credit limit in as little as six months with no extra security deposit. The card earns 1.5% cash back on all purchases.
Potentially high interest rate
Carrying a balance on the Imagine® Visa® Credit Card will not be cheap: The ongoing APR is 29.99%-36.00% Fixed APR. It’s not unusual to see high interest rates on unsecured starter cards, but that upper limit is especially eye-opening. Since you can prequalify without affecting your credit scores, shopping around for lower-interest cards can potentially unlock some savings.
Long wait for reward redemptions
With the Imagine® Visa® Credit Card, cash back is automatically redeemed just once a year as a statement credit. Other cash-back cards let you redeem whenever you accumulate a certain minimum amount of rewards, and some even let you redeem as little as a penny’s worth.
Though it requires a minimum $200 security deposit, you'll be considered for a credit limit increase in as little as six months with no additional deposit required. Plus, all purchases earn 1.5% cash back.
How to decide if it's right for you
Unless you can earn enough cash back to offset the card’s fees — and you can avoid taking on high-interest debt — the Imagine® Visa® Credit Card is an expensive way to build credit. It’s worth considering other options, including secured credit cards, as those might be more cost-effective.
on WebBank's website
