A Good Card If You Need To Rebuild Your Credit
Written: Nov 29 '01 (Updated Nov 29 '01)
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Pros: Generous credit line increases, good internet site
Cons: High interest, high annual fee, telephone solicitations
The Bottom Line: If you need to re-establish your credit, Providian does a good job of helping you. But once you qualify for a lower interest card with fewer fees, say goodbye.
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| workscorp's Full Review: Visa Classic (Providian Bank) |
How This Credit Card Company Has Performed
Providian has served me well over the past three years at helping me rebuild my credit. But in order for success to happen, I had to constantly read the fine print on every piece of mail I received from them to avoid hidden fees.
My credit limit has tripled with no fees charged to me. Providian waives its annual fee, but I have to call every year and ask for it.
Live customer service has been friendly and helpful, and they have steadily decreased my interest rate to 16.9% (but they won't lower it if you don't ask). This is still the highest rate on any card I have, and I'm told it can go no lower... ever.
When carrying a balance, I have never missed or been late with a payment. It seems my excellent payment history has taken me as far as I can go with Providian, except for credit line increases which I no longer need.
Why I Got This Visa Card
I needed to rebuild my credit and was sent a pre-approved offer for an unsecured Visa with a credit limit of $1,000, annual fee of $59, plus a monthly maintenance fee (a.k.a. Credit Protection) of about $7.
I thought the annual fee was pretty steep and the APR of 23.99% was outrageous, but I had to start somewhere and beggars can't be choosers. The only other card I had at the time was a secured Capital One Visa with a credit limit of $500.
The fine print said that the Credit Protection could be canceled, in writing only, during the first 30 days of membership. I sent off the request and was charged for only the first month, after which it was indeed canceled.
What I Like About It
Providian has been generous with credit line increases and has never charged me a fee for an increase. They have also decreased my interest rate over time.
My annual fee is now waived every year, but I do have to call and request it each time. That's not a problem for me since I'd otherwise pay a whopping $59.
My Classic Visa was upgraded to a Visa Gold, at my request, for a one-time fee of $49. This fee has paid for itself many times over as the Gold Card allows you to waive rental car insurance coverage when traveling.
Their internet site is very easy to use in viewing your statement, paying your bill or contacting customer service. Electronic email confirmations are immediate and responses to customer service requests are sent to a secure mailbox on their site.
What I Don't Like
There is no grace period whatsoever. That means that if you start with a zero balance, use your card then pay it off right away, you're still charged interest. That also means that when you pay off an existing balance you'll still get a bill the next month for leftover interest. Most credit card companies offer a grace period on at least new purchases.
Providian uses two-cycle billing, which is common (Capital One doesn't). So, if you make a $2,000 purchase then pay $1,000 on the account, you're left with a $1,000 balance. But your next payment will include interest charges on a $1,500 balance, not $1,000. That's because two-cycle billing uses the average balance over the last two billing cycles ($2,000 + $1,000 / 2 = $1,500).
Even though Providian has steadily lowered my interest rate, it has bottomed out at 16.9%. Even if I continue to have an excellent payment history for 10 more years they won't drop it any more. I'm told that is the lowest rate they offer for my type of account. It's also the highest of any Visa card I have.
Telephone solicitations were commonplace from Providian in the beginning until I asked them to stop. Only once since then have they slipped up and called, but after that not a peep.
Overall
Providian has served its purpose well, but you have to be careful with them. They will try to sell you the moon and nickel and dime you to death with fees if you're not very careful.
They issued me a card when the line of companies wanting to do so was pretty darn short, and now my credit is back on track. But I don't need them enough to pay the high interest or annual fee anymore. Get one of their cards if you need it, then give it back when the time comes that you don't.
Recommended:
Yes
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Epinions.com ID:
workscorp
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Location: Asheville, NC
Reviews written: 25
Trusted by: 7 members
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