The credit card landscape is constantly evolving, and one recent change is the rebranding of the First Savings Credit Card to the HUE Mastercard. This transformation brings a fresh look and feel to an established product, but what does it mean for consumers? In this in-depth review, we’ll explore everything you need to know about the HUE Mastercard, from its features and benefits to potential drawbacks and how it compares to competitors.
A New Chapter: From First Savings to HUE
First Savings Credit Card has entered its next phase as HUE Mastercard. While the branding and appearance have been refreshed, the core services and benefits remain largely the same. This transition marks an effort to modernize the card’s image and appeal to a broader range of consumers.
Key Features of the HUE Mastercard
Credit Building Opportunity: One of the primary attractions of the HUE Mastercard is its potential to help users build or rebuild their credit. The card reports to all three major credit bureaus – Equifax, Experian, and TransUnion. This regular reporting can positively impact your credit score when you use the card responsibly and make timely payments.
Automatic Credit Line Increase Reviews: HUE Mastercard offers automatic reviews for credit line increases. Your account may be evaluated for a higher credit limit in as little as six months. This feature can be particularly beneficial for those looking to improve their credit utilization ratio, a key factor in credit scoring models.
Contactless Payment Technology: In line with modern payment trends, the HUE Mastercard comes equipped with contactless payment technology. This “tap-to-pay” feature allows for quick and secure transactions at compatible terminals.
Fraud Protection: Cardholders are protected against unauthorized charges if their card is lost or stolen, with no additional cost. This standard but crucial feature provides peace of mind and financial security.
No Security Deposit Required: Unlike many credit cards designed for those with limited or damaged credit, the HUE Mastercard does not require a security deposit. This makes it more accessible to individuals who may not have the funds available for a secured credit card.
The PREMIUM Club: HUE Mastercard offers exclusive access to The PREMIUM Club, which provides discounts on thousands of products and services from popular brands. This added benefit can potentially offset some of the card’s costs for frequent shoppers.
Payment Protection Option: For an additional fee, cardholders can opt for Payment Protection. This feature covers the minimum monthly payment in case of qualifying events, offering a safety net for unexpected financial difficulties.
Mobile App Management: HUE provides a mobile app for both Android and iOS devices, allowing cardholders to manage their accounts on the go. The app offers features such as balance checking, payment processing, and custom alerts.
Costs and Fees
Annual Fee: The HUE Mastercard comes with an annual fee that ranges from $49 to $75, depending on the specific offer and the applicant’s creditworthiness. This fee is on the higher side compared to some competitor cards, especially those aimed at credit builders.
APR: The card’s Annual Percentage Rate (APR) is notably high at 29.9%. This rate applies to purchases and is significantly above the national average for credit cards. It’s crucial for cardholders to pay their balance in full each month to avoid accruing substantial interest charges.
Additional Fees Other fees to be aware of include:
- Late payment fee
- Returned payment fee
- Foreign transaction fee (for international purchases)
- Cash advance fee (if applicable)
The exact amounts for these fees can vary, so it’s important to review the card’s terms and conditions carefully.
Application Process and Eligibility
Invitation-Only Application: One unique aspect of the HUE Mastercard is its invitation-only application process. Potential cardholders must receive a mail offer to apply. This pre-screening process likely helps the issuer target individuals who meet their initial criteria.
Credit Score Requirements: While First Savings (now HUE) doesn’t specify a minimum credit score for approval, the card is generally marketed towards individuals with fair to poor credit, or those with limited credit history. This includes credit scores roughly in the 300-660 range.
Online Application: Once you receive an invitation, you can complete the application process online. The application typically requires standard personal and financial information.
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How HUE Mastercard Compares to Competitors
Discover it Secured Credit Card
The Discover it Secured Card offers several advantages over the HUE Mastercard:
- No annual fee
- Cash back rewards (2% at restaurants and gas stations, 1% on all other purchases)
- Lower APR (28.24% Variable as of 2024)
- Potential to upgrade to an unsecured card after 7 months
However, it does require a security deposit, unlike the HUE Mastercard.
Citi Secured Mastercard
The Citi Secured Mastercard is another alternative worth considering:
- No annual fee
- Lower APR (23.99% Variable as of 2024)
- Minimum security deposit of $200
- Reports to all three major credit bureaus
While it requires a deposit, the lack of an annual fee and lower APR may make it more appealing for some consumers.
OpenSky Secured Visa Credit Card
The OpenSky Secured Visa offers:
- No credit check required for application
- Lower annual fee ($35)
- Lower APR (21.64% Variable as of 2024)
- Minimum security deposit of $200
This card might be a better option for those who can afford a security deposit and want to avoid a credit check.
Pros and Cons of the HUE Mastercard
Pros:
- No security deposit required
- Reports to all three major credit bureaus
- Potential for credit line increases
- Contactless payment technology
- Mobile app for account management
- Fraud protection
- Exclusive discounts through The PREMIUM Club
Cons:
- High annual fee
- Very high APR
- Invitation-only application process
- No rewards program
- Potential for high fees (late payment, foreign transaction, etc.)
Who Should Consider the HUE Mastercard?
The HUE Mastercard may be a suitable option for:
- Individuals with fair to poor credit looking to rebuild their credit score
- Those who cannot afford a security deposit for a secured credit card
- People who have received a pre-approval offer and want to avoid additional credit inquiries
- Consumers who value the potential for credit line increases and are willing to pay an annual fee for the opportunity
However, it may not be the best choice for:
- Those who can qualify for cards with lower fees and APRs
- Individuals who prioritize rewards programs
- People who can afford a security deposit for a secured card with better terms
- Consumers who frequently carry a balance, due to the high APR
How to Make the Most of Your HUE Mastercard
If you decide to apply for or already have a HUE Mastercard, here are some tips to maximize its benefits and minimize costs:
- Pay your balance in full each month to avoid high interest charges
- Make all payments on time to build a positive payment history
- Keep your credit utilization low (ideally under 30% of your credit limit)
- Take advantage of The PREMIUM Club discounts when applicable
- Set up automatic payments through the mobile app to avoid late fees
- Monitor your credit score regularly to track your progress
- Consider applying for a credit line increase after six months of responsible use
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Conclusion
The HUE Mastercard, formerly known as the First Savings Credit Card, offers a pathway to credit building for individuals with less-than-perfect credit. Its primary advantages lie in its accessibility without a security deposit, potential for credit line increases, and reporting to all three major credit bureaus. The addition of features like contactless payments and a mobile app for account management adds to its appeal in today’s digital-first world.
However, the card’s high annual fee and exceptionally high APR are significant drawbacks that potential applicants should carefully consider. For those who can consistently pay their balance in full and on time, the HUE Mastercard can be a useful tool for improving credit. But for individuals who tend to carry a balance or those who qualify for better terms elsewhere, alternative options may be more suitable.
Before applying, it’s crucial to compare the HUE Mastercard with other credit-building options, including secured credit cards and cards from credit unions. Consider your financial habits, credit goals, and ability to manage fees when making your decision. Remember, responsible use of any credit card is key to building a positive credit history and achieving long-term financial health.
Ultimately, while the HUE Mastercard can serve as a stepping stone in your credit journey, it should be viewed as a temporary solution. As your credit improves, you may want to explore cards with more favorable terms and potentially rewarding features that better align with your evolving financial profile.
Frequently Asked Questions (FAQs)
Q: How do I apply for the HUE Mastercard?
A: You can only apply for the HUE Mastercard if you receive an invitation offer in the mail. If you receive an offer, you can apply online using the access code and reservation number provided in the invitation.
Q: What credit score do I need to qualify for the HUE Mastercard?
A: While HUE doesn’t specify a minimum credit score, the card is generally marketed towards individuals with fair to poor credit (roughly 300-660). However, receiving an invitation doesn’t guarantee approval.
Q: How can I increase my credit limit with the HUE Mastercard?
A: HUE automatically reviews accounts for potential credit limit increases, starting as early as six months after account opening. Consistently making on-time payments and keeping your balance low can improve your chances of receiving an increase.
Q: Does the HUE Mastercard offer rewards?
A: Currently, the HUE Mastercard does not offer a rewards program. Its primary focus is on helping users build or rebuild their credit.
Q: How do I make payments on my HUE Mastercard?
A: You can make payments through the mobile app, online account portal, by phone, or by mail. The card also offers an automatic payment option.
Q: Is there a foreign transaction fee for the HUE Mastercard?
A: Yes, the HUE Mastercard does charge a foreign transaction fee for purchases made outside the United States. Check the card’s terms and conditions for the specific fee amount.
Q: Can I add an authorized user to my HUE Mastercard account?
A: Yes, you can add authorized users to your account. However, there is typically a fee of $20 per authorized user.
Q: How long does it take to receive the HUE Mastercard after approval?
A: Generally, you should receive your card within 7-10 business days after approval. If you haven’t received your card within this timeframe, contact HUE customer service.
Q: Does the HUE Mastercard offer balance transfers?
A: As of 2024, balance transfers are not allowed on the HUE Mastercard.
Q: How can I check my application status for the HUE Mastercard?
A: You can check your application status by calling the customer service number provided in your invitation offer.
In another related article, How to Apply For The First Savings Credit Card (Hue Mastercard): A Comprehensive Guide
