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Have you received a Legacy Visa pre-approval in the mail? If so, you were probably targeted because you have credit problems and you may think this is a great opportunity to rebuild your credit the right way.
Actually, the Legacy Visa card is laden with high fees that are charged as soon as you open your account! Before you apply for this card, make sure you understand what you’re getting into. Here are the biggest problems with the Legacy Visa and why you should stay away.
IMPORTANT: If you are looking to rebuild your credit, I highly recommend you only apply for cards mentioned in our HUGE list of useful resources to help build or rebuild your credit. We are always updating the list with the best cards, and those that you are most likely to get approved for.
Problem #1: Suspicious Website
When you receive the offer in the mail, you’re directed to complete your application online. The website, however, has minimal information and only current cardholders and those who have received an offer can enter. There is no way to view the credit card terms before accepting your offer, which is a classic sign of a credit card trap.
Problem #2: Your Card will be Charged Immediately
It isn’t clear exactly how much your card will be initially charged with fees when you receive it, although the overwhelming majority of consumers report their card came with at least $199 in processing fees and a hefty annual fee — all for a measly $250 limit. That means you will immediately owe a balance of around $200 when you receive your card or you’ll risk damaging your credit even further! One consumer even reported an initial available credit of only $12!
Problem #3: High-Interest Rate
It seems the interest rate on this credit card can be as high as 29.9%, which is well above the average for credit cards for bad credit. This is a credit card that should never carry a balance, as you may end up paying hundreds or thousands in interest each year and face debt that’s difficult to pay down.
Problem #4: Poor Customer Service
The customer service for the Legacy credit card is also notoriously bad. One consumer paid the job loss insurance premium on this card for a full two years and then filed a claim when she was laid off. While Discover and Capital One honored the same claim for her, Legacy denied it by claiming she wasn’t working enough at the time.
Another consumer was also tricked into keeping the Legacy card when he called to cancel it. He told the representative he was in the military and going overseas and was told he wouldn’t be charged a monthly fee. When he was eventually able to view his account, he found out the fees had been charged all along, in addition to late fees.
The Bottom Line
The Legacy credit card is a clear example of predatory practice on consumers with poor credit. The fees are enormously high, the interest rate is unreasonable and the customer service is definitely lacking. If you have credit problems and you want to improve your credit score, a better option is an affordable secured credit card.
Credit Shout is a community of personal finance experts dedicated to helping you save money and make smart financial decisions. Learn how to master your credit card rewards, improve your credit score and start eliminating your debt.