Orchard Bank Credit Card Review | CreditShout

Orchard Bank Credit Card Review

By Kevin / September 19, 2011

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CREDITSHOUT RATING:
Very Good
Verdict: An Orchard Bank Visa Card is very good for people that need to establish credit history. The APRs are low considering this fact, although the default rate is high – so pay on time! There is an annual fee that may be waived in the first year. When you apply for a Orchard Bank Classic Credit Card, a “soft pull” will be done on your credit to pre-approve you so that your credit will not be affected by the application.

Orchard Bank Credit Card Overview

This card is for people that want to establish or improve their credit history. When applying for the Orchard Bank Visa Card or Orchard Bank Classic MasterCard, you are pre-approved first so you don’t receive a “hard pull” on your credit report. Next, you will be offered cards that you will most likely be accepted for, with the option of choosing or refusing them. This pre-approval and acceptance is automatically done online.

There are 4 cards that fall under the “Classic cards” category at Orchard Bank: the Orchard Bank Platinum, the Orchard Bank Gold, the Orchard Bank Card, and the Orchard Bank Secured Card. Each offers it’s own benefits and fees and will be explained below.

Orchard Bank Platinum Card

This card has online account management tools, which are standard with other credit cards these days. It also comes with full protection from unauthorized use so that you’re not left holding the bag if someone makes a fraudulent purchase. Also, your activity on this card will be reported to all 3 major credit bureaus. Other than that, this card is basically all about rebuilding your credit.

In terms of fees, this card has an annual fee of $19 to $59. It has a variable purchase APR that is currently at 14.9 or 19.9 percent, depending on your credit. The variable penalty APR is currently at 29.49 percent.

Orchard Bank Gold Card

The Orchard Bank Gold Card has the same benefits as the Platinum Card. Again, it is all about rebuilding your credit.

This card has an annual fee of $49 in the first year and $59 thereafter. It has a variable purchase APR that is currently at 19.9 percent and a variable penalty APR that is currently at 29.49 percent. Additionally, there is a $19 account processing fee.

Orchard Bank Card

The Orchard Bank Card has the same benefits as the other 2 mentioned thus far. As is the case with the others, it is mainly for rebuilding your credit.

There is a $29 annual fee in the first year and $59 thereafter. Also, there is a variable purchase APR that is currently at 19.9 percent and a variable penalty APR of 29.49 percent. There is also an account processing fee of $39.

Orchard Bank Secured Card

The Orchard Bank Secured Card offers similar benefits to the other cards. Additionally, interest is earned on your deposit (required deposit to be explained).

This card comes with a $0 annual fee in the first year and $35 thereafter. It has a variable purchase APR that is currently at 7.9 percent and a variable penalty APR that is currently at 29.49 percent. There is a $0 account processing fee and a minimum of $200 is required to be deposited. This is what will earn interest, as mentioned in the last paragraph.

How it Compares To Other Cards For Bad Credit

Orchard Bank Credit Card vs Capital One Secured MasterCard

The Capital One Secured MasterCard is another no-frills credit card – similar to those offered by Orchard Bank. Your activity will be reported to all 3 major credit bureaus when using this card and it has very limited benefits. The credit line that is available with this card ranges from $200 to $3,000.

There is a $29 annual fee with the Capital One Secured MasterCard. The purchase APR is variable and is currently at 22.9 percent. The balance transfer and cash advance APRs are variable and currently at 22.9 and 24.9 percent, respectively. There is also a minimum interest charge of 50 cents if interest is charged. There is no balance transfer fee and a cash advance fee of $10 or 3 percent, whichever is higher. Also, there is a minimum security deposit of $49. Finally, there is a late payment fee of up to $19 and a returned payment fee of up to $35.

In most cases, your fees will be lower with the Capital One Secured MasterCard as compared to any of mentioned Orchard Bank Classic Credit Card offers. Also, the lack of a balance transfer fee means that you can transfer over money from another card and pay no fees on it. Just make sure that the 22.9 percent APR on such transfers is less than what you’d pay otherwise. With lower fees and similar benefits, Capital One’s offers is best among the 2.

Orchard Bank Credit Card vs Applied Bank Secured Visa Gold Card

The Applied Bank Secured Visa Gold card is another card for those who are hoping to rebuild their credit. Activity is reported to the credit bureaus with this card and there is no annual fee. Employment is not required with this card

There is a $15 monthly maintenance fee beginning in the second year with this card. That comes out to $180 annually – a real dent in any benefits that this card offers. The APR on purchases is fixed at 9.99 percent, a better deal than is offered on most other credit cards out there. There is a minimum finance charge of 50 cents and the credit line ranges from $200 to $5,000. There is also a late payment fee of $35. The fee on cash advances is $5 or 5 percent, whichever is higher. The APR on cash advances is 9.99 percent, which is also a better deal than most other cards offer. The returned payment fee is $35.

If you are concerned about making frequent late payments, this card may be better than those offered by Orchard Bank with it’s fixed APR being much lower than the variable APR that is offered by Orchard Bank on most of their cards, which may go up or down over time. This is unless you get the Orchard Bank Secured Credit Card, which currently has an APR of 7.9 percent. If you plan to hold this card for more than a year, then the $15 monthly fee will really begin to eat away at your wallet. Basically, unless you plan to make a lot of late payments and take a lot of cash advances, your best bet is to go with Orchard Bank’s offer when comparing the 2.

Orchard Bank Credit Card vs Applied Bank Platinum Zero Secured Visa Card

The Applied Bank Platinum Zero Secured Visa card offers reports to the credit bureaus and is a tool to rebuild credit, as is the case with the other cards that have been mentioned. It is essentially a no-frills card.

Despite not offering frills, it does have some benefits. There is a 0 percent fixed APR on purchases – a deal that is virtually unheard of with any credit card. The APR on cash advances is under 10 percent, making it well below the higher rates offered with most cards. There is a $9.95 monthly fee that will add up to $119.40 annually. The minimum security deposit is $500 and the maximum is $5,000. Your credit line will be equal to the security deposit – minus the monthly fee.

Whether this card or any of those offered by Orchard Bank is for you depends on your payment habits. If you are concerned that you’ll make a lot of late payments on purchases, the 0 percent APR will prevent further money from going down the drain. Also, with an APR that is less than half of that on the Orchard Bank cards, the Applied Bank offer will save a lot of money if you are concerned about paying late on cash advances. However, if you are sure that you will pay on time regularly, then the annual fee (maximum of $59) with Orchard Bank will be better than the $119.40 that you’ll pay annually in fees with Applied Bank. Go with Orchard Bank’s offer if you are deciding among the 2 offers if you plan to regularly pay on time.

Pros

  • Ability to have your credit reported to all credit bureaus
  • Online account management and bill payments
  • Reminders when bills are due
  • Low APR (on the Orchard Bank Secured MasterCard)
  • Ability to rebuild credit

Cons

  • High default rate
  • High annual fees
  • High processing fee or deposit required
  • No rewards offered
The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are the author's alone.Additionally, the opinions of the commenters are not necessarily the opinions of this site

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