A Credit Card for Consumers with Bad Credit

Capital One introduces the Progress Card for consumers with bad credit. It will be available in time for Christmas shopping but beware of the starting interest rate. In addition to no annual fee, cardholders are rewarded for paying on time and at or above minimum payment, by having their interest rate reduced by 5% every six months; but this rate starts out at 34.9%. This rate may seem astronomical but keep in mind, if after eighteen months you’ve been a smart Progress cardholder then your interest rate will be down to 19.9% which is just above average. By the fourth statement of responsible credit usage, some cardholders may be offered an increased line of credit.

To be eligible for a Progress card, you must be over the age of 18, with at least some credit history. If you’ve declared bankruptcy within the past year or have absolutely no credit ratings, then it’s likely your application for a Progress card will be rejected. The Progress card can be compared to a progress report with incentives and rewards for good management efforts.

Although quite out of character for the credit card industry, the Progress card may prove to be a revolutionary concept. With the unemployment rate about to surpass a historically high 10%, there are thousands of individuals desperate to find ways to reestablish their credit. Even though the Progress cardholder’s interest rate is reduced by 5% per month of smart usage, users should inquire of the lowest level the rate will reach. This card can be a wise and cost-effective tool for young adults trying to implement good credit or for those individuals in dire need of an opportunity to rebuild their credit score. The Progress card may be just that opportunity, not available elsewhere.