We received the following from Alex of Pinellas Pines, FL:
I've just looked over your website's posted complaints against Net 1st National's Pay-As-You Go Mastercard program, and I believe many of the complaints are based on poorly understood information regarding the credit card they applied for. I work in the Customer Service Department Call Center for the company which markets this card, and I spend every day dealing with calls from folks who either have read and understood the terms of the card or haven't. It's always the ones who HAVEN'T read or understood the terms who complain the loudest. So many times when I ask, :Did you read through your terms and conditions carefully?: I get: "No ... not really."
There is no such thing as offering an unsecured $500.00 credit limit to someone without a credit history unless it's your rich Uncle Joe and it's your birthday. No bank in its right mind would offer an unsecured credit card to someone without doing a credit check, etc.
So, 1st Net designed a Pay-as-you-go card which comes with a "0" available balance, which you then pay on.- No credit check.
- No APR.
- No security deposit.
- No income or employment requirement.
- A one-time processing fee which IS refundable within your 15-day grace period.
Your credit availability is the difference between the $8.00 monthly fee and the ammount you place on the card. You are NEVER obligated or required to send $500.00 or even $100.00. You are only required to pay $15.00 per month -- $8.00 of which is for your membership fee; the remaining $7.00 is your available credit. Want more credit? Place more on your card. It's not complex. It's LIKE a debit card, except your account activity is being reported to credit bureaus. Think your bank reports your checking activity? Even if they did, how would it help build a credit record?
How then does a debit-like credit card help?
Each month, on your cycle date, your payment history is reported to all 3 major credit bureaus, which shows you're paying a $500.00 debt (the Reservation fee) by making payments (the $15.00 min. payment). THIS is how you establish a credit history -- by showing payments on a DEBT. It's the pattern of that transaction that other lenders and credtors look at. Is the debtor a slow payer, a delinquent payer, are his payments on time? Is he credit-worthy? So, that little $15.00 per month is all you have to actually pay. But almost half of it you can spend.
I deal with many satisfied customers who are building a credit history, who place money on the card, use it as it was DESIGNED to be used, (a means to an end, not an end in itself) and reap the rewards -- a good credit record, which then qualifies them to apply for better, unsecured cards or other financing opportunities with other institutions. It's only those who expect a free credit hand-out without a credit history who always don't GET how this card works.
Usually, after I spend 15-20 minutes explaining how the card works, how it HELPS, they understand and DON'T cancel their accounts. They're not suckers, not mislead cretins who've fallen prey to a scam. They're people willing to show disipline with their money to reap the long-term rewards.
As for the phone numbers, I've dialed them from home -- they all work as intended, and on the Web site, the terms and conditions are VERY CLEARLY spelled out. Perhaps those complaining about 1st Net should do a little homework. As Pay-as-you-go credit card programs go for first-time credit applicants, this is the absolute best value for the money.
Of course if they think they'll fare better with a bank offering them an unsecured card with a $500 credit limit which they can then max out, leave unpaid, (see: charge-off) and think THAT will look better on their credit report. By all means, have at it.
And let's not forget the outrageous APR's, the up-front security deposits and other insane fees that will come with unsecured and secured cards, etc.
I've compared the 1st Net plan with a dozen other other plans of both secured and unsecured bank credit cards. Hands down, 1st Net is hard to beat ... for those trying to establish a credit history. It is not a quick-fix; neither is it a scam. It's a program for those willing to do what's needed build a credit history.
