Is the Legacy Visa Credit Card a Bad Choice?

The First National Bank offers the Legacy Visa Credit Card, which presents a wide range of benefits that appeal to many credit card seekers. However, some argue that the advantages do not justify having the card, considering the numerous downsides that come with it. It is crucial to examine the specifics and assess the pros and cons before considering this credit card option. Here’s why having the Legacy Visa Credit Card may not be worth it.

The Benefits and Rewards

Before delving into why this credit card may not be the best option, it’s important to understand the benefits that draw so many people to it. The primary perk of this card is the ability to enrol in a premium membership program, which offers savings on a range of expenses, from dining out to entertainment and even some prescription medications. Additionally, the card boasts a payment protection plan and an easy-to-use online account management system. Despite these benefits, however, there are reasons why this credit card may not be the right fit for everyone.

The Up Charges

At first glance, the Legacy Visa Credit Card may appear to be an attractive option due to the benefits it provides. However, it’s important to note that these benefits come at an additional cost, which may ultimately outweigh any advantages the cardholder receives. In order to become a part of the premium membership program, extra fees are required, and if the cardholder doesn’t frequently dine out or take prescription medication, they may not receive any rewards. There are better options available from other card competitors that offer superior rewards at a lower cost.

The Fees

Having a Legacy Visa Credit Card in your wallet can be a costly affair due to its fees. Simply owning the card will set you back by $75 per year, regardless of whether you use it to make purchases or not. On top of this, there are several other fees that you need to be aware of. Late and returned payments are charged at $25 each, and fees are also applicable for cash advances and authorized user fees (which are optional).

Low Rate of Credit

While there are some benefits to using this credit card, there are also a few potential drawbacks. One such drawback is the low borrowing limits. Initially, the credit limit ranges between $350 and $1500, and it may increase later if you maintain timely payments. However, some people may consider this low credit limit as an advantage since it can prevent them from overborrowing and accumulating a credit card debt that they cannot manage.

High APR

With an APR of 29.9%, the Legacy Visa Credit Card carries a relatively high interest rate. This implies that if you only make the minimum monthly payment, you will end up paying more than what you initially borrowed. For instance, if you have a $500 balance and decide to pay only $30 per month, it will take you 22 months to clear the balance, and you will end up paying an extra $154 in interest charges.

Not Great for People with Low Credit Scores

If you have a low credit score, the Legacy Visa Credit Card may not be the best option due to its high APR and fees. Even if you get accepted, your credit limit may be set low, and the repayments and fees could be difficult to manage. This can make it challenging to take advantage of the benefits of having this credit card. Instead, if you have a low credit score, it may be wiser to consider a secured credit card.

In most cases, the Legacy Visa Credit Card is not the optimal choice as the associated fees and interest outweigh the benefits and rewards. It’s not worth having this credit card due to these factors. You can find better rewards credit cards from competitive lenders that offer lower fees, and the cardholder can actually reap the benefits of having the card. Additionally, these credit cards often offer lower interest rates and fees, making them a more viable option.

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MBS Staff
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