Thread: Net 1st

I've been turned down by Capital One, FCNB and Providian and am now thinking of Net 1st. Any info on this card? Intrerest rate? Grace period? I think I've read somewhere before that MANY people are NOT satisfied with this card and they charge you one-time fee (like $90 ?) and a monthly-fee, but I don't seem to have a choice. Do they report as unsecured? Any information on this card (Hopefully something positive) would be greatly appreciated. Thanks.

This is an expensive debit card that reports to the CRA's as unsecured. THIS CARD IS NOT FOR SOMEONE WHO IS ABLE TO OBTAIN A BETTER DEAL! THIS CARD IS FOR PEOPLE WHO GET TURNED DOWN BY CAP1, PROV, DMB, or ORCHARD! If you can obtain one of these then skip NET 1ST. Otherwise Net 1st can help you establish a better credit history. You must pay an upfront one-time fee of $89 and pay $8 per month. In exchange you get a monthly report to all CRA's. If you want to charge on the card you must send in any amount you wish to charge (this is in addition the $8 per month). That's all to it.

If you can do better then don't get this card. If you can wait to start establishing a positive trade line, then don't get this card. But if you have no choice then this card can help. I've been there done that.

Your message is educational for me. I did not know someone could be turned down for a Capital One card. I received my card the month I applied for a Chap 7 BK.

Sorry about your misfortune.

First off, my husband knows nothing about credit cards.

About 2 hours ago National Bank (Net 1st) called him on the phone and told him that he's been approved for a limit of $500. He knows that he wants to build credit, so he gave the lady his info and his checking account #. And he left for work.

But he's already approved by Cap 1 (Just $200 limit though) just recently, and I mailed out the $99 deposit for it yesterday, so I didn't like getting Net 1st because of the high fees and such (If he has no choice, that would be a different story). I called them back just now and cancelled it. Did I do a right thing?

Lil,

Was this the "pay as you go" Net 1st card? I don't think they have another card. Do they?

Just copied this portion from the Net 1st website.

<< Net 1st National Bank KFS MasterCard® Program. A refundable $500 Reservation Fee is payable to KFS (the "Reservation Fee") in connection with the opening of your account. The Reservation Fee will be charged to your credit card account and will fully utilize your initial $500 credit limit. Before you may use your card or account to make purchases or to obtain cash advances, you must make payments on your account. The difference between the total unpaid balance and your credit limit will be the amount of credit available to you.

Reservation Fee Refund Policy. This program is offered through Key Financial Systems, Inc. ("KFS"). KFS is not affiliated with Net 1st National Bank, the issuer of the Net 1st National Bank MasterCard®. If you choose to close your account, the Reservation Fee will be credited to your MasterCard® Account by KFS. If the posting of the $500 Reservation Fee results in a credit balance, the credit amount will be refunded to you by Net 1st National Bank. >>

Refundable Reservation Fee: A $500 Refundable Reservation Fee will be charged to your credit card account.

What does all this mean? Especially the second one... Does that mean that I have to come up with $500 except all the expensive fees?

I read someone mentioning that...like a prepaid card or cell phone. But I'm not sure what kind of card he was dealing with.

In another website, someone was complaining about Net 1st. He was saying that his wife got the card, she paid the $89 (?) one time fee, then they charged her $500, but as she doesn't give them the full amount of $500, so now they're charging her $15 monthly.

When you applied for a Capital One card, did you go for the unsecured card or the secured? I didn't know you could get turned down for the secured. I think the worst offer that Cap One can give you is $200 limit for $199 deposit. If you don't mind sharing, what would be on your credit report (or just how bad is it) that's preventing you from getting the easier secured cards?

That's sound like very inaccurate information.

Ah, that sounds like someone who doesn't quite understand their program. Can't blame them 'cuz it's not exactly straightforward, but here's the deal...

They do put a charge of $500 on the card but you do not incur late fees to my knowledge. If you want to use the card you have to pay down the amount. Say you want to charge $200 on the card. You send them $200, they knock the balance down to $300 and bingo- you can charge your $200 to the card. Granted it's a bit convoluted but what the hell.

Hope this helps.