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An Aspire visa is an unsecure card that primarily targets individuals with bad credit. An individual may have a bad credit because he had failed in repaying previous loans, is insolvent or bankrupt among other financial issues. It is a visa card issued by the Bank of Columbia for people with bad credit. The card is also now offered online so you can have an instant feedback if you qualify within minutes of applying.

How does it work?

The Aspire visa works pretty the same way as most of other unsecured cards. The card holder will be assigned a limit and he can use the card up to the limit for shopping, paying bills, etc at any retailer that displays the visa sign. The card holder will then be required to pay a monthly bill which includes a percentage of interest added onto his bill. When applying for this card consider the interest rates that it comes with; an annual percentage rate (APR) called a prime rate of 13.5%, with a minimum of 19.5%. There is also a grace period whereby when you pay the balance within the time you are not charged the interest rate. This is a 25 days grace period. However there other charges that you pay relating to fees and charges. This includes an account opening fee of $29, an annual fee of $150 and a monthly maintenance fee of $6.50 (a total of $78 every year). Although most credit card vendors have these charges, the ones levied on this card are extremely high compared to competitors. This means that once you have been accepted for and sent your card, you could find yourself already owing over $180 in fees; primarily putting you in debt from day one.

What are the benefits of this card?

One advantage of Aspire visa is that it does not require any form of security. It is also accepted at any location that has the visa sign. Other advantage is that it has low monthly payments as well and that is if you repay all your balance within the grace period of 25 days.

The fact that it is issued even to individuals with low credit score also makes it a perfect opportunity for such individuals to prove that they are credit worthy. Since it also acts a prepaid visa card, it’s very convenient for giving to young adults so you can limit their spending and also teach them about managing finances.

What are the disadvantages of this card?

The Aspire visa has to make money one way or another. Every time you put money into the card or use it to withdraw cash you incur charges. The charges are also very prohibitive when you default on monthly payments. So it’s always important to read the fine prints before signing up for one.

However, due to an ongoing problem with the Federal Trade Commission (FTC), the Aspire Visa is not currently available, and applications are not being processed.