First Digital NextGen Mastercard Credit Card — Is It Worth It?

The First Digital NextGen Mastercard^® Credit Card can be used if you’re looking for a way to improve a damaged credit rating or to start establishing a credit history.

Building credit can be challenging for some, with banks denying card applications due to poor credit. That’s where the First Digital NextGen card can help with low approval requirements. The card has a high APR, so it’s only suitable for those who are confident they will pay off their monthly balance.

Card Overview

Credit Limit

The First Digital NextGen card is an unsecured credit card, meaning that it grants a line of credit without requiring a security deposit from the cardholder. Without the financial backing of a security deposit, cardholders only receive an initial credit limit of $300.

The credit limit available is less the annual fee, so keep that in mind when you’re look at the card’s fees.

Building Credit Up Over Time

First Digital reports monthly activity to the 3 major credit bureaus — TransUnion, Equifax, and Experian. As information is collected on a monthly basis, it can take just a few months to start to see an improvement to your credit rating.

After demonstrating good management of repayments for 12 months, some cardholders are granted an increased credit limit (for a fee). A higher credit limit is beneficial to achieving the ideal credit utilization ratio of 10-30%, having the most positive impact on your credit rating. 10-30% of $300 is just $30-$90, so it’s important to increase this limit depending on your monthly expenditure.

Application Completion and Status

Customers need to complete the online application form, with applications not accepted by telephone. The form is quick and easy to fill in, and First Digital says that approval can take as little as 60 seconds. Once approved, it can take up to 3 weeks to set up the account and receive your credit card. To speed things up, express delivery is available for an additional fee.

The card is only available to U.S. residents over the age of 18, and applicants will need to supply the following information:

• Full name
• Residential address and status
• Phone number
• Email address
• Social Security number
• Date of birth
• Income details
• Employment details

Your application will require a credit check to be processed, but the approval requirements compared to prime credit cards are much lower.

Hot Tip: If you would prefer to apply for a credit card that does not require a credit check, then check out the First Progress Platinum secured cards that extend credit against a security deposit rather than your credit status. 

Features and Drawbacks

• Individuals with a less than perfect credit rating may be eligible for this credit card
• No security deposit is required as credit is extended based on an initial credit inquiry
• Credit limits can be increased after 12 months but are subject to a fee
• The annual fee reduces after the first year
• A checking account is required to apply for this credit card
• Usage is restricted to the U.S. and is not recommended for transactions in foreign currencies. If a foreign transaction is made, then a higher transaction fee will apply, chosen by Mastercard from the wholesale currency markets
• An activation fee is charged, in addition to the annual fee and a monthly maintenance fee
• There are no reward earnings or perks for spending with the First Digital NextGen card

Managing Money With the Card

Cardholders can view their statements, available credit, and account details by logging in at myccpay.com.

To settle up your monthly bills or pay the minimum balance, you can:

• Send a payment from your bank account
• Send a check or money order with the remittance coupon from your billing statement to P.O. Box 23045, Columbus, GA 31902
• Authorize an automated monthly debit payment from your bank

Phone Number For Customer Service

For assistance with your account, you can contact First Digital’s customer service team at 844-358-0074.

Other Unsecured Credit Cards (Our Recommendations)

If you’re looking for other great card options, the Petal^® Visa^® Credit Card is worth considering. The main benefit of the Petal Visa card is that it charges zero fees — that’s right zero fees! Petal does not charge an annual fee, late payment fees, returned payment fees, or any other fees for that matter. The Petal Visa card even offers its cardholders 1%-1.5% in cash-back rewards.

Prefer an option with better rewards? How about the Deserve^® PRO Card? With the Deserve PRO card, you’ll earn 3% back on travel and entertainment and 2% back on dining on your first $500 in purchases each month, plus an unlimited 1% back on all other purchases. Like the Petal Visa card, the Deserve PRO card also charges no annual fee!

Final Thoughts

The fact that the First Digital NextGen card does not require a security deposit means higher than average annual fees and APRs. It’s best suited to individuals that are trying to improve their credit rating without the available funds to put down on a secured credit card that typically offers lower APRs.

If you’re paying off the balance every month, then you won’t feel the pinch of the high-interest rate, but you’ll still be imposed with the activation fee, servicing fee, and the first year annual fee.

If you’re using the card for the long-haul, then fee-wise, things do get better, with the annual fee reduction your second year and beyond. However, if you have the funds available, there are many secured credit cards with no activation or servicing fees and lower annual fees.

It’s great that the First Digital NextGen card has low approval requirements, making it accessible to those looking to improve their credit rating. Still, with a credit inquiry necessary, this can reduce points off your credit rating. If this is a concern based on the current status of your credit rating, then you might want to consider a secured credit card where no credit inquiry is required.