subject: Aspire Visa - An Explanation As To How It Works [print this page] For those who are in over their heads with credit card debt, the subprime credit card market is a way to rebuild. With the often referred to credit crunch of 2008 and 2009, these subprime credit cards are harder to find and with the tightening of lending standards, even harder to get. The Aspire Visa was one of those subprime cards but like many, is no longer available to the consumer.
Subprime lenders market primarily to those with damaged or no credit at all. To offset the high degree of risk, higher fees including application fees, annual fees and sometimes monthly fees are not uncommon in addition to higher interest rates. All of these fees are designed to mitigate the risk involved with higher risk customers.
An example of a subprime card is the Aspire Visa which was issued by the Columbus Bank and Trust. This card was offered in two different forms but has been forced to cease lending. This credit card is unsecured, meaning your bank account balance is not equal to your credit card balance.
If you do a quick search of this card you will find that complaints abound. It is stated online that the bank administering the Aspire Visa sent a letter to all of its customers stating that their account was being closed. Without any further explanation, they were also advised that the minimum payment was being increased to facilitate a more rapid repayment.
This created a problem to those who were relying on their Aspire Visa for basic necessities and since it was subprime, many of these customers are not able to qualify for a non subprime card. This, reportedly, present a major challenge with those customers.
According to online sources, customers were paying a 29% interest with some being reduced to 17%. This was forcing more customers deeper in to debt. This along with the higher than average fees for using a subprime card made the Aspire Visa a card that presented less than favorable rates when compared to its peers. There is a $12.00 per month maintenance fee that customers are still being charged even though they can no longer charge to the card.
Why would anybody have found this card attractive? The best reason is that it may be the only way to rebuild damaged credit. Almost all unsecured, subprime credit cards advertise that they assist with a customers' credit repair by reporting to the three credit bureaus providing a positive payment history is being shown.
The lesson here is that consumers must not rely on a credit card for recurring living expenses. Cards like the Aspire Visa should be avoided when possible.
