The Perpay^™ Credit Card: Objective Review

The Perpay^™ Credit Card is an unsecured card designed for individuals with bad or no credit history. It is a FinTech product issued by Celtic Bank that links directly to your payroll to manage payments, aiming to build credit with automatic transfers from your paycheck. Perpay also offers a separate, fee-free "Marketplace" product that functions like a catalog card (a closed-loop system), which is a different product than this general-purpose credit card.

How the Perpay^™ Credit Card Works

The Perpay^™ Credit Card is a legitimate Mastercard product that can be used anywhere Mastercard is accepted, and operates on an automatic payment schedule linked to your payroll.

• No FICO^® Credit Check: Applying for a Perpay^™ account will not affect your FICO^® or Vantage^® score. However, Perpay^™ may obtain information from alternative credit bureaus like Clarity Services, Inc., which could affect your credit profile with them.
• Payroll Direct Deposit Required: To access the card and keep the account active, you must establish and maintain a payroll direct deposit relationship with Perpay^™.
• Variable APR: The card currently has a variable Annual Percentage Rate (APR) for purchases of 27.99%, which can change with the market Prime Rate.
• Grace Period: Your due date is at least 23 days after the close of each billing cycle, allowing you to avoid interest on new purchases if you pay the entire balance by the due date each month.
• Credit Building: Perpay^™ reports your payment activity and credit line to Experian, TransUnion, and Equifax, which is essential for building a comprehensive credit history.
• Credit Limit Increase: You can be automatically considered for a higher credit line in as few as 3 months with positive payment history.

The Pros and Cons: A Transparent Look

Pros:

• No FICO^® Credit Check: The application process does not harm your primary FICO^® or Vantage^® score.
• Build Credit Safely: Automated payments via direct deposit ensure consistent, on-time payment history.
• Earns Rewards: Earns 2% back on all payments made towards the balance, in the form of Perpay^™ Marketplace credits.
• Marketplace Access: Cardholders also unlock up to a $1,000 spending limit for use in the Perpay^™ Marketplace.
• Accessibility: Approval is based on income and employment (W-2, SSI, VA benefits accepted), making it accessible to those with bad or no credit.
• Widely Accepted: The card operates on the Mastercard network and can be used anywhere Mastercard is accepted, including internationally (subject to fees).
• Rewards Do Not Expire: Rewards points have no expiration date as long as the account is open and in good standing.

Cons (The Hard Truth):

• Mandatory Direct Deposit: Requires you to redirect a portion of your paycheck to Perpay^™, reducing flexibility in your primary banking setup.
• Monthly Service Fee: The card has a $0 Annual Fee, but charges a monthly account service fee of $9.00 per month (totaling $108 annually). A one-time $9 Account Opening Fee also applies.
• High APR: The APR of 27.99% is high, and interest starts accruing on purchases immediately unless the full balance is paid by the due date each month.
• Mandatory Arbitration and Waiver: The agreement includes a mandatory arbitration clause and a waiver of class action and jury trial rights, which significantly impacts your legal rights in a dispute.
• Penalty and Transaction Fees: A foreign transaction fee of 3% applies. Penalty fees of up to $24.00 apply for late or returned payments.
• Alternative Bureau Check: Perpay checks alternative credit bureaus (like Clarity Services, Inc.), which may impact that specific profile.
• Mixed Customer Service Reviews: User reviews online frequently report significant issues with customer support, communication gaps, and difficulty managing accounts.
• No Cash Advances/Balance Transfers: The account is not eligible for cash advances or balance transfers.
• Rewards Have No Cash Value: Rewards can only be redeemed for purchases in the Perpay^™ Marketplace and cannot be cashed out or transferred.

Who is this card best for?

• W-2 Employees and Benefit Recipients: You must be a full-time employee or receive eligible government benefits with a direct deposit payroll system to qualify.
• Individuals Needing Discipline: The automatic payment deduction is ideal for those who struggle to manually make payments on time.
• Users Willing to Pay for Convenience: This card is for those who value the safety and convenience of a no-hard-credit-check, automated credit builder and are willing to pay the monthly fee and high APR for that service.

Final Verdict

The Perpay^™ Credit Card is a legitimate and innovative tool for building credit that prioritizes safety over flexibility. It bypasses traditional credit checks using a forced savings/automated payment model linked to your paycheck. While the monthly fee and high APR are notable drawbacks, its reporting to all three bureaus and guaranteed on-time reporting make it a viable, albeit expensive, option for disciplined individuals who need a structured path to a better credit score.