Dollar Bank Visa Review

Dollar Bank VisaThe Dollar Bank Visa is a rewards credit card which allows members to earn cash back on every purchase.  New account holders currently receive a 0% introductory APR on purchases and balance transfers.  This card is issued by Dollar Bank Federal Savings Bank.

The Dollar Bank Visa offers new members a 0% introductory APR on all purchases and balance transfers for the first six billing cycles from the time your account is opened.  After this promotional period ends, your APR will be Prime (which is currently 3.25) plus 8.99% which equals an APR of 12.24%.  During the introductory six-month period, a balance transfer fee of $5 or 1% of the total amount of the transfer (whichever is greater) will be applied to any balance transfer.  After this time, the balance transfer fee will be $5 or 3% of the transfer amount.  Note:  If a monthly payment is more than 30 days late, your introductory APR may be cancelled. The regular rate will then go into effect.

Members earn 1.25% cash back rebates on all qualifying net purchases made with the card.  There are no bonus rewards categories nor is there a cap on the amount of cash back rebates you can earn.  Rebates are calculated as 1.25% of net purchases which is the total amount of new transactions minus any credits or returns.  The amount you earn is displayed on your statements as “Cash Back Rebate”.  Accumulated rebate amounts are distributed twice a year- in January and July- and you must have a minimum of $10 in cash back to be eligible for the rebate.

Cardholders receive additional Visa Card benefits, including:

  • Emergency Card Replacement and Cash Disbursement- If your card is ever lost or stolen, receive a replacement one almost immediately as well as emergency cash funds.
  • Auto Rental Insurance- Get coverage, at no additional cost, for damage due to an accident or theft of the rental vehicle.
  • Zero Fraud Liability- You are never responsible for any fraudulent transactions made on your card.

Members are charged a 3% foreign transaction fee on all purchases made while traveling outside of the U.S.

There is no annual fee associated with this card.

The Facts

Below we have broken down the specific details of the Dollar Bank Visa to help you decide if it’s worth signing up.

The Good:

Introductory APR:

New members receive a 0% introductory APR on purchases and balance transfers for the first six months that your account is open.  After this time, your actual APR will be Prime (currently 3.25) + 8.99% for an annual percentage rate of 12.24%.  This is a decent APR compared to many other cards which offer different APRs based on an applicant’s creditworthiness.  Six months is a fairly short promotional period but it is certainly better than no introductory APR at all.  A balance transfer fee of $5 or 1% of the transfer amount (whichever is greater) is applied to any balance transfer completed during the initial six-month period.  After this, the standard balance transfer fee will be $5 or 3% of the total transfer amount.  This fee is in line with what most credit cards charge for balance transfers.

Easy to earn rewards:

Cardholders earn 1.25% cash back on all net qualifying purchases made on the card (total of new purchases minus any credits or returns).  There are no bonus categories and you don’t have to sign up to earn cash back rewards.  Your monthly statement will indicate how much you have earned.  Interest charges, fees, balance transfers, and cash advances are not considered purchases and do not earn cash back rewards.

No cap on rewards:

There is no limit on the amount of cash back you can earn.

Additional Visa benefits:

  • Emergency Card Replacement and Cash Disbursement
  • Auto Rental Insurance
  • Zero Fraud Liability

No annual fee:

There is no annual membership fee charged for this card.

The Bad:

Harder to qualify:

This card generally requires an excellent credit score (740+FICO) in order to be approved.  Anytime a credit card offers a relatively competitive APR (12.24%, in this case) the credit requirements are usually more strict.

The Ugly:

Rebates distributed semi-annually:

Members receive cash back rewards in the form of rebates which are distributed twice a year (in January and July).  You must have earned a minimum of $10 in cash back to be eligible for the rebate otherwise it will carry over to the next six-month period.

A big consideration with this card is if you want to wait six months to receive your cash back rebate.  1.25% is a decent rewards rate but there are many cards available which offer up to 2% cash back on all purchases with no long waiting period to redeem what you earn.