What is a Fortiva Credit Card? Your Comprehensive Guide

A Fortiva credit card is an unsecured credit card primarily targeted towards individuals with fair or bad credit. These cards, issued by Atlantic Coast Bank (a division of United Community Bank), are designed to help consumers rebuild their credit history by providing access to credit while reporting payment activity to the major credit bureaus. While offering a pathway to improved credit scores, Fortiva cards typically come with higher interest rates and fees compared to cards available to those with good to excellent credit.

Understanding the Nuances of Fortiva Credit Cards

Fortiva cards aim to serve a segment of the population often underserved by traditional credit card issuers. Because of the increased risk associated with lending to individuals with damaged or limited credit, the terms associated with Fortiva cards often reflect this. Let’s delve deeper into the key aspects:

Target Audience

The primary target audience for Fortiva credit cards consists of individuals with:

• Fair to bad credit scores: Applicants with credit scores generally falling within the 500-650 range are more likely to be approved.
• Limited credit history: Those who are new to credit or have a short credit history may also find Fortiva cards to be a viable option.
• Past credit challenges: Individuals with past bankruptcies, late payments, or other credit delinquencies might consider a Fortiva card as a means of rehabilitation.

Key Features

While specific features may vary depending on the specific card offering, here are some common characteristics:

• Unsecured credit line: Unlike secured credit cards, Fortiva cards do not require a security deposit.
• Credit reporting: Fortiva reports payment activity to all three major credit bureaus (Experian, Equifax, and TransUnion), which is crucial for rebuilding credit.
• Initial credit limits: Credit limits are often relatively low, typically ranging from a few hundred to a thousand dollars.
• High APRs: Annual Percentage Rates (APRs) are generally high, reflecting the increased risk associated with lending to individuals with lower credit scores.
• Various fees: These can include annual fees, monthly fees, and other service-related charges.
• Online account management: Fortiva provides users with online access to their accounts, allowing them to track spending, make payments, and monitor their credit utilization.

Pros and Cons

It’s essential to weigh the pros and cons of Fortiva cards before applying:

Pros:

• Opportunity to rebuild credit: Consistent on-time payments can help improve credit scores.
• Unsecured credit: No security deposit required, making it accessible to those who may not have funds for a deposit.
• Convenience: Provides a convenient payment method for everyday purchases.
• Approval for fair/bad credit: Offers a chance to build credit for those who might be denied by other lenders.

Cons:

• High interest rates: APRs can be significantly higher than those of traditional credit cards.
• Fees: Annual fees, monthly fees, and other charges can add to the overall cost of using the card.
• Low credit limits: May restrict purchasing power and require careful management of credit utilization.
• Potential for debt: High interest rates can quickly lead to debt accumulation if balances are not paid off regularly.

Fortiva Credit Card: Frequently Asked Questions (FAQs)

Here are answers to common questions about Fortiva credit cards:

1. What credit score is needed for a Fortiva card?

Generally, a credit score in the 500-650 range (fair to bad credit) is often considered for approval. However, approval is not guaranteed and depends on other factors like income, debt, and credit history.

2. Does Fortiva report to all three credit bureaus?

Yes, Fortiva reports your payment activity to Experian, Equifax, and TransUnion, which is essential for building or rebuilding your credit history.

3. What are the typical fees associated with a Fortiva card?

Fees may include annual fees, monthly maintenance fees, late payment fees, over-limit fees, and fees for cash advances. The specific fees will vary depending on the card and the terms of your agreement. It is important to review the fee schedule carefully before applying.

4. How can I apply for a Fortiva credit card?

You can usually apply online through the Fortiva website. You’ll need to provide personal information such as your name, address, Social Security number, income, and employment details.

5. What credit limit can I expect with a Fortiva card?

Credit limits are often relatively low, typically ranging from a few hundred to a thousand dollars initially. This can increase over time with responsible use of the card.

6. How do I pay my Fortiva credit card bill?

You can pay your bill online through the Fortiva website, by mail, or through their mobile app. Setting up automatic payments is a good way to ensure you never miss a due date.

7. What is the APR on a Fortiva credit card?

The APR (Annual Percentage Rate) is generally high compared to cards offered to those with excellent credit. The specific APR will depend on your creditworthiness and the terms of the card. Be sure to check the APR before accepting the card.

8. Can I get a cash advance with a Fortiva card?

Yes, you can typically get a cash advance, but it’s generally not recommended due to the high fees and interest rates associated with them. Cash advances often come with higher APRs than purchase APRs.

9. Does Fortiva offer rewards or cashback programs?

While some Fortiva cards may offer limited rewards programs, they are not typically as generous as those offered by cards targeted at individuals with good credit.

10. How long does it take to improve my credit score with a Fortiva card?

It depends on your individual circumstances. Consistent on-time payments and keeping your credit utilization low (ideally below 30%) are crucial for improving your credit score. It can take several months to see significant improvement.

11. Is a Fortiva credit card a good option for me?

It depends on your credit situation. If you have fair or bad credit and are looking for a way to rebuild your credit, a Fortiva card might be an option. However, be sure to carefully consider the high interest rates and fees and whether you can manage the card responsibly. Consider alternatives like secured credit cards or credit-builder loans first.

12. How do I close my Fortiva credit card account?

You can usually close your account by contacting Fortiva’s customer service department via phone or mail. Ensure you have paid off your balance in full before closing the account. Closing a credit card can affect your credit score, especially if it’s one of your older accounts.