If your aim is to build credit, there are stronger cards that don’t charge monthly or annual fees and some offer rewards, too.
TD Clear Visa Platinum Credit Card
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The information for the TD Clear Visa Platinum Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
basics
- Annual fee: $10 or $20 monthly membership fee, depending on which version of the card you choose.
- Welcome bonus: None.
- Rewards: None.
- Balance transfer fee: $0.
- Other perks and benefits: Qualifies for Visa Platinum card benefits, including emergency card replacement, roadside dispatch, cellphone protection and a free Shipt subscription for three months.
- Does it report to all three credit bureaus? Yes.
- Does the issuer offer a preapproval tool? No.
- Recommended credit score: New to credit.
About the TD Clear credit card
If you’re new to the world of credit cards, you might feel overwhelmed by revolving balances, compound interest and other opaque financial concepts. TD Bank created the TD Clear Platinum Visa cards to simplify credit cards as these cards charge a fixed monthly fee instead of interest. However, this variation on a traditional credit card may be more of a gimmick that will end up costing you more money.
TD Bank offers two Clear card options: one with a $1,000 credit limit and a $10 monthly fee and the other with a $2,000 credit limit and a $20 monthly fee. If you carry a balance on your card, expect to make monthly payments of $45 or $70, respectively. Both of these payments include the monthly fee.
In addition to not charging interest, the TD Clear cards also don’t charge balance transfer, cash advance, foreign transaction, late payment or returned payment fees.
There’s also no annual fee to keep this card in your wallet. However, the Clear card’s $10 or $20 monthly fee adds up to $120 or $240 a year. That means this card’s yearly cost is comparable to an annual fee on a premium credit card that offers superior rewards and fancy perks.
Also, the Clear card’s annual fee is charged every month, regardless of whether you’re using your account or not. By contrast, interest-charging cards don’t charge interest if you pay off your balance in full each month. This makes them a more affordable option than the TD Clear card for customers who don’t let their balance roll over from one month to the next.
TD Bank will report your payments to all three credit bureaus. Making on-time payments can help you build credit and improve your credit score so you can eventually qualify for a credit card with rewards points or cash back.
But if you’re new to credit and your goal is to build credit, there are stronger cards that don’t charge monthly or annual fees. Most of the top-ranking cards on our best credit cards to build credit roundup do not charge an annual fee and some offer rewards, too.
Pros
- No interest charges: These credit cards don’t charge interest.
- No late payment, balance transfer, or foreign transaction fees: The TD Clear cards don’t charge fees apart from the fixed monthly fees.
Cons
- Monthly fees: In lieu of interest, the TD Clear cards charge $10 or $20 monthly membership fee, depending on which card you choose.
- Credit line limit of $1,000 or $2,000: The credit limit options are relatively low, but may be a good fit if you’re looking to build credit or curb overspending.
- No rewards on your spending: The TD Clear cards don’t offer rewards points or cash back on your spending.
- Only available in certain states. You’ll need to be a resident of Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia or Washington D.C. to qualify for this card.
Monthly fees
Instead of charging interest on your purchases, the TD Clear cards charge a monthly fee of $10 or $20, depending on your credit limit. The TD Clear card with a $1,000 credit limit requires a minimum monthly payment of $45, which includes the $10 monthly fee. The Clear card with the $2,000 credit limit has a minimum monthly payment of $70, which includes the $20 fee.
Keep in mind that these cards charge the monthly fees of $10 or $20 regardless of whether or not you’re using your account. These fees are subtracted from your total credit limit and make the card’s annual ownership cost expensive.
Perks
The TD Clear credit cards qualify for standard Visa Platinum benefits, which include emergency card replacement, roadside dispatch, cellphone protection, lost or stolen card reporting assistance, identity theft tools and a free Shipt subscription for three months.
Credit-building features
TD Bank designed the Clear cards for customers who are new to credit cards and are looking for an easy way to get started. While TD Bank doesn’t disclose its minimum credit score, the requirements are likely flexible to be approved for one of these Clear cards.
As you make monthly payments, TD Bank will report them to the credit bureaus, which can help improve your score.
However, if you’re looking for a card to help you build your credit score, there are much better options that won’t charge a monthly or annual fee.
No rewards
You won’t earn rewards points or cash back on your spending, which is a perk that some other credit-builder credit cards offer. This is a noteworthy shortcoming of this card.
How the TD Clear compares to other new-to-credit cards
TD Clear vs. Discover it® Student Cash Back
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The information for the Discover it® Student Cash Back has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
The Discover it® Student Cash Back
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The information for the Discover it® Student Cash Back has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
is a good choice for students over the TD Clear card to start building credit as it carries no annual fee and also earns cash back too. No credit score is required to apply and the card reports to all three credit bureaus. The TD Clear card doesn’t earn any rewards and charges monthly ownership fees.
With the Discover it® Student Cash Back
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The information for the Discover it® Student Cash Back has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
you’ll earn 5% cash back at different places each quarter up to the quarterly maximum once activated and 1% cash back on all other purchases.
However, the Discover it® Student Cash Back
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The information for the Discover it® Student Cash Back has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
, like most credit cards, charges interest, so if you carry a balance it could end up being more expensive than the monthly fees on the TD Clear card.
TD Clear vs. Upgrade Cash Rewards Visa®
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The information for the Upgrade Cash Rewards Visa® has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Like the TD FlexPay, the Upgrade Visa credit card offers a unique approach to credit use. It works similarly to a personal line of credit. You can make purchases or transfer money into your bank account, and the total amount of your transactions will be treated like an installment loan at the end of each billing cycle.
Although you’ll be charged interest on your purchases, you’ll pay off your balance in equal monthly installments, which may be appealing if you want predictable monthly bills. However, interest charges can add up significantly if you don’t make your full payments each month.
But, if you have a balance of zero on the card, there’s no payment required, unlike the TD Clear card which still charges that monthly annual fee. The Upgrade Visa cash rewards credit card also earns 1.5% cash back on all purchases.
TD Clear vs Petal® 1 “No Annual Fee” Visa® Credit Card
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The information for the Petal® 1 “No Annual Fee” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
The Petal® 1 “No Annual Fee” Visa® Credit Card
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The information for the Petal® 1 “No Annual Fee” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
(issued by WebBank) shines with its opportunity for cardholders with poor or no credit history to build their credit scores. The Petal 1 card doesn’t require a security deposit to open, doesn’t charge an annual fee and reports to all three credit bureaus. Petal uses something they call your “Cash Score” to determine approval and credit limits. It’s based on a combination of financial factors including your banking history and current debt obligations.
Although Petal 1 is a traditional credit card, which means it charges interest on any balance you carry from month-to-month, there’s no monthly fee to pay just for owning the card. Petal 1 also comes with some points potential in the form of Petal Perks – which can score you cash back at select local and national merchants.
Should you get the TD Clear credit card?
The TD Clear card may initially seem appealing if you’re looking for a credit-builder card that doesn’t require a security deposit or charge interest. Rather than having to worry about interest compounding on your balance, you’ll pay a fixed monthly fee and have a predictable monthly payment on the TD Clear card. But there are cards designed for those who are new to credit that are a better fit for most.
The TD Clear card’s fee structure isn’t necessarily more affordable than an interest-charging credit card. Here’s how a $1,000 balance plus fees on the TD Clear card compares to $1,000 balance on a card with varying APRs:
If you’re comparing the TD Clear card to one that charges 24% APR or greater, the TD Clear card can save you some money.
However, as your credit improves, the TD Clear card isn’t going to offer you a higher limit and you’ll ultimately have to apply for a card with a higher credit limit and better perks. We think it’s better to start off with a card you won’t outgrow as your credit improves.
TD Clear credit card summary
Frequently asked questions (FAQs)
While TD Bank doesn’t disclose the minimum credit score you need to qualify for a TD Clear card, the requirements are likely flexible. This card is designed for people who are new to credit cards, so the credit criteria are probably minimal.
The TD Clear card reports your monthly payments to all three credit bureaus. As long as you make on-time payments on your card, you could see your credit score improve over time.
You have two options for a TD Clear card. The first involves a $1,000 credit limit, a $10 monthly fee and $45 monthly payments. The second has a $2,000 credit limit, a $20 monthly fee and $70 monthly payments. When deciding between the two, consider which monthly payment and credit line works for your budget and spending goals.
The bigger question to ask is if you should get the TD Clear card or if another card aimed at building credit is a more financially sound choice in the long-term.
