You may have received a Cerulean Mastercard®* offer in the mail. With promises of an unsecured credit limit up to $1,000, the offer may be tempting. At first glance, the Cerulean credit card seems like a great option, but is it the best card for your needs?
Featured Partner Offers
Highlights of the Cerulean Credit Card
- Unsecured credit card with an initial credit line of $300 to $1,000
- Double your initial credit limit after six months of on time payments
- Mastercard Zero Liability Protection
- Monthly reporting to all three major credit bureaus
Cerulean Credit Card Benefits
1. Monthly Reports to Credit Bureaus
Some creditors might only report negative behavior or report to just one credit bureau. These practices can significantly slow down your attempts to build your credit. If you are making timely payments and paying off your card each month, it’s in your best interest to have those behaviors reported. Cerulean promises to report your behaviors to all three bureaus each month.
2. Optional Credit Protection
Your Cerulean Mastercard®* gives you access to a program to protect you and your loved ones if you experience an emergency. The program will cover one monthly minimum payment in the event of job loss, hospitalization or disability. It will also cover your entire outstanding balance in the event of your death.
The coverage is $0.99 for each $100 balance carried on your card and charged directly to your account. So if your balance is $300, you’ll pay $2.97 each month. While this program may sound comforting, it’s only beneficial if you face a covered event. And in many cases, family members are not responsible for debt unless they are the co-signer or hold a joint account. You may be better served to avoid the program and pay the additional funds toward your balance.
3. Zero Liability Protection
This card offers the full Mastercard Zero Liability Protection. If you’ve been relying on your debit card for online purchases, you know how risky buying from a new e-commerce site can feel. The Cerulean Mastercard®* lets you shop with confidence. If your card is lost or stolen, you are not responsible for unauthorized purchases.
Cerulean Credit Card Drawbacks
4. Significant Fees
This card has a $125 annual fee that you will be responsible for as long as you hold the card. Once your credit improves, you’ll want to move to a fee free card. And since there is no $0 annual fee option in the Cerulean line, you will need to close this card and move to another card provider.
That’s an easy process, but your credit score will take a hit. Closing the card will reduce the length of your credit history and lower your score. If the goal is to build your credit, selecting a card that lets you graduate to a $0 annual fee may be a better option.
If you need another authorized user, the Cerulean Mastercard®* charges a $30 one-time fee for an additional card. And while it’s not higher than usual, be aware that you may face up to $41 in late payment fees if you miss a due date.
5. Fees Will Reduce Your Initial Credit Limit
While the advertising highlights the maximum $1,000 credit limit to new applicants, it’s important to consider the fine print. Depending on your credit history, you may not qualify for that amount and could only receive a credit line of $300. In addition, your annual fee of $125 is applied when you open the card. So this fee and any additional card fees will automatically reduce your available credit until you pay them off.
So, if Cerulean extends you a $300 credit limit, your card will arrive with a $125 annual fee. That means you will initially only have $175 of available credit, and you’ll want to be sure to pay off the annual fee to avoid paying interest on that amount from the day of your account opening. Otherwise, you could owe over $3 in interest on your fee alone.
6. High Interest Rate
If you plan to carry even a small balance, the interest on this card may be too steep to make it worthwhile. It’s not unusual to find high interest rates on cards targeting users with lower credit, so be aware that the 29.99% variable APR on purchases will add a significant cost to your purchases. Making just the minimum payment on a balance of $250 could cost approximately $22 in interest.
Alternatives to the Cerulean Credit Card
Before jumping into the Cerulean Mastercard®* with high fees, there are several other options that will likely save you money and still build your credit. The Mission Lane Visa® Credit Card* and Upgrade Visa® Card* are both low- to no-annual-fee unsecured credit cards. These options are great because you can keep the card open with little to no cost.
If these cards don’t work, here are a few additional alternatives to consider.
Secured Credit Cards
Secured credit cards require a security deposit that typically becomes your credit limit. These cards are designed for people with bad or no credit and help you demonstrate responsible credit usage. Many secured cards have lower fees than the Cerulean Mastercard®* making them a more cost-effective option.
Instead of paying the $125 annual fee, you can use that amount to open a secured credit card. The Discover it® Secured Credit Card and the Capital One Platinum Secured Credit Card (rates & fees) both charge no annual fee and allow you to pre-qualify so you’ll know you’ll likely be approved without impacting your credit (applications originating from this page will result in a hard credit inquiry – please review pre-qualification opportunities independently via the issuer’s website). Plus, you can get your security deposit back when you graduate to a no-annual-fee card with responsible usage.
Challengers
While credit cards don’t typically require a banking relationship, there are a few small, non-traditional challenger institutions that are trying something new. Both Chime and cred.ai offer secured credit cards that are designed to be used in conjunction with their checking accounts. Note that Chime is a financial technology company, not a bank. The Secured Chime Credit Builder Visa® Credit Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted.
If used as intended, the The Unicorn Card credit card* and the Secured Chime Credit Builder Visa® Credit Card promise no fees or interest¹. Plus both cards are designed to help you build credit.
Credit Unions
Credit unions are your best bet if you need to carry a balance. Because credit unions serve their members’ interests, you may find more terms than traditional banks, even for those with poor credit. In order to open an account, you will need to join the credit union. Look for credit unions in your area or job industry for easy eligibility. Many will allow you to join if you make a donation to their selected charity or join an affiliate membership.
For instance, the BECU Secured Credit Card* comes with a 13.24% - 25.24% Variable APR and is available to all Washington state residents. Employees of the National Institutes of Health or other select employers are welcome to join the NIHFC, and its NIHFC Visa® Platinum Secured Card* offers 13.74% variable.
Improve Your Credit
If these cards aren’t a good fit, consider joining a credit builder program like Experian Boost to build your credit without the fees. Or you could speak with a Credit Counseling Agencies representative. These nonprofit credit counselors can offer guidance on managing your debts and improving your credit. After several months of responsible behavior, you may qualify for a more appealing unsecured credit card.
Read more: Best Credit Counseling Services
Should You Get the Cerulean Credit Card?
Probably not. This card isn’t the best option for most consumers. If you’re looking to carry a balance, reduce debt or build credit, this card has significant long-term disadvantages.
Find the Best Credit Cards for 2024
No single credit card is the best option for every family, every purchase or every budget. We've picked the best credit cards in a way designed to be the most helpful to the widest variety of readers.
Bottom Line
The truth is, there are better cards out there. With a little effort, you should be able to find a card with lower fees that will still help you build your credit.
¹Out of network ATM withdrawal and over the counter advance fees may apply. See here for details.
