TD Bank has overhauled its credit card portfolio, adding two new products with unique features while making improvements to two of its existing cash-back cards.
Here’s a closer look at the card additions and enhancements.
These TD cards, old and new, are available in only 15 states and Washington, D.C. If you’re not a resident of those areas (full list here), you can’t get these cards.
TD Clear Visa Platinum Credit Card: Predictable payments
The no-annual-fee TD Clear Visa Platinum Credit Card is what the issuer calls a “first of its kind” in the U.S. The card doesn’t charge interest, but instead you choose a subscription plan: Either $10 per month ($120 annually) in exchange for a $1,000 credit limit, or $20 per month ($240 annually) for a $2,000 credit limit. Along with having no APR, the card charges no foreign transaction fees, cash advance fees, over-limit fees or returned-payment fees.
One benefit of this setup is that you’ll get predictable monthly payments. If you don’t carry a monthly balance, you’ll owe only the subscription fee. If you do carry a balance, you’ll owe the subscription fee plus a minimum required payment — but that amount is capped:
For the version with a $1,000 credit limit: $35, plus the $10 monthly fee, for a total minimum payment of $45.
For the version with a $2,000 credit limit: $50, plus the $20 monthly fee, for a total minimum payment of $70.
So even if you carry a balance, you’ll never owe more than the minimums above. But whether this saves you money compared with paying interest on a regular credit card depends largely on how big of a balance you carry. The lower the balance, the more expensive a monthly subscription fee becomes, compared with paying interest. And if you have a $0 balance, you’re still paying a fee of $10 or $20 a month, compared with potentially paying no interest at all on a regular card.
TD FlexPay Credit Card: Leniency on select payments
The $0-annual-fee TD FlexPay Credit Card allows cardholders with accounts in good standing to skip a payment once a year starting six months after opening the account. Separate from this option, the first late fee will also be automatically refunded every 12 billing cycles. Interest will continue to accrue on any unpaid balances, even if you use the “Skip a Payment” feature.
These options may offer relief if you find yourself missing payments at least twice per year. But ultimately, you’ll want to avoid relying on such features if you can. Too many late payments can still result in fees, and independent of fees, paying too late can also hurt your credit scores.
In addition to these features, the TD FlexPay Credit Card also has a lengthy balance transfer offer: 0% intro APR on balance transfers for first 18 billing cycles after account opening. After that, 18.74%-28.74% variable APR based on your creditworthiness.
For transfers made within the first 18 billing cycles of opening the account, you’ll pay a 3% introductory balance transfer fee.
The TD Double Up℠ Credit Card and TD Cash Credit Card get richer
The TD Double Up℠ Credit Card now earns 2% cash back on all purchases. Previously, the full 2% was earned only if you redeemed rewards into an eligible TD bank account. Otherwise, it earned only 1% back.
The TD Cash Credit Card also got a makeover. It retains its 3%/2%/1% rewards structure, but cardholders can now customize the categories that earn 3% and 2% cash back every quarter. You can choose from a list of five options that include dining, groceries, entertainment, gas and travel, based on what best aligns with your budget. All other purchases will earn 1%.
In the past, the card’s bonus categories were not flexible; it earned 3% back on dining and 2% on grocery store purchases (1% back on everything else).