Plastk Secured Credit Card Review
For the most part, secured credit cards offer users a great way to rebuild credit but don’t always have much in the way of exciting perks or benefits. It seems as if earning rewards and cash back are reserved for credit cards with higher annual fees or income requirements. That’s not the case with the Plastk Secured Credit Card, which allows you to have your cake and eat it too.
If you’re looking into getting a secured credit card or you’re looking for ways to up your credit score, keep reading to see if this tool is a feasible option for you.
In This Article:
What Is Plastk?
Founded in 2019, Plastk Financial is a proudly Canadian company that offers credit cards to people with lower income or those who are working on building their credit. The idea was born when the founder, Motola Omobamiduro, worked in the vehicle industry and noticed that many people struggled to get credit to finance their purchases. The idea of an accessible credit card for everyone was born, as was attaching a rewards program so that people building their credit don’t miss out on getting great perks too.
Pros & Cons
- Helps you build a credit score from scratch or strengthen your existing score
- Earn rewards on every purchase redeemable for merchandise, gift cards, statement credit, and more
- Quick application process with approval within 24 hours
- Can apply and get approved even if you have bad or no credit
- 0% APR for the first 3 months, and 17.99% after that
- A deposit is required before you can get your card, which means providing cash upfront
- Annual fee of $120 ($48/annual fee + $6/maintenance fee per month)
- The foreign transaction fee is higher than average at 3.5%, compared to around 2.5% on most other cards
- Can take up to 60 days to get your cash deposit back when you close your account
How Does the Plastk Secured Credit Card Work?
Since it’s a secured credit card, the Plastk Secured Credit Card works a little differently than other credit cards you might be used to. In order to use a secured card, you need to send a cash deposit as collateral to the credit card provider before you receive your card. The amount you deposit usually becomes your credit limit. For example, if you deposit a total of $1,000 to Plastk, you’ll have $1,000 as your credit limit on your Plastk Secured Credit Card. The minimum amount you need to deposit to be eligible for a Plastk Secured Credit Card is $300, and the maximum you can deposit is $10,000.
One of the main benefits of using the Plastk Secured Credit Card is that it helps you build up your credit. This is a great solution if you have a low credit score, you’re new to Canada, you’re a student, or you’re simply trying to rebuild your credit. Plastk reports to credit bureaus every month, and you can even request a free monthly credit score from Equifax to track your progress.
The second major selling point of this card is its rewards system, which isn’t common for most secured credit cards. You’ll earn cash back rewards on every purchase you make, so not only are you repairing your credit, but you’re getting something in the process.
There’s also a Plastk app you can download on Apple or Android devices that will allow you to monitor your credit score, keep track of your points, check your balance and available credit, and pay your bills. You can also apply for the card through this app and then track the progress of your application.
When you sign up for Plastk, you’ll get 5,000 Plastk Reward Points after 3 months of having the card* if your account remains in good standing. Terms and conditions apply. That’s equivalent to ≈ $20.00 that you can redeem as statement credit or to spend on other rewards like events, merch, or travel rewards. All new Plastk customers also get to take advantage of 0% APR for the first 3 months of having the card.
How to Earn & Redeem Rewards
Unlike many other credit cards, which offer tiered rewards schemes or specific purchase categories where you can earn points, the Plastk Secured Credit Card gives you rewards every time you swipe your card. For every dollar you spend, you earn 1 point. 250 points equal one dollar in rewards, and once you’ve reached at least $10 worth of points (or 2,500 points) you can redeem them in a number of ways, including:
- Cash back: apply your points for credit towards a statement
- Merchandise: trade your points for merch from brands like Apply, Sony, and LG
- Travel rewards: use your points to book flights
- Gift cards: get a gift card for your points at retailers like Nike, Amazon, and Tim Hortons
- Charitable donations: donate your points to a select charity
- Exclusive events: trade your points for tickets to concerts, the theatre, or for restaurants
Costs & Fees
The Plastk Secured Credit Card comes with a $120 ($48/annual fee + $6/maintenance fee per month) annual fee, the same as many other rewards credit cards that come with better perks. However, if you’re unable to apply for other credit cards due to limited income, a low credit score, or no credit history, then $120 ($48/annual fee + $6/maintenance fee per month) isn’t the worst deal if it means you can build up your credit without having the FOMO on perks and rewards.
Unlike other credit cards with more stringent requirements such as a minimum annual or household income and a minimum credit score, Plastk doesn’t have much in the way of requirements that will be obstacles to your eligibility. In order to apply for a Plastk Secured Credit Card, you need to meet the following requirements:
- You’re a Canadian citizen
- You’ve reached the age of majority in your province
- You can provide a cash deposit of at least $300 to open your account
How to Apply
Applying for the Plastk Secured Credit Card can be done on the Plastk website or through the Plastk app in just a few steps. The application is a very straightforward form that’s completed in just one page, so you won’t need to spend a lot of time collecting and entering information. Here’s a breakdown of how you can apply. This breakdown is for the website, but the process is the same on the app:
- Step 1: From the Plastk homepage, click on any “Apply Now” button to begin your application.
- Step 2: Once on the form page, you need to first select whether you want to apply for the Plastk Secured Credit Card or the Canucks Plastk Secured Credit Card. Both cards are the same, but since Plastk is partnered with the Vancouver Canucks, you can choose to get a card with a Canucks logo to show your support.
- Step 3: Enter your personal information like your title, name, contact details, address, employment information, and basic financial information such as your requested credit limit and your annual income.
- Step 4: Click on “Submit Application” and Plastk will get back to you within 24 hours.
- Step 5: If you’re approved, you’ll need to send in your security deposit via e-transfer before your card is mailed out to you. You can do this by transferring funds to an email address that Plastk will provide to you. After you send the e-transfer, you can check the status of your transfer on the Plastk app or online portal.
How It Compares
|Plastk Secured Credit Card||Refresh Financial Secured Card|
|Total Fees (Annual+Monthly)||$120 ($48/annual fee + $6/maintenance fee per month)||$48.95 ($12.95/annual fee + $3/maintenance fee per month)|
|Interest Rate||0% for the first 3 months and then 17.99%||17.99%|
|Perks||Earn cash back rewards on every transaction||No rewards program|
|Credit Score Requirement||Bad to no credit||Bad to no credit|
We’ve compared the top two secured cards on the market to see which one offers better value. The Plastk Secured Credit Card and the Refresh Financial Secured Card have a lot of similarities: they’re both Visas, you don’t need established or good credit to apply, and the interest rate and minimum deposit amounts are relatively the same. However, where these cards differ is in their fees and perks.
At first glance, it may seem like the Refresh Financial card is more worth it since the annual fee is less than half the price of the Plastk card. While it’s true that the Refresh Financial card is a lot more affordable, Plastk also gives you more perks for your money. You get 5,000 points as a welcome bonus just for signing up for the Plastk Secured Credit Card , which is equivalent to ≈ $20.00 redeemable after 3 months*. Terms and conditions apply. It’s also the only secured credit card in Canada where you can earn rewards. However, in order to make up the remaining $80 in fees per year, you’d need to spend $20,000 for the cash back rewards to cover the entire cost of the card.
Essentially, the value comes down to what you’re looking for with a secured card. For some people, the cost of the Plastk Secured Credit Card might be worth earning rewards while building your credit, while for others, just working on your credit with the Refresh Financial Secured Card for a lower annual fee is more appealing.
The Plastk Secured Credit Card is an exciting option for those with no credit history or a low credit score who want to start improving their credit score without missing out on rewards options. Still, this card isn’t ideal for everybody. If you have poor credit, there are other credit cards available for bad credit if you want something with a lower interest rate or lower annual fees. You might not even have as low of a credit score as you think, in which case you can apply for a credit card for an average credit score. However, if you’ve had trouble applying for an unsecured credit card before, then the Plastk Secured Credit Card can be a great way to get your credit score back on track.