TD Bank Launches a Revolutionary Credit Card with a Monthly Fee Instead of Interest

What You Need to Know About the TD Clear Credit Card: The Pros and Cons

TD Bank has a new credit card called TD Clear that does not charge interest or late fees on your balance. Instead, you pay a monthly fee of $10 for a $1,000 credit line or $20 for a $2,000 credit line. You also have a predictable minimum payment of $45 or $70, depending on your credit limit.

Someone might need this card if they want to avoid interest charges and have a fixed monthly payment that is easy to budget for. However, this card might not be the best option if you can pay off your balance in full every month or if you have a high balance relative to your credit limit. In that case, you might be better off with a regular credit card that does not charge a monthly fee.

How it works is that you apply for the card online or in person and choose your credit limit. You can use the card for purchases, balance transfers or cash advances without paying any fees. You just have to pay the monthly fee and the minimum payment by the due date every month. If you want to skip one payment a year, you can do so without penalty if you have had the card for at least six months and are in good standing.

TD Clear

This is a credit card and rather than charging interest rates, charges a monthly fee.

• $10 monthly fee for a $1,000 credit limit
• $20 monthly fee for a $2,000 credit limit

This seems to be extremely expensive, representing a 12% APR and that is if you have the card maxed out at all times.

TD FlexPay

This card gives cardholders the ability to skip a payment once a year (you still accrue interest). This card offers a 0% introductory APR on balance transfers for 18 months and allows you to skip one payment a year without penalty. It also has no annual fee and no foreign transaction fees?. This card might be a good option if you want to pay off existing debt or have more flexibility with your payments.

Enhanced Rewards

In addition TD has made changes to the following cards:

• TD Double Up. Cardholders earn 2% back on all purchases (previously needed to deposit rewards into TD bank account)
• TD Cash. You can now choose your 3% and 2% categories

Some alternatives to the TD Clear credit card are:

There are not many credit cards with a monthly fee instead of interest. The TD Clear credit card is a unique product that TD Bank claims to be the first of its kind in the U.S. However, there are some other credit cards that might offer similar benefits, such as:

• 0% APR credit cards: These are cards that offer a promotional period of no interest on purchases, balance transfers or both. For example, the TD FlexPay Credit Card offers a 0% introductory APR on balance transfers for 18 months². These cards can help you save money on interest if you can pay off your balance before the promotional period ends. However, they might charge fees for balance transfers or foreign transactions, and they might have a higher interest rate after the promotional period.
• Low-interest credit cards: These are cards that offer a low or variable interest rate on your balance. For example, the TD Emerald Flex Rate Visa Card offers a variable interest rate based on your creditworthiness and the prime rate³. These cards can help you save money on interest if you carry a balance from month to month. However, they might charge annual fees or foreign transaction fees, and they might not offer any rewards or benefits.
• Secured credit cards: These are cards that require a security deposit that matches your credit limit. For example, the TD Cash Secured Credit Card offers a variable interest rate and 3% cash back on dining, 2% cash back on groceries and 1% cash back on everything else³. These cards can help you build or improve your credit score if you make timely payments. However, they might charge annual fees or foreign transaction fees, and they might have a low credit limit.