The Arro credit card is designed for those with fair credit or worse. It’s changing the traditional path to developing a credit history. Arro not only focuses on approving potential credit card holders with below-average credit scores but also rewards them for learning and developing financial skills that can allow them to increase and maintain their credit profiles.
While new Arro cardholders won’t experience any of the rewards and benefits of more traditional cards, the product can be a valuable and low-cost financial tool for developing a credit journey or rebuilding a credit profile that’s seen better days.
Top-Rated Loans for Fair Credit Applicants
Pros
Low APR
No security deposit is necessary
Applying draws only a soft inquiry on your credit report
Low membership fees
Educational app can help increase credit limit and lower interest rate
Cons
Rewards program unavailable
No introductory bonuses are available
Low introductory credit limit
Arro Card Reviews: Features and Benefits
The Arro card ranks on our list of the best credit cards that don’t require a security deposit for several reasons. The card doesn’t offer a rewards system of the points variety, as one of the best gas and grocery credit cards might.
Instead, Arro focuses on approving those with fair or poor credit and helping to increase their credit score and reduce their interest payments through education and goal setting.
As an Arro cardholder, expect a low starting APR of 16% that can drop over time through educational steps available in the app. However, also expect a very low starting credit limit of between $50 and $200, which can increase over time through app actions.
It’s not much, but Arro won’t perform a hard credit inquiry of any kind on your credit report, so even formally applying for the card won’t negatively impact your credit score, regardless of approval or denial.
Arro Card Features
- Starting APR 16%
- $50 to $200 intro credit limit
- No credit check to qualify
- No hard inquiry on credit report for applying
- $1 monthly membership fee for the first year
- $3 monthly membership fee after first year
- No security deposit needed
- Credit limit increase potential in the app
- Instant card access after approval
- Financial education available to unlock added benefits
- Mobile phone and bank account needed for approval
- No rewards program
- No introductory bonus is available
- Reports to all three major credit bureaus
- Pre-qualification won’t affect credit score
- Mobile app available
- 3% foreign transaction fee
- $2,500 credit limit potential over time
A Personal Loan vs. The Arro Card (for building credit)
Personal loans can be a smart alternative to Arro credit cards for those looking to improve their credit score. Unlike credit cards, personal loans offer a fixed repayment term and potentially lower interest rates.
Online lenders like Upstart and Credible cater to a wide range of credit profiles, with some personal loans qualifying borrowers with scores as low as 580.
Here’s why a personal loan might be a better choice:
- Fixed Rates: Predictable monthly payments help you budget effectively.
- Potentially Lower APR: Compared to credit cards, personal loans can save you money on interest.
- Credit Building: On-time payments contribute positively to your credit score.
Consider researching the best personal loans for fair credit in 2024.
Arro Editorial Rating
Trusted Company Reviews Rating Score for the Arro Card: 8.5
Our best credit card reviews often focus on products that provide immediate rewards, often in the form of cash-back or other tangibles. The Arro card makes our review list for its reward benefits of a different variety.
Instead of providing instant cash-back and other features, Arro customers can benefit from a low starting credit limit, low-interest rate, and low fees without having to place a security deposit or deal with the limitations of a secured credit card. The company also reports to all three major credit bureaus to build credit profiles effectively where it matters.
Additionally, the company offers customers the chance to lower their APR even further or increase their credit line over time by performing education-related tasks in the mandatory mobile app download.
The ultimate reward for the Arro credit card is an improved credit profile and a deeper knowledge of skills that can help increase and maintain credit scores.
| Benefits | Performing educational tasks on the Arro mobile app can help reduce the card’s interest rate and increase the customer’s spending credit limit. |
| Intro Offer | Monthly membership fee is reduced to $1 for the first 12 months. |
| APR | 16% starting |
| Annual Fee | $12 during the first year, $36 during subsequent years |
| Credit Score Requirements | None |
About the Arro Card
The Arro credit card is designed to help applicants improve their fair to poor credit scores. To that end, Arro makes becoming approved for its card easy. Applicants aren’t required to have a credit score or history. The company focuses on financial evidence for approval or denial after potential cardholders connect their bank account to their Arro credit card account.
Arro performs a soft credit inquiry that doesn’t affect credit scores and won’t appear in future inquiries for all applicants. Applying and becoming approved for an Arro card never incurs a hard inquiry on your credit report.
Arro cardmembers will then pay a $1 monthly membership fee for the first year. The membership fee increases to $3 monthly after that. Customers are encouraged to use the Arro mobile app to educate themselves on credit management skills during card ownership. Customers can lower their APR or increase their spending limit by doing so.
How to Use the Arro Card
The Arro card is usable anywhere credit cards are normally accepted. The primary difference between other credit cards and the Arro card is how customers interact with the mobile app more so than with the card itself.
Besides providing the normal functions of a typical credit card mobile application, the Arro app provides educational and credit-skill-building tasks for customers to complete. While completing each task is optional, doing so can either increase the spending limit on the Arro card or reduce its interest rate.
Arro Mobile App
The Arro Mobile App is available for Android and iOS devices on Google Play and the App Store. Because Arro is a fully online FinTech company, card applicants and holders must download the app and manage their accounts with it.
Besides offering educational tools and tasks designed to enhance the card-ownership experience, app users can also perform the following card-related functions.
- See their payment due date
- Make payments
- See their credit card balance
- Review transactions and history
- Follow their credit profile and score progress
- Set up recurring payments
- Access credit education courses and tasks to improve financial wellness
About Arro Card Pre-Approval
Becoming approved for the Arro card can feel different than applying for a more traditional credit card. Arro operates completely online. Instead of providing a pre-qualifying or pre-approval step, Arro requires applicants to supply personal and financial information and digitally connect their bank account to Arro.
From there, the company will offer a starting credit limit of between $50 and $200, depending on overall approval and financial details. Arro will never perform a hard pull on a credit report. After approval, new cardmembers will receive a virtual and physical Arro Mastercard® usable anywhere Mastercard is accepted.
Arro Cash Advances
The Arro card’s tiny starting credit limit of between $50 and $200 isn’t very helpful when it comes to balance transfer debt consolidation with the card. Arro doesn’t supply balance transfer information for its card, and it’s likely that a provision doesn’t exist to allow the practice.
Potential Arro card customers looking to consolidate debt using a credit card or personal loan will do better with another option, such as one of the best balance transfer cards for fair credit, than with the Arro credit card.
Check out recent reviews on credit cards and personal loans:
- Amex Blue Cash Preferred
- Citi Custom Cash Card
- Top Rated – Chase Freedom Unlimited
- Check top-rated personal loans for free at Credible
Consider Top-Rated Personal Loans for Fair Credit
| Lender | Fixed (APR) | Loan Amounts |
Minimum Credit Score
|
| Upstart Personal Loan | 6.40% to 35.99% | $1,000 to $50,000 | 620 |
| LightStream Personal Loan | 7.49% to 25.49% | $5,000 to $100,000 | 700 |
| Discover Personal Loan | 7.99% to 24.99% | $2,500 to $40,000 | 660 |
| PenFed Credit Union Loan | 8.49% to 17.99% | $600 to $50,000 | 700 |
| Upgrade Personal Loan | 8.49% to $35.99% | $1,000 to $50,000 | 600 |
| Sofi Personal Loan | 8.99% to 25.81% | $50,000 to $100,000 |
Does Not Disclose
|
| Best Egg Personal Loan | 8.99% to 35.99% | $20,000 to $50,000 | 600 |
| LendingClub Personal Loan | 9.57% to 35.99% | $1,000 to $40,000 | 660 |
| Avant Personal Loan | 9.95% to 35.99% | $20,000 to $35,000 | 550 |
| Universal Credit Personal Loan | 11.69% to 35.99% | $1,000 to $50,000 | 560 |
| OneMain Financial Personal Loan | 18% to 35.99% | $1,500 to $20,000 |
Does Not Disclose
|
| Zable Personal Loans | 8% to 30% | $1,000 to $25,000 | 600 |
| Happy Money Debt Consolidation Loan | 11.72% to 24.67% | $3,000 to $40,000 | 640 |
Source: TrustedCompanyReviews.com, Top-Rated Personal Loans Review
Arro Credit Card Reviews
Arro credit card reviews are highly mixed. While many customers award high ratings above 4 of 5 stars, many also express poor customer service experiences. However, Arro’s unsecured credit card is a relatively new product. Many of the negative reviews refer to the company’s other financial products, such as online banking services and secured credit card options.
That said, while the Arro unsecured credit card offers unique financial tools, low interest rates, and low fees, reading some of the positive and negative reviews before applying for the card is highly recommended to ensure that getting an Arro credit card is worth it to you.
Why the Arro Card Stands Out
You won’t find the Arro credit card on many of the best credit card lists. The card simply doesn’t feature the immediate reward returns of more traditional credit cards to land itself a spot based on rewards. Arro, as a company, has also recently faced some negative reviews that are unappealing at best.
However, we introduced the card in our review as an option for those seeking a non-traditional method of improving their financial wellness without relying on a secured credit card or dealing with the approval requirements of a traditional card.
Frequently Asked Questions
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Source
Image Source: arrofinance.com
Deane Biermeier
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