2017 TD Bank Credit Card Review – WalletHub Editors
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The Verdict: TD Bank, the country’s 15th largest credit card company by outstanding balances, offers a handful of different credit cards. But this review will focus on the flagship card bearing TD Bank’s name: the TD Bank Cash Visa.
After all, the TD Bank Cash Visa Credit Card has the broadest appeal among the family of TD Bank cards. That’s thanks to Cash Visa’s easily attainable $100 initial bonus, straightforward cash-back rewards and lack of an annual fee. With that package in hand, the average person’s $28,523 in annual expenses that can be paid for with a credit card would accrue $879 in rewards over the first two years of use. That’s solid but not elite.
One of the notable downsides to the deal is its lack of financial appeal. The card’s regular rate can be as high as 23.24%, and its offer of 0% interest on balance transfers for the first 12 months is marred by a 4% transfer fee. As a result, the TD Bank Cash Visa is best for people who always pay their credit card bills in full.
The other major drawback is the fact that you need “excellent” credit to get approved. That’s important because the card’s terms would represent an excellent deal for people with good credit but only a pretty good option for people with excellent credit. As a result, we recommend taking a pass on the TD Bank Cash Visa and paying special attention to the Competition section below.
$100 Initial Bonus: This certainly isn’t the largest initial bonus on the market, but it is among the most efficiently rewarding. Rather than spending $3,000 during the first three months your account is open to earn $400 in travel rewards, for example, you merely need to spend $500 within the first 90 days to qualify for the TD Bank Cash Visa’s $100 prize. In other words, TD Bank gives you $0.20 in bonuses, or 20% back, for every $1 of the first $500 you spend. By comparison, a card offering $400 in rewards for $3,000 in purchases only gives you $0.13 per $1 spent.
So if you want to get the most bang for your buck or don’t typically spend enough to qualify for a bigger bonus, TD Bank’s Cash Visa Card is a great fit. But don’t wait to cash in on this bonus because it’s available only to applicants who get approved by Oct. 31, 2016.
2% Back On Dining: You’ll get 1% cash back for most purchases you make with this card, which isn’t all that exciting considering that the average cash back credit card offers 1.01%, according to our latest Credit Card Landscape Report. Fortunately, that base earning rate is supplemented by 2% cash back on dining, which includes everything from fast food and coffee shops to five-star restaurants.
That means the TD Bank Cash Card is particularly well suited to people who eat out often.
- No Annual Fee: The lack of an annual fee makes the TD Bank Cash Visa $16.43 cheaper per year to maintain than the average credit card. That means you can keep your account open without feeling pressured to make purchases on a regular basis in order to earn enough just to break even.
4% Balance-Transfer Fee: The average household with credit card debt owes just a bit less than $8,000. Four percent of that is $320. That’s a lot of money to spend, considering you don’t have to. Literally hundreds of credit cards offer 0% introductory financing on balance transfers for at least as long as the TD Bank Cash Card (12 months) and have lower fees, according to our database of offers. In fact, three cards — most notably Slate from Chase — make it possible to avoid paying any fee at all.
So this fee turns what would be construed as a positive — the Cash Card’s 0% intro offer — into a reason to look elsewhere if you’re looking to lower the cost of existing debt.
Likelihood Of An Above-Average APR: Let’s start with a bit of context. The average APR assessed by credit cards that require excellent credit for approval is 13.08%, according to our latest market snapshot. And though the TD Bank Cash Card requires excellent credit for approval, the lowest rate you can get is 13.24%. The highest rate you can get, on the other hand, is 23.24%, which is even higher than the regular APR (20.16%) for someone with fair credit.
That means you’re guaranteed to pay an above-average rate for your credit standing, and you might even wind up paying a rate that would be bad even for someone with limited/fair credit if your credit is just barely excellent.
Other Things To Consider
No Foreign-Transaction Fee: This card will be a benefit, not a hindrance, when it comes to spending money abroad. Whether you’re physically traveling outside the country or simply buying goods from internationally based merchants, you won’t get hit with a foreign-transaction fee. Most credit cards charge such fees, and the average is 2.05%.
Not having to worry about such a fee could therefore save you bigtime. And by freeing you up to make the majority of your international purchases with plastic, you’ll also be able to save even more on currency conversion. Automatically converting currency with a no-foreign-fee credit card costs up to 11% less than popular options for converting hard currency.
Points Don’t Expire With Time: With some credit cards, you have to use your rewards relatively quickly or risk losing them due to nothing more than the simple passage of time. That’s not a concern with the TD Bank Cash Card. As long as your account is open and in good standing, your rewards are safe.
Nevertheless, we always recommend redeeming credit card rewards on a regular basis to limit the amount that could be lost if something goes wrong.
- No Penalty APR: Your rates won’t get jacked up just because you miss a payment or two, or for any reason, for that matter. And that’s good because the TD Bank Cash Card’s rates are already high enough. But you should still try to avoid ever missing your due date or generally misbehaving because, while TD Bank won’t make you pay for the types of mistakes that would ordinarily lead to a penalty APR, the credit score damage that could result would cost you plenty.
- $35 Late Fee: On-time monthly payments are essential not only to maintaining your excellent credit score, but also to saving money. TD Bank will assess a fee equal to $25 or your missed minimum payment, whichever is less, the first time you fail to pay on time. If you slip up again within the next six months, you’ll be hit with a fee equal to the lesser of $35 or the minimum payment due.
Excellent Credit Required: More than 60% of consumers do not have excellent credit, according to WalletHub data, which means this requirement classes out a significant portion of the credit card-seeking population. It also casts the TD Bank Cash Visa in an unfavorable light.
In short, its terms are a fine fit for the good-credit category, but they can’t hang with the market’s elite, many of which offer initial bonuses in excess of $400, 2%+ back across all purchases and/or 0% introductory terms as long as 21 months. And elite is what you should be in the market for if you have excellent credit.
If you’re not sure where your credit currently stands, you can check your latest credit score for free on WalletHub. WalletHub is the only site that offers free credit scores updated on a daily basis. That will help you track your score over time and determine when the time is right to apply for a better card. And WalletHub’s personalized recommendations will tell you which card offers the most savings for your situation.
To make things easier for you, we took the liberty of comparing TD Bank’s centerpiece offers to some of their best competitors. You can check out the results below.
TD Bank Cash Credit Card
TD Bank First Class
Barclaycard Arrival Plus
Citi Double Cash
Citi Diamond Preferred
|Annual Fee||$0||$89 ($0 the first year)||$89 ($0 the first year)||$0||$0||$0|
|Initial Bonus||$100 for spending $500 in the first three months (offer expires Oct. 31, 2016)||15,000 miles after your first purchase within six months
10,000 miles for spending $3,000 in the first six months
|50,000 points for spending $3,000 in the first three months||None||None||None|
|Ongoing Rewards||2% cash back on dining
1% cash back on everything else
|3 miles per $1 spent on travel and dining
1 mile per $1 spent on everything else
|2 points per $1 spent on all purchases
5% travel-redemption bonus
|1% back on purchases
1% back on corresponding monthly bill payments
|Intro Financing||0% on balance transfers for 12 months (4% fee)||0% on balance transfers for 12 months (3% fee)||0% on balance transfers for 12 months (3% fee)||0% on balance transfers for 18 months (3% fee)||0% on purchases and balance transfers for 21 months (3% transfer fee)||0% on purchases and balance transfers for 15 months ($0 transfer fee for first 60 days; 5% after)|
|Regular APR||13.24% to 23.24%||13.49%||16.24% to 23.24%||13.24% to 23.24%||12.24% to 22.24%||13.24% to 23.24%|
|Editors’ Rating||3.6 Stars||To be reviewed by WalletHub||5 Stars||5 Stars||5 Stars||5 Stars|
|Winners|| Cash Back Travel Rewards
Citi Double Cash Barclaycard Arrival Plus
Balance Transfers New-Purchase Financing
Chase Slate Citi Diamond Preferred
*Two-year rewards earnings are based on the $28,523 in annual expenses that the average consumer can pay for with a credit card, according to data from the Bureau of Labor Statistics.