The Arro Card, issued by Group Federal Financial savings Financial institution, is a credit-building choice for these with unhealthy, restricted or no credit score. Like related “different” bank cards in the marketplace, the cardboard does not decide approval based mostly on conventional metrics like credit score scores. Relatively, it makes use of different information like revenue and checking account info. This makes the cardboard extremely accessible.
It additionally options complete credit score bureau reporting, which is good for credit score newbies. And its “gamification” technique for incomes increased credit score limits and decrease APRs might be interesting to some.
However the card comes with some obstacles: It is not but extensively out there, does not have an improve path, and is gentle on incentives in contrast with some opponents. And whereas the cardboard itself technically does not cost an annual charge, you should have a membership with the Arro fintech to get it, and that is not free.
Right here’s what to know in regards to the Arro Card.
1. There’s a waitlist
As of this writing, the Arro Card isn’t open to functions, and you should be part of a waitlist till the cardboard is on the market.
Arro says that when the waitlist is launched, candidates can apply for the cardboard by the Arro app or web site. To use, you’ll must submit info like your e mail, telephone quantity revenue and checking account info. Word that in case you’re authorised for the cardboard, you’re required to create an Arro account through the Arro app.
2. There’s no credit score test, however you’ll want to attach a checking account
Not like conventional bank cards that require a onerous inquiry in your credit score experiences to find out eligibility, the Arro Card depends on a comfortable inquiry solely, which received’t have an effect on your scores. The corporate makes use of different information like revenue and checking account steadiness to find out approval. However due to that, candidates should join a checking account with a steadiness of at the least $150 to use for the cardboard.
Arro says candidates with no credit score historical past can apply however that different credit score components, not together with credit score scores, will probably be used through the approval course of.
Word that the Arro Card experiences to all three credit score bureaus — TransUnion, Equifax and Experian — which implies that info like your card cost historical past will probably be recorded through these firms.
3. You may additionally want an Arro membership, and that has a yearly charge
The Arro Card requires an Arro membership, which prices $36 per yr. Nonetheless, that charge can probably be decrease within the first yr, relying on what preliminary credit score line you are authorised for:
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$50 credit score line: Your Arro membership will probably be discounted to $12 in 12 months One (then $36 going ahead).
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$100 credit score line: You may pay $24 for an Arro membership within the first yr (then $36 going ahead).
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$200 credit score line: You may owe the total $36 within the first yr and going ahead.
In brief, the decrease your credit score line, the decrease your price of holding the Arro Card the primary yr. The identical different information — like revenue — that’s used to find out card approval can also be used to find out your credit score restrict, and customarily, these with decrease revenue or much less fascinating credit score information will probably be authorised for decrease credit score limits, and thus a decrease preliminary membership charge.
However for some folks searching for to construct credit score, any yearly charge is likely to be cost-prohibitive. Alternately, there are extra accessible nontraditional bank cards that don’t cost annual or membership charges. One such card is the $0-annual-fee Petal® 2 Visa® Credit score Card, issued by WebBank, which may use an underwriting mannequin that considers components past simply credit score scores — corresponding to an applicant’s revenue, bills, financial savings and money owed — to find out approval. The cardboard doesn’t require a safety deposit, experiences your funds to the three main credit score bureaus, and even earns money again on all eligible purchases.
🤓Nerdy Tip
In case you’re not eligible for the Petal® 2 Visa® Credit score Card, you could as a substitute qualify for its sibling, the Petal® 1 Visa® Credit score Card, which has much less sturdy rewards but additionally requires no safety deposit and has a $0 annual charge.
4. You may ‘play’ your solution to the next credit score line
Arro says cardholders even have alternatives to extend their beginning credit score line by finishing gamified private finance classes, challenges and movies on the startup‘s app. Customers can attain a credit score restrict of as much as $2,500 on their Arro Card based mostly on what number of in-app challenges or duties they full.
For instance, establishing a backup cost methodology through the app can earn you a $10 credit score restrict enhance, whereas finishing sure private finance-related classes also can qualify you for boosts.
As well as, cardholders have the chance to decrease their rate of interest by finishing related duties within the app. The cardboard’s beginning APR was 16% on the time of this writing, which is sort of affordable. For comparability, per the Federal Reserve, the typical rate of interest amongst interest-assessing bank cards was 21.95% as of February 2025.
The next credit score restrict can decrease your credit score utilization, which may assist your credit score scores. And a decrease rate of interest might be helpful in case you should carry a steadiness. Different bank cards require you to contact the issuing financial institution and immediately request issues like the next credit score restrict or decrease APR, and there isn’t any assure you will be granted both favor.
5. It is lacking some priceless options
The greatest bank cards for these with spotty credit or no credit score sometimes provide the chance to improve or “graduate” to a different bank card with higher phrases and extra advantages from the identical issuer. The Arro Card doesn’t provide an improve path.
Moreover, as of this writing, the cardboard does not provide rewards. Sure, customers can probably earn assertion credit score by the Arro app after they join a brand new monetary product or refer buddies to Arro, for instance. However these aren’t options of the cardboard itself.
For bank card newbies, rewards aren’t essentially a precedence; constructing credit score is. However it’s value noting that many starter bank cards in the marketplace do provide them. The Petal playing cards talked about above are examples, however there are a number of others.
(Word: Arro says it plans to ultimately provide 1% cash-back rewards on gasoline and grocery purchases.)