The credit card industry has changed dramatically over the last decade as technology has become smarter and people started looking for more innovative financial solutions. New rewards programs, enhanced credit card security and general disruptors to the industry have led to a broad range of unique card options streaming onto the market.
Nontraditional credit cards may look flashy and exciting, but like any credit card, you need to review their fees, reward structure, features and partnerships before applying. Here’s what nontraditional credit cards can look like and why you might want one.
What is a nontraditional credit card?
There’s no standard definition for nontraditional credit cards, but all cards in this category have something that helps them stand out from your run-of-the-mill consumer credit cards.
Some nontraditional credit cards approve applicants based on factors outside of their credit scores (like their banking history), whereas others are co-branded with companies you might not expect. There are also unique credit building card options that don’t require a security deposit like regular secured credit cards.
Nontraditional credit cards
The cred.ai Unicorn Card* isn’t your everyday credit card, which can make it a little hard to understand. Especially considering its website just throws a bunch of terms and so-called features at you like, High Security Mode™, Friend & Foe List™, Stealth Card™, Check Please™ and Flux Capacitor.
Huh?
Basically, cred.ai creates bumpers for your spending to set limits so you don’t overspend and can avoid interest charges.
It also automates your payments so you never miss one. And each reported payment goes toward improving your credit score. However, there are no rewards to be earned -- it simply automates building credit while avoiding interest. No credit check is required to be approved, either.
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- 17.76% APR
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The cred.ai Unicorn Card* isn’t your everyday credit card, which can make it a little hard to understand. Especially considering its website just throws a bunch of terms and so-called features at you like, High Security Mode™, Friend & Foe List™, Stealth Card™, Check Please™ and Flux Capacitor.
Huh?
Basically, cred.ai creates bumpers for your spending to set limits so you don’t overspend and can avoid interest charges.
It also automates your payments so you never miss one. And each reported payment goes toward improving your credit score. However, there are no rewards to be earned -- it simply automates building credit while avoiding interest. No credit check is required to be approved, either.
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- 17.76% APR
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Have you never been satisfied with your reward card’s earnings? Allow me to introduce you to the M1 Owner’s Card*. It lets you earn 10% cash back with select brands, including Netflix, AMC and Lululemon, to list a few. You can then turn those rewards into long-term investments. However, there are a few caveats.
Chief among them is that your rewards -- whether you’re earning 1.5%, 2.5% or 10% -- are capped at earning just $200 in cash back each month. That limit could arguably negate any benefit from its higher rewards. For example, if you can earn only $200 with a 10% rate, you might be able to earn more with an uncapped 2% cash-back card depending on your spending habits.
The second caveat is that you’ll have to be an M1 Plus subscriber to access the card’s 2.5% and 10% cash-back rewards, which costs $36 annually or $3 monthly. As far as annual and monthly fees go, that’s pretty low and likely easily covered by the card’s rewards.
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- 20.24% – 30.24% APR
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Have you never been satisfied with your reward card’s earnings? Allow me to introduce you to the M1 Owner’s Card*. It lets you earn 10% cash back with select brands, including Netflix, AMC and Lululemon, to list a few. You can then turn those rewards into long-term investments. However, there are a few caveats.
Chief among them is that your rewards -- whether you’re earning 1.5%, 2.5% or 10% -- are capped at earning just $200 in cash back each month. That limit could arguably negate any benefit from its higher rewards. For example, if you can earn only $200 with a 10% rate, you might be able to earn more with an uncapped 2% cash-back card depending on your spending habits.
The second caveat is that you’ll have to be an M1 Plus subscriber to access the card’s 2.5% and 10% cash-back rewards, which costs $36 annually or $3 monthly. As far as annual and monthly fees go, that’s pretty low and likely easily covered by the card’s rewards.
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- 20.24% – 30.24% APR
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If you’re looking to do more for the environment, consider opening a checking account with Aspiration. Its Aspiration Cash Back Debit Card* could earn you up to 10% cash back with select retailers. The catch is, the retailers have to be a part of Aspiration’s Conscience Coalition, which is a group of retailers who support a greener future. These retailers include vendors like Cloud Paper and Dropps. You’ll also have to be an Aspiration Plus member, which costs $7.99 a month or $72 if you buy annually.
In addition to higher rewards, you’ll unlock a 3.00% annual percentage yield on your savings account each month when you spend $500 on qualifying debit card purchases. There’s also Mastercard Purchase Assurance which protects your purchases against damage and theft for up to 90 days.
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If you’re looking to do more for the environment, consider opening a checking account with Aspiration. Its Aspiration Cash Back Debit Card* could earn you up to 10% cash back with select retailers. The catch is, the retailers have to be a part of Aspiration’s Conscience Coalition, which is a group of retailers who support a greener future. These retailers include vendors like Cloud Paper and Dropps. You’ll also have to be an Aspiration Plus member, which costs $7.99 a month or $72 if you buy annually.
In addition to higher rewards, you’ll unlock a 3.00% annual percentage yield on your savings account each month when you spend $500 on qualifying debit card purchases. There’s also Mastercard Purchase Assurance which protects your purchases against damage and theft for up to 90 days.
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Petal® 2 “Cash Back, No Fees” Visa® Credit Card
The Petal 2 “Cash Back, No Fees” Visa Credit Card is one of three Petal credit cards that offer a unique process for approvals.
You can see if you’re preapproved for any of the Petal cards without a hard inquiry before you apply, and the card issuer (WebBank) may consider nontraditional criteria outside of your credit score for approvals. This includes your banking history if you link a bank account to your application. Just keep in mind that even if you’re preapproved, it doesn’t guarantee you’ll get the card.
This card in particular also offers 1% cash-back rewards on all eligible purchases that increases to 1.25% cash back after six on-time monthly payments and 1.5% cash back after 12 on-time monthly payments. There are no annual fees, foreign transaction fees or late fees, either.
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- 18.24% – 32.24% (Variable)
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The Petal 2 “Cash Back, No Fees” Visa Credit Card is one of three Petal credit cards that offer a unique process for approvals.
You can see if you’re preapproved for any of the Petal cards without a hard inquiry before you apply, and the card issuer (WebBank) may consider nontraditional criteria outside of your credit score for approvals. This includes your banking history if you link a bank account to your application. Just keep in mind that even if you’re preapproved, it doesn’t guarantee you’ll get the card.
This card in particular also offers 1% cash-back rewards on all eligible purchases that increases to 1.25% cash back after six on-time monthly payments and 1.5% cash back after 12 on-time monthly payments. There are no annual fees, foreign transaction fees or late fees, either.
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- 18.24% – 32.24% (Variable)
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The Venmo Credit Card* is a unique Visa credit card that’s offered through a payment app. This card doesn’t charge an annual fee, and it offers 3% cash back on your eligible top spending category, 2% on the next and 1% on all other eligible purchases.
This means you earn elevated rewards categories few other cards offer, like nightlife, bills and utilities.
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- 20.24%, 26.24%, or 29.24% Variable
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The Venmo Credit Card* is a unique Visa credit card that’s offered through a payment app. This card doesn’t charge an annual fee, and it offers 3% cash back on your eligible top spending category, 2% on the next and 1% on all other eligible purchases.
This means you earn elevated rewards categories few other cards offer, like nightlife, bills and utilities.
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- 20.24%, 26.24%, or 29.24% Variable
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The Bilt Mastercard® is a stand-out card because it’s the only major card option that offers rewards on rent. This card doesn’t charge an annual fee, yet cardholders earn 3X Bilt Points on dining, 2X points on travel and 1X points on rent payments (up to 100,000 points each calendar year) without a transaction fee. Note that cardholders have to use their cards for five or more purchases each statement period to earn rewards. See Bilt Mastercard rewards and benefits here.
Points earned with this card are also highly flexible. For example, you can use Bilt points to book travel through the Bilt portal or transfer points to top airline and hotel loyalty programs like United MileagePlus, Virgin Red, World of Hyatt and more.
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- See Terms
- Balance Transfer Fee
- Introductory fee of either $5 or 3% of the amount of each balance transfer, whichever is greater, for 120 days from account opening. After that, up to 5% for each balance transfer, with a minimum of $5.
The Bilt Mastercard® is a stand-out card because it’s the only major card option that offers rewards on rent. This card doesn’t charge an annual fee, yet cardholders earn 3X Bilt Points on dining, 2X points on travel and 1X points on rent payments (up to 100,000 points each calendar year) without a transaction fee. Note that cardholders have to use their cards for five or more purchases each statement period to earn rewards. See Bilt Mastercard rewards and benefits here.
Points earned with this card are also highly flexible. For example, you can use Bilt points to book travel through the Bilt portal or transfer points to top airline and hotel loyalty programs like United MileagePlus, Virgin Red, World of Hyatt and more.
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- See Terms
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- Introductory fee of either $5 or 3% of the amount of each balance transfer, whichever is greater, for 120 days from account opening. After that, up to 5% for each balance transfer, with a minimum of $5.
The TD Clear Credit Card* from TD Bank never charges a dime in interest. Instead, cardholders pay a flat monthly fee for a line of credit they can access.
You pay a $10 monthly fee for a $1,000 credit limit with a required minimum payment of $45, or $20 monthly fee for a $2,000 credit limit and a required monthly minimum payment of $70. The monthly payments required for this card are also inclusive of the monthly fee.
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The TD Clear Credit Card* from TD Bank never charges a dime in interest. Instead, cardholders pay a flat monthly fee for a line of credit they can access.
You pay a $10 monthly fee for a $1,000 credit limit with a required minimum payment of $45, or $20 monthly fee for a $2,000 credit limit and a required monthly minimum payment of $70. The monthly payments required for this card are also inclusive of the monthly fee.
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The Chime Credit Builder Secured Visa Credit Card is similar to a secured credit card other than the fact you don’t put down a cash deposit as collateral. Instead, this card has you deposit money into a dedicated savings account, and you can use your card to make purchases from these funds.
Chime reports this activity to the credit bureaus, which can help build credit over time. The Chime Credit Builder Secured Visa Credit Card also has no annual fee, and interest is never charged** since you use your own funds for purchases.
To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.
The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.
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The Chime Credit Builder Secured Visa Credit Card is similar to a secured credit card other than the fact you don’t put down a cash deposit as collateral. Instead, this card has you deposit money into a dedicated savings account, and you can use your card to make purchases from these funds.
Chime reports this activity to the credit bureaus, which can help build credit over time. The Chime Credit Builder Secured Visa Credit Card also has no annual fee, and interest is never charged** since you use your own funds for purchases.
To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.
The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.
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Other nontraditional payment options
Nontraditional credit card options abound, but they’re not the only payment options revolutionizing the world of credit and credit cards.
Buy Now, Pay Later
Buy Now, Pay Later plans are micro installment loans that let you buy items or services now and pay back what you owe over time. They’re usually offered at the point of sale when you make an eligible purchase. Popular BNPL apps you may have heard of include Affirm, Klarna and Afterpay. Many don’t charge interest or require a credit check, but they can come with late payment fees.
Pros
Easy to get approved for
Simple signup process
Typically no credit score impact
Some options are interest-free
Cons
Make it easy to overspend
No help building credit
Fees can apply
Some charge retroactive interest if you miss a payment or don’t pay off the balance in time
Cash-back debit cards
There are also cash-back debit cards that let you earn rewards for spending without using a credit card. Some popular options include Discover® Cashback Debit, the SoFi Money Mastercard and the Axos Bank Cashback Debit Card.
Pros
No risk of racking up debt
Rewards for spending your own money
Typically offered with no monthly fees
Broad ATM access included
Cons
Rewards can be limited
No line of credit to borrow against
No help building credit
More innovation in credit
Other innovations in the world of credit cards have changed the way we use credit over the last decade or more. These transformations have helped improve credit card safety and utility for online and in-person purchases.
- Virtual credit cards: Many credit card issuers let cardholders utilize virtual card numbers for their online transactions, including Capital One. Cardholders use a unique credit card number that increases online payment security.
- AI in credit cards: Card issuers are looking into leveraging artificial intelligence, or AI, for customer service and fraud detection, although the technology is currently being developed and not widely used.
- Contactless card technology: Contactless payment technology has been in use since the 1990s, but implementation saw a major boom during the COVID-19 pandemic. These days, most credit cards let you tap your card instead of swiping it or inserting it into a payment terminal if you prefer.
- Biometric payment cards: Some credit cards are also using biometric technology to increase security. For example, you may be approved to use a card after proving your identity with your fingerprint.
The bottom line
Nontraditional credit cards come in many shapes and forms, but they all seek to solve some sort of problem posed by traditional credit cards. For example, some unique card options aim to protect cardholders from paying exorbitant interest rates, whereas others use nontraditional approval processes to get their products into the hands of more consumers.
The rise of nontraditional credit cards proves that card issuers are willing to offer products that suit nearly any type of need. As a consumer, this means you have more credit products to choose from than ever before with a strong likelihood of more on the way.
*All information about the cred.ai Unicorn Card, the M1 Owner’s Card, the Aspiration Cash Back Debit Card, the Venmo Credit Card and the TD Clear Credit Card has been collected independently by CNET and has not been reviewed by the issuer.
**Out of network ATM withdrawal fees may apply. See here for details.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
