TD Clear Card Review: No APR, but Its Monthly Fee Adds Up

The TD Clear Visa Platinum Credit Card stands apart from other credit cards from traditional banks because instead of charging interest, it charges a set monthly fee. For those who value predictability, that can sound enticing. But depending on how much of a balance you plan to carry on the card, it could cost you far more than a credit card with an annual percentage rate (APR).

After all, if you're the kind of credit card user who pays off your balance in full every month, you'll never owe interest to begin with, so the APR is irrelevant. But with the TD Clear Visa Platinum Credit Card, the monthly fee will apply whether you carry a balance or not — even if you sock-drawer it. And at up to $20 a month, it can be almost as expensive to hold as some of the top premium credit cards, which offer a variety of rewards and perks that this card does not.

If you have good to excellent credit (typically, FICO scores of at least 690), better options exist.

» MORE: NerdWallet’s best credit cards for fair credit

TD Clear Visa Platinum Credit Card: Basics

Card type: Credit builder.

Annual fee: None, but a monthly fee of $10 or $20 applies, depending on the credit limit.

Rewards: None.

Sign-up bonus: None.

Foreign transaction fee: None.

Balance transfer fee: None.

APR: None.

A predictable monthly payment

The TD Clear Visa Platinum Credit Card can offer a predictable monthly payment, making budgeting easier. If you tend to carry a balance on credit cards from one month to the next, you might value knowing exactly what your payment will look like each month. Instead of paying interest charges, there's a $10 monthly fee for a credit limit of $1,000 or a $20 monthly fee for a $2,000 credit limit.

Visa benefits

As a cardholder, you'll get benefits from the Visa payment network (not from TD Bank), which may offer additional savings toward everyday purchases. Some benefits include cell phone protection and a complimentary Shipt membership for three months. Terms apply. It’s not uncommon for these benefits to change over time on credit cards, so review the card’s offerings for up-to-date benefits.

A potentially costly monthly fee

Depending on the size of your balance, the monthly fee on the TD Clear Visa Platinum Credit Card could be more expensive than the interest charges on a different card. To compare possible costs, use the sliding scales below. (For context, the average APR for credit cards assessed interest in February 2023 was 20.92%, according to Federal Reserve data.)

As you can see, the higher the balance you carry (or intend to carry) with the TD Clear Visa Platinum Credit Card, the better the deal. But if you don't carry a balance (or much of one), this isn't a good card for you.

Consider the interest rate you might qualify for on a credit card elsewhere by looking at your current credit cards or pre-qualifying for other offers. With good credit (FICO scores of 690 or higher), you can qualify for some of the best rates out there.

» MORE: Annual fees? Several new credit cards are opting for monthly ones

Geographic restrictions apply

This card is only available if you live in Connecticut, Delaware, Florida, Massachusetts, Maine, Maryland, North Carolina, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, South Carolina, Virginia, Vermont or Washington D.C.

No credit limit increases

If you’re looking to increase your spending power as your credit grows, the TD Clear Visa Platinum Credit Card could hinder your progress. Because you’re paying a fixed monthly fee for a specific credit limit, the credit limit won't increase, according to Jennifer Garrett, TD Bank's head of product development and loyalty, credit cards and unsecured lending.

Traditional credit cards, on the other hand, often will offer credit limit increases over time if you can qualify based on increased income or other factors. The possibility of a credit limit bump obviously helps your purchasing power, but it also can potentially elevate credit scores by lowering your credit utilization ratio (the amount of available credit you’re using compared with your credit limit). It’s a key factor that affects credit scores.

A poor choice for balance transfers

You might be tempted to jump at the chance to transfer an existing credit card balance to the TD Clear Visa Platinum Credit Card, which charges no interest and has no balance transfer fee — but because of the card's monthly fee, it can still cost more than other balance transfer credit cards that offer a 0% introductory APR (and no monthly fee). Plus, the fixed credit limit on the TD Clear Visa Platinum Credit Card makes it a poor candidate for transferring large amounts of debt. You can only transfer as much as the credit limit allows.

With good credit, a balance transfer card like the $0-annual-fee BankAmericard® credit card can offer a lengthy interest-free window. There's a balance transfer fee of 3% for 60 days from account opening (then 4%), but you'll likely save more over the long term. For example, if you compare the costs on a hypothetical balance of $1,500, you might pay $45 as a balance transfer fee on the BankAmericard® credit card. With a $20 monthly fee on the TD Clear Visa Platinum Credit Card, you would have to pay off the balance within two months for it to be the cheaper option.

No rewards

Unless you're planning to carry a significant balance over a long period of time, you can do better than the TD Clear Visa Platinum Credit Card, especially if you have good to excellent credit. The card's monthly fee makes it a costly long-term option for your spending.

Either way, you can't get it unless you live in certain states.