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The Destiny Mastercard is an unsecured card aimed at helping people with poor credit or no prior credit history to build or rebuild their credit scores. One good thing about this card is that it doesn’t require any kind of security deposit, which makes it more easy to get approved if you have a bad credit score. Of course, the fees and APR associated with this card are relatively high compared to other premium cards. But, If your goal is just to raise your credit score and establish a positive payment history, then Destiny can be quite useful for you.
In this comprehensive review, we’ll provide you an overview of the features and benefits of the Destiny Credit Card. Here, we’ll take a close look at the fees, eligibility requirements, and application process on how you can get this card. We’ll also suggest some alternatives to this card, which will help you take a decision on which one to opt for. Our goal here is to help you determine if the Destiny Credit Card is the right option for your situation. So, whether you’re looking to improve your low credit score or build credit for the first time, be sure to read this review in full before applying.
01
of 06About Destiny Mastecard
The Destiny Mastercard is a credit card issued by First Electronic Bank, Member FDIC, and serviced by Genesis FS Card Services, Inc. It was launched in 2007 as a credit card to help people with poor or limited credit histories build or rebuild their credit. Since this is an unsecured card, the Destiny Card does not require any deposit to open an account.
Here are some key details about the Destiny Card that you must know:
- A credit limit is $700. The exact limit will depend on your creditworthiness. Those new to credit will likely have limits on the lower end, maybe around $200 or less.
- The card has $75 annual fee for the first year, followed by a $99 annual fee thereafter for Plat-201 version, and $59 for the first year, and $59 thereafter for the Plat-209.
- An APR of 29.99%, which is quite high compared to average credit cards. This reflects the higher risk associated with consumers who are trying to build credit.
- Credit reporting to all three major credit bureaus (Experian, Equifax, TransUnion). If managed properly, this card can help build your credit through on-time payments.
- Access to your TransUnion credit score for free, allowing you to monitor your progress.
- A foreign transaction fee of 5$ or 5% of the amount of each transaction, and 1% of each transaction in US dollars.
02
of 06Destiny Mastercard Pros & Cons
When you are considering the Destiny Credit Card, it’s important to weigh its advantages and disadvantages. So, here are key pros and cons:
Pros
1. Credit Building Opportunity |
The Destiny Credit Card reports to all three major credit bureaus, offering a solid avenue for users to build or rebuild their credit history through responsible use. |
2. No Security Deposit Required |
As an unsecured credit card, it doesn’t require a security deposit, making it more accessible for those who might not have the funds for a deposit. |
3. Pre-Qualification with Soft Inquiry |
The pre-qualification process involves a soft inquiry, which means checking eligibility without harming your credit score. |
4. Acceptance for Poor Credit Scores |
The card is specifically designed for individuals with bad to fair credit, making it a feasible option for those who might struggle to get approved for other types of credit cards. |
5. Mastercard Benefits |
Being a Mastercard, it is widely accepted and comes with additional benefits like fraud protection. |
Cons
1. High Annual Fee and APR |
The card comes with a relatively high annual fee (around $59 to $99) and APR (typically 24.90% to 29.90%), which can be a significant drawback for those who are cost-sensitive or plan to carry a balance. |
2. Limited Additional Benefits |
Unlike many other credit cards, the Destiny Credit Card offers limited additional benefits, such as rewards or cash back, which might be available with other cards for rebuilding credit. |
3. Initial Credit Limit |
The initial credit limit is typically modest and can be further reduced by the annual fee charged upon account opening. |
4. Potential for High Cost if Balances are Carried |
Due to its high APR, carrying a balance can lead to substantial interest charges, making it less ideal for those who can’t pay off their balance in full each month. |
5. No Path to Upgrade |
The card does not offer a clear path to upgrade to a card with better terms or benefits once the user’s credit improves. |
03
of 06Destiny Mastercard Fees and Interest Rates
Let’s understand the specific fees and interest rates associated with the Destiny Credit Card. Here’s a detailed breakdown:
Annual Fee
The Destiny Credit Card typically charges an annual fee of around $75 to $99. This fee is charged upon account opening and reduces the initial available credit. For example, if the initial credit limit is $300 and the annual fee is $99, the available credit upon receiving the card would be $201.
APR (Annual Percentage Rate)
The APR for the Destiny Credit Card is generally high, often around 24.90% to 29.90%. This rate is variable, subject to change with the market based on the Prime Rate.
Other Potential Fees
- Late Payment and Returned Payment Fees: The card may charge up to $40 for late or returned payments, which is a standard fee across many credit cards.
- Foreign Transaction Fees: For transactions made in a foreign currency or outside of the United States, users might incur a foreign transaction fee, typically around 1% to 5% of the transaction amount.
04
of 06How to Apply for Destiny Mastercard
Applying for the Destiny Credit Card involves a straightforward process. Here’s a detailed look at the application steps.
Step I. Pre-Qualification
- Visit the Official Website: Begin by navigating to the Destiny Credit Card’s official website.
- Complete the Pre-Qualification Form: Provide required details such as your full name, address, income level, and Social Security number. This step involves a soft credit check, which will not affect your credit score.
Step II. Review Your Offer
If you pre-qualify, you’ll receive an offer outlining your specific terms, including the APR and annual fee. Now, It’s important to review these terms to make sure whether they fit in your financial situation or not.
Step III. Submit a Full Application
If the terms look good and you choose to proceed, submit the full application form. Here, This will involve a hard credit inquiry, which may have a minor impact on your credit score. Also, Provide any additional information as requested by the issuer for the credit decision.
Step IV. Await Approval
After submitting your application, there is typically a processing period of 7 to 14 days. However, in some situations, it may take less time. If you are approved, your card and welcome materials will be mailed to you within 14 business days.
05
of 06Destiny Mastercard Eligibility Requirements
Now, Here’s the criteria that applicants need to fulfill in order to be eligible for destiny credit card.
- Age and Residency: Applicants must be at least 18 years old, or 19 in certain states, and have a valid Social Security number. Additionally, applicants must be legal residents of the United States.
- Credit History Considerations: The Destiny Credit Card is targeted at individuals with a range of credit histories, particularly those with bad to fair credit. However, certain factors such as active bankruptcies may disqualify applicants.
- Income and Employment: Applicants are required to have a steady source of income. The issuer may ask for proof of income, such as recent pay stubs or tax returns, to ensure that applicants have the means to make payments.
- Debt-to-Income Ratio: While specific numbers are not always disclosed, the issuer may evaluate your debt-to-income ratio. This helps determine if you can comfortably manage additional credit obligations.
06
of 06Alternatives to the Destiny Credit Card
While the Destiny Credit Card serves as a practical option for those looking to build or rebuild their credit, it’s beneficial to explore other credit cards that cater to similar financial needs. Here are three recommended alternatives, each with its unique features and benefits:
1. Capital One Platinum Secured Credit Card
- No Credit Check for Approval: This card offers an opportunity for those with poor credit history or no credit history to get approved without a credit check.
- Refundable Security Deposit: Requires a refundable security deposit of $49, $99, or $200, which is considerably lower than many other secured cards.
- Low APR: Offers a relatively low APR of 25.24%, which is beneficial for those who might carry a balance.
- Credit Bureau Reporting: Like the Destiny Card, it reports to all three major credit bureaus, aiding in credit building.
- Why It Stands Out: The Capital One Platinum Secured card is particularly appealing for its low deposit requirement and the potential for a higher credit line than the initial deposit, making it a cost-effective choice for credit building.
2. Discover it® Secured Credit Card
- Minimum Security Deposit: Requires a minimum security deposit of $200, which sets your credit limit.
- Competitive APR: Features a competitive APR of 22.24%, which is lower than many unsecured cards for bad credit.
- Cashback Rewards Program: Offers a cashback rewards program, a rare feature for secured cards, enhancing its value for everyday spending.
- Credit Building: Effective for building credit, with automatic reviews to transition to an unsecured line.
- Why It Stands Out: Discover’s secured card is notable for its rewards program and the potential to graduate to an unsecured card, making it a compelling choice for those who want benefits while building credit.
3. Petal® Visa® Credit Card
- No Security Deposit Required: This card does not require a security deposit, making it accessible for those who can’t afford one.
- Credit Limits: Offers credit limits up to $5,000, higher than many cards targeted at consumers with limited credit history.
- Responsible Credit Management: Provides opportunities to manage and increase credit limits responsibly as your credit score improves.
- Competitive APR Range: The APR ranges from 12.99% to 29.99%, varying based on creditworthiness.
- Why It Stands Out: The Petal Visa is unique for its no-deposit requirement, higher credit limits, and reasonable APRs, making it an excellent choice for those starting to build credit or improve their score.
Each of these cards offers specific advantages that might be more suitable for different individuals, depending on their financial situation and credit-building goals. It’s important to consider factors like security deposits, APRs, and additional benefits when choosing the right card for your needs.