Destiny Mastercard review

The Destiny Mastercard is a solid option for people with less-than-perfect credit or low credit histories. This card is ideal for students, people new to credit cards or those who have filed for bankruptcy since people with fair to average credit scores are eligible to apply. Also, it’s an unsecured card so you don’t need to put down a security deposit, which is typical for secured credit cards. Not only that, you can gain immediate access to your card with your mobile wallet after approval, and, if approved, begin with a reasonable starting credit limit as well.

However, you should be wary of the annual fee, monthly fee, APR and any additional fees that come with this card, as they might become costly over time. There are other credit-building cards that do not require a security deposit and have minimal fees, so it’s important to consider whether or not the Destiny Mastercard is truly worthwhile long-term.

Why you might want the Destiny Mastercard

The Destiny Mastercard is ideal for credit building because it doesn’t ask for a security deposit and reports your activity to all three credit bureaus. You can also start or rebuild your credit journey with a respectable credit limit.

You don’t have to pay a security deposit

Since the Destiny Mastercard is an unsecured card, you don’t have to worry about paying a security deposit — a plus for people with fair credit scores. While most people with poor credit scores lean toward secured credit cards to boost their credit standing, they usually have to pay a refundable security deposit that can be as high as $200. You will, however, have to pay an annual and a monthly fee, but you can avoid the upfront costs of a security deposit.

It has a decent starting credit limit

You could qualify for a  $700 starting credit limit, a reasonable limit when compared to credit-building secured cards that limit your credit line based on the total amount of your security deposit as well as other unsecured credit-building cards that typically feature lower credit limits. Having access to a decent credit line can help keep your credit utilization ratio low, allowing you to improve your credit score faster.

Though this is a good card limit for an unsecured fair credit card, there are high-limit secured cards that outperform the Destiny Mastercard, such as the Discover it® Secured Credit Card, which allows up to $2,500 in a credit line but only if you can put down a matching deposit.

Why you might want a different card

Although the Destiny Mastercard can help you in your credit-building journey, there are a few drawbacks to consider, such as the steep amount of fees, high APR and lack of perks.

It comes with a slew of high fees

Even though it’s common for fair credit cards to load up on fees, this card’s costs are unusually high. The Destiny Mastercard has an annual fee that begins at $175 the first year, and then $49 after that, along with a monthly fee that is $0 the first year, but $150 annually afterward ($12.50 billed monthly). These two fees may seem excessive on their own, especially given that the annual fee is deducted from your credit limit – which means that if you get approved for a $500 credit limit, your initial credit limit will be reduced to $325 during the first year.

And not only that, but there is a high 35.90% cash advance rate and ongoing APR, which is significantly higher than the current average credit card interest rate. And even though there is no penalty APR, there is a late payment fee up to $41.

However, if you plan on traveling, it does come with a low 1% foreign transaction fee, but the annual fee and monthly fee might be too costly, especially if you are working to build credit and keep costs low.

There aren’t any rewards or standout perks and benefits

Aside from Mastercard benefits like Fraud Protection* and EMV chip technology, there aren’t many features that distinguish this card from similar cards that provide rewards along with solid perks. For example, the Mission Lane Cash Back Visa® Credit Card offers 1 to 1.5% cash back on all purchases with no annual fee, and the Capital One QuicksilverOne Cash Rewards Credit Card allows you to earn 1.5% flat-rate cash back on all purchases as well as 5% cash back on hotels and rental cars booked through Capital One Travel.

Even though this card is primarily focused on building credit, it would have been advantageous to have more cardholder benefits that would make applying for this card more enticing.

How does the Destiny Mastercard compare to other credit-building cards?

If you are unable to qualify for typical unsecured credit cards due to a poor credit history or a low credit score, the Destiny Mastercard may be a viable option. However, there are unsecured credit card options that either have no annual fee or allow you to earn rewards that could earn a place in your wallet instead.

Capital One Platinum Credit Card	Avant Credit Card	Credit One Bank® Platinum Visa®
Rewards rate N/A	Rewards rate N/A	Rewards rate 1% cash back on eligible gas, grocery, internet, mobile phone, cable or satellite TV purchases
Credit limit See terms	Credit limit $300	Credit limit $300
Annual fee $0	Annual fee $0–$59	Annual fee $39
Other things to know: After six months of responsible use, you can become eligible for a credit line increase after account review.	Other things to know: Your account may be reviewed periodically for a credit line increase (no set timeline). Instant approval is available.	Other things to know: Your account is automatically reviewed for a credit line increase (no specified timeline). You have the option to purchase a credit protection plan.

Destiny Mastercard vs. Capital One Platinum Credit Card

The Capital One Platinum Credit Card, like the Destiny Mastercard, is an unsecured credit card with minimal perks aimed at those with fair to average credit, but, unlike the Destiny card, it has no annual or monthly maintenance fees.

The Capital One Platinum’s ongoing APR is also a bit lower, but you do sacrifice a higher credit limit. The Capital One card has a potentially low starting credit limit, which the Destiny Mastercard rivals with its $700 starting credit limit. If you are looking for a card with low costs, then the Capital One card may fit your needs, but if you prefer one with a higher credit limit, the Destiny Mastercard might be worth all the fees.

Destiny Mastercard vs. Avant Credit Card

The Avant Credit Card allows you to prequalify without affecting your credit score with a “hard pull,” and it does not require a security deposit. However, depending on your creditworthiness, you could have an annual fee as low as $0. Otherwise, it could go up to $59, which is higher than the Destiny Mastercard’s annual fee after the first year.

And along with its limited perks and relatively high APR, even if you qualify for a low $0 annual fee, the card has a low $300 starting credit limit. While you could get a credit line increase after a periodic account review, you might get a higher limit right from the start with the Destiny Mastercard.

Destiny Mastercard vs. Credit One Bank® Platinum Visa®

The opportunity to build credit without sacrificing earning rewards is the most significant advantage of the Credit One Bank Platinum Visa, as you can earn 1% cash back on qualifying purchases. In addition, there is no need to put down a security deposit, and the APR is lower than the Destiny Mastercard.

How to use Destiny Mastercard

• Make on-time monthly payments in full toward your balance so a positive credit history can be reported to the three credit bureaus to build your credit score.
• Use the card in-store, online or in-app using your mobile wallet for everyday purchases, but make sure to keep your credit utilization ratio low in order to avoid negative effects on your credit score.
• Access your account online to keep track of your progress and any important alerts, updates or changes.

Is the Destiny Mastercard right for you?

The Destiny Mastercard is a great pick if you have less than stellar credit and would prefer an unsecured card, especially if you would like to avoid a security deposit. But if you also want a card that earns rewards or has decent perks, this card may disappoint you — especially considering the high amount of fees associated with it. You can easily find secured and unsecured cards with lesser fees that accept fair to average credit that might be more valuable down the line.

*You’ll receive a Mastercard Guide-to-Benefits with the program terms and conditions with your card. Fraud protection is provided by Mastercard Zero Liability Protection.