Looking to build your credit but feeling hesitant about applying for the Destiny card? It’s understandable. While the card offers credit-building features, it comes with a steep price tag, with annual fees that can soar as high as $175 and APRs that can reach 35.9%.
But, don’t despair! There are plenty of other credit card options available, including secured credit cards and alternative cards that charge low or no annual fees and even offer rewards. So, before you make up your mind to go with the Destiny Mastercard, consider exploring other options to help you achieve your credit-building goals without breaking the bank.
Below are 5 must-know things you should be aware of before applying for Destiny Card.
If you have already got your Destiny Credit Card, then check out my Destiny Credit Card login guide to learn how to access your account online.
If not, then keep reading to understand whether you should apply for this unsecured credit card or not.
1. Consider Different Variations of Destiny Credit Card
The Destiny Credit Card has more than 10 versions. They all have different fees, credit limits, and interest rates. You can only apply online for two of them: 201 and 209. The other cards are only available if you get special offers in the mail.
The main difference between 201 and 209 is the annual fee. For card 201 it’s $75 for the first year then $99 after that. For card 209, it’s $59 every year. You can get this fee back if you close your account without using it but doing this might hurt your credit score.
If you don’t want to pay an annual fee, try looking at cards like Chime Credit Builder Visa Card, Capital One Platinum Secured Credit Card or Discover it Secured Credit Card which don’t have an annual fee but still give rewards points!
2. There may be other Fees as well Except an Annual Fee
In addition to annual fees, Destiny credit cards may also come with overlimit and monthly fees that can further increase the cost of owning the card.
Overlimit fees are generally charged when someone charges beyond their credit limit and can range from $29 to $41. This fee is optional, but it’s important to note that transactions could still be declined even if a person enrolls in the coverage.
Monthly fees are also possible, ranging from $10.40 to $12.50 a month which equals an extra $124.80 to $150 annually on top of the annual fee.
Thankfully, there are other cards without these additional fees available for those who don’t want them or can’t afford them.
3. Small Credit Limits may Disappoint you
The small credit limits on Destiny credit cards may be a major source of disappointment for many cardholders.
For example, if you have a card with a $300 credit limit and a $75 annual fee, your available credit drops to $225 right away. This poses two problems – it limits your purchasing power and increases your credit utilization ratio.
The credit utilization ratio is the amount of available credit you’re using and it accounts for 30% of your FICO score. Generally speaking, the lower your credit utilization rate, the better – so having a higher limit can be beneficial.
But with Destiny cards, you are limited to just $700 as the highest possible limit, which is paired with an $175 annual fee.
However, there are other alternative credit cards for bad credits available in the market that come with larger credit limits of $5000 to $1000 and no annual fee.
4. Cashback Rewards May be Possible on Larger Spending
The Destiny Mastercard is a great option for those looking to build or rebuild their credit, but it’s important to be aware of the rewards system associated with the card.
Cashback rewards may be possible, but you’ll have to spend a certain amount in order to make this feature worthwhile. Certain targeted offers may provide better rewards rates, such as a 1.5% cash-back rate. However, you’ll need to spend a certain amount in order to break even and make the annual fee worth it.
If you’re looking for more cash back rewards with no annual fee, then it is worth considering to look for alternative credit cards available in the market.
5. Still Destiny Card has some Positive Benefits to Offer
While there are drawbacks such as high APRs and fees associated with this card, it does have some positive benefits which make it worth considering if you’re looking for a way to rebuild your credit score.
It’s relatively easy to qualify for and reports to the three major bureaus: Equifax, Experian and TransUnion.
Qualifying applicants will receive a Mastercard that can be used virtually anywhere without needing to tie up hundreds of dollars in a security deposit.
Wrapping it up…
In brief, the Destiny credit card may be a viable option for those looking to rebuild their credit, but it’s important to recognize the high APRs and fees associated with this card. It’s best to weigh all of your options carefully before applying and make sure you use the card responsibly. With careful planning and budgeting, the Destiny card can be a helpful tool in rebuilding your credit.