The Destiny Mastercard^®: Your essential guide to rebuilding credit

The Destiny Mastercard^® is an unsecured credit card designed for individuals with bad to fair credit who are looking to rebuild their credit history. It can be a valuable tool for those who may not qualify for more traditional credit cards or who wish to avoid the security deposit required for a secured card.

However, the card comes with some notable drawbacks, primarily its high fees and low starting credit limit, which you should consider before applying. This guide will provide a comprehensive overview of the card so you can make an informed decision about whether it fits into your credit-building strategy.

What is the Destiny Mastercard^®?

The Destiny Mastercard^® is an unsecured card issued by The Bank of Missouri, Member FDIC, and serviced by Concora Credit, Inc.. It reports monthly payment activity to the three major credit bureaus (Equifax, Experian, and TransUnion), allowing users to build or repair their credit history with responsible use. An unsecured card does not require a security deposit, which can make it more accessible for some.

For potential applicants, the issuer offers a prequalification process that allows you to check your approval odds with no impact on your credit score. If you are approved and accept the offer, a hard inquiry will then be performed.

How the Destiny Mastercard^® helps you rebuild credit

For those with a poor credit history, getting approved for any credit card can be a challenge. By providing an unsecured line of credit, the Destiny Mastercard gives users the opportunity to build a positive payment history.

Making timely payments and keeping your credit utilization ratio low (ideally below 30%) are key to improving your credit score. Over time, demonstrating responsible use of this card can help increase your score and make you eligible for better card offers in the future.

The pros and cons

While it can be a useful tool, the Destiny Mastercard^® has significant drawbacks that potential cardholders should be aware of.

Pros

• Accessible for bad credit: It is designed for consumers with less-than-perfect credit and offers a path to an unsecured credit line.
• Builds credit history: By reporting to the three major bureaus, it helps cardholders build or repair their credit score with responsible use.
• No security deposit: You don't need to put down a security deposit, which differentiates it from secured cards.
• Prequalification available: You can check your eligibility with no impact on your credit score.

Cons

• High fees: The card comes with a substantial annual fee ($175 the first year, $49 after) and a monthly maintenance fee of $12.50 starting in the second year, which significantly eats into your available credit.
• Low credit limit: The initial credit limit is only $700, which is reduced by the annual fee, leaving you with even less spending power.
• No rewards: Unlike many other cards, the Destiny Mastercard offers no rewards, cash back, or introductory 0% APR offers.
• No user-initiated limit increases: You cannot request a credit limit increase. The issuer may provide one automatically, but it is not guaranteed.

Using your card strategically

Due to the card's high fees and low credit limit, it is best to view the Destiny Mastercard^® as a short-term stepping stone toward a better credit card. To make the most of it:

• Focus on on-time payments: This is the most crucial action for improving your credit score.
• Keep your balance low: The small credit limit makes it easy to have a high utilization ratio. Using the card for a few small, recurring bills and paying them off completely each month is an effective strategy.
• Graduate to a better card: Once your credit score improves after a year or so, you should start looking for a more favorable credit card with lower or no annual fees and better long-term benefits.

Explore key details

For more specific information on the Destiny Mastercard^®, explore our more detailed articles:

• Destiny Mastercard^®. Credit Limit Increase?
• Destiny Mastercard^® Annual and Monthly Fees
• Destiny Mastercard^® Credit Score Needed