When it comes to credit cards for individuals with less-than-perfect credit, the Destiny Credit Card is a popular choice. Known for its accessible approval criteria and competitive features, it’s often a go-to for those looking to rebuild their credit or establish a credit history. In this article, we’ll dive into Destiny Credit Card reviews, analyzing its benefits, drawbacks, fees, and whether it’s a good fit for you.
What is the Destiny Credit Card?
The Destiny Credit Card is a secured credit card offered by the First Savings Bank and issued by the First Bankcard division. It’s designed for people with poor or no credit history, providing an opportunity to rebuild or establish a strong credit profile. While secured credit cards typically require a cash deposit as collateral, the Destiny Credit Card may offer an unsecured option for qualifying individuals.
The card also reports to the three major credit bureaus—Equifax, Experian, and TransUnion—allowing cardholders to improve their credit scores over time, provided they use the card responsibly.
Key Features of the Destiny Credit Card
- Low Credit Score Requirement
The Destiny Credit Card is tailored for individuals with low credit scores or limited credit history. It doesn’t have the stringent credit score requirements of many traditional cards, making it accessible to a broader audience, including those looking to rebuild their credit. While specific approval requirements are not always disclosed, many reviews note that the card is available to individuals with a credit score as low as 500 or even lower.
- Annual Fee
One of the most important factors to consider in Destiny Credit Card reviews is its annual fee. At the time of writing, the yearly fee for the Destiny Credit Card is approximately $59. While this fee is typical for cards designed for those with bad credit, potential applicants should still weigh it when deciding whether to apply.
Additionally, it’s worth noting that this fee is charged immediately upon approval, and it is non-refundable, even if the cardholder decides to cancel the card.
- Credit Limit
The credit limit for the Destiny Credit Card is usually modest. Typically, the starting credit limit ranges from $300 to $500, depending on the applicant’s creditworthiness. However, many Destiny Credit Card reviews suggest that customers have the potential to increase their credit limit over time, provided they maintain a good payment history and low credit utilization.
- Interest Rates and Fees
Destiny Credit Card holders can expect a relatively high interest rate, typical of credit cards offered to individuals with less-than-perfect credit. The APR (Annual Percentage Rate) can range from 24.9% to 29.9%, which is quite steep compared to other types of credit cards.
However, like many cards in this category, the interest rate is manageable if the cardholder pays off their balance in full every month. If you only make the minimum payments, the interest charges can quickly add up, making it harder to pay off the balance.
Other fees to keep in mind include:
- Late payment fee: Up to $40.
- Returned payment fee: Up to $40.
- Foreign transaction fee: 3%.
- No Rewards Program
Unlike many other credit cards that offer cash back or rewards points, the Destiny Credit Card does not come with any rewards or perks. This means you won’t be earning any cashback or travel points on your purchases, which is a downside for those who enjoy card perks. However, for individuals primarily interested in improving their credit score, this lack of rewards may not be a deal-breaker.
- Credit Reporting
One of the Destiny Credit Card’s biggest advantages is that it reports to all three major credit bureaus—Equifax, Experian, and TransUnion. This feature allows users to build or improve their credit scores with responsible card usage. As long as you make your payments on time and keep your credit utilization low, you can expect to see a gradual improvement in your credit score over time.
Destiny Credit Card Reviews: What Do Users Say?
Positive Feedback
- Accessible to Those with Bad Credit Many Destiny Credit Card reviews highlight the card’s accessibility, especially for those with poor credit or no credit history. Users appreciate that the approval process is relatively easy compared to other cards in the same category. For individuals who have struggled to qualify for traditional credit cards, the Destiny card is a welcome option.
- Helpful for Rebuilding Credit For individuals looking to rebuild their credit, the Destiny Credit Card can be a valuable tool. Many reviews mention that the card has helped them improve their credit scores over time, provided they were diligent about making on-time payments and maintaining low balances.
- Simple to Use Cardholders often mention the ease of use when it comes to the Destiny Credit Card. The online account management system is straightforward, and it’s easy to track spending, make payments, and monitor credit utilization. For those who want a basic, no-frills card to help with credit rebuilding, the Destiny Credit Card fits the bill.
- Potential for Credit Limit Increases Another positive aspect highlighted in Destiny Credit Card reviews is the potential for credit limit increases. While the starting limit is low, users have reported receiving credit limit increases after a few months of responsible usage. This is a great feature for people who want to increase their available credit and improve their credit score gradually.
Negative Feedback
- High Fees and APR One of the most common complaints about the Destiny Credit Card is its high fees, particularly the annual fee and interest rates. While the annual fee is relatively standard for credit cards designed for individuals with poor credit, it can still be a deterrent for some. Additionally, the high APR means that carrying a balance can result in costly interest charges.
- No Rewards Program As mentioned earlier, the Destiny Credit Card does not offer any rewards or perks. For individuals who prefer credit cards that provide cashback, travel rewards, or points, this card may be less appealing. Many reviews suggest that the lack of rewards is a significant downside for people who are looking for more value out of their spending.
- Credit Limit Might Not Be Enough The starting credit limit of $300 to $500 may need to be increased for everyone, especially for those who need higher credit limits to cover larger expenses. While some users report receiving credit limit increases over time, the initial limit can feel restrictive for others.
- Not Ideal for International Travelers The Destiny Credit Card charges a foreign transaction fee of 3%. This is a drawback for international travellers who might use their cards frequently abroad. In this case, other cards with no foreign transaction fees would be more beneficial.
Is the Destiny Credit Card Right for You?
The Destiny Credit Card may be a solid option for individuals who are looking to rebuild their credit and are okay with paying a higher annual fee and interest rates in exchange for access to credit. Here’s a breakdown of who should consider the Destiny Credit Card:
Ideal Candidates:
- People with Poor or No Credit: If your credit score is low or you don’t have a credit history, the Destiny Credit Card offers a straightforward path to improving your credit score.
- Those Looking to Rebuild Credit: If you’ve had previous credit problems and are focused on rebuilding your credit score, the Destiny Credit Card can help you achieve that goal as long as you use it responsibly.
- People Who Can Pay Off Their Balance in Full: If you plan to pay off your balance each month and avoid interest charges, the Destiny Credit Card can be a useful tool for establishing or rebuilding credit.
Not Ideal For:
- Individuals Seeking Rewards or Perks: If you’re looking for a credit card that offers cash back, rewards points, or other perks, there are better choices than the Destiny Credit Card.
- People Who Carry Balances: The high APR makes the Destiny Credit Card less ideal for individuals who carry balances month-to-month. If you can’t pay off your balance in full each month, the interest charges could make this card expensive in the long run.
- Frequent Travelers: The foreign transaction fees and lack of travel-related benefits make this card less suitable for frequent international travellers.
Conclusion
In conclusion, the Destiny Credit Card is a solid option for people with poor or no credit who want to rebuild their credit score. While it has some drawbacks, such as high fees, a lack of rewards, and a relatively low credit limit, it offers a straightforward way for individuals to improve their credit history. If you’re looking for a simple, no-frills card that reports to the credit bureaus and helps you establish a better credit profile, the Destiny Credit Card could be a good fit for you. However, if you’re seeking a card with more benefits, rewards, or lower fees, it may be worth exploring other options.
Always ensure you read the terms and conditions carefully and use the card responsibly to maximize its potential benefits for your credit health.
You may also read: Everything You Need to Know About Destiny Mastercard Credit Limit
