Destiny Mastercard® review: A simple credit-building card saddled with too many fees for comfort
The Destiny Mastercard Mastercard carries too many fees and too high an APR to recommend over the competition.
Written by
Edited by
The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for .
Snapshot
2.1
Bottom line
The Destiny Mastercard® - $700 Credit Limit isn’t your best option if you are trying to build credit. Other credit-building cards have fewer fees and lower APRs.
Intro offer
N/A
Rewards Rate
N/A
Annual fee
See terms*
Regular APR
See terms*
4.3
Cardholder rating
Extra perks
Online tools
Customer service
Information safe
2.1
Bankrate score
Remove a card to add another to compare
Remove a card to add another to compare
Destiny Mastercard Overview
The Destiny Mastercard is an unsecured credit-building card that can help you rebuild your credit if you have no credit or a bad credit history.
Unfortunately, this card carries high ongoing fees and an incredibly high ongoing APR counterproductive to your credit-building efforts. Though this credit-building card has the same issues as other fee-heavy cards that might help you build your credit, it comes at an even higher cost.
If you need to build credit and the Destiny Mastercard is the only option available, it works in a pinch. However, you should proceed cautiously and switch to a card with fewer fees as soon as your credit score allows.
-
Rewards
- This card does not offer rewards, which is typical of credit-building cards.
Expert Appraisal: Typical
See our expert analysis -
Rates and fees
- 35.90 percent APR
- $175 annual fee the first year, $49 annual fee thereafter
- $0 monthly fee the first year, $12.50 monthly fee thereafter
- Cash advance fee: $5 or 5 percent of the amount of each transaction, whichever is greater (not to exceed $100)
- Foreign transaction fee: 1 percent of each transaction in U.S. dollars
- Late payment fee: up to $41
- Returned payment fee: up to $41
Expert Appraisal: Weak
See our expert analysis -
Credit-building features
- Reports to all three major credit bureaus
- All credit histories are considered
Expert Appraisal: Unimpressive
See our expert analysis -
Other cardholder perks
- 24/7 account access
- Autopay
- Fraud protection
- Overlimit coverage
- Credit protection
Expert Appraisal: Unimpressive
See our expert analysis
Destiny Mastercard pros and cons
Pros
-
Instant approval allows you to add the Destiny card to your digital wallet as soon as you’re approved.
-
This card reports to all three major credit bureaus, ensuring your credit-building efforts.
-
You don't need to put down a security deposit.
Cons
-
Numerous high card fees will cut into your starting credit limit and make it harder to build credit.
-
Very high APR means carrying a balance on this card can quickly rack up interest.
-
This card's relatively low credit limit can make maintaining a healthy credit utilization ratio difficult.
Why you might want the Destiny Mastercard
The Destiny Mastercard keeps things simple, which is great for focusing on building credit. Here are a few reasons you might turn to the Destiny Mastercard for your credit-building needs.
Credit-building features: Reports to all three credit bureaus
The Destiny Mastercard reports your credit to all three major credit bureaus: Experian, Equifax and TransUnion. By reporting to all three bureaus, the Destiny Mastercard helps keep your score accurate no matter which bureau an issuer uses to gauge your credit score.
Card approval: You can use the card immediately
Once you’re approved for the Destiny Mastercard, you can immediately add the card to your digital wallet. This means you can start using your card as soon as you get confirmation, with no need to wait for a physical card.
While this may not prove exceedingly useful given the modest credit limit, it’s a nice feature if you’re eager to improve your credit as soon as possible. Remember, you’ll need a mobile device that supports mobile wallets to use this feature.
Why you might want a different credit-building card
While the Destiny Mastercard is marketed as a card designed for building credit, the card’s fees and low initial credit limit can make that a hard goal to achieve.
Rates and fees: Numerous fees and a sky-high interest rate can strain your wallet
The Destiny Mastercard features extremely high fees for a credit-building card. You’ll need to pay a $175 annual fee for the first year and $49 for each year afterward. On top of the annual fee, you’ll also pay a monthly fee, which is an uncommon fee on most mainstream credit cards but found on cards for poor credit. This monthly fee is waived for the first year from account opening, but you’ll be charged $12.50 per month after that ($150 annually).
These two charges combine to cost $199 annually to keep the account open. These fees cut directly into your already low initial credit limit and could make it difficult to focus on building your credit.
The Destiny Mastercard also has a very high variable interest rate of 35.90 percent. Very few cards on the market feature an APR this high, and carrying a balance can present an enormous risk of quickly accumulating expensive interest charges and increasing credit card debt.
Ideally, cardholders should always pay their statement balance in full at the end of each month to avoid accruing interest. Many other credit-building cards with a more favorable interest rate would be better if you need to carry a balance.
Credit limit: Small credit line limits your spending options
Your credit utilization ratio — the percent of credit you’re borrowing from your total credit availability — is an important factor in determining your credit score. Ideally, you want to keep your ratio at 30 percent or below. Going above this percentage over time can ultimately harm your credit score.
With an initial credit limit of just $700, you won’t have much room to work with if you want to stay under that 30 percent target. Assuming the Destiny Mastercard is your only source of credit, carrying a balance above $210 will result in a credit utilization ratio greater than 30 percent. The card’s annual and monthly fees make this even more difficult. These fees are applied directly to your account and take up some of your limited available credit.
Credit building: Minimal features
The Destiny Mastercard offers surprisingly few credit-building features. While it reports to all three major credit bureaus and considers applications from most credit histories, these are standard features on most credit-building cards. The Destiny Mastercard doesn’t offer to increase your credit limit after a certain period of on-time payments or provide free FICO credit score access. Both features are great to have if you’re serious about boosting your credit score.
Rewards: No additional value
While this isn’t uncommon among credit-building cards, the lack of cash back or rewards on purchases especially stings considering the card’s annual and monthly fees. Also, with such a low credit line, there is no incentive to spend on this card.
Perks: Just more extra fees
The perks on this card are typical — fraud protection, autopay and 24/7 account access. However, overdraft coverage and credit protection add more excessive fees on top of what’s already being charged.
Overdraft coverage is an optional feature that allows you to make purchases when you exceed your credit limit for a fee of up to $41. You’ll only pay one fee per cycle, but you can be charged two additional fees if your new balance stays over your credit limit after a billing cycle.
Credit protection covers you in events like emergencies, injuries or unemployment. For a fee of $1.49 per $100 of your balance, your monthly payments can be canceled for up to six months if you have a qualifying event.
These fees can add up and should be avoided unless absolutely necessary.
How the Destiny Mastercard compares to other credit-building cards
The Destiny Mastercard should only be considered a last-resort option for building credit. While this is an unsecured card, other credit-building secured cards on the market offer superior features without overwhelming fees.
Destiny Mastercard® - $700 Credit Limit
Annual fee
Intro offer
Rewards rate
Recommended Credit Score
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Annual fee
Intro offer
Intro Offer: Unlimited Cashback Match - only from Discover. Discover will automatically match all the cash back you've earned at the end of your first year! There's no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Rewards rate
Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Earn unlimited 1% cash back on all other purchases.
Recommended Credit Score
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Annual fee
Intro offer
Rewards rate
Recommended Credit Score
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Who is the Destiny Mastercard right for?
This card suits those who need to work on their credit and don't have many other options.
Bankrate’s Take — Is the Destiny Mastercard worth it?
The Destiny Mastercard is a last-resort pick for consumers with a history of poor credit and few other credit-building options. Unfortunately, the annual fee, monthly fee and high APR make this card a lackluster and risky choice given the other cheaper and more effective credit-building cards on the market.
How we rated this card
When evaluating the best cards for building credit, we consider a mix of factors, including how cards score in our proprietary card rating system and whether cards offer features that make it easy to build credit history while minimizing costs.
We analyzed over 50 of the most popular cards designed for people with no credit history, bad credit or a fair credit score and rated each based on its cost, APR, credit-building features and more to determine whether it belonged in this month’s roundup.
Here are some of the key factors that we considered:
Frequently asked questions
The information about the Destiny Mastercard has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the issuer.
What cardholders think
Destiny Mastercard® - $700 Credit Limit
In May 2024, Bankrate collaborated with third-party SliceMR to survey 6160 cardholders nationwide. Bankrate and Slice MR collected, averaged and presented website analytics and cardholder responses to six questions on a 5-point scale. Responses are based on individual cardholder’s product details, and therefore cannot be verified for accuracy. Users received an incentive for their feedback. User ratings are unedited and have not been reviewed or approved by credit card issuers, nor do these ratings reflect Bankrate’s own reviews of these cards.
Community Reviews
* See the online application for details about terms and conditions for these offers. Every reasonable effort has been made to maintain accurate information. However all credit card information is presented without warranty. After you click on the offer you desire you will be directed to the credit card issuer's web site where you can review the terms and conditions for your selected offer.
Editorial Disclosure: Opinions expressed here are the author's alone, and have not been reviewed or approved by any advertiser. The information, including card rates and fees, is accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information.
