GO2bank^TM Secured Visa® Credit Card review: A low security deposit and no credit check — but they come at a cost

Like with any credit card, you’ll need to make on-time payments and maintain low credit usage to improve your credit score with the GO2bank card.

Experts generally recommend to keep your credit utilization ratio under 30 percent to avoid damage to your credit score. If you only deposit $100, you’ll have to keep your balance below $30 to maintain that level of usage. It might be a good idea to put a small recurring charge on the card and set it to pay off automatically each month. This way, you won’t have to worry about using too much of your credit limit, and the issuer will still report positive activity to the bureaus. 

You can track your credit-building progress by checking your VantageScore provided by GO2bank at no charge. Note that FICO is generally considered the most widely used credit scoring model — but you can get a good idea of how your credit is faring by watching either score.

If you want a simple secured credit card that would allow you to focus on credit building, the GO2bank might be a decent choice. Here are a few reasons it’s worth considering.

Approval: Low security deposit & no credit check

If you’re looking to save on a security deposit, the GO2bank Secured is a strong contender because of its relatively low security deposit requirement. It’s more common to see secured cards requiring a security deposit of at least $200.

Plus, GO2bank doesn’t run a credit check when you apply for the secured card. That means you won’t have to worry about not being approved due to your credit history (or lack of it). Plus, your application won’t trigger a hard inquiry on your credit report. A hard inquiry could cost you a few credit score points.

Reporting: Card activity is reported to credit bureaus

The purpose of a secured card is to help you build credit — and that’s only possible when the issuer reports your card activity to Experian, Equifax and TransUnion. GO2bank reports your account standing to the credit bureaus after each billing cycle. This way, your responsible card use can positively influence your credit scores.

While the GO2bank secured card has some appealing features, it also has a few that might make it less than an ideal choice.

Rates & fees: Deposit account required

Before you can apply for the GO2bank secured card, you’ll need a GO2bank deposit account. Moreover, you’ll need to receive direct deposits totaling at least $100 in the past 30 days to unlock the application.

It’s not a good idea to choose a deposit product solely to apply for a credit card from the same issuer. Plus, plenty of issuers don’t have such a requirement. For instance, the Capital One Platinum Secured Credit Card and the Discover it® Secured Credit Card are both highly competitive secured card products that you can get without opening a bank account.

On the bright side, the GO2bank Secured doesn’t charge annual fees, which aren’t uncommon in this card category. The interest rate on purchases (22.99 percent) is also lower than what most secured cards charge. Note that it’s still a high APR, so it’s best to avoid carrying a balance. If you worry that you might need to carry a balance, consider a secured credit card from a credit union. By law, federal credit unions can’t charge cardholders an APR higher than 18 percent.

Credit-building features: No increases or upgrades

You’re probably not going to want to carry a secured card for a long time. Its goal is to improve your credit so you can qualify for better card offers. Once that happens, ideally you should be able to upgrade your card to an unsecured version and get your deposit back. This will allow you to let the account continue to age, positively impacting the length of your credit history — and your scores.

Unfortunately, the GO2bank card doesn’t offer such an option. You’ll have to close the account in good standing to get your security deposit refunded.

Speaking of your security deposit, it’s tied to your credit limit. For example, if you put down $200, you’ll have access to a $200 credit line. After that, you can add more money to increase the limit. Or, some issuers will review your account to see if you qualify for a higher credit line without a higher deposit.

With the GO2bank Secured card, it’s a little more complicated. You can initiate the process through your online account by requesting to adjust your credit limit. The bank will ask for your monthly income and expenses to determine the maximum allowable increase. After that, you’ll be able to increase your deposit accordingly.

The main two advantages of this card is the low security deposit requirement and no credit check. However, other cards might offer the same — and more.

With a modest security deposit requirement and no credit check, this card could be appealing to credit builders. It could be a solid choice for you if:

• You already have a GO2bank deposit account or you’re interested in opening one

• You’re determined to avoid a hard credit pull

• You want to only put small charges on the card while building your credit

Before you apply for the GO2bank Secured card, consider other secured cards to see if they better suit your needs.

Discover it® Secured Credit Card

Best for a welcome offer

Capital One Quicksilver Secured Cash Rewards Credit Card

Best for rewards

Our proprietary card rating system takes into account a mix of factors when scoring credit cards for students and people building credit, including each card’s cost, APR, credit-building tools and more.

We analyzed over 50 of the most popular cards designed for students and people with no credit history, bad credit or a fair credit score and scored each based on where its key features stood in relation to others in its category. 

Here are some of the key factors that gave this card its score: