Destiny Mastercard®

Destiny Mastercard at a Glance

The Destiny Mastercard is an unsecured credit card designed for consumers with challenging or less-than-perfect credit histories. The currently linked offer provides a $700 credit limit if approved and does not require a security deposit.

• Card type: Unsecured Mastercard
• Issuer: The Bank of Missouri under the currently linked terms
• Account servicer: Concora Credit Inc.
• Credit limit: $700 if approved
• Security deposit: None
• Purchase APR: 35.9%
• First-year annual fee: $175
• Initial available credit: Approximately $525 after the first-year annual fee
• Monthly fee: $0 during the first year, then $12.50 per month
• Credit reporting: Monthly reporting to all three major credit bureaus
• Rewards: None

Finance Globe’s Take

The Destiny Mastercard provides access to an unsecured $700 credit line without requiring a security deposit. That may appeal to someone who wants to establish or rebuild payment history but does not want to place several hundred dollars into a secured-card deposit.

The primary drawback is cost. The $175 first-year annual fee is charged to the account when it is opened, reducing the initial available credit from $700 to approximately $525. The card also has a high APR and begins charging a $12.50 monthly fee after the first year.

This card makes the most sense when obtaining an unsecured card is important and the cardholder expects to keep spending limited, make every payment on time and preferably pay the statement balance in full. Someone who qualifies for a lower-cost unsecured or secured card may receive better long-term value elsewhere.

How the $700 Credit Limit Works

The currently linked Destiny offer provides a $700 credit limit if the application is approved. This is a defined initial limit rather than a range of possible credit limits.

The entire $700 will not initially be available for purchases. The $175 first-year annual fee is charged directly to the account, leaving approximately $525 available before any purchases, interest or additional fees are applied.

For example, making $100 in purchases after the annual fee is assessed would increase the account balance to approximately $275 and reduce the remaining available credit to approximately $425.

Keeping the balance well below the limit and making payments by the due date can help preserve available credit. Credit utilization, payment history and activity elsewhere in a credit report may also affect a consumer’s credit profile.

Destiny Mastercard Fees and APR

The currently linked account terms list the following costs:

• First year: $175 annual fee and no monthly fee
• After the first year: $49 annual fee plus a $12.50 monthly fee
• Total annual and monthly account fees after the first year: $199 per year
• Purchase APR: 35.9%
• Cash-advance APR: 35.9%
• Cash-advance fee: $5 or 5% of the transaction, whichever is greater, with a maximum of $100
• Foreign-transaction fee: 1% of each transaction in U.S. dollars
• Late-payment fee: Up to $41
• Returned-payment fee: Up to $41
• Overlimit fee: Up to $41

The monthly fee beginning after the first year is particularly important. Although the annual fee decreases to $49, the additional $150 in yearly monthly fees brings the combined ongoing account fees to $199 per year.

The payment due date is at least 25 days after the close of each billing cycle. Purchase interest can generally be avoided by paying the entire balance by the due date, subject to the account terms. Cash advances begin accruing interest on the transaction date.

Application and Credit-Inquiry Details

Destiny states that if an application is not approved, a hard inquiry will not appear on the applicant’s credit report and the credit score will not be affected. An approved application may result in a hard inquiry.

This protection does not guarantee approval. The currently linked terms state that the issuer may review income, debt, identity-verification information, credit history and other qualification criteria.

The terms also include additional eligibility requirements. Among other conditions, applicants generally cannot have an existing Destiny Mastercard account, cannot have applied for a Destiny Mastercard within the previous 60 days and cannot have had a Destiny account charged off because of delinquency.

Finance Globe does not recommend a particular FICO score or claim that being above a specific score provides a higher chance of approval. A credit score is only one part of the issuer’s decision.

Does the Destiny Mastercard Report to the Credit Bureaus?

Yes. Destiny states that account activity is reported monthly to Equifax, Experian and TransUnion. This gives cardholders an opportunity to establish payment history across all three major credit bureaus.

Credit reporting does not guarantee that a credit score will increase. Payment history, balances, credit utilization, account age and other information in a credit report can all affect a consumer’s score.

Late or missed payments may also be reported. Cardholders should make at least the minimum payment by the due date and keep the balance manageable.

Destiny Mastercard Account Access

Existing cardholders can use Destiny’s online account-management system to view account information, check balances and manage payments. Finance Globe does not issue or service Destiny accounts and cannot access application or cardholder information.

New cardholders should use the account-access instructions provided with the card. When following a link found through a search engine, verify that it leads to the official Destiny or Concora account-management website before entering account information.

Who the Destiny Mastercard May Be Useful For

The Destiny Mastercard may be worth considering for someone who:

• Wants an unsecured credit card without providing a security deposit
• Has experienced difficulty qualifying for traditional credit cards
• Wants monthly reporting to all three major credit bureaus
• Understands that the first-year annual fee reduces the initial available credit
• Plans to keep the account balance low and make every payment on time
• Does not need cash-back, points or travel rewards
• Has compared the ongoing fees with secured and lower-cost unsecured cards

Important Things to Consider

• The $175 first-year annual fee reduces the initial available credit to approximately $525.
• A $12.50 monthly fee begins after the first year.
• The combined annual and monthly account fees after the first year total $199.
• The card has a high purchase and cash-advance APR.
• The card does not currently earn purchase rewards.
• Cash advances begin accruing interest immediately and may have an additional transaction fee.
• Approval is not guaranteed.
• Monthly credit reporting does not guarantee credit-score improvement.
• The terms shown during the application process control if they differ from information displayed elsewhere.

Frequently Asked Questions

Is the Destiny Mastercard a secured credit card?

No. The Destiny Mastercard is an unsecured card and does not require a security deposit.

What is the Destiny Mastercard credit limit?

The currently linked offer provides a $700 credit limit if the application is approved.

Why is the initial available credit approximately $525?

The $175 first-year annual fee is charged to the account. Subtracting that fee from the $700 credit limit leaves approximately $525 available before purchases or other charges.

Does the Destiny Mastercard have an annual fee?

Yes. The currently linked terms charge a $175 annual fee during the first year and a $49 annual fee thereafter.

Does the Destiny Mastercard charge a monthly fee?

There is no monthly fee during the first year. Beginning after the first year, the card charges $12.50 per month, or $150 annually.

Does applying affect your credit score?

Destiny states that if the application is not approved, a hard inquiry will not appear and the applicant’s credit score will not be affected. An approved application may result in a hard inquiry.

Does the Destiny Mastercard report to all three credit bureaus?

Yes. Destiny states that account activity is reported monthly to Equifax, Experian and TransUnion.

Does the Destiny Mastercard earn rewards?

No. The current offer does not earn cash back, points or travel rewards.

Who issues the Destiny Mastercard?

The currently linked terms identify The Bank of Missouri as the card issuer. Concora Credit Inc. services the account.

What credit score is needed for the Destiny Mastercard?

Destiny does not publish a guaranteed minimum credit score for approval. The product is designed for consumers with challenging credit histories, but approval can depend on credit history, income, debt and other application information.

Is approval guaranteed?

No. The $700 credit limit applies if the application is approved, but approval itself is not guaranteed. Applicants remain subject to the issuer’s qualification and identity-verification requirements.

Finance Globe’s Bottom Line

The Destiny Mastercard provides a defined $700 credit limit if approved, does not require a security deposit and reports account activity to all three major credit bureaus. Those features may be useful to someone who has had difficulty qualifying for a lower-cost unsecured card.

The tradeoff is cost. The $175 first-year annual fee substantially reduces the credit initially available. After the first year, the combined annual and monthly account fees total $199, and the card’s 35.9% APR makes carrying a balance expensive.

The card is best suited to someone who values unsecured access to credit, understands the fees and plans to keep the balance low. Applicants should review the current rates and fees before applying.