Destiny Mastercard® Review: An Expensive Way to Build Credit

The Destiny Mastercard® is designed for building credit, and there's no minimum credit score required to get it. But it also has costly fees, including an annual fee and a monthly fee starting the second year. Keep reading our Destiny Mastercard® review and see if it's a good way to raise your credit score.

This credit card is a good fit for: People with bad credit who have been declined for other credit cards.

Top perks

While it doesn't have a lot to offer, the Destiny Mastercard® offers a couple of benefits.

Helps you build credit with lenient approval requirements

It's harder to get a credit card when you have a low credit score. And that puts you in a tough spot, because a credit card is one of the best ways to build credit.

The Destiny Mastercard® is an option that's available to anyone. Have bad credit because of late payments, delinquent accounts, or any other reason? You could be eligible for this card. The same is true if you're new to credit -- but in that case, you may be able to qualify for better starter credit cards.

Another reason this card helps you build credit is because activity is reported to all three credit bureaus. There are three companies, Equifax, Experian, and TransUnion, that calculate a credit score for you. You wouldn't want a credit card that only reports to one or two of them. For example, if your card doesn't report to Equifax, then you won't have a credit score with Equifax. You won't need to worry about that with the Destiny Mastercard®.

OTHER OPTIONS: Best Credit Cards for Bad Credit

No security deposit required

Many of the cards for building credit are secured credit cards. These require a security deposit to open. They're easier to get, because the card issuer has more protection. If you don't pay your bill, it can use your deposit to cover what you owe.

The Destiny Mastercard® is one of few credit cards for poor credit that doesn't require this. It's an unsecured card with no deposit needed, so it saves you money upfront. But before you get too excited about that, know that this card doesn't save you money for long. It has a $175 annual fee that's charged to your account during the first billing cycle.

What could be improved

There are a few reasons why the Destiny Mastercard® is one to avoid.

Excessive fees

The worst part about this card are the setup and maintenance fees. It charges:

• An annual fee of $175 the first year, $49 thereafter
• A monthly fee of $0 the first year, $12.50 per month thereafter ($150 per year)

I've seen plenty of credit cards that charge an annual fee. I've seen a few that charge a monthly fee. An annual fee and a monthly fee is way too much. It gives the impression that this card issuer wants to take advantage of people who have poor credit and squeeze every last dollar it can out of them.

A secured credit card is a much better option. It costs you money upfront, but at least you can get that money back. Your deposit is refunded if you're able to upgrade to an unsecured card or if you close the account in good standing.

With a Destiny Mastercard®, there's not even an option to upgrade. After you've built your credit and can qualify for top credit cards, you'll need to cancel this card to stop paying its costly fees.

No rewards

The Destiny Mastercard® doesn't earn you anything back on purchases. There's no cash back and no points. This isn't a surprise. It's not a feature you see often with credit cards for bad credit (although a select few offer rewards). But it shows that the expensive setup and maintenance fees you pay for this card don't get you a whole lot.

High APR

As you may have expected, the Destiny Mastercard® charges a ton of interest. It has one of the highest APRs you'll find on a credit card. Considering credit cards are known for high interest rates, that's saying something.

A good rule to follow with credit cards is to always pay your card's full balance by the due date. When you do that, you're not charged credit card interest. It's especially important with a Destiny Mastercard® because of its enormous APR.

LEARN MORE: What Is APR?

There's no minimum credit score to get the Destiny Mastercard®. According to the card issuer, it will consider applicants with all credit histories, including if you have a prior bankruptcy filing.

Keep in mind that approval isn't guaranteed. This is one of the easiest credit cards to get, but applications are still reviewed by the card issuer, and it's possible to be approved or denied.

You've tried applying for other credit cards already and have been declined. Make sure you've tried secured credit cards, too, before turning to the Destiny Mastercard®.

The Destiny Mastercard® is a last resort. You can use it to build your credit, but you'll pay nearly $200 a year for it, and you won't be able to upgrade it to anything better.

Our credit card methodology

At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how The Ascent rates credit cards.