Destiny® Mastercard® Credit Card 2024 Review: High Fees and No Benefits

Is the Destiny® Mastercard® Worth It?

The Destiny® Mastercard® is only worth it for a select set of borrowers—namely, those who have suffered financial issues like bankruptcy. Despite the card’s lack of a security deposit and accessibility to people with imperfect credit, most people can find a better credit card elsewhere that doesn’t break the bank on fees.

Here’s why the Destiny® Mastercard® isn’t your best option:

• It’s expensive: You’ll get an unsecured credit line worth only $300, which hardly justifies the card’s steep annual fees of $59–$99. The Destiny® Mastercard® has no rewards, few benefits, and a fairly high APR, meaning there’s plenty for the card issuer to gain, but few benefits for cardholders.
• You’ll have little room to grow: You can’t request an increase on your credit limit with the Destiny® card, and there’s no guarantee that you’ll ever even be considered for a higher credit limit, even if you’ve been a responsible cardholder. This leaves you with limited potential to raise your credit score by showing you can handle a larger line of credit.
• You’d be better off with a secured card: It’ll only be roughly 3–5 years before you’ve paid the same amount of money in annual fees that you’re eligible to borrow. At this point, you would’ve been better off if you’d just put the $300 toward a deposit on a secured card, especially one that offers a refundable deposit.

The bottom line is you should only consider getting the Destiny® Mastercard® if you have no money for a security deposit and very limited card options because of black marks on your credit report. Even then, be prepared to only reap benefits from the card in the short term.

Destiny® Mastercard® Pros & Cons

Who is the Destiny® Mastercard® for?

While the Destiny® Mastercard® shouldn’t be everyone’s first consideration for a new credit card (considering its high annual fee), there’s a handful of borrowers the card may appeal to, including those who…

• Have exhausted other options: If you’re having trouble qualifying for a credit card but have already received a Destiny offer in the mail, it may be worth accepting if you need credit fast and have nowhere else to turn.
• Can’t pay a deposit: If you’re eager to open a credit card but don’t have the funds to put down a security deposit, the Destiny® Mastercard® is one of the rare unsecured credit cards for bad credit.
• Are recovering from bankruptcy: If your credit history has negative marks, qualifying for a line of credit may be extremely challenging. The Destiny® Mastercard® advertises itself as an option for all borrowers, even those with a past bankruptcy. 1

If the above doesn’t apply to you, or if you’re still wary of opening a low-limit credit card with a high annual fee, consider checking out your options in the following lists:

• Credit cards for bad credit
• Unsecured credit cards for bad credit
• Credit cards for no credit
• Secured credit cards

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Rates & Fees

Fees

• Annual fee (offer A): $75 in the first year; $99 after that
• Annual fee (offer B): $59
• Cash advance fee: $5 or 5% (whichever is greater), but never over $100
• Foreign transaction fee: 1%
• Late payment fee: Up to $40
• Returned payment fee: Up to $40
• Overlimit fee: $40

One of the major drawbacks of the Destiny® credit card is its high annual fee, which isn’t offset by any cashback rewards or particularly notable benefits. You’re essentially paying for the privilege of accessing a limited credit line.

Interest Rates

• Purchase APR: 24.90%–35.90% (variable)
• Cash advance APR: 29.9%
• Minimum interest charge: $1.00

If you don’t pay your Destiny® Mastercard® credit card balance in full each month, you’ll be charged interest. The rate of interest you’ll pay each year is your annual percentage rate (APR). You can avoid paying any interest by ensuring that you don’t carry a balance from one month to the next.

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Rewards

The Destiny® Mastercard® doesn’t have a rewards program. While rewards are uncommon amongst credit cards for bad credit scores or limited credit histories, they do exist. You’re even more likely to find rewards within this range if you consider getting a secured credit card.

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Credit Limit

The Destiny® Mastercard® comes with a credit limit of only $300. This is very low, even for a credit card for bad credit. When we spoke to the customer service team, they said that the card servicer may eventually contact you if you’re eligible for a credit limit increase, but you can’t request an increase on your own.

Your credit score depends partly on a metric called credit utilization rate, which measures the amount of your available credit that you’re using (a lower rate is better). If you have a higher credit limit, it’s easier to maintain a good credit utilization rate, so this can improve your credit score. The low limit on this card means you can only borrow very little at a time to keep this rate on the good side.

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Benefits

The Destiny® card comes with a few basic benefits available to all Mastercard® account holders:

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How to Get a Destiny® Mastercard®

Credit Score Required

The Destiny® Mastercard® website doesn’t specify any credit score requirements. However, as the card is meant for credit building, you probably have a good chance of getting approved, even with a bad credit score (FICO scores between 300–579).

How to Apply

If you’ve received a Destiny® Mastercard® offer in the mail, you can respond online. Otherwise, you can prequalify online. This will tell you whether you’re likely to be approved and whether it’s worth filling out a formal application.

You’ll need to meet the requirements below to be approved for the Destiny® Mastercard®:

• Be at least 18 years old (or 19 years old in Alabama)
• Have a valid Social Security number
• Have a valid physical address
• Have a US IP address
• Not have previously had a Destiny® Mastercard® account that was charged off due to late payments
• Meet additional credit qualification criteria (e.g., a review of your income and your debt plus other identity verification requirements).

Once you’re approved, you’ll have to wait up to 14 business days to receive your card.

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Building Credit with a Destiny® Mastercard®

Credit Reporting

Credit reporting is an important part of building credit, as your credit report is based on the information your lenders send to the credit bureaus. Credit card issuers aren’t legally required to report your account activity to the credit bureaus, and those that do may only report to one or two of the three main credit reporting agencies.

Your Destiny® Mastercard® account will be reported to all three bureaus (Equifax, Experian, and TransUnion). This means that all of your actions and behaviors as a cardholder will affect all three of your credit reports and all of your credit scores.

Tips for Building Credit

Because the Destiny® Mastercard® credit card reports to all of the major credit bureaus, it’s suitable for credit building and credit rebuilding. Here are some tips for using your card to improve your credit score.

• Don’t use too much of your credit: You want to keep a low credit utilization ratio every month, meaning you don’t want too high of a balance reported to the bureaus. To keep your ratio low, only borrow a fraction of your credit limit or frequently pay off your balance.
• Don’t miss payments: Failing to pay your Destiny® Mastercard® bill on time can result in two things: late fees and a negative report to the credit bureaus. While the latter will directly hurt your credit score, the former (given a single late fee can be up to $40) will be deducted from your available credit, making paying off your balance even harder.
• Pay your balance off early: Your credit card activity will most likely be reported on the last day of the billing cycle, which is your statement closing date. Paying your balance down or completely off before then means a low outstanding balance will be reported to the credit bureaus, which can help raise your score.

Bear in mind that if you’re struggling with debt, the Destiny® Mastercard® may not be a good choice because it will set you back with unnecessary fees. The most important part of rebuilding your credit is paying your bills on time.

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Comparable Cards

To decide whether the Destiny® Mastercard® credit card is right for you, take a look at how it measures up against other cards for lower credit on the market.

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Destiny® Mastercard® FAQs

What bank is the Destiny® Mastercard®?

The Destiny® credit card is issued by First Electronic Bank. However, the card is serviced by Genesis FS Card Services, Inc.

How do you cancel the Destiny® Mastercard®?

The Destiny® credit card really only has short-term benefits for recovering from damaged credit. Once you’ve used the card to establish a decent payment history, you’ll probably want to cancel your Destiny® Mastercard® account and upgrade to a better card.

Here’s how to cancel your Destiny® credit card account:

1. Contact customer service at 1 (800) 583-5698 and ask to close your account
2. Return all of the credit cards associated with your Destiny® Mastercard® account
3. Cancel all billing arrangements to your Destiny® credit account

Does the Destiny® Mastercard® have a grace period?

The Destiny® Mastercard® credit card gives you a grace period of 25 days (beginning on the first day of the new billing cycle) before interest begins accumulating.

As long as you pay your balance before this grace period ends, you won’t have to pay any interest charges. However, if you carry a balance over into the next billing cycle, you’ll have to pay interest at a rate of 24.90%–35.90% (variable).

It’s worth noting that cash advances don’t have any grace period. If you use your Destiny® Mastercard® to withdraw funds from an ATM, interest will begin accumulating at the high rate of 29.9% starting from the same day as the withdrawal.

Can you use the Destiny® Mastercard® abroad?

Not all credit cards permit foreign transactions, but the Destiny® Mastercard® does. However, when you use your Destiny® Mastercard® credit card abroad for transactions, you’ll be charged a foreign transaction fee equivalent to 1% of the transaction amount.

This is a fairly typical foreign transaction fee, but some card issuers will charge up to 2% or 3%, whereas others won’t charge you anything at all.

What’s Destiny’s customer service contact information?

If you have questions about the Destiny® Mastercard® credit card, you can contact customer service by phone at (800) 583-5698 or by FAX at 503-268-4711.

You can also write to them at the address below:

Genesis FS Card Services

PO Box 4477

Beaverton, OR 97076-4477