Destiny Mastercard®
REVIEW

While many credit card issuers have either stopped accepting applications or scaled back approval due to the Covid-19 pandenic, Genesis Financial Services has launched a new card called The Destiny Mastercard. It is a credit card targeted at those of you with bad to fair credit in which you get a starting credit limit of $300 in return for a $59 annual. In this review, we will see how this card stacks up against it's peers.

Fees - The Digital Mastercard has an annual fee of $59 to $99. This is very reasonable for a subprime credit card. They do not charge any monthly maintenance fees or one-time application fee. The regular APR is typical of a subprime card and we advise those who have this card to pay your bills in full every month rather than carry a balance.

Reports to ALL 3 Credit Bureaus - Destiny reports to all three major credit bureaus. That means that as long as you pay your bills on time and keep your utilization rate low, you will see improvements in your credit score over time.

Starting Credit Limit - Your starting credit limit is $300. You will also be billed your annual fee on the first billing statement. So it is best to pay it off so that you will have your full credit limit on the next cycle. If you choose to use the card during your first billing cycle, your credit limit will be ($300 - $59 = $241) $241.

• Mastercard ID Theft Protection - This services monitors your vital information like email address, credit card numbers, social security numbers in the dark web to detect any possibility of it being stolen. TransUnion is also monitored for potential ID theft. If an ID theft is suspected, Mastercard will provide Resolution Services.


• Zero Liability Protection - This is present in almost all credit cards. Essentially, you will not be held liable for any fraudulent charges to your credit card.

The Digital Mastercard is targeted to those of you with either bad or fair credit. The most obvious way to compare this card to it's peers is to first compare the fees.

Compare Fees - In the fair credit card space, there are credit cards with no annual fee. Examples include Avant Credit Card, Upgrade Visa Card. While on the surface these cards are more appealing because they do not have any annual fee, chances are that you would need a higher credit score (at least 650 or better) to get approved for these cards.

The next category of subprime credit cards are similar to Digital Mastercard in that they charge a decent annual fee. Genesis Financial has two other cards, the Milestone Mastercard and Indigo Mastercard. Both only charge an annual fee. For Milestone, it the annual fee is either $35, $75 or $99. For Indigo, it is either $0, $59 or $75. There are also cards like Credit One Bank and Nascar that have annual fee ranging from $0 to $99. So although Digital Mastercard has an annual fee, it is very competitive with it's peers.

There is another group of subprime credit cards which not only charge an annual fee, but also a monthly maintenance fee and sometimes a one-time application fee also. Examples include the Reflex Mastercard and Surge Mastercard.

Compare Rewards - Aside from fees, let us look at rewards. Most credit cards targeting folks with bad credit do not have reward programs. But increasingly, more are offering them. Credit One offers a cash back program. Nascar credit cards gives you cash back when you shop at nascar.com and also on other purchases. Even a secured card like Discover offers cash back program. The Digital Mastercard does not have any reward program.

Mobile App - Customers increasingly expect their credit card issuers to have an app. Digital Mastercard (as well all other Genesis Finance cards like Indigo and Milestone) does not have an app. In contrast, Credit One and Continental Finance has mobile apps for their card members.

Free Credit Score - The Digital Mastercard does not offer any free credit scores for card members. However, some of their peers like credit cards from Credit One and Continental Finance offer free credit scores.

Competition Sum Up - As far as fees go, the Digital Mastercard is pretty competitive with it's peers. It lacks other features like mobile app, free credit score, rewards that are increasingly common in other cards.

Pros

• Very Reasonable Annual Fee - The annual fee of $59 to $99 is very reasonable. 

• No Monthly Fee or Upfront Application Fee - Many other credit cards targeting folks like you with bad credit have monthly maintenance fees. Some even require an upfront application fee. and they play games with you by saying there is no monthly fee for the first year but only from the second year onwards. This card only has an annual fee and that's it.


• Pre-Approval Soft Pull - Before you can apply for this card, you actually will have to go through a pre-approval process. This is only a soft pull so if you are not pre-approved, there is no hard pull on your credit report.


• Manage Account Online 24/7 - You can manage your account online 24/7 from your online portal.


• Free Online Payment - While many customers expect this, there are some cards that still charge for making online payments.


• Prior Bankruptcy is OK - Those of you who have just emerged from BK might have a hard time getting approved for credit. Destiny will approve folks like you with prior BK on your credit report.

Cons

• No Rewards - Most subprime credit cards do not have reward program. But increasingly, more ARE offering them. Cards from Credit One and even Discover's secured credit cards offer them.


• No Credit Limit - Destiny will not increase your credit limit. It is set at $300.


• No Mobile App - Though you can manage your account online, there is no app for this card at the moment.


• No Free Credit Scores - More of Digital Mastercard peers are providing some form of free credit scores. At the moment, Digital Mastercard does not provide any free credit scores.

If you have bad credit or fair credit and want an unsecured credit card, I would recommend that you see if you can get pre-approved for the Destiny Mastercard. The reason is because all they charge is a reasonable annual fee of $59 to $99. Many subprime unsecured credit cards charge a monthly maintenance fee on top of an annual fee.

Furthermore, the pre-approval process does not involve a hard pull (only a soft pull) so you have no hard pull risk unless you decided to proceed with the actual application once you get pre-approved. The APR is very typical of most subprime credit cards and if you get approved for this card, I would suggest that you pay your balance off in full every month.

Destiny has explicitly stated that they will accept folks with prior bankruptcies so if you have emerged from a recent BB, you might want to give this card a shot. It is also an ideal card for those of you who started off with secured credit cards and want to get an unsecured credit card.