Do you want to develop credit without putting down a deposit? This card is capable of completing the task.
Overview of the Card
The Mission Lane Visa® Credit Card lacks nearly all of the bells and whistles you’d expect to find on the best credit cards, but it could make sense as a stopgap solution for someone with a bad credit score or limited credit history who wants to improve their score without tying up hundreds of dollars in a security deposit.
The Mission Lane Visa card has a moderate annual price when compared to other unsecured cards accessible to those with terrible credit, is devoid of the hidden fees that plague subprime cards, and does not ask you to put down any money as a deposit.
However, the card’s limited beginning credit limit and annual fee—however modest—mean that a secured credit card would likely be a better option, providing greater flexibility at a cheaper cost, even if you have weak credit. And if your credit is fair or average, you may almost certainly locate a lower-cost, more rewarding unsecured option.
What are the pros and cons?
|Available even if you have a less-than-perfect credit history, making it a good entry-level card if you need to develop or repair your credit.||Even for a credit-building card, the APR is sky-high, making it a dangerous pick if you're new to credit or struggle to pay off your debt each month.|
|Because it's an unsecured card, you won't have to pay a security deposit to get started.||There are other secured cards that have no annual fee and, since your security deposit is refundable, will be less expensive than the Mission Lane card.|
|The yearly charge is quite modest when compared to many other unsecured cards accessible to those with bad credit.||A credit limit of $300 as a starting point isn't especially noteworthy.|
|After six months of responsible card usage and on-time payments, you may be considered for a larger credit limit.|
A more in-depth look at the current card offer
- Rewards rate: N/A
- Welcome offer: N/A
- Annual fee: $0 – $59
- Purchase intro APR: N/A
- Balance transfer intro APR: N/A
- Regular APR: 26.99 – 29.99 percent (variable)
Advantages for cardholders
As you may imagine given the Mission Lane Visa card’s lack of rewards, the card likewise lacks in terms of other advantages. Aside from the $0 deposit requirement and possible credit-building advantage, the card has just a few features worth mentioning.
There are no security deposits needed
Perhaps the most enticing aspect of the Mission Lane Visa is its $0 deposit requirement. You’ll get access to a $300 minimum credit limit without putting down any money other than the card’s annual fee.
While there are several free annual fee secured cards available, you’ll usually need to make a deposit of at least $100 to $200 to get started. Even though such deposits are refundable if you delete your account or switch to an unsecured version of the card, they might be inconvenient if you’re low on cash or would want to have immediate access to that money. As a result, the Mission Lane Visa may be a better short-term match to help you improve your credit before moving on to a more rewarding and lower-cost card.
Possibility of a credit limit increase
Though the Mission Lane Visa may start with a credit limit as low as $300 (a standard beginning limit for unsecured credit-building cards), the issuer allows you to increase your credit limit by showing responsible card usage. If you make on-time card payments for at least six months, you’ll be eligible for a greater limit at no extra charge.
While this is a standard period for obtaining a credit limit increase, many subprime lenders provide no stated instructions for when or whether you may get a higher limit. This is important to remember since a larger limit should make it simpler to keep your credit usage ratio in check—the amount of money you’ve drawn in relation to your total available credit—which may assist accelerate your credit-building efforts.
However, since the amount you put down as a deposit often doubles as your credit limit, a secured card will likely provide you with greater control over your credit limit. If you have the funds to spare and choose a secured card that allows you to make a high deposit, you may get a matching credit limit and enjoy even greater credit utilization breathing space.
Financial tools and a mobile app
In addition to 24/7 service and account access via the Mission Lane website and mobile app, you may use some of the issuer’s financial planning and education features to track spending and monitor your credit score and credit use. Mission Lane also reports to all three major credit agencies, as should any credit-building card.
Basic Visa Benefits
As a typical Visa card, the Mission Lane Visa comes with a slew of perks for cardholders, including 0% responsibility for fraud, 24/7 pay-per-use roadside assistance, and 24-hour support for lost or stolen cards. These are some of the basic minimum perks you should anticipate from a credit card, so the Mission Lane Visa doesn’t deserve particular recognition for including them.
Fees and rates
The annual fee for the Mission Lane Visa card may put you off, but it’s surprisingly modest for an unsecured card open to those with weak credit. Many unsecured cards in this category levy yearly costs of about $100, with others charging extra account activation fees and even greater annual or monthly fees in the second year. While the Mission Lane card is not the lowest credit-building choice, it is also not the most expensive.
However, if you have at least acceptable credit, the Mission Lane card’s annual cost will be difficult to explain, since you should be able to locate an unsecured card with a reduced or no annual fee. Some cards, such as the Capital One QuicksilverOne Cash Rewards Credit Card, even include cashback programs that allow you to not only pay the cost of the card but also earn money on top of it.
While the annual fee for the Mission Lane Visa card may be bearable if you have terrible credit and want an unsecured card, keep in mind that the card might be pricey if you end up having to carry a load. Cardholders are subject to a variable APR ranging from 26.99 to 29.99 percent, which is roughly twice the average credit card interest rate. Though a high rate is to be anticipated at this credit level, if you are concerned about your capacity to pay in full each month, you might seek a card that provides a variety of APRs or a lower standard APR.
The card also includes a 3% foreign transaction charge, so it’s not the ideal option if you require a card to use abroad. Consider the Petal® 1 “No Annual Fee” Visa Credit Card card if you want a card with no foreign transaction fees that are accessible even if you have a less-than-ideal credit score. With weak or restricted credit, a Visa® Credit Card with no annual fee or foreign transaction fee is available.
A cash advance APR of 29.99 percent variable, a cash advance charge of 3 percent (minimum $10), and a late fee of up to $35 are further Mission Lane Visa card costs to be aware of.
How does the Mission Lane Visa card stack up against other credit-building cards?
Though the annual fee for the Mission Lane Visa card may be worth it for those with weak credit who want to avoid putting down a deposit to develop credit, it is unlikely to be your best choice. There are a few other unsecured credit-building cards with no annual charge, and some secured cards need a smaller minimum deposit than the Mission Lane card’s annual fee.
|Feature||Mission Lane Visa||Petal® 1 “No Annual Fee” Visa® Credit Card||Capital One Platinum Secured Credit Card|
|Annual Fee||$0 – $59||$0||$0|
|APR||26.99 – 29.99% (variable)||19.99% – 29.49% (variable)||26.99% (variable)|
|Deposit requirement||$0||$0||Minimum security deposit of $49, $99 or $200 required|
Mission Lane Visa vs. Petal 1 card
The Petal 1 card is one of the few unsecured cards offered to those with bad credit or no credit history, and it also has no annual fee. The card also provides a considerably wider variety of possible credit limits than the Mission Lane Visa and the majority of other credit-building cards: Depending on your credit history, you might be approved for a credit limit ranging from $300 to $5,000. Even the bottom end of this range outperforms the Mission Lane card’s limit and might do wonders for your credit use percentage. Furthermore, the Petal 1 card’s issuer may consider not just your credit score, but also alternative credit data like income and bill payment history when considering card applications, making it a suitable choice if you’ve had some credit mishaps but otherwise are in good financial health.
Mission Lane Visa vs. Capital One Platinum Secured Credit Card
Though, as the name implies, the Capital One Platinum Secured Credit Card needs a security deposit to begin, it provides a unique amount of flexibility: you may put down as little as $49 and still get a $200 initial credit limit. Best of all, the $49 fee is refunded if you delete your account or switch to an unsecured Capital One card. The option should be simple since this minimal deposit is both refundable and less than the Mission Lane card’s (non-refundable) yearly charge.
Best cards to pair with the Mission Lane Visa card
If your primary aim is to establish credit, the Mission Lane card should be sufficient, particularly given the yearly charge. For example, there’s not much advantage to having the Mission Lane card in addition to a no annual fee credit-building card—you’d be better off simply having the no annual fee card.
However, if you want to increase your available credit by creating numerous card accounts, you might consider adding a no-fee credit-building card with incentives to the mix. The Discover it® Secured Credit Card is a fantastic fit. It offers 2% back on gas station and restaurant purchases up to $1,000 in total expenditure every quarter, and 1% back on all other purchases. In addition, Discover will double any cash back earned at the conclusion of the first year. Even though the card requires a $200 minimum deposit, Discover will examine your account to determine whether you qualify for an unsecured card after seven months of appropriate usage.
Credit Cadabra’s Opinion: Is the Mission Lane Visa card worth the risk?
The Mission Lane Visa may make sense as a temporary unsecured credit-building card because of its cheap annual cost, but it’s definitely not your greatest choice overall. While it has fewer costs than many other cards in this category, a secured card with incentives, no annual fee, or a reduced APR would almost certainly save you more. You may also avoid both an annual charge and a security deposit if you have at least acceptable credit. However, if your aim is to develop credit without putting down a deposit, the card would undoubtedly suffice.