Mission Lane Visa® Credit Card Review
Looking for a way to build or rebuild your credit without the hassle of a security deposit? The Mission Lane Visa® Credit Card might be just what you need.
In this review, we’ll explore the features, benefits, and drawbacks of the Mission Lane Visa® Credit Card to help you decide if it’s the right fit for you.
What is the Mission Lane Visa® Credit Card?
The Mission Lane Visa® Credit Card is designed for individuals with limited or poor credit who are looking to improve their credit scores. Unlike many credit-building cards, this one does not require a security deposit, making it an accessible option for those who might not have the funds to set aside for a deposit.
Key Features
- Annual Fee: $0
- APR: 29.99%-33.99% Variable
- Credit Score Requirement: 300-689 (Poor – Fair)
- Foreign Transaction Fee: 3%
- No Security Deposit Required
Why Choose the Mission Lane Visa® Credit Card?
Accessibility
One of the primary benefits of the Mission Lane Visa® Credit Card is its accessibility. If you have a bad credit score, you might still qualify. The application process considers not only your credit score but also your income, credit usage, and debt-to-income ratio. This broader evaluation can be a boon for those with a rocky credit history.
No Security Deposit
Many credit-building cards require a security deposit, which can be a significant barrier for some people. The Mission Lane Visa® Credit Card does away with this requirement, allowing you to start building your credit without needing to tie up your money.
Potential for Credit Limit Increases
Mission Lane automatically considers increasing your credit limit at least once within the first year. To qualify for an increase, you need to make your payments on time and keep your balance under control. This feature can help improve your credit score by reducing your credit utilization ratio.
Fast Pre-Qualification
Before you formally apply, you can go through a pre-qualification process to see if you’re likely to be approved. This step only involves a soft inquiry, so it won’t affect your credit score. If pre-approved, you’ll learn your potential APR and annual fee. You can then decide whether to proceed with the full application, which will involve a hard inquiry.
Pros and Cons of the Mission Lane Visa® Credit Card
Pros
- Qualify with Limited Credit: Even if you have a low credit score, you might still be able to get this card.
- No Security Deposit: Start building credit without needing a deposit.
- Automatic Credit-Limit Reviews: Potential for credit limit increases within the first year.
Cons
- No Rewards: Unlike some other credit cards, this one doesn’t offer rewards or cash back.
- No Upgrade Path: You can’t upgrade to a card with better perks within the Mission Lane system.
- High APR: The APR is quite high, so carrying a balance can be expensive.
- Low Starting Credit Limit: The initial credit limit can be as low as $300.
Detailed Review
No Annual Fee: The $0 annual fee makes this card a cost-effective option for building credit.
Visa Coverage: Enjoy the basic benefits that come with Visa cards, such as zero fraud liability and Roadside Dispatch®.
Credit Reporting: Mission Lane reports to all three major credit bureaus (Experian, TransUnion, and Equifax), so responsible use of this card can help improve your credit score over time.
Drawbacks and Considerations
No Rewards: If earning rewards or cash back is important to you, this card might not be the best fit. There are other cards for people with poor credit that offer rewards, like the Discover it® Secured Credit Card, which provides cash back on certain purchases.
No Upgrade Path: Once your credit improves, you’ll need to apply for a different card with another issuer if you want better perks. Canceling this card after you no longer need it could negatively impact your credit score, especially if it has a longer history.
Vague Credit Limit Policy: Mission Lane doesn’t disclose the exact range of credit limits available. This lack of transparency can make it difficult to gauge how useful the card will be for your spending needs.
Who Should Consider This Card?
The Mission Lane Visa® Credit Card is ideal for individuals with poor credit who want to rebuild their credit scores without a security deposit. It’s also suitable for those who prefer a straightforward card with no annual fee and are willing to forgo rewards.
If you have a credit score of 629 or lower, this card could be a good fit. Additionally, if you’re not sure whether you’ll qualify, the pre-qualification process can provide some peace of mind without impacting your credit score.
How to Use the Mission Lane Visa® Credit Card Effectively
Pay On Time
Always make your payments on time to avoid late fees and potential hits to your credit score. Timely payments are a critical factor in improving your credit score.
Avoid Carrying a Balance
Given the high APR, it’s best to pay off your balance in full each month to avoid interest charges. Carrying a balance can quickly become expensive.
Monitor Your Credit
Take advantage of the free online credit score access that comes with your card. Regularly monitoring your credit can help you stay on top of any changes and track your progress.
Alternatives to Consider
Discover it® Secured Credit Card
This card requires a security deposit but offers cash back rewards. You’ll earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, and 1% on all other purchases. There’s no annual fee, making it a compelling alternative if you can afford the deposit.
Capital One Quicksilver Secured Cash Rewards Credit Card
Another option that requires a security deposit, this card offers 1.5% cash back on every purchase. It also has no annual fee and allows you to increase your credit limit by depositing more than the minimum required amount.
Frequently Asked Questions (FAQs)
Which bank issues the Mission Lane Visa® Credit Card?
The Mission Lane Visa® Credit Card is issued by Transportation Alliance Bank (TAB). The card uses the Visa network, and TAB is a member of the Federal Deposit Insurance Corporation (FDIC).
How to pay your Mission Lane Visa® Credit Card?
You can pay your bill online, via the mobile app, by phone, or by mail. Online and mobile app payments are usually the fastest and easiest methods.
How to activate the Mission Lane Visa® Credit Card?
Activate your card by visiting MissionLane.com/activate or by calling 855-307-1240.
Is there a minimum credit score required to apply?
While Mission Lane doesn’t explicitly state a minimum credit score, the card is designed for those with scores of 629 or lower. The pre-qualification process can help you determine your likelihood of approval without affecting your credit score.
The Mission Lane Visa® Credit Card is a solid option for those looking to build or rebuild their credit without the need for a security deposit. Its accessibility, lack of an annual fee, and potential for credit limit increases make it an attractive choice for credit builders. However, the high APR, lack of rewards, and limited upgrade options are significant drawbacks.
If you’re disciplined about paying your balance in full each month and are primarily focused on improving your credit score, this card could be a good fit. For those seeking rewards or higher credit limits, exploring other options might be worthwhile.
