Mission Lane Card Review: A No-Deposit Option for Poor Credit

A card for people with bad credit (FICO scores of 629 or lower), the Mission Lane Visa® Credit Card doesn’t earn rewards and may charge an annual fee depending on your creditworthiness. But there's no security deposit needed, and Mission Lane's pre-qualification process can give you a good idea ahead of time as to whether you'll be approved, sparing you an initial hard inquiry on your credit report (although there'll still be a "hard pull" if you end up officially applying). 

The card, issued by TAB Bank, also reports to all three credit bureaus. So if you're seeking to rebuild your credit and are unable to tie up hundreds of dollars in an upfront deposit for a secured credit card, the Mission Lane Visa® Credit Card could be a solid option.

But it's worth noting that unlike a security deposit, annual fees on credit cards aren't refundable. And there are even some "alternative" credit cards on the market that might allow you to skip both a deposit and an annual fee.

» MORE: Best credit cards for bad credit

Mission Lane Visa® Credit Card: Basics

Card type: Alternative and starter. 

Annual fee: $0-$59.

Sign-up bonus: N/A.

Rewards: None.

APR: The ongoing APR is 26.99%-29.99% Variable.

Foreign transaction fee: 3%. 

Other benefits: 

Accessibility

Even if you have a bad credit, you may still qualify for the Mission Lane Visa® Credit Card. When evaluating applications, Mission Lane and its issuing bank can consider your credit scores but also your income, credit usage and debt-to-income ratio. As such, be prepared to provide W2s, 1099s, pay stubs or benefits documents as a part of your credit card application.

No security deposit

Unlike some other credit cards for people with bad credit, the Mission Lane Visa® Credit Card does not require a security deposit to open the account. With secured cards, the security deposit amount usually becomes your credit limit. Instead, Mission Lane assigns you a credit limit based on your application credentials.

Potential for credit limit increase

Mission Lane automatically considers increasing your credit limit at least once within the first year of having the account. You may be eligible for a credit-line bump if you’ve made your first six payments on time, you don’t have an overdue balance and you haven’t maxed out your credit card.

Fast pre-qualification process

Before submitting an application for the Mission Lane Visa® Credit Card, you can go through Mission Lane’s pre-qualification process to see whether a hard inquiry will be worth the likely (but temporary) hit to your credit scores.

If you’ve been preapproved, you’ll then learn your APR rate and annual fee amount, if any. You can choose to decline the offer if you don’t like the terms, and because pre-qualification only initiates a soft inquiry, your credit score won’t be affected. 

» MORE: Credit cards that offer pre-qual or preapproval without a hard pull

Potential annual fee

Depending on the terms of your offer, you may have to pay an annual fee for the Mission Lane Visa® Credit Card. Annual fees are capped at $59, but the annual fee acts as a normal charge on the credit card and automatically reduces your credit limit. Say you have a $500 credit limit and $25 annual fee. Your initial credit limit is effectively $475. Only when you pay off the annual fee will your credit limit increase to its full amount. 

No rewards

Earning cash back can help offset the cost of a card’s annual fee. Unfortunately, the Mission Lane Visa® Credit Card does not earn rewards. Other cards, even those for people with bad credit, can earn cash back at respectable rates. The Discover it® Secured Credit Card, for example, earns 2% cash back on up to $1,000 of combined spending per quarter on restaurants and gas, and 1% on everything else. And while it requires a security deposit, that card's annual fee is $0.

No upgrade path

Mission Lane Visa® Credit Card holders have no way to graduate to another card within the Mission Lane ecosystem. The only reward for responsible use is a credit limit increase. If you want another card and have raised your credit scores to qualify for something with more perks, you’ll have to apply for another product with another issuer. 

Then, if you are approved for that other card, you’ll have to decide what to do with your Mission Lane Visa® Credit Card. Canceling a credit card, especially one that you’ve had for a while, can lower your credit score; however, if you won’t use the Mission Lane Visa® Credit Card anymore and it charges an annual fee, it can make sense to get rid of it rather than pay for a card that isn’t being used.

» LEARN: Pruning your wallet: When is it a good idea to cancel a credit card?

Vague credit limit policy