The Green Dot Platinum® Secured Credit Card is a good option for those with no credit or bad credit. Not only does it have a very reasonable APR for a secured credit card, but it doesn’t require a credit check.

It is also a good choice if you don’t have a bank account since it offers payment options at over 90,000 retailers via cash or prepaid card. Let’s dive into some of the reasons to get (or not to get) this card.

Basic information

No credit check needed, and no activation fee

You are approved for a credit limit, linked to your security deposit

Reports monthly to all 3 major credit bureaus

Interest Rate: 19.99% fixed APR

Security Deposit: $200-$5,000

Fees:
In-Person Payment Fee: $4.95
Foreign Transaction Fee: 3%
Cash Advance Fee: $6 or 5%, whichever is higher
Late Payment Fee: up to $27
Returned Payment Fee: up to $27
Annual Fee: $39

Benefits of the Card

Because this is a secured card, it doesn’t have the kind of perks and features unsecured cards do. However, this card does a good job of credit-building and has a variety of payment options.

No Credit Check

Green Dot won’t check your credit when you apply. When you’re trying to rebuild or establish your credit, the fewer hard inquiries on your credit report, the better.

This means that you won’t be declined based on your credit score alone.

Convenient Payment Options

If you have a bank account, you can schedule an ACH payment, use your debit card online, or mail in a check.

What makes this card unique is that if you don’t have a bank account, you can also use a Green Dot prepaid MoneyPak or make a cash payment to pay your bill (for a fee) at over 90,000 partnering retail locations.

Credit Building

Green Dot reports to all 3 major credit bureaus each month when your billing statement is generated. The 3 major consumer credit bureaus (TransUnion, Equifax, and Experian) calculate your credit score and good payment habits can help you build credit.

Drawbacks of the Card

There are some major drawbacks to this card. Not only will you pay fees each time you pay in person and not earn any additional benefits, but you are unable to upgrade your card to an unsecured card over time.

Payment Fees

While the card offers the convenience of paying in person, this comes at a price. Each time you make a payment at a retailer, you will be charged a $4.95 fee. In addition, if you use the MoneyPak prepaid card option, you will pay a $5.95 fee initially and each month following.

There are free options, but they require a bank account to process.

Annual Fee

This card is charged an annual fee of $39 as soon as you open the card. This means that if you’ve made an initial security deposit of $200, your available credit when you first get the card would be only $161 (instead of $200) until you pay off the annual fee.

No Upgrade Opportunities

Some secured credit cards offer the ability to transition to an unsecured account (and get your security deposit back) once you’ve built up a good payment history. Since this isn’t an option with this card, you’ll need to pay off your balance and close your account before you can get your deposit back.