What the Arro Credit Card Is
Arro is a credit card issued by Coastal Community Bank, designed for people building or rebuilding credit. It works like a standard credit card — you charge purchases, receive a monthly statement, and pay what you owe — but with a key difference: you put down a cash deposit that becomes your credit limit. If you deposit $500, your limit is $500. The card reports to all three major credit bureaus (Equifax, Experian, and TransUnion), so on-time payments build your credit history.
The card is secured, meaning the deposit protects the bank if you don't pay. After you demonstrate responsible use — typically 6 to 18 months of on-time payments — the bank may convert it to an unsecured card and return your deposit. Until then, your deposit stays in a separate account and earns no interest.
Key Takeaways
- Arro requires a cash deposit equal to your credit limit, which the bank holds but does not pay interest on.
- The annual fee is $0, but you pay interest on any balance you carry, with rates varying by creditworthiness at the time you open the account.
- Your payment history reports to all three credit bureaus each month, so consistent on-time payments directly build your credit score.
- After 6 to 18 months of responsible use, you may be able to convert to an unsecured card and recover your deposit.
Costs and Fees
Arro charges no annual fee, which sets it apart from many secured cards. However, you do pay interest on any balance you carry from month to month. The interest rate (APR) depends on your credit profile at the time you open the account and is not fixed — it can change if the bank reviews your account. Arro does not publish a single APR; rates vary by applicant.
There are no late fees, over-limit fees, or foreign transaction fees listed in the card's standard terms. The main cost is the opportunity cost of your deposit: the money you put down earns nothing while it sits with the bank, and you cannot access it until the card is converted or closed.
How to Use Arro to Build Credit
The card's value lies in its reporting to credit bureaus. Every payment you make — on time or late — is recorded and sent to Equifax, Experian, and TransUnion. This creates a credit history where you may have had none, or adds positive marks to a damaged one.
To maximize the benefit, charge small purchases you would make anyway (groceries, gas, a streaming service) and pay the full balance each month. This shows lenders you can manage credit responsibly without paying interest. Carrying a small balance (10 to 30 percent of your limit) also builds credit, but costs you money in interest, so it is not necessary.
Avoid maxing out the card. Credit utilization — the percentage of your limit you use — affects your credit score. Using 30 percent or less of your $500 limit ($150 or less) is better for your score than using $400 of it.
When Arro Converts to Unsecured
Coastal Community Bank does not publish a fixed timeline for conversion. The bank reviews accounts periodically and may offer to convert your card to unsecured if you have made on-time payments and shown responsible use. This typically happens within 6 to 18 months, but there is no may provide.
When conversion happens, your deposit is returned to you, usually within a few business days. Your credit limit may stay the same, increase, or decrease depending on your account activity and credit score at the time of review. The converted card will no longer be secured, so you will not need to maintain a deposit.
Arro vs. Other Secured Cards
Several banks offer secured credit cards, and the choice depends on your priorities. Capital One Secured Mastercard and Discover Secured Card are two common alternatives. Capital One charges a $39 annual fee but offers higher credit limits (up to $3,000). Discover Secured Card charges no annual fee and offers cash back on purchases, but requires a minimum deposit of $200 and has stricter approval requirements.
Arro's main advantage is its zero annual fee and straightforward terms. Its main limitation is that it does not offer cash back or other rewards. If you are rebuilding credit and want to minimize costs, Arro is competitive. If you want rewards or a higher credit limit, another card may suit you better.
What Happens If You Miss a Payment
A late payment on Arro is reported to the credit bureaus just like any other credit card. A payment 30 days late will damage your credit score and may trigger a late fee from the bank (though Arro's terms do not list one as standard). A payment 60 or 90 days late can lead to account closure and collection action.
If you cannot pay your full balance, call Coastal Community Bank before the due date. Some banks will work with you on a payment plan or hardship arrangement, though Arro's specific policies on this are not published. Paying late defeats the purpose of the card — you are trying to prove you can manage credit responsibly — so prioritize this payment if you have one.
Frequently Asked Questions
Can I get Arro if I have no credit history?
Yes. Arro is designed for people with limited or no credit history. You will need to provide proof of income and a valid ID, but the bank does not require an existing credit score. Having a bank account with Coastal Community Bank may improve your chances, though it is not required.
What if I close the card before it converts?
You can close the card at any time. Your deposit will be returned, usually within a few business days. However, closing the card stops the credit-building benefit — your payment history stops being reported, and the account may be marked as closed on your credit report, which can temporarily lower your score.
Does Arro report to all three credit bureaus?
Yes. Arro reports to Equifax, Experian, and TransUnion each month. This means your payment history builds credit across all three bureaus, which is important because lenders may check any of them when you explore for other credit.
Can my credit limit increase without converting to unsecured?
Arro does not automatically increase your limit while the card is secured. Your limit stays equal to your deposit. If you want a higher limit, you would need to deposit more money or wait for the card to convert to unsecured, at which point the bank may raise your limit based on your account history.
What is the minimum deposit to open Arro?
Coastal Community Bank does not publish a minimum deposit amount on its website. Contact the bank directly to learn the current minimum and to discuss what deposit amount makes sense for your situation.