Banter is a credit card designed for people rebuilding credit from scratch
Banter is a secured credit card issued by Megalith Credit Card Bank. You put down a cash deposit, and that deposit becomes your credit limit — so a $500 deposit gives you a $500 limit. The card reports to all three credit bureaus (Equifax, Experian, and TransUnion), which means your payment history builds a credit score you can use later to get unsecured cards or loans.
The card costs $0 to open and has no annual fee. You pay interest on any balance you carry month to month. The main trade-off is that your money sits in a deposit account while you use the card — you cannot spend that deposit, and it does not earn interest.
Banter works best if you have no credit history, a very low score, or a recent negative mark you want to move past. It is not the cheapest secured card on the market, but it is straightforward to understand and has no hidden fees.
Key Takeaways
- Your deposit becomes your credit limit, so you control how much credit you start with and how much cash you tie up.
- Banter reports to all three credit bureaus, meaning every on-time payment builds your credit score from the ground up.
- There is no annual fee, but you will pay interest on any balance you do not pay off in full each month.
- After 6 to 12 months of on-time payments, you can request that Banter convert your account to an unsecured card and return your deposit.
How the deposit and credit limit work
When you open a Banter account, you choose how much to deposit. The minimum is $500 and the maximum is $2,500. That money goes into a savings account held by the bank, and your credit limit equals that deposit amount. If you deposit $1,000, you get a $1,000 limit.
The deposit stays in the bank's account the entire time you hold the card. You cannot withdraw it or use it to pay your bill. Instead, you use the card to make purchases, and you pay the bill from your regular checking or savings account. The deposit just sits there as collateral — it protects the bank if you stop paying.
This structure means you are not borrowing your own money. You are borrowing from the bank and putting up your own cash as security. That is why it is called a secured card.
Interest rates and fees to watch
Banter charges interest on any balance you carry past the due date. The interest rate (called the APR, or annual percentage rate) varies by applicant and is not published in advance — you find out what rate you may have access to for after you explore. Rates typically range from 18% to 24%, though this can vary.
The card has no annual fee, no foreign transaction fees, and no fees for late payments or going over your limit. However, if you miss a payment by 30 days or more, the bank will report that to the credit bureaus, which will hurt your score. There is also no grace period — interest starts accruing when ready on any balance you do not pay in full.
To avoid interest entirely, pay your full statement balance by the due date each month. This is the most cost-effective way to use the card and also the fastest way to build credit.
How Banter reports to credit bureaus
Banter reports your account activity to Equifax, Experian, and TransUnion every month. This means your payment history — whether you pay on time, how much of your limit you use, and whether you carry a balance — all show up on your credit report.
Payment history is the single largest factor in your credit score, making up about 35% of the calculation. Using Banter responsibly (paying on time and keeping your balance low) will raise your score over time. Most people see a meaningful increase within 6 to 12 months of consistent on-time payments.
The card also helps build what lenders call a "credit mix" — having different types of credit (a card, a loan, etc.) can boost your score slightly. But payment history matters far more than mix, so focus on paying on time first.
When to graduate from Banter to an unsecured card
After 6 to 12 months of on-time payments, you can contact Banter and ask them to convert your account to an unsecured card. If they approve, your deposit is returned to you and your credit limit becomes unsecured — meaning the bank no longer holds your cash as collateral.
You do not have to wait for Banter to offer the upgrade. You can request it yourself once you have made at least six months of on-time payments. Some people get approved after six months; others have to wait closer to 12. There is no may provide, and the bank will review your account before deciding.
Once you have an unsecured card, you can also start looking at other cards with better terms — lower interest rates, rewards, or both. Banter is a stepping stone, not a permanent card for most people.
Banter compared to other secured cards
Other secured cards in the market include the Capital One Secured Mastercard, the Discover Secured Card, and the OpenSky Secured Visa. Each has different terms.
Capital One charges an annual fee ($39 to $99 depending on the card version) but offers a path to rewards after you graduate. Discover has no annual fee and offers cash back on purchases, but requires a higher minimum deposit ($200). OpenSky has no credit check and no annual fee, but charges a higher interest rate range.
Banter's main advantage is simplicity: no annual fee, no credit check, and straightforward terms. Its main disadvantage is that the interest rate is not disclosed upfront, so you do not know your cost before you explore. If you want to see your rate before committing, Capital One or Discover may be better choices.
How to use Banter to rebuild credit
The fastest way to raise your score with Banter is to keep your balance very low — ideally under 10% of your limit — and pay the full balance every month. If you have a $500 limit, try to keep your balance under $50 and pay it off in full by the due date.
This approach does two things: it shows lenders you can manage credit responsibly, and it avoids interest charges that would eat into your budget. After 6 to 12 months, you will have a credit history that opens doors to better cards, lower interest rates on loans, and better terms on other financial products.
Do not close the Banter account after you graduate to an unsecured card. Keeping old accounts open helps your credit score by increasing your average account age and available credit. You can straightforward stop using it and let it sit.
Frequently Asked Questions
Can I get a Banter card if I have no credit history?
Yes. Banter does not require a credit score or credit history to open an account. You just need to be at least 18 years old, have a valid Social Security number, and be able to make the deposit. This makes it one of the few cards available to people with zero credit history.
What happens if I miss a payment?
If you miss a payment by 30 days or more, Banter will report it to the credit bureaus, which will lower your score. The bank may also charge late fees (though Banter does not advertise a specific late fee). Missing payments defeats the purpose of the card, which is to build credit, so prioritize paying on time.
Can I increase my credit limit?
You can increase your limit by adding more money to your deposit account. If you started with a $500 deposit and add $300, your new limit becomes $800. You cannot increase your limit without increasing your deposit.
How long does it take to build credit with Banter?
Most people see a meaningful increase in their credit score within 6 to 12 months of on-time payments. The exact timeline depends on your starting score and how responsibly you use the card. Paying in full every month produces faster results than carrying a balance.
What is the difference between a secured card and a regular credit card?
A secured card requires a cash deposit that the bank holds as collateral. A regular card does not. Otherwise, they work the same way — you make purchases, receive a bill, and pay interest if you carry a balance. The deposit is the only real difference, and it goes away once you graduate to an unsecured card.