What the First Latitude Credit Card Is and Who It's For
The First Latitude credit card is a secured card issued by First Latitude, Inc., designed for people rebuilding credit after missed payments, collections, or a thin credit file. You put down a cash deposit—typically between $300 and $2,500—and that deposit becomes your credit limit. You use the card like any other credit card, and your on-time payments get reported to the three major credit bureaus: Equifax, Experian, and TransUnion.
This card is not a prepaid card. The deposit sits in a reserve account; you're borrowing against it, not spending it directly. After you've made consistent on-time payments for a set period—usually 12 to 24 months, depending on your payment history—the issuer may graduate you to an unsecured card and return your deposit.
The card works best if you've had a specific setback (a late payment, a collection account, a period of no credit history) and you're ready to rebuild. It's less useful if you're currently in default or if you have active collections, because the card issuer will likely decline you or require a larger deposit.
Key Takeaways
- First Latitude is a secured card backed by your own cash deposit, which means approval is more likely even with poor credit, but you pay an annual fee and interest rates are higher than standard cards.
- Your deposit becomes your credit limit, so a $500 deposit gives you a $500 limit; the deposit stays frozen and is returned only after you graduate to an unsecured card.
- On-time payments are reported to all three credit bureaus, which is how the card helps rebuild your credit score over time.
- Annual fees range from $35 to $99 depending on your deposit amount, and interest rates typically run 19% to 24%, so carrying a balance costs significantly more than on a standard card.
- Graduation to an unsecured card usually happens after 12 to 24 months of on-time payments, but the timeline and terms depend on your specific account history.
How the Deposit and Credit Limit Work
When you open a First Latitude account, you choose your deposit amount. The minimum is typically $300; the maximum is usually $2,500. That deposit equals your credit limit. If you deposit $500, your limit is $500. You cannot spend the deposit itself—it sits in a reserve account held by the bank.
The deposit is not a fee. It's your own money, held as collateral. The card issuer uses it to reduce their risk if you stop paying. Because your deposit backs the card, the issuer can approve you even if your credit score is very low or you have recent negative marks on your report.
Your deposit earns little to no interest while it's held. Some issuers pay a small amount (often 0.01% or less annually), but you should not count on it. The real value of the deposit is that it unlocks access to credit reporting, which helps rebuild your score.
Fees, Interest Rates, and the True Cost
First Latitude charges an annual fee, typically between $35 and $99 depending on your deposit tier. This fee is charged once per year and is usually deducted from your available credit or added to your balance. A $35 annual fee on a $300 deposit is roughly 11.7% of your deposit in the first year alone—much higher than a standard credit card.
The interest rate on First Latitude cards ranges from 19% to 24% APR, depending on your creditworthiness at the time of approval. This is higher than most standard cards, which average 15% to 21% APR. If you carry a balance of $300 at 22% APR, you'll pay roughly $66 per year in interest alone, on top of the annual fee.
The card is most cost-effective if you use it to make small purchases and pay the full balance each month. If you carry a balance, the combination of annual fee and high interest rate makes the card expensive. For example, if you charge $200 and pay only the minimum, it could take 18 to 24 months to pay off, and you'll pay $80 to $120 in interest and fees combined.
How First Latitude Reports to Credit Bureaus
First Latitude reports your account activity to Equifax, Experian, and TransUnion each month. This means every on-time payment you make gets recorded on your credit report, which is the primary way this card helps rebuild your score. If you miss a payment, that also gets reported, which will hurt your score.
The reporting starts when ready after your account opens. You don't have to wait 6 months or a year to see the benefit—your first on-time payment counts. However, credit score improvement is gradual. A single on-time payment won't move your score 50 points. Consistent on-time payments over 6 to 12 months typically produce noticeable improvement, especially if you keep your balance low relative to your limit.
Payment history makes up 35% of your credit score, so this is where the card does its work. The other factors—credit mix, length of credit history, new inquiries, and total debt—also matter, but on-time payments are the foundation.
Graduation to an Unsecured Card and Getting Your Deposit Back
After you've made on-time payments for 12 to 24 months, First Latitude may offer to convert your account to an unsecured card. At that point, your deposit is returned to you, usually within 7 to 10 business days. The unsecured card typically comes with a higher credit limit and may have a lower interest rate, though the annual fee may remain.
Graduation is not automatic. The issuer reviews your account based on your payment history, how much of your limit you're using, and whether you've had any late payments. If you've been perfect for 18 months and keep your balance below 30% of your limit, graduation is likely. If you've had even one late payment in that period, graduation may be delayed or denied.
Some cardholders never receive a graduation offer. If that happens, you can contact First Latitude and ask about the criteria for conversion, or you can close the account and explore for a standard card elsewhere once your credit has improved enough.
Comparing First Latitude to Other Secured Card Options
First Latitude is one of several secured card issuers. Other common options include the Capital One Secured Mastercard, the Discover it Secured Card, and the OpenSky Secured Visa Card. Each has different deposit minimums, annual fees, and interest rates.
The Capital One Secured card has a $200 minimum deposit, a $39 annual fee, and interest rates from 19.99% to 24.99% APR. The Discover it Secured card has a $200 minimum deposit, no annual fee, and interest rates from 19.99% to 24.99% APR. OpenSky has a $200 minimum deposit, a $35 annual fee, and a fixed 20.99% APR.
First Latitude's terms fall in the middle of this range. Its main advantage is that it may be easier to get approved if your credit is very poor or you have recent negative marks. Its main disadvantage is the annual fee and interest rate, which are not the lowest available. Before you open a First Latitude account, check whether you'd be approved for a Discover it Secured card, which has no annual fee and the same interest rate range.
Steps to Take Before and After Opening an Account
Before you explore, pull your credit reports from annualcreditreport.com, which is the only free source authorized by the Federal Trade Commission. Look for errors—wrong account names, accounts you didn't open, incorrect payment history. If you find errors, dispute them with the bureau before you explore for the card. A corrected report may improve your approval odds or lower your interest rate.
After you open the account, set up automatic payments for at least the minimum due, scheduled to post before the due date each month. Missing even one payment defeats the purpose of the card. Many cardholders set up autopay for the full balance, which ensures they never carry interest and keeps their utilization at 0%.
Use the card for small, regular purchases—a gas fill-up, a grocery trip, a subscription—and pay it off in full each month. This demonstrates responsible use and builds your score faster than letting the balance sit unused. After 6 to 12 months of perfect payments, check your credit score using a free tool like Credit Karma or your bank's built-in score tracker. If your score has improved, you may be ready to explore for a standard card with better terms.
Frequently Asked Questions
Can I use the First Latitude card if I'm currently in collections or default?
First Latitude may still approve you, but approval is less certain if you have an active collection account or if you're currently in default on another account. The issuer will review your process and may require a larger deposit. If you're in active default, resolve that first before explore, as it signals ongoing financial distress.
What happens to my deposit if I close the account?
If you close the account before graduation, your deposit is returned to you, usually within 7 to 10 business days. However, closing the account also closes your credit history with that issuer, which can slightly lower your credit score in the short term. Keep the account open even after you graduate or move to another card, if possible.
Can I increase my credit limit without adding more money?
First Latitude does not typically increase your limit without an additional deposit. Some issuers allow you to add more money to your reserve account to raise your limit, but this is not automatic. Contact the issuer directly to ask about limit increases.
How long does it take to see my credit score improve?
Credit score changes lag behind your actual payments by 30 to 45 days. Your first on-time payment may not show up on your report for a full billing cycle. After 6 months of on-time payments, most people see a 20 to 50 point improvement, depending on how damaged their credit was to begin with. Significant improvement typically takes 12 to 24 months.
Is First Latitude a real bank or a scam?
First Latitude, Inc. is a real company that issues credit cards and is regulated by the Office of the Comptroller of the Currency. It is not a scam. However, like all credit card issuers, it profits from fees and interest, so read the terms carefully before you open an account and understand the full cost.