What the First Digital Credit Card Is
First Digital is a credit card issued by WebBank, a Utah-based bank, and marketed primarily to people building or rebuilding credit. The card itself is a secured credit card, meaning you put down a cash deposit that becomes your credit limit. If you deposit $500, your credit limit is $500. You use it like any other credit card — make purchases, receive a monthly bill, and pay it back — but the deposit stays in a separate account as collateral.
The card reports to all three major credit bureaus (Equifax, Experian, and TransUnion), so your payment history builds your credit score over time. There is no annual fee, which is unusual for secured cards and makes it worth comparing against other options in this category.
First Digital does not require a credit check to open the account, though WebBank will verify your identity and check ChexSystems (a banking history database). This makes it accessible to people with no credit history or a damaged one.
Key Takeaways
- First Digital is a secured card with no annual fee — you deposit money that becomes your credit limit, and that deposit earns a small amount of interest.
- The card reports to all three credit bureaus, so on-time payments build your credit score from month one.
- You can request to convert to an unsecured card after six to twelve months of responsible use, at which point your deposit is returned.
- The card has a high APR (currently around 19.99%), so carrying a balance costs significantly more than paying in full each month.
- First Digital charges no annual fee, no foreign transaction fees, and no late fees if you pay within 21 days of the due date.
How to Open a First Digital Account
You can open an account online at the First Digital website. You will need your Social Security number, a valid government-issued ID, and proof of a current address (a utility bill, lease, or bank statement dated within the last 60 days). The process takes about 15 minutes.
After you submit your information, WebBank verifies your identity and checks ChexSystems. If approved, you will be asked to choose your deposit amount — typically between $200 and $2,500. You fund the deposit by linking a bank account or using a debit card. Once the deposit clears (usually one to three business days), your card is activated and you can use it when ready.
You will receive your physical card in the mail within 7 to 10 business days. Until it arrives, you can request a temporary card number to use for online purchases.
Deposit, Interest, and Conversion to Unsecured
Your deposit earns interest at a rate set by WebBank, currently around 0.01% APY (annual percentage yield). This is very low — a $500 deposit earns roughly 5 cents per year — but it is better than no interest at all. The interest is credited to your deposit account monthly.
After six to twelve months of on-time payments, you can request conversion to an unsecured card. WebBank will review your account history and credit score. If approved, your deposit is returned to you in full, and you keep the card with a new credit limit (usually higher than your original deposit). If you are denied conversion, you can request again later — there is no penalty for asking.
If you close the account, your deposit is returned within 5 to 7 business days, minus any unpaid balance on the card.
Fees, Interest Rates, and What It Costs to Use
First Digital charges no annual fee and no foreign transaction fees. There is no late fee if you pay within 21 days of your due date. If you pay after 21 days, the late fee is $25.
The APR (annual percentage rate) is currently 19.99%, which is high but typical for secured cards. This matters only if you carry a balance month to month. If you charge $300 and pay the full amount by the due date, you pay nothing in interest. If you charge $300 and pay only $100, leaving $200 for next month, you will owe roughly $3.33 in interest on that $200 (19.99% ÷ 12 months). Over a year, carrying a balance becomes expensive.
There is no penalty APR, meaning the rate does not jump if you miss a payment. The late fee and the standard APR are the only costs beyond your purchases.
Building Credit with First Digital
The card reports to Equifax, Experian, and TransUnion every month. What gets reported is your payment history (on time or late), your credit utilization (how much of your limit you are using), and your account age. All three affect your credit score.
To build credit fastest, charge a small amount each month (10% to 30% of your limit is ideal) and pay the full balance by the due date. A $500 limit with a $50 monthly charge paid in full shows responsible use without the interest cost of carrying a balance.
Late payments stay on your credit report for seven years, so even one missed payment can lower your score significantly. Set up automatic payments or a phone reminder to avoid this.
Comparing First Digital to Other Secured Cards
The main advantage of First Digital is no annual fee. Most secured cards charge $25 to $95 per year. Over five years, that adds up.
Other secured cards to consider: the Capital One Secured Mastercard (annual fee $39, but higher credit limits available), the Discover it Secured (annual fee $0, but requires a higher deposit), and the OpenSky Secured Visa (no credit check, but annual fee $35). The APR on most secured cards is similar — between 18% and 21%.
If you are rebuilding credit and plan to use the card for six to twelve months before converting to unsecured, First Digital's lack of annual fee makes it a strong choice. If you need a higher credit limit when ready or want additional perks (like cash back), another card may fit better.
What Happens If You Miss a Payment or Close the Account
If you miss a payment, WebBank reports it to the credit bureaus. A payment 30 days late appears on your credit report and damages your score. A payment 60 or 90 days late damages it further. Even one late payment can lower your score by 50 to 100 points depending on your current score.
If you fall behind, contact WebBank when ready. They may work with you on a payment plan, though this is not may provide. Paying the overdue amount as soon as possible limits the damage.
If you close the account, any unpaid balance must be paid in full. Your deposit is returned separately. Closing the account does not hurt your credit score, but it does remove the card from your active accounts, which can slightly lower your score over time (because your average account age may drop). Keeping the account open and using it occasionally is better for long-term credit building.
Frequently Asked Questions
Can I use First Digital if I have no credit history?
Yes. First Digital does not require a credit check, so you can open an account with no credit history at all. The card will begin building your credit from your first on-time payment. After six to twelve months of responsible use, you can convert to an unsecured card.
What if my deposit gets returned when I convert to unsecured — can I use that money right away?
Yes. Your deposit is returned to the bank account you link during setup, usually within 5 to 7 business days after conversion is approved. You can use it when ready. Your new unsecured credit limit is separate from your deposit.
Does First Digital offer a mobile app?
Yes. First Digital has a mobile app for iOS and Android where you can check your balance, make payments, view statements, and set up alerts. You can also manage your account on their website.
What is the difference between First Digital and a regular credit card?
First Digital requires a cash deposit upfront; a regular unsecured card does not. First Digital is designed for people building or rebuilding credit and has a higher APR. Once you convert to unsecured, the difference disappears — you have a regular credit card with a normal APR and no deposit requirement.
Can I increase my credit limit without adding more money?
Not on the secured version. Your limit equals your deposit. When you convert to unsecured, WebBank sets a new limit based on your credit score and payment history, and you can request increases after that.