What the Legacy Visa Credit Card is and how it differs from standard cards
The Legacy Visa is a credit card issued by Deserve, a fintech company focused on building credit for people new to the U.S. financial system or rebuilding after past problems. Unlike most credit cards that require an existing credit score or history, the Legacy Visa does not pull a traditional credit report when you open an account. Instead, it reports your payment activity to the three major credit bureaus — Equifax, Experian, and TransUnion — so that on-time payments build your credit file from the ground up.
The card itself is a secured card, meaning you deposit cash as collateral. Your credit limit equals your deposit, typically ranging from $200 to $2,500 depending on how much you fund. You use it like any other credit card — swipe it, pay the bill monthly — but the deposit sits in a separate account as a safety net for the issuer. After 12 to 18 months of consistent on-time payments, Deserve may convert your account to an unsecured card and return your deposit.
What sets it apart from other secured cards is the lack of an annual fee and the focus on international users and immigrants. Deserve does not require a Social Security number to open an account, which makes it accessible to people who are new to the country or do not yet have one. The card also comes with fraud protection and purchase protection, features you would normally find on premium cards.
Key Takeaways
- The Legacy Visa is a secured card that does not require a credit score or Social Security number, making it an option for people new to the U.S. or rebuilding credit.
- Your credit limit equals your cash deposit, and that deposit stays frozen as collateral while you use the card.
- On-time payments are reported to all three credit bureaus, so the card actively builds your credit history each month.
- After 12 to 18 months of consistent payments, the card may convert to unsecured and your deposit returns to you.
- There is no annual fee, which is uncommon for secured cards and reduces the cost of building credit.
How the deposit and credit limit work
When you open a Legacy Visa account, you choose how much to deposit. That amount becomes your credit limit. If you deposit $500, you can charge up to $500 per month. The deposit itself is held in a separate savings account at Deserve's partner bank and earns a small amount of interest — currently around 0.50% annually, though this rate changes. You cannot touch that deposit while the account is active; it is there to protect Deserve if you stop paying.
The deposit is not a fee. You own it. If you close the account or it converts to unsecured, you get the money back. Some people use this as a forced savings tool — you put down $500, build credit for a year, and then recover the $500 plus any interest earned. Others see it as the price of entry into the credit system when no other card will approve them.
Your credit limit does not increase automatically as your credit improves. To raise your limit, you would need to deposit more money into the collateral account. This is different from unsecured cards, where issuers may raise your limit based on payment history alone.
Building credit through the Legacy Visa
The card reports to Equifax, Experian, and TransUnion every month. This means every payment you make — on time or late — becomes part of your credit history. For someone with no credit file, this is the main value of the card. After 12 months of on-time payments, you will have a credit score. After 18 to 24 months, that score may be high enough to may have access to for unsecured cards or a small personal loan.
Payment history is the largest factor in your credit score, accounting for about 35% of the calculation. Missing a payment or paying late will damage your score, sometimes significantly. Paying the full balance on time every month — or at least the minimum — is the core reason to use this card. Carrying a balance and paying interest does not build credit faster; it just costs you money.
The card also reports your credit utilization, which is how much of your limit you use each month. If your limit is $500 and you charge $450, your utilization is 90%, which can lower your score slightly. Keeping utilization below 30% — charging no more than $150 in this example — is better for your score, even if you pay the full balance.
Fees, interest rates, and costs
The Legacy Visa has no annual fee, which is a significant advantage over many other secured cards. Cards like the Capital One Secured Mastercard or the Discover Secured Card charge $35 to $95 per year just to hold the account. Deserve charges nothing.
The interest rate (APR) for purchases is variable and depends on your creditworthiness at the time you open the account. Deserve does not publish a standard rate; it is determined individually. Expect a rate between 18% and 24% for most new cardholders. This is higher than unsecured cards but typical for secured cards aimed at people with no credit history.
If you carry a balance, interest accrues daily. A $500 balance at 20% APR costs about $8.33 per month in interest. Over a year, that is $100 in interest alone. The best strategy is to pay the full balance each month and avoid interest entirely. If you cannot pay in full, pay as much as you can above the minimum to reduce the interest cost.
There are no foreign transaction fees, which is useful if you send money internationally or travel. There is also no fee for late payments, though a late payment will hurt your credit score and may trigger a higher interest rate.
When the Legacy Visa makes sense and when it does not
The Legacy Visa is a good fit if you are new to the U.S. and have no credit history, if you do not have a Social Security number yet, or if you are rebuilding credit after a period of missed payments or collections. It is also useful if you want to avoid annual fees while building credit — the $0 annual fee saves money compared to competitors over 12 to 18 months.
It is not the right card if you already have a credit score above 600 or an existing credit history. You would likely may have access to for an unsecured card with better terms, lower interest rates, and possibly cash back rewards. It is also not a fit if you cannot reliably pay your bill on time each month; the whole purpose is to build a positive payment record, and one late payment can erase months of progress.
The card is not a substitute for a savings account. The interest earned on your deposit (around 0.50%) is minimal. If you have $500 to spare, a high-yield savings account will earn 4% to 5% annually. The deposit on the Legacy Visa is collateral, not an investment.
How to move from the Legacy Visa to an unsecured card
After 12 to 18 months of on-time payments, Deserve may send you an offer to convert your account to an unsecured card. This is not automatic; the company reviews your account and decides whether to upgrade you. If approved, your deposit is returned to you, and your credit limit may increase or stay the same depending on your credit score at that time.
If Deserve does not offer an upgrade, you can still move to other cards. With 12 to 18 months of payment history and a credit score in the 600 to 700 range, you may now may have access to for entry-level unsecured cards like the Capital One Quicksilver One or the Discover It Secured (which converts to unsecured). These cards have annual fees but offer rewards or better terms.
Some people keep the Legacy Visa open even after getting an unsecured card. Closing an old account can lower your credit score slightly because it reduces your average account age and total available credit. Keeping it open and using it occasionally helps your credit profile long-term.
Comparing the Legacy Visa to other secured cards
The main competitors are the Capital One Secured Mastercard ($39 annual fee), the Discover It Secured Card ($0 annual fee), and the U.S. Bank Altitude Go Visa ($0 annual fee for the first year, then $95). The Legacy Visa's advantage is the lack of annual fee and the lack of a Social Security number requirement. Its disadvantage is that the interest rate tends to be higher, and there are no rewards or cash back.
The Discover It Secured Card also has no annual fee and reports to all three bureaus, making it comparable to the Legacy Visa. However, Discover requires a Social Security number and typically requires a credit score or credit history to open an account, even if it is poor. The Legacy Visa is more accessible to people completely new to the U.S. system.
If you already have a Social Security number and some credit history, the Discover It Secured Card may be a better choice because it offers 1% cash back on all purchases and 2% back on dining and gas. The Legacy Visa offers no rewards. If you have no Social Security number or are brand new to the country, the Legacy Visa is often the only option.
Frequently Asked Questions
Do I need a Social Security number to open a Legacy Visa account?
No. Deserve does not require a Social Security number, which is one of the card's main features for people new to the U.S. You can open an account with an Individual Taxpayer Identification Number (ITIN) or other identification. You will need to verify your identity and provide basic personal information, but an SSN is not required.
What happens if I miss a payment?
A missed payment is reported to the credit bureaus and will lower your credit score. Deserve may also charge a late fee (though current terms do not list one) and may increase your interest rate. If you miss a payment, contact Deserve as soon as possible to bring the account current. One late payment can set back your credit-building progress by several months.
Can I use the Legacy Visa internationally?
Yes. The card works anywhere Visa is accepted. There are no foreign transaction fees, so you can use it abroad without extra charges. However, your bank or card issuer may still explore currency conversion rates, which are set by Visa and are beyond Deserve's control.
What if I want to close my account before it converts to unsecured?
You can close the account at any time. Your deposit will be returned to you, usually within 5 to 7 business days. Closing the account will not hurt your credit score when ready, but it may lower your score slightly over time because it reduces your average account age and available credit. If possible, keep the account open even after you stop using it.
How long does it take to build a credit score with the Legacy Visa?
Most credit bureaus need at least six months of payment history to generate a credit score. You may see a score appear after six months, but it will be low — typically in the 500 to 600 range. After 12 to 18 months of on-time payments, your score may reach 650 to 700, which opens doors to better cards and loans. The exact timeline depends on your other financial activity and any negative marks on your record.