What a Real Life Credit Card Is
A Real Life Credit Card is a secured credit card issued by Marlette Bank, a South Dakota-based bank. It is designed for people who are building credit or rebuilding after past credit problems. The card requires a cash deposit that becomes your credit limit — if you deposit $500, you get a $500 limit.
The card reports to all three major credit bureaus (Equifax, Experian, and TransUnion), which means your payment history can help build your credit score over time. After you demonstrate responsible use — typically 6 to 18 months of on-time payments — you may be able to move to an unsecured card or have your deposit returned while keeping the account open.
Key Takeaways
- Real Life Credit Cards require a cash deposit equal to your credit limit, with no minimum deposit amount specified by the issuer.
- The annual fee is $48, charged once per year, which is higher than many competing secured cards.
- Interest rates (APR) are not fixed and vary based on your creditworthiness at the time you open the account.
- Your deposit is held in a savings account and earns interest, though the rate is typically very low.
- The card reports to all three credit bureaus, so consistent on-time payments build your credit history.
How the Deposit and Credit Limit Work
When you open a Real Life Credit Card, you choose how much to deposit. There is no stated minimum or maximum, though in practice most people deposit between $200 and $2,500. Your credit limit equals your deposit amount — deposit $300, get a $300 limit.
Your deposit sits in a savings account held by the bank. You cannot withdraw it while the account is open, but it does earn interest. The interest rate on the savings account is set by the bank and changes over time; check the current rate before you open the account, as it is typically much lower than a standard savings account.
If you close the account or are approved to move to an unsecured card, your deposit is returned to you. If you stop paying and the account goes into default, the bank may use your deposit to cover the debt.
Fees and Interest Rates
The Real Life Credit Card charges an annual fee of $48, due once per year. This is one of the higher annual fees among secured cards — many competitors charge $0 to $25 per year. The fee is charged to your account, so you need to have enough available credit to cover it or pay it separately.
The interest rate (APR) is variable and is not disclosed upfront. The bank sets your rate based on your credit history, income, and other factors at the time you open the account. Rates typically range from 18% to 24%, though the exact rate you receive depends on your individual situation. If you carry a balance, interest accrues daily on the amount you owe.
There are no other regular fees listed — no foreign transaction fees, no late fees beyond standard credit card terms, and no inactivity fees. However, you are responsible for any fees your bank charges if a payment bounces or if you overdraw a linked checking account.
Building Credit With This Card
The Real Life Credit Card reports your account activity to Equifax, Experian, and TransUnion. This means every on-time payment you make is recorded on your credit report and helps raise your credit score. Conversely, late payments, missed payments, or high balances also appear on your report and can hurt your score.
To build credit effectively with this card, pay your full balance on time every month. Even if you only charge small amounts — a gas purchase, a coffee, a subscription — and pay it off when ready, you are creating a record of responsible use. After 6 to 18 months of consistent on-time payments, you may receive an offer to graduate to an unsecured card or to have your deposit returned.
Keep your balance well below your limit. Credit scoring models look at your utilization ratio — the percentage of your available credit you are using. Using more than 30% of your limit can lower your score, even if you pay on time. With a $500 limit, try to keep your balance under $150.
When Real Life Credit Card Makes Sense
This card is most useful if you have no credit history, a very low credit score, or a recent negative event (late payments, collections, bankruptcy) on your report. If you have been denied for unsecured cards, a secured card is often the next step.
The $48 annual fee is a real cost, so compare it against other secured cards before you decide. If you can find a secured card with no annual fee or a lower fee, that may be the better choice. However, if other issuers have rejected you or if you need to open an account quickly, the Real Life card may be your best option.
This card is not the right choice if you already have a fair or good credit score (typically 620 or higher). You would likely be approved for an unsecured card with better terms and no deposit requirement. An unsecured card also gives you more flexibility — you can close it without losing money, and you are not paying a deposit you could use elsewhere.
How to Use the Card Responsibly
Once your account is open, treat the Real Life Credit Card like any other credit card. Charge small, regular purchases and pay the full balance each month. Do not carry a balance to save money on interest — at 18% to 24% APR, interest charges will quickly outweigh any benefit.
Set up automatic payments from your checking account so you never miss a due date. Late payments damage your credit score and may trigger late fees. If you are struggling to pay, contact the bank before your payment is due — they may be able to work with you on a payment plan.
Monitor your credit report for errors. You can check your report for free once per year at AnnualCreditReport.com. If you see incorrect information, dispute it with the credit bureau. As your score improves, you will have more options for other cards and loans with better terms.
Alternatives to Consider
Before you commit to the Real Life Credit Card, look at other secured cards. The Discover Secured Card, the Capital One Secured Mastercard, and the OpenSky Secured Visa all offer secured credit building. Compare the annual fee, the interest rate range, the minimum deposit, and the credit bureau reporting. Some have no annual fee, which saves you money over time.
If you have a bank account or credit union membership, ask whether they offer a secured card. Many credit unions offer secured cards to members with lower fees and better terms than national issuers.
If you have some credit history but a low score, you might also explore unsecured cards designed for people rebuilding credit. These cards have higher interest rates and fees than cards for people with good credit, but they do not require a deposit. The tradeoff is that you have less protection if you cannot pay — the bank can pursue collection action instead of straightforward holding your deposit.
Frequently Asked Questions
Can I get my deposit back before I close the account?
No. Your deposit must remain in the account as long as the card is open. You can withdraw it only when you close the account or when the bank approves you to move to an unsecured card. If you need access to that money, a secured card may not be the right choice right now.
What happens if I miss a payment?
A missed payment is reported to the credit bureaus and damages your credit score. The bank may charge a late fee and increase your interest rate. If you miss multiple payments, the bank may close your account and use your deposit to cover the debt. Contact the bank when ready if you cannot make a payment.
How long does it take to graduate to an unsecured card?
There is no set timeline. Most cardholders see an offer to graduate after 6 to 18 months of on-time payments and responsible use. Some people graduate sooner, others take longer. The bank reviews your account periodically and makes the decision based on your payment history and credit score.
Does the interest rate ever go down?
The bank may lower your rate if your credit score improves significantly, but there is no automatic rate reduction. You can call the bank and ask for a rate review, but they are not required to lower your rate. Graduating to an unsecured card typically comes with a different (often lower) interest rate.
What if I want to close the account?
You can close the account at any time by contacting the bank. Your deposit will be returned to you, usually within a few business days. Closing the account does not hurt your credit score, but keeping the account open with a zero balance helps your credit history length and available credit, so closing it may have a small negative effect on your score.