What the Destiny Card is and who issues it
The Destiny Card is a secured credit card issued by Comenity Capital Bank. You put down a cash deposit, usually between $200 and $2,500, and that deposit becomes your credit limit. The card reports to all three credit bureaus — Equifax, Experian, and TransUnion — so on-time payments build your credit history.
Comenity Capital Bank also issues cards under other brand names, including the OpenSky card and the Milestone card. The Destiny Card is marketed specifically toward people rebuilding credit after missed payments, collections, or bankruptcy. It does not require a credit check to open the account, though the bank does verify your identity and check ChexSystems (a banking history database).
Key Takeaways
- The Destiny Card requires a cash deposit equal to your credit limit, with minimums starting at $200 and maximums around $2,500.
- Annual fees run $95 in the first year and $95 in the second year, plus a $25 monthly maintenance fee, making the total cost substantial before you earn any rewards.
- The card reports to all three credit bureaus, so consistent on-time payments will gradually improve your credit score over 6 to 12 months.
- Interest rates are high — typically 19.99% to 24.99% APR — so carrying a balance costs significantly more than using the card for small purchases you pay off monthly.
- After 7 to 12 months of on-time payments, you may receive an offer to graduate to an unsecured card, at which point your deposit is returned.
Fees and interest rates you will pay
The Destiny Card charges an annual fee of $95 in year one and $95 in year two. On top of that, there is a $25 monthly maintenance fee — meaning you pay $300 per year in maintenance alone. If you deposit $500, you are paying $395 in fees before you charge a single purchase. That is nearly 80 percent of your deposit in year one.
The interest rate ranges from 19.99% to 24.99% APR depending on the bank's assessment of your process. There is no grace period for purchases, so interest accrues from the day you charge something. If you carry a $300 balance at 24.99% APR, you pay roughly $75 per year in interest alone — on top of the $395 in fees.
The card does offer a small rewards rate: 1% cash back on all purchases. On a $500 deposit with $100 in monthly charges, you would earn $12 in cash back over a year. That does not offset the $395 in fees.
How the deposit works and when you get it back
Your cash deposit is held in a savings account at Comenity Capital Bank. The deposit becomes your credit limit — if you deposit $500, your limit is $500. You cannot spend the deposit itself; it sits in reserve while you use the card for purchases.
The deposit earns no interest. Some secured cards offer a small yield on the deposit account, but Destiny does not. You are essentially lending the bank money for free while paying them $395 per year to do it.
After 7 to 12 months of on-time payments, Comenity may offer to convert your account to an unsecured card. At that point, your deposit is returned to you. There is no may provide of conversion, and the timeline varies. Some cardholders report conversion after 7 months; others wait longer or never receive an offer. Conversion depends on your payment history and credit score improvement.
When the Destiny Card makes sense versus alternatives
The Destiny Card is worth considering if you have been denied for other secured cards and need to report payment history to the credit bureaus. However, there are lower-cost alternatives. The OpenSky card (also from Comenity) has no annual fee and no monthly maintenance fee, though it also does not report to all three bureaus by default — you have to request it. The Capital One Secured Mastercard charges a $39 annual fee and a $25 annual fee in year two, plus no monthly maintenance charge.
If you have access to a credit union, some offer secured cards with no annual fees and lower interest rates. The Navy Federal Credit Union Secured Visa, for example, charges no annual fee and offers a lower APR range. You do not have to be military to join Navy Federal if you have a family member who is or if you live in certain areas.
The Destiny Card's high monthly maintenance fee is the real cost driver. Over two years, you pay $600 in maintenance fees alone. Unless you are certain you cannot open any other secured card, that fee makes the Destiny Card one of the more expensive paths to rebuilding credit.
How to use the card to actually improve your credit score
Opening the card does not improve your score by itself. Your score improves when you use the card and pay on time. The credit bureaus look at three main factors: payment history (35 percent of your score), credit utilization (30 percent), and length of credit history (15 percent).
To maximize improvement, charge a small amount each month — $25 to $50 — and pay it in full before the due date. This demonstrates consistent on-time payment without running up interest charges. Do not charge close to your limit; using more than 30 percent of your available credit hurts your score, even if you pay on time.
Keep the account open after you pay off the deposit. Closing it removes an active account from your credit history and can lower your score. If Comenity converts you to an unsecured card, keep using it responsibly. The longer your account history, the more it helps your score.
What happens if you miss a payment or default
If you miss a payment, Comenity will charge late fees and report the miss to the credit bureaus. A single 30-day late payment can drop your score by 100 points or more. The late fee is typically $25 to $35 per occurrence.
If you default on the card — usually after 120 days of non-payment — Comenity can explore your deposit to the debt. If you owe $600 and your deposit is $500, the bank takes the $500 and you still owe $100. That $100 can be sent to collections, which will appear on your credit report for seven years.
If you are struggling to make payments, contact Comenity before you miss a due date. Some issuers offer hardship programs or temporary payment reductions, though Comenity's options are limited compared to larger issuers.
Comparing Destiny to other secured card options
| Card | Annual Fee | Monthly Fee | APR Range | Deposit Required | Conversion Timeline |
|---|---|---|---|---|---|
| Destiny Card | $95 | $25 | 19.99%–24.99% | $200–$2,500 | 7–12 months |
| Capital One Secured | $39 (year 1), $25 (year 2+) | None | 19.99%–24.99% | $200–$2,500 | 6+ months |
| OpenSky Card | $35 | None | 19.99%–24.99% | $200–$3,000 | Varies |
| Navy Federal Secured Visa | None | None | 18%–18% | $250–$10,000 | Varies |
The Destiny Card's monthly maintenance fee is the distinguishing factor. Over 12 months, you pay $395 in fees with Destiny versus $39 to $35 with Capital One or OpenSky. If you have any other option, the math favors a different card.
The comparison shows why the Destiny Card ranks among the most expensive secured cards on the market. Even if your credit is severely damaged, the $300 annual maintenance fee alone makes alternatives worth exploring first. Most people rebuilding credit will find better value elsewhere.
Frequently Asked Questions
Does the Destiny Card report to all three credit bureaus?
Yes. Comenity reports to Equifax, Experian, and TransUnion, so your payment history builds your credit score across all three bureaus. This is one of the card's strengths — some secured cards report to only one or two bureaus.
Can I increase my credit limit after I open the account?
Not directly. Your limit is tied to your deposit. Some cardholders report that Comenity offers to increase the limit if they add more to their deposit, but this is not automatic. You would need to contact the bank to ask.
What is the difference between the Destiny Card and the OpenSky card?
Both are issued by Comenity, but OpenSky has no annual fee and no monthly maintenance fee — only a $35 annual fee. OpenSky also does not require a credit check. The trade-off is that OpenSky does not report to all three bureaus by default; you have to request it. For most people rebuilding credit, OpenSky is the better choice.
How long does it take to see my credit score improve?
Most people see a measurable improvement within 3 to 6 months of on-time payments. Larger improvements typically take 12 months or longer. The improvement depends on your starting score, how much negative history you have, and how consistently you pay on time.
What happens to my deposit if I close the account?
If you close the account before conversion to an unsecured card, your deposit is returned to you, usually within 7 to 10 business days. However, closing the account removes an active account from your credit history, which can lower your score. It is better to keep the account open even after you stop using it.