What the Hue Credit Card Is
Hue is a secured credit card issued by Marlette Bancorp through their Marlette Bank division. You put down a cash deposit, and that deposit becomes your credit limit — so a $500 deposit gives you a $500 limit. The card reports to all three credit bureaus (Equifax, Experian, and TransUnion), which means the payment history you build can move your credit score over time.
Hue is designed for people rebuilding credit after missed payments, collections, or a bankruptcy. It is not a prepaid card — you are not spending your own deposit. You make purchases on credit, receive a bill each month, and pay it like any other credit card. The deposit just sits in a reserve account and protects the bank if you stop paying.
Key Takeaways
- Hue requires a cash deposit between $500 and $2,500 that becomes your credit limit, and that money stays frozen while you hold the card.
- The annual fee is $95, charged in the first month and every 12 months after, which is higher than many competing secured cards.
- There is no interest-free grace period, so interest accrues when ready on any balance you carry, even if you pay on time.
- After 7 to 12 months of on-time payments, you may be offered an unsecured card or the option to convert Hue to unsecured status and get your deposit back.
- Hue reports to all three bureaus, so consistent payments will show up on your credit report and can improve your score if you keep balances low.
The Deposit, Limit, and Fees
You choose your deposit amount when you open the account, anywhere from $500 to $2,500. That deposit becomes your credit limit dollar-for-dollar. If you deposit $1,000, your limit is $1,000. The deposit earns no interest and stays locked in a separate account — you cannot withdraw it while the card is active, even if you pay off your balance.
The annual fee is $95, charged upfront in your first billing cycle and again every year on your account anniversary. This is one of the higher annual fees among secured cards. Some competing secured cards charge $0 to $39 per year, so the Hue fee is a real cost to factor in. There are no other monthly maintenance fees, foreign transaction fees, or late fees listed in the standard terms, though late payments will trigger interest charges on your balance.
Hue does not offer a grace period. Interest starts accruing on new purchases when ready, even if you pay your full balance by the due date. This means carrying any balance at all will cost you money in interest. The APR (annual percentage rate) varies by creditworthiness and is not fixed, so you will see your exact rate in your offer letter before you open the account.
How Interest and Payments Work
Because there is no grace period, the clock on interest starts the moment a purchase posts to your account. If you charge $500 and pay it off in full before your due date, you still owe interest on those 30 days. This is unusual — most credit cards give you 21 to 25 days interest-free if you pay in full. The lack of a grace period makes Hue more expensive to use than a standard card, even if you never miss a payment.
Your minimum payment is calculated as a percentage of your balance, typically 1% to 3% of what you owe. If you owe $1,000, your minimum might be $10 to $30. Paying only the minimum means the rest of your balance accrues interest every month. To avoid interest entirely, you need to pay the full statement balance before the due date — but again, even that will include interest from the day the purchase posted.
Hue reports your payment history to all three credit bureaus each month. On-time payments build your credit score; late or missed payments damage it. A single 30-day late payment can drop your score 100 points or more, depending on your current score. This is why secured cards are most useful for people who can pay on time consistently — the card is a tool to prove you can handle credit responsibly.
When Your Deposit Gets Returned
Hue does not have a set timeline for converting to an unsecured card or returning your deposit. The bank reviews your account after 7 to 12 months of on-time payments and may offer you an unsecured version of the card or a different unsecured product. Some cardholders report conversion happening after 6 months; others have waited longer. There is no may provide of conversion at any point.
When Hue does convert your account, your deposit is returned to you, usually within 5 to 7 business days. At that point, you no longer have a secured card — you have an unsecured card with its own terms, which may include a different APR, annual fee, or credit limit. You should review the new terms carefully before accepting the conversion, because they may not be better than the secured card you had.
If you close the Hue account yourself, your deposit is returned, but closing an account can hurt your credit score in the short term because it reduces your total available credit and shortens your average account age. If you are rebuilding credit, it is usually better to keep the account open and active, even after conversion.
Hue Versus Other Secured Cards
The main reason to choose Hue over competitors is if you have been denied by other issuers or if Hue's approval process is faster for your situation. Hue does report to all three bureaus, which is standard, but so do most other secured cards. The $95 annual fee is a significant drawback — the Capital One Secured Mastercard charges $0, and the Discover Secured Card charges $0. Both of those cards also offer a grace period, which Hue does not.
If you can get approved for a card with no annual fee and a grace period, that card will cost you less money and build your credit just as effectively. However, if your credit is very damaged or if you have been denied elsewhere, Hue may be one of the few options available to you. In that case, the higher cost is the trade-off for access.
Some people use Hue as a stepping stone: they open it, make on-time payments for 6 to 12 months, build their score enough to get approved for a better card, then close Hue and move on. Others keep it open as a backup card to maintain credit history length. Your strategy depends on your timeline and whether you have other credit-building options available.
How to Use Hue Effectively
The most important rule is to pay on time, every month. Set up automatic payments for at least the full statement balance on the due date. This ensures you never miss a payment and keeps your credit report clean. Even one late payment can erase months of progress on your credit score.
Keep your balance as low as possible. Because Hue charges interest from day one, carrying a balance is expensive. If you can, charge only what you can pay off in full each month. If you must carry a balance, try to pay it down as quickly as possible. A $500 balance at 20% APR costs you about $8.33 per month in interest alone.
Do not max out your credit limit. Credit bureaus look at your credit utilization ratio — the percentage of your available credit that you are using. Keeping your balance below 30% of your limit (so under $300 on a $1,000 limit) helps your credit score more than maxing out the card. This is one of the easiest ways to boost your score while you rebuild.
Frequently Asked Questions
Can I get my deposit back before converting to an unsecured card?
No. Your deposit stays locked for the life of the secured card. You can only get it back by closing the account or by converting to an unsecured card. If you close the account early, you lose the benefit of the credit history you have built, which can hurt your score in the short term.
What happens if I miss a payment on Hue?
A missed payment is reported to all three credit bureaus and can drop your score significantly. Hue may also charge late fees and increase your APR. Your deposit is not used to cover the missed payment — you still owe the full amount plus interest and fees. The bank can pursue collection if the debt goes unpaid long enough.
Does Hue report to all three credit bureaus?
Yes. Hue reports your account activity and payment history to Equifax, Experian, and TransUnion each month. This means your on-time payments show up on all three of your credit reports, which helps your score across all three bureaus.
Is there a way to avoid the $95 annual fee?
No. The $95 annual fee is built into the Hue card and is charged every 12 months. You cannot waive it or negotiate it away. If the annual fee is a dealbreaker, look at the Capital One Secured Mastercard or Discover Secured Card, both of which have no annual fee.
How long does it take to build credit with Hue?
Most people see a noticeable improvement in their credit score within 3 to 6 months of on-time payments, assuming they also keep their balance low. However, the speed depends on how damaged your credit was to start with and what other accounts you have. Rebuilding credit is a slow process — there is no shortcut.