Among the many credit cards to build credit, the Pesto Secured Rewards Mastercard is turning some heads. It’s unique and gives you the option of securing your credit line without cash.
The Pesto Secured Rewards Mastercard® lets you use physical assets, like your jewelry, luxury watches and even precious metals as collateral; or, you can fund the $200 minimum security deposit with installment payments.
But if you have cash, you can use that also to secure your credit line.
Pesto is a San Francisco based fintech company founded in 2020. The company is backed by leading investors, including Activant Capital and Plural.
Deposit accounts and cards issued by Continental Bank, Member FDIC.
Get an online estimate for the value of your items.
Complete a basic credit card application.
Ship your items. Insurance is provided for your shipped items.
Once approved, get a digital card immediately and a physical card in the mail.
Pay back your card on time to build your credit history.
When you're done using the card, you can get your collateral back.
Apply online.
Once approved choose the option "Fund Over Time."
Pay a one-time $20 fee.
Pay a minimum $20 over time in installments to reach the minimum $200 security deposit.
There is no set date installments must be made.
You have up to 12 months to reach the $200 security deposit.
Unlike traditional secured cards, you can use valuables, instead of cash, to secure a credit line. It’s a huge solution to those who are cash-strapped but need to build credit history with a traditional credit card.
The minimum total value of all assets must be $500, but that’s may be doable for more people. Pesto accepts the following items as collateral:
Pesto Mastercard customers also enjoy an unlimited 1% cash back rewards feature on purchases. Most secured credit cards don’t come with any rewards.
Pesto does charge a yearly fee of nearly forty dollars, charged monthly to your card at $3.33. Some cards out there offer no annual fee at all. So, that’s something to consider.
The Pesto card only reports to one credit bureau, TransUnion. This limits its effectiveness in helping you build a strong credit profile compared to cards that report to all three bureaus.
And finally, let’s talk about the elephant in the room – the high APR. At nearly thirty percent, it’s definitely on the steep side. However, by paying in full, you only pay for what you’ve actually purchased.
As you can see, the Pesto Secured Rewards Mastercard offers a unique approach, but it’s not without its quirks.
Making six consecutive on-time payments puts cardholders on a path to an unsecured credit card in two ways:
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