Pesto Mastercard® Review- No Minimum Credit Score Required!

Use your valuables or debit card for a refundable security deposit with the Pesto Secured Rewards Mastercard®.
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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.

But if you have cash, you can use that also to secure your credit line.

About the Pesto Secured Rewards Mastercard®

Features

  • Annual fee: $39.96 ($3.33 monthly fee).
  • Collateral: Use items like diamond rings, gold, luxury watches, or use cash on your debit card for your refundable security deposit.
  • Rewards: Unlimited 1% cash back on purchases and cash advances.
  • Soft credit inquiry: Yes, prequalify without a hard credit pull.
  • APR: The ongoing APR is 29.99% Variable.
  • Credit line if using items: Ranges from $500 up to $25,000, based on the total value of your items or cash deposit.
  • Credit line if using cash: Pesto requires a $200 security deposit and caps credit limits secured by cash at $2,000.
  • Foreign transaction fee: $5 or 3% for each cash advance.
  • Reports to credit bureau: Only TransUnion.
  • Credit line increase: Yes, Your account is reviewed for a credit line increase after 6 months.

Who issues the Pesto Secured Mastercard®?

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.

How the Pesto Secured Mastercard® Works?

How the Pesto Secured Rewards Mastercard® Works

Step One

Get an online estimate for the value of your items.

Step Two

Complete a basic credit card application.

Step Three

Ship your items. Insurance is provided for your shipped items.

Step Four

Once approved, get a digital card immediately and a physical card in the mail.

Step Five

Pay back your card on time to build your credit history.

Step Six

When you're done using the card, you can get your collateral back.

What makes Pesto an attractive offer?

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:

  • Fine jewelry
  • Diamonds
  • Gemstones
  • Luxury watches
  • Precious metals
 

Pesto Mastercard customers also enjoy an unlimited 1% cash back rewards feature on purchases. Most secured credit cards don't come with any rewards.

What to watch out for when using this card?

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.

Upgrade to Unsecured Opportunity

Making six consecutive on-time payments puts cardholders on a path to an unsecured credit card in two ways:

  • Automatic consideration for a partially secured card where you receive a credit limit greater than the collateral asset’s value; or,
  • Fully unsecured Pesto card where your collateral is returned.

Final takeaway

Although secured cards primarily help establish credit, the Pesto card offers a bonus perk: unlimited 1% cash back on all purchases, and surprisingly, on cash advances too (though it's best to avoid those due to high fees). Rewards earned can be used to offset your statement balance.

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