Mission Lane Credit Card: Benefits, Cashbacks, Fee, Limit, How to Apply

Credits: Canva

The Mission Lane Credit Card is an unsecured credit card issued by Mission Lane LLC, based in San Francisco, California. As an unsecured card, it does not require any cash collateral deposit to open the account, unlike secured credit cards.

Mission Lane specializes in providing credit cards to those with limited credit history and low credit scores. The Mission Lane Visa card is designed specifically as a “starter card” for people trying to build or rebuild their credit from scratch.

The key features of the card aimed at establishing good credit include no annual fee, 1% to 1.5% cash back rewards on purchases, the option to pre-qualify without impacting your credit score, and reporting to all three major credit bureaus each month.

Responsible use of the card demonstrates good financial behavior and helps build up your credit profile for the future. Over time, continuing on-time payments and keeping credit utilization low can result in a credit line increase.

Key Features of the Mission Lane Credit Card

Here is an overview of some of the main features and benefits offered by the Mission Lane Credit Card:

• No annual fee: There is no annual fee to use the card, which is beneficial for people new to credit.
• 1% to 1.5% unlimited cash back: Cardholders earn an unlimited 1% to 1.5% cash back on all eligible purchases. There is no maximum cap on total rewards.
• Credit limits up to $5,000: Credit limits may start around $300 for newer accounts, but responsible use can lead to increases up to $5,000.
• Pre-qualify online: You can check if you pre-qualify by answering a few questions, with no impact on your credit score.
• Reports to all 3 bureaus: The card issuer reports account history to TransUnion, Equifax, and Experian each month.
• Free access to VantageScore: Check your latest credit score each month through your account.
• Mobile app and account alerts: Manage your account via iOS/Android apps and set up customized alerts for transactions, statements, and more.

Overall, the card is designed to be easy-to-use for those with limited or no existing credit profile. It allows consumers to start building a positive credit history.

Rewards and Cashbacks

The Mission Lane Credit Card offers 1.5% unlimited cash back on all purchases. There is no maximum ceiling on the amount of total cashback you can earn annually.

As soon as a transaction posts to your account, you will accrue rewards equivalent to 1.5% of the purchase amount. Cashback applies to all personal spending categories – groceries, gas, dining, entertainment, retail shopping, and more.

The cashback can be redeemed in a variety of ways:

• Apply as statement credits to your account balance
• Obtain deposit into your bank account
• Redeem for brand gift cards

To redeem rewards, you must accumulate at least $25 worth of cashback. There is no expiry of earned rewards as long as your credit card account remains open.

The unlimited 1.5% back makes it simple to estimate and maximize rewards value from using your Mission Lane card.

Fees and Charges Associated with the Mission Lane Credit Card

The Mission Lane Credit Card has no annual fee. This is beneficial for a starter card aimed at consumers with limited credit history.

It also does not charge any of the following additional fees:

• Balance transfer fee
• Cash advance fee
• Foreign transaction fee

However, like most other credit cards, the Mission Lane card does have penalties in the form of:

• Late payment fee – up to $30
• Returned payment fee – up to $35

Keeping up with monthly payments on time can help avoid these extra penalties. Overall, the fee structure is quite straightforward and beginner-friendly.

Pros and Cons of the Mission Lane Credit Card

Some of the major pros of the Mission Lane Credit Card include:

• No annual fee
• Unlimited 1 to 1.5% cash back on purchases
• Credit limits up to $5,000
• No security deposit required
• Helps build credit history

Some potential downsides to consider:

• High APR of 24.74%
• Low regular credit limit of $300 – $500 for new accounts
• Cashback can only be redeemed after every $25 earned

The card is best suited for establishing a credit history. The high interest rate means balances should be paid in full each month.

How to Apply for a Mission Lane Credit Card

Here are some key details about eligibility and the application process for the Mission Lane Credit Card:

Eligibility Criteria

• Minimum age 18 years (19 in Alabama and 21 in Puerto Rico)
• Valid Social Security Number
• US residency and income source
• No US credit history required to apply.

Applying for the Card

• Step 1: Go to the Mission Lane website and click “Apply Now”. This initiates the online application.
• Step 2: Provide personal details – name, DOB, SSN, address etc.
• Step 3: Enter your income source, housing payment, and employment details.
• Step 4: Review all provided information before submitting the application.
• Step 5: The bank’s decision is provided in real-time, generally within 30 seconds of submitting the application.
• Step 6: If approved, your account will be opened and card delivery takes 5-7 business days via US mail. Activate it as soon as it arrives.

You can also pre-qualify before formally submitting the full application. This gives you an indication of possible approval without impacting your credit score.

Mission Lane Credit Card vs Other Credit Cards

How does the Mission Lane card compare to other leading starter cards like the Discover It Secured or Petal 1 Visa Credit Card?

The Mission Lane card has competitive rewards, no fees, and no deposit requirement compared to secured starter cards. The higher interest rate is where it loses out.

Why Should You Get the Mission Lane Credit Card

There are several good reasons to apply for the Mission Lane Credit Card if you have limited credit history:

1. Easy approval: The Mission Lane card is designed specifically for applicants with limited or no credit score. So your approval odds are higher.

2. Build credit history: Responsible use helps build your score since the card reports to all 3 bureaus.

3. Decent cashback: The unlimited 1.5% cash back keeps rewards coming on all purchases.

4. Low fees: No annual fee is ideal for first-timers. No deposit needed either unlike many secured cards.

5. Access to credit score: The card provides free access to your latest VantageScore credit report.

Overall, the Mission Lane Credit Card presents an easy way to start using credit and earn rewards in the process.

When You Shouldn’t Consider Mission Lane Credit Card

The Mission Lane card may not be the best choice if:

• You already have established a good credit history and score over 700. Other rewards cards offer better incentives.
• You carry card balances from month-to-month. The 24.74% APR can lead to higher interest charges.
• You need a higher initial spending limit than the starting $300 – $500 limit.
• You want travel rewards like miles or hotel stays, instead of simple cashback.

For these scenarios, a different credit card likely makes more sense. The Mission Lane card does not offer enough benefits once you have built some credit.

Conclusion

Overall, the Mission Lane Credit Card is a straightforward, beginner-friendly option for starting out with credit. The lack of an annual fee and security deposit make it accessible. Rewards are just enough to provide incentives. Most importantly, responsible usage develops healthy financial habits and credit history.

Use the Mission Lane card as a first step, keep the utilization and balances low. Pay off statement balances consistently each month. After around 6-12 months, you stand a better chance to qualify for more feature-rich rewards credit cards. Graduating to premium cards with better incentives then becomes a possibility.

So utilize Mission Lane responsibly as a tool to kickstart your financial profile in the short term. Managing it carefully paves the path for long-term credit health and better cards. Check your eligibility to see if you fit its target demographic of average credit applicants looking to establish their profiles.

Frequently Asked Questions