What the Mission Credit Card Is

The Mission Credit Card is a secured credit card issued by Coastal Community Bank, designed for people building or rebuilding their credit history. You put down a cash deposit, usually between $500 and $2,500, and that deposit becomes your credit limit. You then use the card like any other credit card — make purchases, receive a monthly bill, and pay it back. The bank reports your payment activity to the three major credit bureaus (Equifax, Experian, and TransUnion), which means on-time payments help raise your credit score over time.

The card charges an annual fee and interest on any balance you carry. After you demonstrate responsible use — typically 7 to 12 months of on-time payments — you may become may be able to access to graduate to an unsecured card, at which point the bank returns your deposit.

Key Takeaways

  • Your cash deposit becomes your credit limit, so a $1,000 deposit gives you a $1,000 limit to spend.
  • The card reports to all three credit bureaus, meaning your payment history directly affects your credit score.
  • You pay an annual fee and interest on any unpaid balance, just like a standard credit card.
  • Graduating to an unsecured card and getting your deposit back typically takes 7 to 12 months of on-time payments.

How Your Deposit Works

When you open a Mission Credit Card account, you choose your deposit amount. This deposit sits in a savings account held by the bank and serves as collateral — it protects the bank if you stop paying your bill. Your credit limit equals your deposit amount. If you deposit $1,500, your limit is $1,500.

The deposit is yours; you are not giving the money away. As long as you keep the account open and in good standing, you can eventually reclaim it. The bank holds the deposit separately from your spending account, so you cannot accidentally spend it. You earn a small amount of interest on the deposit itself, though the rate is typically very low — often less than 1 percent annually.

Annual Fees and Interest Charges

The Mission Credit Card charges an annual fee, which varies but typically ranges from $25 to $35 per year. This fee is charged once a year, usually on your account anniversary. You also pay interest on any balance you carry from month to month. The interest rate (called the APR, or annual percentage rate) varies based on your creditworthiness at the time you open the account, but for secured cards it often falls between 18 and 24 percent.

If you pay your full balance by the due date each month, you owe no interest — only the annual fee. If you carry a balance, interest accrues daily on that amount. For example, a $500 balance on a card with a 20 percent APR costs roughly $8.33 in interest per month if you make no payments.

Building Credit With the Mission Card

The primary reason to use a secured card is to build credit history. Every payment you make — on time or late — gets reported to Equifax, Experian, and TransUnion. Payment history is the single largest factor in your credit score, accounting for about 35 percent of the calculation. Making your payment by the due date, every month, is the fastest way to raise your score.

Your credit utilization ratio also matters. This is the percentage of your credit limit that you are currently using. If your limit is $1,000 and your balance is $300, your utilization is 30 percent. Credit scoring models favor utilization below 30 percent, so keeping your balance low relative to your limit helps your score grow faster. You do not need to carry a balance to build credit — in fact, paying in full each month is better for your score than carrying a balance.

When You Can Graduate to an Unsecured Card

After you demonstrate consistent, responsible use of the Mission Card, Coastal Community Bank may offer you an unsecured credit card. This typically happens after 7 to 12 months of on-time payments, though the exact timeline depends on your individual account performance and credit history. When you graduate, the bank returns your deposit to you — usually within 30 days — and closes the secured account.

Graduating to an unsecured card means you no longer need collateral backing the account. The new card may have a higher credit limit, a lower interest rate, or both, depending on how much your credit score has improved. Some people keep the secured card open even after graduating, because closing an account can temporarily lower your score. If you do keep it open, continue making small purchases and paying them off in full to maintain the positive payment history.

Comparing the Mission Card to Other Secured Cards

Several banks offer secured credit cards, and the features vary. Some cards charge no annual fee, while others charge $50 or more. Interest rates range from around 16 percent to 25 percent depending on the issuer and your credit profile. Deposit minimums and maximums also differ — some cards require as little as $200, while others require $500 or more.

The Mission Card's annual fee and interest rate are in the middle range for secured cards. Its main advantage is that Coastal Community Bank is a real bank (not an online-only lender), which some people prefer for customer service reasons. Before opening any secured card, compare the annual fee, interest rate, and deposit requirements across at least two or three options. A card with no annual fee and a lower interest rate will cost you less money over time, even if the deposit requirement is slightly higher.

What Happens if You Miss a Payment

If you miss a payment on the Mission Card, the bank reports it to the credit bureaus, and your credit score drops. A single late payment can lower your score by 50 to 100 points or more, depending on how late it is and your overall credit history. Late payments stay on your credit report for seven years, though their impact weakens over time.

If you miss a payment by 30 days or more, the bank may also charge you a late fee (typically $25 to $35) and increase your interest rate. If you fall behind by 60 days or more, the bank may close your account and send it to collections. At that point, your deposit may be applied to the debt, and you could still owe money even after the account closes. If you are struggling to make a payment, contact the bank when ready — many lenders offer hardship programs or temporary payment reductions.

Frequently Asked Questions

Can I use the Mission Card right away after opening the account?

Yes. Once your deposit clears and your account is activated, you can use the card when ready. This typically takes three to five business days from when you open the account. You do not need to wait for a physical card to arrive — many banks allow you to add the card to your phone's digital wallet and start using it within hours.

What if I want to increase my credit limit?

You can request a credit limit increase by depositing more money into your secured account. If you originally deposited $1,000 and want a $1,500 limit, you deposit an additional $500. Some banks also offer automatic limit increases after a period of on-time payments, though this varies by issuer. Contact Coastal Community Bank directly to ask about their policy.

Does the Mission Card have a rewards program?

Most secured cards, including the Mission Card, do not offer cash back or rewards points. Secured cards are designed primarily for credit building, not for earning benefits. Once you graduate to an unsecured card, you may gain access to a rewards program. If earning rewards is important to you, compare the Mission Card against other secured options before deciding.

What happens to my deposit if I close the account?

If you close the account in good standing, the bank returns your deposit within 30 days. If you close the account with an unpaid balance, the bank applies your deposit to that balance first. If the balance exceeds your deposit, you still owe the difference. If the balance is less than your deposit, you receive the remainder.

Can I use the Mission Card if I have no credit history?

Yes. Secured cards are specifically designed for people with no credit history, poor credit, or credit that has not been used recently. You do not need an existing credit score to open a secured card account. The bank may run a soft credit check (which does not affect your score) to verify your identity, but approval does not depend on a high credit score.