You should know these 5 things before applying for a Kikoff credit card

Yahoo

27-01-2025

Kikoff is a subscription-based platform that aims to make it easier for people with a thin credit file to get credit. It offers three subscription tiers, all giving you access to a $750 credit account you can use exclusively for products in Kikoff's store. When you pay down your financed purchases through Kikoff, the company reports those payments to the major credit bureaus. Paying responsibly could help you build your credit.
If you want more flexibility than the Kikoff credit account provides, you can also get the Kikoff Secured Credit Card. Here's what to know about the Kikoff credit card and its pros and cons, plus some alternatives if it isn't the right fit.
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Kikoff offers three subscription tiers: Basic, Premium, and Ultimate. The Basic subscription costs $5 per month and gives you access to a Kikoff credit account, which you can only use at the Kikoff store to purchase financial literacy materials such as eBooks and online courses.
As you pay down your Kikoff purchases, the platform reports those payments to the three major credit bureaus: Equifax, Experian, and TransUnion.
While a Kikoff Basic subscription might help you build credit, you won't get access to its secured credit card, which can be used anywhere Mastercard is accepted. The Kikoff Secured Card is only available with Premium and Ultimate plans, which cost $20 and $35 per month (or $240 and $420 per year), respectively.
While the card itself carries relatively few fees, the high monthly subscription costs required to keep the card are unusual. Many unsecured credit cards come with no annual fee.
The Kikoff Secured Credit Card doesn't require a minimum security deposit as a condition of approval. That said, you'll need to make a deposit to access its full benefits.
Kikoff provides a virtual card to applicants immediately, but it won't send a physical card until you deposit at least $50 into your account. It also won't report your payments to the credit bureaus without that $50 deposit.
Other secured cards require an upfront security deposit, often $50 or more, before you can use your card. This money often serves as your credit limit, and you're allowed to spend up to your deposited amount.
However, some secured cards offer you a higher credit limit than what you deposit. The Capital One Platinum Card, for example, gives you an initial $200 credit line, with a security deposit of $49, $99, or $200, depending on your creditworthiness.
When you apply for a credit card, the issuer will typically run a hard credit check to determine your creditworthiness. This type of check ding your credit score in the short-term, typically by just a few points. Kikoff doesn't require a credit check for its credit card, which sets it apart from some other secured cards.
The Kikoff Secured Card also notably has a 0% APR. This is unusual for a secured card, as most charge relatively high interest rates. And Kikoff card payments are automatically deducted from your linked account, ensuring you'll never miss a payment.
You can earn rewards with a Kikoff Secured Credit Card, but the rewards program is limited and some cardholders may find it hard to navigate.
Unlike some credit cards, which offer flexible rewards, you're limited in how you can earn and use Kikoff rewards. Cardmembers can earn rewards by making online purchases through the Kikoff Offers portal or redeeming card-linked offers in-store with an eligible merchant.
Once you've made a qualifying purchase, Kikoff will add your cashback rewards to your account. You can then redeem those rewards as a statement credit toward future purchases.
The Kikoff Secured Credit Card offers no interest, overdraft protection, and ATM withdrawals, similar to a traditional debit card. You also get fee-free access to over 55,000 ATMs globally as a card member. Typical credit cards classify ATM withdrawals as cash advances, which are subject to high fees and APRs.
While it shares some features with debit cards, the Kikoff Secured Card is also similar to a credit card. It has a rewards program and your monthly payments are reported to the major credit bureaus, so it can help you build credit with responsible use.
The Kikoff Secured Card's hybrid structure is relatively unique, but given Kikoff's high monthly subscription fees, you may be better off with a separate debit and credit card. Most bank accounts provide free debit cards to new checking account holders, and several other secured credit cards come at a lower cost. Compare the Kikoff card with other secured cards before making your decision.
If you don't want to pay that much to build credit, a secured credit card like the Capital One Platinum Secured Card could be a good alternative. This card has a $0 annual fee, and your monthly payments are reported to the national credit bureaus. You'll need to make a one-time security deposit of $49, $99, or $200 — based on your credit history — but you can get that deposit back and upgrade to an unsecured version of the card if you qualify in the future.If you want more flexible rewards, the Capital One Quicksilver Secured Cash Rewards Card is a good alternative. You'll earn 5% cash back on hotel and rental car purchases made through Capital One Travel and 1.5% cash back on every other purchases. Redemptions are flexible, too: You can redeem your rewards for statement credits, checks, Capital One Travel purchases, and more.Like the Kikoff credit card, the OpenSky Secured Visa offers no credit check to qualify, but also comes with a limited rewards program. The OpenSky Secured reports your activity to the three major credit bureaus and you may be eligible for a credit limit increase in as little as three months. While this card does come with an annual fee, it's much more affordable than the subscription costs required by the Kikoff card.This article was edited by Alicia Hahn
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