The First Digital Credit Card is positioned as an option for individuals seeking to build or rebuild credit without the need to provide a security deposit.

Despite this advantage, serious consideration should be given to the card's fee structure, rewards system, and limitations before applying.

Extensive Fee Structure Undermines Cost-Effectiveness

A defining characteristic of the First Digital Credit Card is its extensive range of fees, which significantly increase the overall cost of maintaining the card. Unlike secured credit cards that require an upfront security deposit, the First Digital card compensates by charging a series of high fees including a $95 program fee upon enrollment, an annual fee of $75 in the first year (dropping to $48 thereafter), and a monthly servicing fee of $8.25 after the initial year. Additional costs may appear, such as a $29 yearly fee for secondary cards, a $10 charge for premium card designs, and fees for expedited delivery or copying statements.

These fees accumulate rapidly, with the total expense potentially exceeding $170 in the first year alone. This cost intensity makes the card comparatively expensive for consumers trying to rebuild credit, especially when other secured cards offer lower fees and refundable deposits.

Unique Rewards Mechanics With Redemption Restrictions

The First Digital Card offers a 1% cash-back rewards program, distinguished by an unconventional structure: rewards are earned only upon bill payment rather than at the point of purchase, and redemption is restricted until the account has been active for six months. This delayed gratification and conditional rewards earning system limits immediate benefits for cardholders.

Moreover, the rewards must outweigh the substantial fees for the card to be considered cost-effective. Given the high fees, a cardholder would need to spend over $1,400 monthly in their first year just to break even, a spending level out of reach for many users who seek affordable credit-building tools.

Geographic Limitations: Not Suitable for International Use

Although the First Digital Credit Card operates on the Mastercard network, which is commonly accepted globally, the issuer imposes strict use restrictions outside the United States. Officially, purchases made abroad or in foreign currencies are prohibited, although the card does not outright block transactions overseas. However, foreign transactions incur unclear and potentially high conversion rates or fees, with no explicit upfront disclosure.

Bill Payment Options Accessible Without a Bank Account

An important inclusion for financially underserved customers is the ability to pay the card bill without a traditional bank account by using money orders. This flexibility can assist individuals who face banking barriers in maintaining credit accounts.

However, more affordable alternatives exist that permit similar non-bank payment methods but with significantly lower fees and better credit-building conditions, such as secured credit cards with minimal annual fees. These alternatives should be weighed against the costly terms of the First Digital Card.

Exceptionally High Interest Rate Demands Cautious Use

With an interest rate towering at 35.99%, the First Digital Card's APR is among the highest in the market, even for credit-building cards designed for higher-risk consumers. Such an astronomical rate means any revolving balance will accumulate interest quickly, negating rewards and ballooning costs.

Jean Chatzky, a personal finance journalist, said that high-interest credit cards can quickly trap households in compounding debt and that understanding terms helps avoid spiraling costs.

Paying in full and on time is essential with this product.

The First Digital Credit Card offers a pathway for individuals lacking high credit scores to access a credit card without a security deposit, combined with flexible payment options that do not require a bank account. Yet, the card's substantial fees, rewards restrictions, geographic use limitations, and extremely high interest rate make it a costly choice if not managed prudently. Responsible usage with on-time full payments might unlock some benefits, but exploring secured credit card alternatives with lower fees and clear terms is advisable.