The Unicorn Card review 2024: Not so magical (2024)

The Unicorn Card credit card*The information for the The Unicorn Card credit card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. is an option to help you rebuild your credit, but it’s more complicated than competing options. To activate the main features of the card, you have to open and fund a Cred.ai deposit account, which in turn will activate the Cred.ai guaranty. The company says there’s no fees, no interest, no overspending and you’ll build credit. This is exactly what all secured cards do, so it doesn’t exactly make this card a unicorn, except in name only.

In fact, other secured cards offer the same benefits but earn rewards too. There’s a lot of fun gimmicks with this card’s marketing, but ultimately it’s a credit-builder card in a fancy horse costume. Read our full Unicorn Card review for more details.

The Unicorn Card credit card basics

• Annual fee: $0.
• Welcome bonus: None.
• Rewards: None.
• APR: 17.76% variable APR on purchases.
• Recommended credit score: Fair.
• Other benefits: Cred.ai guaranty, virtual card numbers, early paycheck access and access to an expansive ATM network.

The Unicorn Card credit card review

The Unicorn Card, offered by Cred.ai, is designed to help build credit. In some ways it works like a secured card, in that you must have a deposit account on file and you can’t spend more than what is in this account. However, your payment is made automatically from this deposit account, which is different from how a secured card works.

This deposit account is linked to your credit card and the full statement balance is paid to your credit card automatically on the due date.

But the deposit account actually does a bit more than that. As you use your card, money from the deposit account is earmarked for your future credit card payment. Those funds are “frozen” and unavailable for any other spending. This way you’ll never be surprised by your credit card bill, you won’t overspend and you won’t pay late fees or interest.

If you have automatic payments enabled you can take advantage of the Cred.ai guaranty. This states that you “never pay fees or interest, never overspend, build credit automatically.” If you decide to turn off these services for whatever reason, the guaranty is invalidated, and you are liable for any fees you incur.

Since you are making your credit card payment from the deposit account, you’ll have to add money to this account. You can do this via direct deposit, mobile check deposit or transfers from another account.

Cred.ai will report your total credit limit to the credit bureaus, not just the amount in your deposit account. With its features, the company says you can boost your credit score by 90 points in 90 days.

There’s no hard pull to your credit report when you apply for the Unicorn Card, which could be a draw for those with fair credit.

There are also features that could help with budgeting, credit building and security. For example, you can list merchants to always approve and always deny, aptly named “Friend & Foe.” Or, the Cred Optimizer automatically makes payments on your balance throughout the month to ensure your utilization stays low. These features can certainly be helpful but might not be a solid enough reason to get the card.

Ultimately, you aren’t getting many benefits out of this card. The main benefit is that it will automatically set aside the money you’ll need to pay the bill in full each month. This could be a great feature for those who struggle with overspending. However, you don’t earn rewards or a welcome bonus or receive any introductory low APR period. There are plenty of other secured or starter cards that offer many more perks.

Pros

• Accessible for those with fair credit: At its core, this card is about building credit. You can use the Unicorn Card to build your score if you have little credit history or fair credit.
• No hard pull on your credit score when you apply: There’s no impact on your credit from a hard pull on your score when you apply for the card.
• No fees if deposit account is used: Using the cred.ai deposit account to pay your bill guarantees you will not pay any fees or interest.
• Built-in credit-building features: Credit utilization is a significant factor in your credit score, so keeping utilization low automatically can be very helpful.

Cons

• Does not earn rewards: You will not earn any rewards, cash back or a welcome bonus with this card.
• Must use linked deposit account to access benefits: Adding another account to your finances could add an additional layer of complexity that isn’t needed if you don’t struggle with overspending.
• Limited credit access: Although technically an unsecured card, if you use it as designed, you can only spend the amount in your deposit account. This can be limiting if you need to make a large purchase.

The Unicorn Card credit card credit-building features

The Unicorn Card offers several cheekily-named features to help users build healthy credit habits:

• Flux Capacitor: You can get your paycheck and other ACH deposits early. It also allows cardholders to react to debits in advance, which can be helpful when budgeting.
• Stealth Card: Stealth Card provides advanced protection for any transaction where you don’t want to use your official card number. You can use this virtual account number online, through the phone or in person using your mobile wallet. You can regenerate the number at any time.
• Safe Spend: As you use your card, money from the deposit account is set aside and “frozen”. It is no longer available for spending. If you make a purchase and do not have enough “unfrozen” money in the account to cover it, the transaction will be declined.
• Cred Optimizer: To keep your credit utilization low, the cred optimizer tool automatically makes payments throughout the month.
• Check Please: If you want to avoid your card getting declined, you can pre-clear a pending charge.
• Friend & Foe: Make a list of approved and unapproved merchants. Even if your card is locked, transactions will go through on the list of approved merchants. Transactions will automatically get declined at any of the unapproved merchants.

How the Unicorn Card credit card compares to other credit builder cards

The Unicorn Card credit card vs. Chase Freedom Rise℠*The information for the Chase Freedom Rise℠ has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.

The Chase Freedom Rise was designed for those new to credit, making it an excellent option for students. Chase will do a hard credit check when processing your application, but it is still accessible to those who might not have a credit score.

Unlike the Unicorn Card, the Freedom Rise earns 1.5% cash back on all purchases. There’s no annual fee, plus you can earn a $25 statement credit after enrolling in autopay in the first three months of account opening.

The Freedom Rise offers similar security features and credit-building opportunities, like 24/7 fraud monitoring, zero liability protection and Chase Credit Journey. Ultimately, the Freedom Rise is a much better option for those new to credit. However, if you have poor credit and are worried about a hard pull on your account, the Unicorn Card could be an option.

The Chase Freedom Rise won’t set aside funds from your checking account when you make charges on the card. You can set up autopay, but you’ll be responsible to make sure that the funds are available on the due date.

The Unicorn Card credit card vs. Discover it® Secured Credit Card

The Discover it Secured Credit Card is an excellent secured option for those rebuilding their credit. There’s no annual fee and no credit score required to apply. You can also get preapproved for the card.

You just need to provide a refundable security deposit (of at least $200) to serve as your credit limit and practice good spending habits. After seven months, Discover will automatically begin to review your account each month to see if you are eligible to upgrade to an unsecured card and get your deposit back.

Cardholders earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter and 1% cash back on all other purchases. Plus, Discover will automatically match all the cash back earned at the end of the first cardmember year. These benefits strongly outweigh the benefits of the Unicorn Card for most consumers, making it a better card for rebuilding credit.

The Unicorn Card credit card vs. Secured Chime® Credit Builder Visa® Credit Card

The Secured Chime® Credit Builder Visa® Credit Card* is similar to the Unicorn Credit Card. Neither card charges an annual fee, interest¹, a minimum security deposit² or a hard pull on your credit report.

The main concept is also similar — start building credit for free, safely and on everyday purchases. You can instantly move any amount of money from your Chime® Checking Account to your Credit Builder secured account, which will determine your credit line. Then, you will be able to make purchases with the card anywhere Visa cards are accepted, up to the deposited amount.

Like the Unicorn Card, the Secured Chime® Credit Builder Visa® Credit Card does not offer any rewards.

The Unicorn Card is right for you if:

• You want to build credit without a hard pull on your credit score. If you don’t have a credit score or it is low, the Unicorn Card is a decent choice.
• You need the credit-building features to monitor your spending. The features provided by the Unicorn Card can be helpful when budgeting and can increase your score quickly.
• You aren’t concerned with earning rewards. If you’re focused solely on building your credit, the Unicorn Card could be a viable option.

Frequently asked questions (FAQs)

^{*The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.}

^{¹Out of network ATM withdrawal and over the counter advance fees may apply. See here for details.}

^{²Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.}