Our Verdict
The issuer’s marketing makes the Grain Account Card*’s details challenging to understand. With no easily accessible cardholder agreement on the company’s website and several additional fees buried in the fine print, we hesitate to recommend Grain’s line of credit service except, perhaps, as a possibly cheaper alternative to some cash advances.
Pros
- No inquiry is made on your credit report during the application period
- Credit reporting every billing cycle
Cons
- Annual fee: 8% of credit limit charged monthly
- Sign-up fee: $56.25 to $75
- 1% withdrawal fee for every transaction
Highlights
- Sign up with any of 10,000+ supported banks
- Sign-up fee ranges from $56.25 to $75
- Lower APR offered with Auto-Pay
- No credit check and no security deposit
Introduction
Applying for a Grain line of credit won’t necessarily harm your credit, since the company’s tools analyze your bank transactions to establish how large your line of credit will be instead of pulling a credit report. The company does, however, still report lending activity to all three of the major consumer reporting credit bureaus, so opening a new credit account with Grain may have an impact on your credit.
The lack of credit pull during the application process makes Grain an appealing option for those with weak or damaged credit. Still, the company’s fees and the irregular function of its lending under the credit card marketing label give us pause.
Most credit card issuers provide cardholders with a physical or digital card attached to a revolving credit account. The card is used to make transactions, and the user pays off the account each billing cycle. A Grain account isn’t really a card, as the company issues neither physical nor digital cards. Instead, once approved for the Grain Account Card*, users may transfer money from Grain’s line of credit into an attached checking account and use the bank account’s debit card or checkbook to transact using the borrowed funds.
As credit cardholders do, Grain users must pay off the balance of their Grain Account each billing cycle before the due date to avoid interest. The card offers a 17.99% fixed APR with Auto-Pay enabled or 20.99% fixed with Auto-Pay disabled. Annual and transaction fees, however, are steep. If Grain approves an account, you’ll be charged an annual service fee of 8% of your credit limit (charged monthly). The fee just to sign up is between $56.25 and $75, and every time a Grain user borrows funds, a 1% fee is levied on the withdrawal.
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Quick Facts
- This card does not offer a welcome bonus
- This card does not earn rewards
- No credit pull required for application
- 1% transaction fee
- No physical or digital card; withdrawals from the line of credit are made to your bank account
Other Benefits
- Mobile account management: Complete account management via mobile device.
Fine Print
Interest Rates
- Regular APR: 17.99% fixed (with Auto-Pay enabled) or 20.99% fixed (with Auto-Pay disabled)
- Purchase intro APR: N/A
- Balance transfer intro APR: N/A
Fees
- Annual fee: 8% of your credit limit (charged monthly)
- Balance transfer fee: N/A
- Foreign transaction fee: N/A
How the Grain Account Stacks Up
Grain Account Card* vs. Upgrade Triple Cash Rewards Visa®
For those aspiring borrowers seeking alternatives to traditional credit cards, the Upgrade Triple Cash Rewards Visa® provides another option we’re not quite comfortable labeling a “credit card.” Where the Grain Account Card* does provide a revolving line of credit with a grace period, the Upgrade Triple Cash Rewards Visa® may not; it’s a loan made out of credit-card-grade PVC plastic.
The Upgrade Triple Cash Rewards Visa® offers a relatively low standard APR compared to many rewards credit cards, just as the Grain Account Card* offers a relatively lower APR than other cards designed for those with lower credit. The Upgrade Triple Cash Rewards Visa® offers a 14.99% - 29.99% variable APR. As a line of credit, interest is included in the regular installments you pay back with the Upgrade Triple Cash Rewards Visa®. The Upgrade Triple Cash Rewards Visa® also earns 3% unlimited cash back on home, auto and health categories and 1% unlimited cash back on everything else after you make payments on your purchases, while the Grain Account Card* offers no rewards.
Grain Account Card* vs. Discover it® Secured Credit Card
For those looking at the Grain Account Card as a means to build or rebuild credit, the Discover it® Secured Credit Card may present a more affordable option. Unlike the Grain Account, the Discover it® Secured Credit Card offers rewards: The card earns 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases. The Discover it® Secured Credit Card requires a deposit equal to your credit limit to secure the account. This deposit may later be returned following demonstration of responsible card use.
The Discover it® Secured Credit Card does offer a card and account to make purchases on, whereas the Grain Account Card* only allows you to borrow funds into your bank account. The Discover it® Secured Credit Card has no annual fee, requires no credit score to apply nor does it directly charge users for transacting or accessing the line of credit.
Grain Account Card* vs. Petal® 1 “No Annual Fee” Visa® Credit Card*
The Petal® 1 “No Annual Fee” Visa® Credit Card*, issued by WebBank, offers an unsecured line of credit option for those with subprime credit. The card doesn’t charge an annual fee, offers lines of credits ranging from $300 to $5,000 and, like the Grain Account Card*, analyzes your banking history as a part of determining your creditworthiness. The card also earns 2%-10% cash back at select merchants.
The Grain Account Card* and the Petal 1 card share an alternative approach to determining creditworthiness, but the Petal 1 offers an actual, physical card for use in making transactions while the Grain Account Card* does not. The Petal 1 card’s fee structure makes it seem much more affordable than the Grain card, and for this reason, we’d recommend it over the Grain Digital Credit Card to nearly anyone.
Is the Grain Account for You?
Those with damaged credit history may likely be better suited to improving credit using a secured card. For those who want a—perhaps more affordable—alternative to a regular card account for frequent, repeated cash advances, the Grain Account Card* may be an option—but this depends entirely on how you plan to use it and whether its hefty fees will compete against the cash advance fees and interest you would normally otherwise pay.
Methodology
Forbes Advisor considers a variety of criteria when assigning credit cards a rating. Cards are graded based on numerous factors including:
- Annual fees
- Welcome bonus offers
- Ongoing earning rates
- Value of individual points or miles
- Included travel or merchant credits
- Additional cardholder benefits
Card features we expect cardholders to use the most often are weighted more heavily in our ratings. Altogether, the factors came together to provide a star rating for each individual card.
Read more: How Forbes Advisor Rates Credit Cards
Find the Best Credit Cards for 2024
No single credit card is the best option for every family, every purchase or every budget. We've picked the best credit cards in a way designed to be the most helpful to the widest variety of readers.
¹Credit lines opened through Upgrade feature annual percentage rates of 14.99% to 29.99% and line amounts ranging $500 to $25,000. Optional ACH transfers to your bank account, balance transfers, and foreign transactions are subject to fees that, if incurred, will increase your finance charge and APR. The lowest rates require Autopay and the majority of the line amounts will be $15,000 or less. For example, a $5,000 transaction with a 36-month term and a 19.99% APR has a required monthly payment of $187.90. The APR on your transaction may be higher or lower. Your rate, line amount, and default term depend on maintaining a qualifying credit score, your credit usage history, requested amount, and other factors. The Upgrade Card is unique in that it allows you to obtain a series of closed-end loans which you may access through transactions such as card purchases up to the approved line amount. As you repay your balance, additional credit may become available to you up to the approved line amount subject to meeting credit requirements. The Upgrade Card will not replenish as it would in an open-end credit arrangement.
*The information for the following card(s) has been collected independently by Forbes Advisor: Grain Account Card, Petal® 1 “No Annual Fee” Visa® Credit Card. The card details on this page have not been reviewed or provided by the card issuer.
