The Perpay credit card is an unsecured, payroll-linked credit-builder card issued by Celtic Bank. It requires no security deposit and no hard credit check. Instead, you link a portion of your paycheck via direct deposit to fund payments automatically. That structure makes it different from a secured card.
The main features you need to know for a prepay credit card
| Feature | What you get |
| No deposit / soft-apply | No security deposit; application doesn’t trigger a hard pull. |
| Credit limit | Up to $1,500; starter limits commonly $300–$1,000. |
| Fees | $9 one-time opening fee + $9 monthly service fee (≈ $108/year). |
| Rewards | 2% back on payments (not purchases), redeemable in Perpay Marketplace. |
| Credit reporting | Payments are reported to all three bureaus when you activate Perpay+. |
| Use | Works anywhere Mastercard is accepted. |
| Funding | Requires payroll direct deposit and employer-payroll integration. |
How it differs from other credit-builder options
The Perpay product mixes payroll automation and credit reporting. It’s not a secured card where you give a cash deposit. Instead, you commit a slice of your paycheck as the automatic funding source. That makes the card closer to a structured payment plan and useful for people who prefer automation.
Who should consider it and who should not
Good fit:
- You have stable W-2 work and can set up direct deposit.
- You want to build or rebuild credit without posting a security deposit.
- You value automation to avoid missed payments.
Not a great fit:
- You’re self-employed or paid in cash (Perpay approval requirements require payroll direct deposit).
- You can’t justify the $9 monthly fee versus cheaper secured alternatives.
- You want straight cash-back rewards or flexible redemptions (Perpay rewards can only be used in the Perpay Marketplace).
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The cost math: realistic view
The $9 monthly service fee and $9 opening fee equal $117 in year one. Compare that to many secured cards that have no monthly fee but require, say, a $300 deposit. If you need a strict, deposit-free route and want payroll automation, the fee might be worth it. If you can do a secured card and prefer cash rewards or statement credits, secured options often cost less.
Application and activation step by step
- Apply online; no hard credit pull.
- Provide employment and payroll info; Perpay verifies you meet the payroll direct deposit requirement.
- If approved, set up a split direct deposit, often ~20% of your credit limit per pay period is asked as the minimum funding.
- After the first qualifying deposit, your physical card ships. Activate online or add the virtual card to a digital wallet.
How it builds credit and what to expect
Perpay reports on-time payments to Experian, Equifax, and TransUnion once you activate Perpay+. That creates a positive payment history on your file, which is the biggest single driver of credit scores. Because there’s no hard pull at approval, you avoid short-term hits to your score when applying.
Benefits vs drawbacks in practice
Benefits
- No deposit required and quick decisions for many applicants.
- Automatic payroll deductions reduce missed payments.
- Access to a credit line of up to $1,500 for qualifying users.
Drawbacks - $9 /month fee adds up.
- Rewards are limited to Perpay Marketplace.
- Requires W-2 employment and payroll direct deposit; gig workers usually don’t qualify.
Alternatives to consider
If the fees or payroll requirements don’t fit, look at these Perpay alternatives:
- Secured cards (deposit-backed, usually lower fees).
- Starter unsecured cards from major banks with co-signer options.
- Credit-builder loans from credit unions.
Each alternative has trade-offs: deposits, qualification hurdles, or slower credit reporting.
Quick comparison table
| Option | Deposit? | Hard pull? | Monthly fee? | Credit reporting |
| Perpay credit card | No | No | $9/mo | Yes (with Perpay+) |
| Typical secured card | Yes | Usually yes | Often no | Yes |
| Credit-builder loan | No | Varies | Loan interest | Yes |
Real usage tips to get the most value
- Treat Perpay like a forced savings and credit plan. Let payroll deductions automate payments.
- Monitor whether Perpay reports to all three bureaus for your account; activate Perpay+ if needed.
- Check whether Marketplace rewards cover items you actually want; otherwise, the 2% is less useful.
- Re-evaluate after 12 months: if your score has improved, graduate to a lower-cost unsecured or secured option.
Conclusion
The Perpay credit card is a nice tool: good if you have steady W-2 payroll and want a no-deposit path to reports and automation. The $9 monthly fee makes this costlier than many entry-level secured cards, so it’s a trade-off: convenience and no deposit versus cheaper paths if you can provide collateral. If you meet the payroll rules and want a structured route to build credit, the Perpay program can deliver results.