Step Review

Step Ratings at a Glance

Step is a banking app with secured credit card that offers free credit building, high-yield savings, cashback rewards, and other financial perks. Step is not a bank, but a fintech company dedicated to making credit building easy, safe and free for everyone as well as offering premium banking perks and tools to help customers achieve financial independence.

Evolve Bank and Trust, Member FDIC, provides Step’s banking services. Evolve Bank and Trust issues the Step Visa Cards under a license from Visa U.S.A., Inc. Visa is a registered trademark of Visa International Service Association. Step was founded in 2018 by financial industry veterans CJ MacDonald and Alexey Kalinichenko, who have over 50 years of combined fintech experience across firms like Affirm, Google, Gyft, Cash App, Square, and Stripe.

Step Products and Features

Step’s most vital product includes credit build cards and the mobile banking app.

Step Cards

Step offers two secured credit cards: the freemium Step Visa Card and the premium Step Black Visa Card, or simply Step Black.

Step Visa Card

Step helps you build a positive credit history using your Step Visa Card set up with Smart Pay. The contactless Step Visa Card is a type of secured card. However, it is neither a debit nor a secured credit card but rather a hybrid of the two. Traditional secured credit cards help borrowers with bad or no credit history build a credit score. Secured credit cards function similarly to debit cards, but unlike debit cards, they can help improve your credit score since they report your payment history to credit bureaus. Like a debit card, Step users can access money in their Step bank account using the Step Visa Card. They can only spend up to the amount deposited in the account, eliminating the potential for overspending. If your account has $50, you can only spend that amount and nothing more. 

Unlike a standard debit card, the Step Visa Card helps you build credit like a traditional secured credit card. Each transaction on the card contributes to your credit history. Unlike traditional secured credit cards, the Step Visa Card doesn’t require monthly payments on purchases since all spending is backed by money in your Step account. With no interest or monthly fee, overdraft or minimum opening deposit, Step provides teens and young adults with an accessible, zero-risk means of building a positive credit history. The card also facilitates on-the-go access to your account by allowing withdrawal from a nationwide network of 30,000 no-fee ATMs. However, you cannot deposit at an ATM. You can fund your account via the app with a linked bank account, debit card or direct deposit as well as via check deposit or cash deposit at one of 70,000 retail locations like 7-Eleven or Walgreens.

Step Black Visa Card

Step Black – the premium card offers a more exclusive experience. You can earn up to 5.00% savings rewards on balances up to $1 million, scoop up mouthwatering cashback offers from favorite stores, earn lucrative referral bonuses, save faster via savings roundups and much more. The cashback categories include:

• Up to 8% on select brands
• 3% on dining and food delivery
• 3% on charitable donations
• 2% on subscriptions and entertainment
• 1% on everything else

Step Black offers Visa Signature access to exclusive events and round-the-clock concierge service. This card is free if you meet the $500 monthly direct deposit requirement. Otherwise, a monthly fee of $4.99 applies. Unlike the Step Visa Card, which has no age restriction, only users aged 13 and up can use the Step Black Card.

Step Mobile Banking App 

Step mobile app streamlines account management, making funding, spending, savings and investing seamless. Anyone can open a Step account – there’s no age requirement. If you’re under 18, you’ll need a parent, guardian, or trusted adult to sponsor your account. Step allows sponsors and kids to access the account via separate apps. As a sponsor, you can monitor your teen’s spending activity, easily add money to the account, create and fund saving goals, and manage or freeze their card when necessary. You can instantly fund the account by linking another bank account or debit card. You can also fund the account via Venmo, Cash App and PayPal or by receiving direct deposits. 

Setting up a direct deposit with Step allows users to get paid up to two days early and enters direct deposit users into their monthly sweepstakes where users can win up to $5,000. Step also makes it easy to set up recurring payments and make peer-to-peer payments, allowing you to send or receive money from friends and family easily. You can sponsor more than one teen right from the app. 

Unlike traditional banks, Step makes money via ‘interchange’ fees paid by the merchant bank, which enables the platform to keep charges at a minimum. There are no monthly, overdraft, minimum, or account management fees. Regardless, there are some fees you need to be aware of. Thanks to Step’s partnership with VISA Plus Alliance, you can make free withdrawals at its network of up to 30,000 ATMs nationwide. Any withdrawal outside this network attracts a $2.50 fee. You can check the ATM Map in the app to find a free ATM near you. For cash deposits, merchants typically charge $3.95 per deposit. A card replacement fee of $5 is applicable for plastic Step cards and $49 for metal Step Visa Signature cards (only available to Step Black customers). 

There is also a $0.35 fee for withdrawing funds under $20 to a linked debit card or 1.75% for withdrawals of $20 or more. Additionally, adding funds below $20 from an external account incurs a $0.50 fee, but adding $20 or more is free. Transfers between Step accounts are always free. Step Black, the platform’s premium product, costs $4.99 monthly after a 30-day trial but is free with $500 in monthly direct deposits. It offers higher rewards and exclusive perks and helps reduce fees. Step Black cardholders do not pay minimum funding fees, cash deposit charges, or out-of-network ATM fees. 

Email hello@step.com or start a live chat directly from the app to resolve account issues and ask questions. Step does not currently offer phone support. Step’s support team is available seven days a week: Monday to Friday from 6 a.m. to 7 p.m. (PT) and on weekends and holidays from 6 a.m. to 6 p.m. (PT). First, log into your account to securely chat with them from your Step app. Then, tap the icon in the top-right corner, select “Contact Us,” and choose “Send us a message” to start a new conversation. They’ll respond as soon as possible. Alternatively, you can select ‘Help’ instead of ‘Send us a message’ to access a comprehensive knowledge base covering topics that may address your questions or help resolve your issues. It’s almost impossible not to get the answer you need therein. 

If you’re on the website, the FAQ section is a good resource for addressing your questions. However, it doesn’t offer as many resources as what’s available on the app. Step also maintains an active presence on social networking platforms, including TikTok, Instagram, Twitter, Facebook, LinkedIn and YouTube. You can potentially connect with the team and the community via these channels. Step enjoys overwhelmingly positive reviews on Trustpilot, with an excellent rating of 4.3/5. Users commend the company for its efficient customer support, seamless credit-building services, and numerous juicy perks from using the platform.

At Step, the security of the client’s funds and personally identifiable information is highly prioritized. Your deposits and deposit account are FDIC-insured up to the maximum amount of $250,000 through Step’s bank partner, Evolve Bank & Trust, Member FDIC. The insurance covers up to $1 million for Step Black users. Separately, your stock account (for your stock and ETF investments) is SIPC-insured up to $500,000 via their stock investments partner, Drivewealth, LLC. However, it’s essential to understand that the FDIC or SIPC does not protect cryptocurrencies and your crypto investment. Every purchase with your Step card is also protected via VISA’s Zero Liability Policy. This means you’ll never be responsible for charges you didn’t authorize. 

To ensure no third party can access your money on the app, you must set up a device with PIN (pass code), Face ID, or fingerprint authentication. The platform typically prompts users to use either when adding or sending money. Step also recommends that you immediately freeze your card from the app and order a new one once it gets lost or stolen. The platform leverages state-of-the-art encryption protocols to protect clients’ data at rest or in transit across its network. Step will never sell or share your data with a third party except under judicial order or as required by law. You can review their privacy policy to better understand the steps they take to protect your data and your responsibility.

The Step app offers immense benefits, which account for its rapidly growing community of users. Let’s breakdown some of the core benefits.

Seamless Credit Building with Smart Pay: Step is a secured card, so the same amount is deducted from your Step deposit account for each purchase you make. With the Smart Pay feature, all purchases are automatically paid off monthly using the funds in your account. These payments are reported to the three major credit bureaus: Equifax, TransUnion and Experian. 

This helps you build a credit history. If you’re under 18, Step will report up to two years of your payment history when you ‘Opt Into Credit Reporting’ on the app after turning 18. The app also lets you monitor your credit score. According to Step, the average annual credit score increase for clients in their 20s is 57 points. This seems impressive. 

Lucrative 5.00% Earnings on your FDIC-insured Savings: You can create savings goals and automatically add spare change to them with the ‘Round Ups’ feature to earn 5.00% on every penny. This is comparable to the average APY for the best high-yield savings accounts but significantly higher than standard savings accounts. With the Step Black card, your savings are insured for up to $1 million through FDIC coverage. If you need emergency cash, you can borrow up to $200 as a cardholder – interest and eligibility requirements apply.

Generous Cashback Rewards: You can use your Step Card everywhere Visa is accepted, online, in-store, worldwide, and earn mouthwatering cashback on purchases. With the Step Black, you can cash in over $500 in annual perks and earn up to 8% cashback. All while effortlessly building your credit history. You’ll earn the cashback as points for every dollar spent. Points earned are redeemable for cash automatically deposited into your account. Points don’t expire if your account is open and in good standing. According to Step, the average Step Black users earns $240 a year in cashback and savings rewards. 

Move Money and Get Paid Early: You can instantly send and receive money, deposit cash at 70,000+ retail locations nationwide, and access over 30,000 fee-free ATMs. In addition, you can get paid up to two days early with direct deposit. Plus, with direct deposits of $150 or more, you can enter to win monthly prizes – up to $5,000 cash, laptops, and shopping sprees.

Smart Investing: The app lets you invest in stocks and exchange-traded funds (ETFs) with as little as $1 at zero commission. Over 1,000 popular stocks and ETFs are accessible. Step recommends investments based on your volatility tolerance. Like a traditional brokerage account, your investment account on Step is insured by the Securities Investor Protection Corporation (SIPC) for up to $500,000. 

Step doesn’t just provide you an avenue to learn how to be a great investor via firsthand experience; it also places helpful tools at your fingertips. For instance, you can research securities directly from your Step app and test your investing IQ with trivia on Step’s Discord server, free Money 101 curriculum, of Step’s Money 101 content hub.

Step banking app makes for an excellent user experience. Its user-friendly interface streamlines navigation, making it easy for young adults to manage their finances. The app simplifies tasks like saving, spending, and tracking expenses and offers valuable tools for building credit early. It’s secure, convenient, and offers excellent customer support.

You can monitor how you spend money and what you spend it on and learn effective money management at a younger age. In addition, the platform introduces you to investing early, helping  gain valuable experience in the financial market at a young age through its investing service. Step also provides fantastic educational resources. For instance, the Money 101 Lessons offer excellent foundational knowledge about money management as well as general financial education. Various well-crafted articles on personal finance and investing are available on the website that can help you make informed decisions and improve financial literacy. The platform generally makes it easy to raise financially-smart young adults..

Signing up is easy. Visit the company’s website and click “Get Started.” Then, input your phone number, and you’ll receive a verification code to open the application portal. Fill out the requisite details, including name, address, and SSN. You may also need to verify your identity. The process takes about three minutes, and you can immediately create and use the virtual card while awaiting the physical one to be delivered. Signing up using the app involves a similar step. 

While there’s no age requirement to open a Step account, those under 18 need a parent or guardian to sponsor their account. Overall, it makes a fantastic choice for anyone learning about money management and building a solid financial foundation. This is also reflected in the impressive reviews by users across most independent platforms, including Trustpilot and Reddit. Benzinga considers the platform highly recommendable.

Step vs. Competitors

Step has a few competitors, such as Chime, Self, Kikoff, GO2bank, and Greenlight. 

Self is a popular credit-building tool, but unlike Step, it charges high fees ranging from $25 to $150 per month (depending on the loan type) over a 24-month term and has a 15.69% APR. It also has inefficient customer support, reflected in a poor 2.2/5 rating on Trustpilot, with many customers mentioning fraud concerns. 

Kikoff offers a better credit-building service than Self, with no APR and a low monthly fee of $5. It also provides better customer support, with an average score of 3.8/rating on Trustpilot. However, it still falls short compared to what Step offers. 

Chime boasts comprehensive services that are on par with Step, but again, these products have overwhelmingly negative reviews on Trustpilot, reflecting an overall poor service delivery. One thing that’s easily obvious among the above competitors is that, unlike Step, their product caters only to adults aged 18 and above.

Step is also a much better and budget-friendly option than Greenlight, thanks to its zero monthly payment and lucrative perks. However, Greenlight might be better for larger families, with features like multiple debit cards, chore tracking, financial literacy games, and customizable spending limits. Overall, Greenlight offers more robust features and is a stronger competitor to Step than other services. However, it requires a monthly subscription, which varies according to the specific package, with the lowest plan starting at $4.99 monthly.

Step is an excellent choice for anyone looking for their first bank account and spending card, any everyone looking to build better credit for free. It offers a convenient way for them to spend and receive money, manage their first paychecks, save and invest. Step is your go-to free banking app for better credit, savings, and rewards. Its lack of fees, interest charges, and minimum deposit requirements make it easy for young people to start building credit and gain valuable knowledge in financial literacy. 

Step is committed to helping everyone build credit for free and get more banking perks from their paycheck, like 5.00% on savings and early payday. Using the Step Black Visa Card is a smart decision for building a better financial future with better credit, savings and rewards without the risk of going into debt or interest fees, like traditional credit cards.

Frequently Asked Questions