The Cleo Card review
The Cleo Card is a unique, AI-driven secured card issued by WebBank that skips traditional credit checks and interest in favor of a personality-packed budgeting app.
The Cleo Card review
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Editor Analysis:
- Fast approval with no hard inquiry on your credit report.
- The card’s unique structure eliminates interest charges entirely.
- Regularly reports payment history to Equifax, Experian, and TransUnion.
- Unlike major bank cards, you can't upgrade to an unsecured version; you must eventually close the account to get your deposit back.
- Customer service is primarily app-based, which can be frustrating for complex issues.
Building credit often feels like a riddle wrapped in a mystery, especially when you’re starting from scratch or trying to recover from a few financial bruises. Enter Cleo: the fintech app that uses a sassy, AI-powered chatbot to "roast" your spending habits and, more importantly, help you navigate the world of secured credit.
The Cleo Card is designed to be a low-barrier entry point for those who might be rejected by traditional lenders. But with a $14.99 monthly subscription fee and a unique no-interest structure, it’s a bit different from your standard bank-issued secured card. Is the personality-driven interface and credit-reporting power worth the monthly cost, or are you better off with a more traditional route?
Here is everything you need to know about how this card works, what it costs, and whether Cleo is the right financial coach for your journey.
What is the Cleo Card and who is it for?
How the Cleo Card works
The Cleo Card, issued by WebBank, is a secured credit card specifically designed for consumers looking to establish or repair their credit history.
Unlike traditional cards with rigid requirements, this card allows you to set your own pace with a flexible security deposit. While you can technically start with as little as $1, a larger deposit — like $1,000 — results in a higher credit limit, giving you more financial breathing room.
How the security deposit works
Think of your deposit as a safety net that Cleo holds while you use the card. If you spend $300 in a month and pay it back on time, you’re successfully building your credit profile. However, if you miss a payment, Cleo will use your deposit to cover the balance. In that scenario, your $1,000 deposit would drop to $700, and your credit limit would decrease accordingly.
The goal is to pay your balance in full each month so that when you eventually "graduate" to an unsecured card, you get your full $1,000 deposit back.
How is there no interest?
Unlike traditional credit cards that charge interest (APR) as the price for borrowing the bank’s money, the Cleo Card uses a "subscription-not-interest" model. Because the card is fully secured by your own deposit, the traditional risk — and the interest used to offset that risk — is removed from the equation.
- Your money, your limit: Since you can only spend up to the amount you have already deposited, you aren’t technically "borrowing" in a way that generates debt.
- The safety net: If you miss a payment, Cleo simply uses your security deposit to cover the balance. On a standard card, a missed payment would trigger high-interest charges; here, it simply reduces your deposit.
- The "price" of 0%: While you won’t see an interest charge on your statement, remember you are paying a flat $14.99 monthly fee for the Cleo Builder subscription. For many, this predictable fee is easier to manage than fluctuating interest, but it effectively replaces the cost of a traditional APR.
Is Cleo a legitimate way to build credit?
Yes. The card is issued by WebBank, a state-chartered industrial bank headquartered in Salt Lake City, Utah. WebBank has been in operation since 1997 and is FDIC-insured, providing a layer of traditional institutional backing to the card.
However, it is helpful to distinguish between the entities involved:
- Cleo AI: This is a fintech company that runs the Cleo app and its AI-driven budgeting tools.
- WebBank: This is the actual financial institution that issues the credit card.
While the distinction between a fintech app and its partner bank can be a bit confusing, it is a standard arrangement in the modern financial world. This partnership allows Cleo to offer specialized credit-building features while WebBank handles the regulated banking side of the equation.
Key features of the Cleo Card
Credit reporting: Does Cleo report to credit bureaus?
Yes, Cleo reports your payment history to all three major credit bureaus: Equifax, Experian, and TransUnion. This is a critical feature because many alternative credit-building tools only report to one or two bureaus, which can leave gaps in your credit profile depending on which lender a future bank uses.
Because Cleo reports your activity every month, it provides a consistent opportunity to demonstrate reliability. However, it is a double-edged sword: Cleo reports your payments whether they are on time or not. While consistent, on-time payments can help steady your score, a missed payment will be reported and could negatively impact your credit standing.
One unique advantage of the Cleo Card is how it handles utilization. Typically, spending a high percentage of your credit limit can hurt your score, but Cleo does not report a credit limit to the bureaus. This means you can use the card for necessary expenses without worrying that a high balance-to-limit ratio will ding your score.
Cash advance access and limits
Beyond credit building, the Cleo app is widely known for its cash advance feature. It’s important to note that this is a separate service from the Cleo Card. Currently, eligible users can access advances of up to $250 to bridge the gap between paychecks.
While there is no interest charged on these advances, there is a flat $2.50 transaction fee per advance, regardless of the amount. Additionally, if you choose to withdraw this cash at an ATM, you may be subject to standard third-party ATM fees.
How repayment works
The repayment structure is straightforward but requires careful planning:
- Payday deduction: The advance is tied to your next direct deposit. When your paycheck hits your account, Cleo automatically deducts the amount you borrowed.
- No interest vs. future budgeting: While this is significantly more affordable than a traditional payday loan — avoiding the cycle of exorbitant interest rates — it does mean your next paycheck will be $250 lighter.
Essentially, you are borrowing from your future self. While this can be a lifesaver for immediate needs like groceries or an urgent bill, it’s vital to ensure your remaining paycheck can still cover your upcoming expenses.
Budgeting and spending insights via AI
Is a $14.99 monthly subscription fee worth it? For many users, the answer lies in the app’s core personality: its AI-driven budgeting interface.
The Cleo app does more than just track transactions; it proactively analyzes your spending habits, sends real-time alerts, and "communicates" with you about your financial health. By evaluating whether you’re overspending in specific categories or falling short of your saving goals, it attempts to act as a digital financial coach.
However, the "coach" has a very specific tone. Cleo is famous for its humorous, often blunt chatbot that can "roast" you for unnecessary purchases. Online reviews are notably mixed on this feature. While some users find the tough-love humor motivating and refreshing, others find it off-putting. Ultimately, the value of the Cleo Card often depends on whether you enjoy this interactive, personality-driven approach to money management.
Cleo Card vs. traditional secured cards
The Cleo Card functions much like any other traditional secured credit card, but with a few key differences in how you pay for it.
Most secured cards charge a standard annual fee. Cleo, however, uses a monthly subscription model for its suite of services. While many traditional cards have annual fees that are lower than Cleo’s total cost, Cleo bundles this cost with its AI chatbot and financial tools rather than charging a standalone card fee.
Another distinction is the lack of a clear "graduation" path. Many traditional secured cards from major lenders, such as Discover or Capital One, are designed to transition you into an unsecured card once you’ve demonstrated responsible habits. After six to 12 months of on-time payments, these lenders often return your deposit and upgrade your account.
With Cleo, there is currently no unsecured card to move into. While this isn’t a major drawback, it means that once your score has improved, you’ll likely need to close the account, get your deposit back, and shop for a new unsecured card elsewhere. It’s simply a transition step to keep in mind for your long-term credit strategy.
Fees and subscription costs explained
As noted, Cleo operates on a monthly subscription model. Monthly fees apply whether or not the card is actively used.
Pricing and plan names can change, so users should review current terms directly in the app. But as of this publishing, here’s how things line up:
- Free plan: If you aren’t ready to commit to a monthly fee, Cleo offers a free version of the app. This tier allows you to connect your bank account and use the core AI-driven features at no upfront cost. You can still use the chatbot to analyze your spending habits, track your expenses, and access Cleo’s suite of budgeting tools to get a clearer picture of your financial health.
- Cleo Plus: Pay $5.99 a month or $44.99 a year, and you get everything the free version includes, plus access to cash advances and additional financial tools, like personalized debt payoff plans and credit score tracking.
- Cleo Pro: For $8.99 per month (no annual payment option), the Cleo Pro plan includes all the features of the previous tiers while unlocking more advanced AI capabilities. This plan allows for a more interactive experience where you can engage in back-and-forth conversations with the chatbot. The AI is designed to remember your past interactions, providing more personalized financial insights and a tailored experience based on your specific goals and conversation history.
- Cleo Builder: For the complete credit-building experience, the Cleo Builder tier costs $14.99 per month. If you’re looking to save over the long term, you can also opt for a quarterly payment of $38.25 or an annual subscription of $134.99. This top-tier plan includes every feature from the Free, Plus, and Pro levels, but its primary draw is access to the Cleo Card issued by WebBank. By bundling the app’s AI-driven financial coaching with a tangible way to build your credit history, this plan is designed for those who want a comprehensive, all-in-one tool for improving their financial standing.
Real user experiences and performance insights
Positive reviews: Humor, helpfulness, and ease of use
You can find plenty of positive Cleo app reviews and feedback. A lot of people cite its:
- Approachable, humorous tone (both with the AI chatbot and its website articles)
- Simple setup
- Easy access to small cash advances
- Clear budgeting insights
Some users say Cleo helped them avoid overdrafts or gain better awareness of spending habits.
Negative reviews: Support issues and account problems
You can also find plenty of critical feedback. The complaints tend to focus on:
- Limited customer support options
- Confusing subscription charges
- Sudden changes in how much of a cash advance you’re eligible for
- Difficulty resolving disputes
It is worth noting that customer support for the Cleo Card is primarily app-based. While this digital-first approach aligns with the app’s AI-driven personality, it may frustrate users who prefer traditional support. If you run into a complex issue and want to speak directly to a human being, you may find the reliance on chat-based support to be a significant drawback.
Is the Cleo Card right for you?
Ultimately, only you can decide if this card fits your financial strategy. It’s important to remember that no secured credit card is a guaranteed ticket to a higher score. A credit card is simply a tool; its effectiveness depends entirely on how you use it.
Your progress can also be influenced by factors outside your immediate control, such as shifts in your personal economy or the arrival of unexpected medical bills or expenses.
For some, a more traditional secured card with a path to graduation and a lower total cost might be the better play. For others, the Cleo Card’s combination of AI-driven coaching, flexible deposits, and automated budgeting tools provides exactly the kind of structure they need to get back on track.
Disclaimer:The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we cannot guarantee the accuracy of the information in this article. Reasonable efforts are made to maintain accurate information. See the online credit card application for full terms and conditions on offers and rewards. Please verify all terms and conditions of any credit card prior to applying.
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