Credit One Credit Cards Help Rebuild Bad Credit
When your credit score is low, you may find that you have few options when it comes to credit cards to rebuild credit. Lenders and credit card companies are hesitant to take a risk on consumers who have too many blemishes on their credit history. However, companies like Credit One may offer a reasonable solution for those who find themselves in this predicament.
Credit One credit cards are designed to assist consumers who need to focus on building up their credit history with consistent repayments. While they may not offer the highest rate of cash back or rewards, they do have a few programs that work in your favor.
If you’ve been searching for a new piece of plastic to add to your wallet, you’ll want to look further into applying for a new Credit One Bank credit card. You should be aware of all the Credit One credit card reviews and the primary features that make these Credit One credit cards so attractive to shoppers. AdvisoryHQ wants to help you get to the bottom of what you should consider in credit cards like Credit One.
In our detailed review, you’ll find the rates, rewards programs, and what other Credit One Bank credit card reviews have to say about this particular financing company. This is information you’ll definitely want to read before you fill out your first application.
Comparison Review List
The list below is sorted alphabetically:
- Cash Back Rewards Visa
- Platinum Visa for Rebuilding Credit
- Official NASCAR® Visa
High Level Comparison Table
Credit One Bank Credit Cards | Cash Back Program | Additional Incentives |
Cash Back Rewards Visa | 1% on all eligible purchases | -Travel Accident Insurance -Auto Rental Collision Damage Waiver |
Platinum Visa for Rebuilding Credit | N/A | -Credit lines up to $1,500 |
Official NASCAR Visa | 1% on all eligible purchases 2% on NASCAR.com purchases | -Special deals on exclusive access to NASCAR experiences |
Table: The above list is sorted alphabetically
What Is Credit One?
Credit One Bank, not to be confused with similar sounding Capital One, is a financial institution focused on assisting consumers who need to rebuild their credit.
Unlike other banks and lenders, this bank specializes solely in unsecured Credit One credit cards with no checking or savings accounts offered.
Individuals who have bad credit have likely already found that the most common option to begin rebuilding it is via a secured credit card. Many times, secured credit cards can be cost-prohibitive by requiring collateral deposits equal to the credit limit they are willing to open. This could require $200 or more, depending on which bank and program you are interested in working with.
A Credit One Bank card is an unsecured option that gives consumers some flexibility and leniency when opening an account. The credit line on Credit One credit cards can be relatively low, just enough to get you started on making consistent payments on a monthly basis.
However, opting for a Credit One Bank credit card requires a little more research on the part of consumers. Many Credit One credit card reviews note tragic pitfalls with their programs, including:
- No grace period on payments
- High annual fees
- High APRs
In the sections below, we’re going to more closely examine those claims in relation to their three current Credit One credit cards offerings: the Cash Back Rewards Visa, the Platinum Visa for Rebuilding Credit, and the Official NASCAR® Visa.
Grace Periods
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Though there are only three Credit One credit cards currently offered, locating their cardholder agreements that detail the specifics is a challenge. Users who want to find detailed information on maintaining a Credit One credit card for bad credit might be out of luck. Their cardholder agreements list twenty different choices, all labeled as a variation on the Platinum Visa®.
What does this have to do with the grace period found on Credit One credit cards? It has more to do with it than you might think.
Individuals who apply for Credit 1 credit cards, including the Platinum Visa®, need to pay very close attention to which version of the Credit One credit card they are being offered. While some of the Credit 1 credit cards will feature a grace period, there are several offerings that lack this basic option.
Many of the more popular credit cards like Credit One will offer a grace period, waiving any interest on balances that are paid in full by the due date. Your due date is generally twenty to thirty days past the end of your billing cycle, depending on your credit card company.
A critical feature to take note of in Credit One Bank credit card reviews is the lack of such a grace period. Interest will begin to accrue on your Credit One Bank card from the date your purchase is posted. This can add up to a significant cost to you, even if you are in the habit of paying your Credit One credit card bill on time. Of course, some of their cardholder agreements do feature a grace period while others leave it conspicuously absent.
There is almost no way to avoid paying interest on any of your purchases unless you qualify for one of the better Credit One credit cards that are offered. As mentioned previously, if you decide to apply for a Credit One Bank card, you’ll need to pay very careful attention to which letter and number combination you are qualified for and then locate the corresponding cardholder agreement.
It could save you a small fortune in interest payments if you heed this warning, prevalent throughout many Credit One credit card reviews.
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Credit One Bank Credit Card Interest Rates
Because these are designed to be credit cards to rebuild credit, you can expect the APRs to be slightly higher than those offered for consumers with good to excellent credit ratings.
Scrolling through the numerous cardholder agreements and Credit One Bank credit card reviews, it’s clear to see that there is a large range in expected APRs. While your current credit score and creditworthiness may determine this, you should be prepared for some of the higher interest rates that many of these Credit One Bank credit card options are accompanied by.
Annual percentage rates will vary from a relatively reasonable 17.90% to a whopping 24.15% depending upon which program and Credit One Bank credit card you are currently investigating.
Their Credit One Bank credit card also has a relatively high APR on cash advances. A variable APR of 25.15% on cash advances will apply. This fee is the equivalent of the Wall Street Journal prime rate plus 21.65%.
Of course, there are some principles to keep in mind when it comes to cash advances with Credit One credit cards:
- The Credit 1 credit card cash advance rates could be lower than this depending on your approval.
- They may come with other cash advance fees (up to $10 or 8%, whichever is greater).
Credit One Credit Card Annual Fees
Source: Credit One Bank
Credit One credit card reviews would do well to note the large discrepancy in annual fees available through their three offerings. Consumers throughout Credit One Bank credit card reviews are constantly noting the varying annual fees.
Some members may qualify for a Credit One credit card for bad credit that is accompanied by no annual fee at all. This is available on a surprising number of the Credit One Bank credit card choices. Other Credit 1 credit cards will come with reduced annual fees for either the first year of membership or throughout the duration of your card.
The next step up when it comes to annual fees is just $35, though it is not specifically noted whether it applies to the Cash Back Rewards Visa, the Platinum Visa for Rebuilding Credit, or the Official NASCAR® Visa.
However, potential applicants for a Credit One credit card for bad credit should be aware that annual fees could reach as high as $99 per year.
Some Credit One bank credit card reviews note that many consumers were displeased with the high annual fees. One consumer noted that some of the approval letters mentioned no annual fees or reduced fees on the front of their letters while the back detailed high annual fees that contradicted the letters.
Annual fees are billed in monthly increments throughout the year for subsequent years. The initial annual fee, if any is required, will be due upfront upon the opening of your account.
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Credit One Bank Credit Card Fees Worth Mentioning
Source: Credit One Bank
In addition to the usual culprits that should be assessed in any Credit One Bank credit card reviews (interest rates and annual fees), there are a few other costs to maintaining any of the three available Credit 1 credit card choices.
First, we want to draw your attention to the cost associated with a credit limit increase. Many lenders will allow you to increase your current credit limit without cost once you are eligible for such consideration. It’s worth noting in Credit One credit card reviews that this isn’t the case with your new Credit 1 credit card.
Credit 1 credit cards are subject to a finance charge based on your credit and account history when being considered for a credit limit increase. You will need to be reviewed under the same process that was originally conducted when you applied for a Credit One Bank credit card. You will then be notified via mail if you were approved or declined for an increase.
The cost for being considered? Well, it will depend on exactly which offer you receive with your Credit One Bank credit card approval initially. Fees can range anywhere from $0 to $49.
Second, you’ll want to pay very close attention to the cardholder agreements and the specifics regarding the minimum payments for Credit One credit cards. Most of these Credit One Bank credit card choices will require a 5% minimum monthly payment, which could be relatively high depending on what your current credit limit is.
Credit One credit card reviews need to note that these three credit cards to rebuild credit could require high monthly payments if your spending is irresponsible. Without careful monitoring of your spending and what your balance is tallying up to, you might find that you can barely afford the Credit One Bank credit card monthly payments.
Adding an additional user to your Credit One credit card may also cost you. In addition to your potentially high annual fees, you’ll also pay up to $19 annually for an authorized user participation fee (if applicable).
Benefits of Credit One Credit Cards
With all of the potentially negative Credit One credit card reviews, why do so many consumers still opt to use their credit cards to rebuild credit? Their three primary cards do offer a number of rewards and incentives that are relatively attractive.
While the Credit One credit card reviews do make it difficult to pinpoint exact interest rates and annual fees (since both are determined by your creditworthiness and other factors), we can provide in-depth Credit One Bank credit card reviews of their three programs.
Both the Cash Back Rewards Visa and the Official NASCAR® Visa provide an opportunity for cardholders to earn cash back rewards with their Credit One Bank credit card. You’ll gain access to 1% cash back on all eligible purchases with both of these cards. Even better, the Official NASCAR® Visa provides double the cash back on all NASCAR.com purchases as well.
In comparison, the Platinum Visa for Rebuilding Credit does not come with any mentioned cash back rewards offers.
The Cash Back Rewards Visa also includes travel accident insurance and an auto rental collision damage waiver, great features for individuals who travel often and who need credit cards to rebuild credit. Meanwhile, the Official NASCAR® Visa provides users with the opportunity to gain access to exclusive experiences and special deals.
All three cards (the Cash Back Rewards Visa, the Platinum Visa for Rebuilding Credit, and the Official NASCAR® Visa) come with a few standard features that are critical to note in Credit One Bank credit card reviews:
- 24/7 fraud monitoring and zero liability for unauthorized transactions
- Emails or text alerts to remind you of payment due dates
- Quick credit line decisions (advertised to be less than 60 seconds)
For consumers who need credit cards like Credit One in order to rebuild their credit, they also come with free monthly credit score reporting. This allows you to keep an eye on how your score improves over time with consistent usage of your Credit One Bank credit card. As the number improves, you may find that you qualify for better deals and opportunities through other credit card companies and lenders.
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Conclusion: Caution with Credit One Credit Cards
Credit One credit card reviews run the gamut from incredibly satisfied and content cardholders to disgruntled and frustrated recipients. It’s easy to see where some of the confusion comes from when the company itself refuses to provide clear answers regarding the rates, annual fees, and more.
While some cardholders were incredibly satisfied with their decision to open a Credit One Bank credit card, it is imperative to keep in mind that credit cards like Credit One are designed to fulfill a specific purpose. Namely, they are there to assist you in rebuilding your credit through consistent repayment and purchase choices.
Once your credit score is boosted into a fair to good range with the three credit cards noted in our Credit One Bank credit card reviews, you should begin to investigate other sources that could provide more favorable terms. You may find lower APRs, better cash back rewards programs, and lower annual fees. Additionally, you may be able to avoid some of the more “hidden fees” noted in Credit One credit card reviews.
Overall, Credit One credit card reviews fall into the solidly average category. They claim to maintain an A+ rating with the Better Business Bureau, demonstrating that their business tactics are aboveboard even if they are some of the more expensive credit cards to rebuild credit on the market. Among consumer reviews, such as those collected on Credit Karma and Consumer Affairs, they tend to be ranked around two to three stars out of five.
If your credit is abysmal and needs a little TLC, you may want to consider one of these Credit One credit cards. Specifically designed to assist you in boosting your credit score, you gain some perks and cash back programs with their various offerings.
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