What I Like About the Credit One Secured Card

1% cash back on eligible purchases 

Cardholders earn 1% cash back on gas and groceries, as well as your monthly mobile phone, internet, cable, and satellite TV services. If you plan to use the card for purchases in these categories, it can be a real asset. 

No annual fee

Some other cards for people with bad credit charge well over $100 in fees each year, and the average annual fee among the 1,500+ credit card offers in WalletHub’s database is $28.25. The fact that the Credit One Secured Card doesn’t charge membership fees can therefore save you quite a bit, making it easier to start or continue rebuilding your credit.   

Available to people with limited/bad credit

Most credit cards require good credit or better for approval, leaving people working their way there out of luck. Fortunately, this card is pretty easy to get, even with bad credit or limited credit history, allowing you to get the credit building party started. 

Reports to the major credit bureaus

Credit One reports account information to all three major credit bureaus each month. If you pay the bills on time and avoid maxing out your credit limit, this information will be positive. A monthly influx of positive credit data is what you need to build out a thin credit file or cover up past mistakes. 

What I Don’t Like About the Credit One Secured Card

Rewards limitations

For starters, you won’t earn rewards on all purchases. Only purchases in the eligible spending categories produce rewards. That’s a major shortcoming. 

In addition, the purchases that do qualify for rewards only earn at a modest rate. The average rewards rate on a credit card is 1.18%, according to WalletHub’s research. This card is just shy of that. 

Many rewards cards also offer an initial bonus – extra cash back, points, or miles for hitting an initial spending threshold. Unfortunately, the Credit One Bank Secured Card is not that generous. 

High interest rate

This card’s APR is nearly 30 times higher than its rewards rate, so if you carry a balance from month to month, you’re going to lose money. But if you pay in full monthly, preventing interest from being charged, then you have a chance to save.