The
Credit One Bank® Platinum Visa® for Rebuilding Credit is a pretty good unsecured credit card for people with bad credit. It can be worthwhile because it gives you a
$300 initial spending limit, with no security deposit needed, in return for up to
$99 in annual fees (
$75 the first year). You’ll also earn cash back rewards, and you’ll have the opportunity to improve your credit score.
If you don’t need to borrow for an emergency, however, you’re better off placing a refundable deposit on a secured credit card.
What I Like About the Credit One Platinum Visa for Rebuilding Credit
Reasonable fees
Getting an unsecured credit line can be quite expensive when you have bad credit. But that’s less true with the Credit One Platinum Visa for Rebuilding Credit than most alternatives. There’s no one-time fee for application processing and no monthly fee – at least not one charged in addition to an annual fee.
The card’s annual fee is
$75 the first year. After that, annual fees can total up to
$99, though they might be charged in monthly installments. The exact fee amounts will depend on your creditworthiness.
Good way to get an emergency loan with bad credit
New cardholders begin with a
$300 credit line, and you don’t have to put down a security deposit. As a result, this card can help you borrow money for a small emergency expense if you’re in a bind.
You’ll essentially be paying as much as
$75 for as little as $225 in immediate spending power with this Credit One Bank card. After all, the first annual fee is assessed when you open your account, thereby reducing the spending power at your disposal. But that’s still a pretty good deal compared to the competition.
Cash back rewards
Most credit cards for people with bad credit that don’t require a security deposit do not offer rewards. Those that do typically restrict those rewards to very limited types of purchases. The Credit One Visa for Rebuilding Credit is a bit better. It gives cardholders
1% cash back on gas and grocery purchases, as well as 1% back on mobile phone, internet, cable and satellite TV services.
That rewards rate is about the market average, and most people spend money in those purchase categories.
Monthly credit-bureau reporting
This card can help you build credit if you use it responsibly. If Credit One’s monthly reports to the credit bureaus reflect on-time payments, that will improve your credit score over time.
What I Don’t Like About the Credit One Platinum Visa for Rebuilding Credit
High APR
This Credit One Bank Credit card has a very high interest rate – charging much more than the already high market average. As a result, you should try to pay for your charges as quickly as possible in order to keep costs down.
WalletHub’s credit card payoff calculator will help you make the best plan for your situation.
Credit-line increases aren’t guaranteed
Credit One Bank says it will consider cardholders for higher credit limits based on their “overall credit performance.” They don’t elaborate about what you need to do or when you can expect a higher limit, though. Most other cards require at least five or six consecutive months of on-time payments before considering a cardholder for a credit limit increase.
Rewards aren’t that helpful
The roughly 1% cash back that you will earn on eligible purchases pales in comparison to the rate at which you’ll have to pay interest. And if you really want rewards, you can do better with a secured card. You can earn 2-3X on some purchases.
More expensive than a secured card
If you don’t absolutely need an emergency loan or $225 in spending power isn’t enough for your needs, you’re better off focusing on improving your credit at the lowest possible cost. That means getting a secured card instead of an unsecured offer such as this Credit One card.
Secured credit cards require a refundable security deposit, the amount of which acts as your spending limit. This reduces both your costs and the issuer’s risk. There are a number of secured cards with no annual fee, and opening one will help you improve your credit score to the point where you can qualify for a decent unsecured card.
You’ll get the deposit money back when you close your account, assuming you’ve paid your bill in full. Plus, secured cards are just as good for building credit as unsecured cards.
Note: This review is not provided, commissioned or endorsed by any issuer. Opinions and ratings are our own.
