Credit One Credit Card Pros & Cons Review

The Credit One credit card can help you build positive credit history.

Credit One Credit Card Review

The Credit One credit card may be a good option for people who have fair credit. The Credit One card is for people who want to continue to build their credit. You shouldn’t confuse it with Capital One because they’re a completely different entity. There are some good and not so good points associated with this card. In order to make an informed decision, you want to know both sides.

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Credit One Credit Card Benefits

1. No Security Deposit

Most cards that gear toward people with fair credit require a security deposit. The Credit One card does not. You’ll be able to open an account based on your credit score. So this can help to reduce any upfront fees you may have. In turn, more people will be able to get this card to rebuild their credit.

2. Credit Reporting

Credit One sends monthly updates to the three credit bureaus. As long as you make your payments on time, it can increase your credit score. Your score should also rise as your credit utilization ratio drops. Monthly reporting really helps to keep your credit history accurate. Also, it gives you a way to monitor how you’re doing.

3. Credit One Credit Card Rewards

You’ll earn one percent in rewards on your daily purchases. This could include every purchase you make. There are also specific purchases that change from month to month. This reward comes in the form of cash back. It’ll appear on your monthly statement as a credit each month. It won’t be a lot, but it can help pay your monthly bill a little.

4. Personalized Card Choices

You can make your card match your personality and lifestyle. Maybe you want a bright color or a bold design. Perhaps you’re looking for a more classic and chic look. Either way, you can pick from 20 different personalized card choices. You’ll be able to do this when you apply and get your approval notice.

5. Credit Line Increase Opportunities

The Credit One credit card comes with opportunities to increase your line of credit. They’ll usually automatically increase it by a few hundred dollars after the first five or six payments. So you have to make all of these payments on time. Also, you can’t fall behind at any point. If you do, it’ll take longer for you to get a credit increase on your current credit line.

6. Pick Your Due Date

People with the Credit One credit card get the freedom to pick their own due date. You will have to pay your first payment on the original due date. However, it’ll then allow you to go in and pick one. You do have to keep this date within six days of the original due date. You can set it six days earlier, six days later, or leave it.

7. Account Notifications

You’re able to customize your account notifications as well. So you can set it to alert you every time someone makes a purchase. You can set a payment reminder due date and more. Also, it’s easy to go in and change these notifications to your liking. Maybe you don’t want any notifications. You can shut them off for as long as you want.

Credit One Credit Card Drawbacks

1. Annual Fee

The Credit One card has a sliding scale annual fee that all comes down to your credit score. You’ll pay between no annual fee and $75 for the first year. So the second year has an annual fee that ranges between zero and $90. It comes right out of your initial balance. Also, they may divide this up between 12 equal payments and spread it out over a year.

2. Payment Processing Lag

It can take up to a week for Credit One to process your payment. This is bad news for people who make their payment on the due date. Also, it could cause you to have late payments. In turn, this can negatively impact your credit score and drop it a few points. It can do this even though you made your payment on time.

3. Credit One Application Process

The Credit One application process can be very confusing. Because they have a host of credit cards all tied to the same application. This means that you’re not exactly sure which card you get until the end. You won’t know your grace period, fees, rewards, or rates until you get your card.

4. Interest Rates

This is a card for fair credit, and the interest rates reflect this. Currently, the rates range high. You pay a high rate of interest each month that you carry a balance. It’s variable, and it all depends on your credit score when you apply for the card. Even if you only have a few dollars on your balance, you’ll pay interest that can add up fast.

5. Transaction Fees

There are slightly steep transaction fees attached to the Credit One credit card. Cash advance fees have a dual structure. The first fee is 8% of the amount of the cash advance, and this amounts to $5. The second fee is the greater of 3% up to $10. So if you routinely make cash advances, you could end up paying lots in fees.

6. Credit Limit Increase Fee With the Credit One Card

You do get a credit line increase opportunity. However, you’ll pay for it. There is a sliding fee attached to getting a credit line increase. As usual, it depends on your credit score. You can pay any amount ranging between $0 up to $49. This will automatically go on your statement when you get the increase.

7. Authorized User Fee

You’re able to add an authorized user to your account to help increase your credit score. You’ll have to pay a yearly fee of $19 per authorized user. So this can really add up over time. It’s especially true if you add more than one authorized user and you have a lower credit line.

8. Available Credit Refresh Lag

Unfortunately, there’s a lag period for refreshing your available balance. Say you have a credit line of $500 available and you max it out. So if you pay it on the due date, you’ll have to wait to access your credit line. This lag can take up to 12 days to process. So if you depend on your Credit One card, this isn’t a good thing.

Credit Cards for Fair Credit

The Blaze MasterCard® Credit Card and Capital One® Platinum Credit Card are two alternative options for fair credit.

CreditSoup® Fair Credit

Bottom Line on the Credit One® Credit Card

The Credit One credit card is a solid option for people with fair credit. It won’t’ work well for people who have bad credit. But, it does come with several perks. So you may want to look into getting the Credit One card temporarily to help build your credit. However, your best bet is to use it to start building your credit and switch out.

Monica Kowollik

Director at CreditFast.com
Monica has covered credit card and personal finance news for over 15 years. From an early age, she developed an interest in financial literacy and saving money. Monica hopes to help others to improve their personal finances one article at a time.

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