Are you on a credit-rebuilding journey and searching for the right credit card? If so, the Credit One Bank Platinum Visa for Rebuilding Credit might have caught your eye. In this article, we’ll delve into the details of this card, its pros, cons, and how it stacks up against other options.
Introduction
Having bad credit can make it challenging to find a suitable credit card. You may want a card with rewards, no annual fees, and a manageable APR, but secured cards, which require a security deposit, are often the only available option.
The Credit One Bank® Platinum Visa® for Rebuilding Credit seems like an attractive solution. It’s an unsecured credit card, meaning no security deposit required, and it offers cash back on everyday purchases. However, there are some important considerations to keep in mind.
A Quick Overview
Credit One Bank® Platinum Visa® for Rebuilding Credit Review
- Rewards Rate: 1% cash back on eligible gas, grocery purchases, mobile phone service, internet, cable, and satellite TV services.
- Annual Fee: $75 for the first year, $99 annually thereafter ($8.25 per month).
- Regular APR: 28.99% Variable.
- Recommended Credit Score: Bad to Fair (300 – 670).
- Finance Devil Rating: 2.4/5
Rewards
Earning Cash Back Rewards
One of the highlights of this card is its cash back rewards program. Cardholders can earn 1% cash back on eligible gas, grocery purchases, and select services like mobile phone, internet, cable, and satellite TV. This can help you save a little extra on your everyday expenses.
Redemption: Statement Credit
When it comes to redeeming your cash back, Credit One makes it straightforward. Your cash back rewards are automatically applied as a statement credit on each billing cycle. While this means you don’t have a lot of redemption options, it’s hassle-free and ensures you get the full value of your cash back.
Rates and Fees
The Cost of Ownership
Now, let’s talk about the not-so-great aspects of this card. First, there’s the annual fee. In the first year, it’s $75, and after that, it jumps to $99 annually (or $8.25 per month). This annual fee can eat into your potential cash back earnings, especially in the second year.
High APR Alert
Another downside is the card’s high APR, standing at 28.99% variable. This rate is considerably higher than the average credit card interest rate. It’s a common feature of cards designed for people with bad credit, but it’s essential to be aware of the potential cost if you carry a balance.
Other Fees to Consider
Beyond the annual fee and APR, there are other fees to watch out for. These include foreign transaction fees, credit limit increase fees, returned payment fees, and cash advance fees. Understanding these fees is crucial to managing your card effectively.
Credit-Building Features
Steps Toward Credit Improvement
Credit One regularly reviews your account for credit line increase opportunities. A higher credit limit can help improve your credit utilization ratio, a key factor in your credit score. While this is a positive feature, it’s not unique to this card, as many credit-building cards offer similar opportunities.
The Credit Protection Program
Credit One also offers a Credit Protection Program designed to prevent your credit score from dropping if you lose your job or become disabled. However, this program comes with some caveats. You need to wait at least 30 days after enrolling to activate the protection, and you’ll still accrue interest on your account during this time.
Potential Pitfalls
It’s crucial to weigh the benefits of this program against the card’s high rates and fees. If you carry a balance, the accumulating interest could negate the program’s advantages. Additionally, your protection and account can be forcibly closed if you’re 60 days past due or 20 percent overlimit.
Other Benefits of Credit One Visa for Rebuilding Credit
Here are some additional benefits of the Credit One Bank® Platinum Visa® for Rebuilding Credit:
- Flexible Payment Options: Cardholders have the flexibility to choose their payment due date. This feature helps ensure that payments can be made on time, which is crucial for building and improving credit.
- Annual Fee Billed Monthly: While there is an annual fee associated with this card, it is billed on a monthly basis ($8.25 per month for the annual fee of $99 after the first year). This monthly billing option can make it more manageable for cardholders to budget for the fee.
- Credit Line Increase Opportunities: Credit One Bank regularly reviews cardholders’ accounts for credit line increase opportunities. This means that if you demonstrate responsible card usage and payment history, you may qualify for a higher credit limit over time.
- Zero Fraud Liability: Cardholders are protected against unauthorized charges if their card is ever lost or stolen. This security feature provides peace of mind and ensures that cardholders are not held responsible for fraudulent transactions.
- Free Credit Score Tracking: Cardholders can track their credit score for free. Monitoring your credit score is essential for anyone working to improve their credit. This feature allows cardholders to keep a close eye on their progress.
- Free Credit Report Summary: The Credit One Bank Platinum Visa for Rebuilding Credit provides a summary of your credit report. This summary can help you identify areas where you need to make improvements in your credit history.
These additional benefits are designed to assist individuals in their credit-building journey and provide added convenience and security when using the Credit One Bank® Platinum Visa® for Rebuilding Credit.
READ ALSO: Tomo Credit Card Review 2023: A Game Changer for Limited Credit History
Comparison with Other Credit-Building Cards
Discover it® Secured Credit Card
If you’re open to a secured card, the Discover it® Secured Credit Card is a strong contender. While it does require a security deposit, it offers 2% cash back at gas stations and restaurants (up to $1,000 in combined purchases each quarter) and 1% cash back on all other purchases. Discover also matches all your cash back earnings at the end of your first year, making it an attractive choice for those who can afford the deposit.
Credit One Bank® Platinum Visa® for Rebuilding Credit vs. Discover it® Secured Credit Card
Annual Fee
- Credit One Bank: $75 for the first year, then $99 annually ($8.25 per month).
- Discover it® Secured: $0 (no annual fee).
Intro Offer
- Credit One Bank: N/A.
- Discover it® Secured: Cashback Match™ – Discover automatically matches all cash back earned at the end of the first year.
Rewards Rate
- Credit One Bank: 1% cash back on eligible gas, grocery purchases, mobile phone service, internet, cable, and satellite TV services.
- Discover it® Secured: 1% – 2% cash back on purchases, with 2% at gas stations and restaurants on up to $1,000 in combined purchases each quarter.
Recommended Credit Score
- Credit One Bank: Bad to Fair (300 – 670).
- Discover it® Secured: No Credit History.
Capital One Platinum Secured Credit Card
The Capital One Platinum Secured Credit Card is another solid option for rebuilding credit. It doesn’t offer rewards, but it comes with no annual fee and allows you to get started with a credit line as low as $49 with a deposit of $200 or more. Plus, you may qualify for a credit limit increase without an additional deposit.
Credit One Bank® Platinum Visa® for Rebuilding Credit vs. Capital One Platinum Secured Credit Card
Annual Fee
- Credit One Bank: $75 for the first year, then $99 annually ($8.25 per month).
- Capital One: $0 (no annual fee).
Intro Offer
- Credit One Bank: N/A.
- Capital One: N/A.
Rewards Rate
- Credit One Bank: 1% cash back on eligible purchases.
- Capital One: N/A (no rewards).
Recommended Credit Score
- Credit One Bank: Bad to Fair (300 – 670).
- Capital One: No Credit History.
Bank of America® Customized Cash Rewards Secured Credit Card
The Bank of America® Customized Cash Rewards Secured Credit Card offers a more flexible rewards program with 3% cash back in a category of your choice, which can be customized to suit your spending habits. It also provides 2% cash back at grocery stores and wholesale clubs, making it potentially more rewarding for specific spending categories.
In contrast, the Credit One Bank® Platinum Visa® for Rebuilding Credit has a fixed rewards rate of 1% cash back on eligible gas, grocery purchases, and select services, which may be less versatile but still offers some rewards.
Credit One Bank® Platinum Visa® for Rebuilding Credit vs. Bank of America® Customized Cash Rewards Secured Credit Card
Annual Fee
- Credit One Bank: $75 for the first year, then $99 annually ($8.25 per month).
- Bank of America: $0 (no annual fee).
Intro Offer
- Credit One Bank: N/A.
- Bank of America: N/A.
Rewards Rate
- Credit One Bank: 1% cash back on eligible purchases.
- Bank of America: 3% – 2% – 1% cash back in select categories.
Recommended Credit Score
- Credit One Bank: Bad to Fair (300 – 670).
- Bank of America: No Credit History.
Secured Chime Credit Builder Visa® Credit Card
The Secured Chime Credit Builder Visa® Credit Card does not offer a rewards program, making it a straightforward secured credit card without cash back incentives. It is suitable for those primarily focused on building or repairing their credit history.
On the other hand, the Credit One Bank® Platinum Visa® for Rebuilding Credit offers a limited cash back rewards program, making it a better choice for individuals looking to earn rewards while working on their credit.
Credit One Bank® Platinum Visa® for Rebuilding Credit vs. Secured Chime Credit Builder Visa® Credit Card
Annual Fee
- Credit One Bank: $75 for the first year, then $99 annually ($8.25 per month).
- Secured Chime: $0 (no annual fee).
Intro Offer
- Credit One Bank: N/A.
- Secured Chime: N/A.
Rewards Rate
- Credit One Bank: 1% cash back on eligible purchases.
- Secured Chime: N/A (no rewards).
Recommended Credit Score
- Credit One Bank: Bad to Fair (300 – 670).
- Secured Chime: Poor, Average.
These comparisons highlight the differences in annual fees, rewards, and recommended credit scores among these credit-building cards. Cardholders should consider their individual financial situations and goals when choosing the card that best suits their needs.
Ultimately, the choice between these cards depends on your specific financial goals. If you want to combine credit building with rewards, the Credit One Bank® Platinum Visa® for Rebuilding Credit may be more appealing. If you prioritize credit improvement without rewards, the Secured Chime Credit Builder Visa® Credit Card could be a suitable option.
Is the Credit One Bank® Platinum Visa® for Rebuilding Credit Worth It?
The decision to apply for the Credit One Bank® Platinum Visa® for Rebuilding Credit depends on your specific financial situation and credit goals. Here are some key takeaways:
Pros:
- Cash back rewards on select purchases.
- Accessible to applicants with fair to bad credit.
- No security deposit required.
- Customizable payment due date.
- Regular credit line increase reviews.
Cons:
- High annual fee that increases in the second year.
- High interest rates.
- Limited rewards program.
- Low credit limits.
- Other fees to consider.
While this card has its merits, there may be better options available, especially if you can afford a secured card with a refundable deposit. Ultimately, the Credit One Bank® Platinum Visa® for Rebuilding Credit can be a decent short-term solution for improving your credit, but it’s essential to weigh its costs against its benefits.
So, if you’re on a credit-rebuilding journey, take the time to explore your options, compare different cards, and choose the one that aligns best with your financial goals and budget. Remember that responsible credit use is the key to rebuilding your credit over time.
For personalized financial advice, consider consulting a financial advisor. And as always, before applying for any credit card, carefully review the terms and conditions to ensure it’s the right fit for you.
To Recap
The Credit One Bank® Platinum Visa® for Rebuilding Credit is tailored for individuals with bad to fair credit (credit score range: 300 – 670). It offers a unique blend of credit-building opportunities and a rewards program. Cardholders can earn 1% cash back on eligible gas, grocery purchases, and select services. However, it comes with an annual fee of $75 for the first year, which increases to $99 annually ($8.25 per month) thereafter.
FAQs
Who is the Credit One Bank Platinum Visa for Rebuilding Credit designed for?
This card is designed for individuals with bad to fair credit who are looking to improve their credit profile.
What credit score range is suitable for this card?
The Credit One Bank Platinum Visa is designed for individuals with credit scores ranging from 300 to 670.
Does this card offer any rewards?
Yes, cardholders can earn 1% cash back on eligible gas, grocery purchases, and select services.
What is the annual fee for this card?
The card has an annual fee of $75 for the first year, which increases to $99 annually ($8.25 per month) thereafter.
Is this card a secured or unsecured credit card?
The Credit One Bank Platinum Visa for Rebuilding Credit is an unsecured credit card, meaning it does not require a security deposit.
Does the card offer any credit-building features?
Yes, the card includes credit-building features such as regular account reviews for potential credit limit increases.
Can individuals with no credit history apply for this card?
While individuals with no credit history may be eligible, this card is primarily designed for those looking to rebuild or improve their credit.
Are there any other perks or benefits with this card?
In addition to cash back rewards, cardholders can access free monthly educational credit scores to track their credit progress.
Is there a recommended credit score to apply for this card?
The card is accessible to individuals with credit scores within the specified range (300 – 670), making it suitable for those with less-than-perfect credit.
Does the card have a credit limit increase option?
Yes, Credit One regularly reviews accounts for potential credit limit increases, providing an opportunity for cardholders to access higher credit limits.
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