Pros
- Ability to earn to cash back
- Automatic credit line increase reviews
- No security deposit required
- Can help build credit
Cons
- High annual fee
- Potentially low credit limit
- Only one cash back redemption option (statement credit)
Credit One Bank® Platinum Visa® for Rebuilding Credit
From cardholders in the last year
What you need to know about the Credit One Bank® Platinum Visa® for Rebuilding Credit
If you don’t have great credit, qualifying for traditional credit cards can be tricky, and you may have to start with a secured credit card — which requires a security deposit. But if you don’t want to put down a deposit, the unsecured Credit One Bank® Platinum Visa® for Rebuilding Credit may be a useful alternative — even though it comes with a steep annual fee.
If you’re thinking of applying for this card, here’s what you should know about it first.
You can earn cash back
Credit cards for poor credit or no credit are typically very basic, without significant rewards or added benefits, especially when compared with other cards. But with the Credit One Bank® Platinum Visa® for Rebuilding Credit, you can earn 1% cash back on eligible gas, grocery, mobile phone, internet, cable and satellite TV purchases. The cash back you earn is automatically applied as a statement credit.
This rate is on the low end as far as cash back cards are concerned. But many credit-builder cards don’t even offer rewards, so the Credit One Bank® Platinum Visa® for Rebuilding Credit is a good option for people that want the ability to earn with every purchase. Just be careful not to overspend in order to get the rewards.
Cash back is automatically applied as a statement credit
If you like to keep things simple, receiving your cash back as a statement credit makes things easy. But compared to other rewards cards that may allow you to redeem your points for things like airline miles, merchandise and gift cards, this singular option is quite limiting.
You’re automatically considered for credit line increases
The Credit One Bank® Platinum Visa® for Rebuilding Credit card’s minimum credit line is $300. This is a fairly low credit line — and it could limit your spending power. But Credit One says that it periodically reviews your account activity and automatically considers you for a credit limit raise, based on your “overall credit performance.” The bank doesn’t specify exactly what it’s looking for, but consistently paying your credit card bill on time and in full is likely a good way to demonstrate that you’re ready for a credit limit raise.
When trying to establish credit, your credit card utilization is an important part of building a positive credit history, and it’s generally a good idea to keep your balances low. A good rule of thumb is to keep your credit usage under 30% — so if you have a $300 credit limit, try not to carry a balance of more than $100. And ideally, you’d want to pay off your bill in full every cycle to avoid racking up interest charges.
Though you’ll have to be thoughtful about how you’re using the card with such a low credit line, Credit One raising your credit limit in time can have a positive effect on your credit utilization rate and overall credit health.
High annual fee
It’s not uncommon for unsecured credit-building cards to have high fees, and the Credit One Bank® Platinum Visa® for Rebuilding Credit is no exception.
The annual fee is $75 for the first year, $99 thereafter (billed at $8.25 per month) (you might see different terms on Credit Karma). The first year’s annual fee is deducted from your credit limit. After the first year, the fee is billed at $8.25 a month (you might see different terms on Credit Karma).
Ability to prequalify
You can use Credit One’s prequalification option to find out if you’re eligible for the Credit One Bank® Platinum Visa® for Rebuilding Credit without affecting your credit. Just keep in mind that if you decide to move forward with your application after you prequalify, there will be a hard credit check as part of the full application process, which can drop your credit scores by a few points.
What else you need to know about the Credit One Bank® Platinum Visa® for Rebuilding Credit
If you aren’t sure if the Credit One Bank® Platinum Visa® for Rebuilding Credit card is right for you, here are some additional factors to consider.
- Credit reporting — Credit One reports your activity to the three major credit bureaus monthly.
- Fees — If you use the card for a cash advance, expect to pay a fee of 8% (minimum $5). You’ll also be charged a 3% (minimum $1) foreign transaction fee for using the card overseas and a fee of up to $39 if you pay your bill late or a payment is returned.
- Credit score access — When you become a cardholder, you get free online access to your Experian credit score.
- Fraud liability protection — The Credit One Bank® Platinum Visa® for Rebuilding Credit is backed by $0 fraud liability protection, so you aren’t responsible for unauthorized charges.
Who this card is good for
The Credit One Bank® Platinum Visa® for Rebuilding Credit is specifically designed for people building credit. So it might be a good fit if you’re new to credit or working on rebuilding your credit — especially if you want to earn some rewards for your spending.
Since Credit One reports your activity to the major credit bureaus, you can improve your credit if you’re careful about the way you use your card. Over time, you could potentially even qualify for other forms of credit, including other cards with stronger rewards programs and credit cards with no annual fees.
But if you don’t qualify for this card, you may have to consider applying for a card that requires a security deposit or another card that doesn’t require a credit check to qualify.
Not sure this is the card for you? Consider these alternatives.
Here are a couple of other cards to consider as alternatives to the Credit One Bank® Platinum Visa® for Rebuilding Credit.
- Capital One Quicksilver Secured Cash Rewards Credit Card: This secured card allows cardholders to earn cash back on every purchase.
- Capital One Platinum Credit Card: If you want an unsecured card, this Capital One card geared toward folks working on their credit could be a good fit.