Credit One Bank® Unsecured Visa® for Rebuilding Credit
Advertiser Disclosure: This post contains references to products from one or more of our advertising partners.
If it’s difficult to understand what a credit card has to offer, that’s usually a bad sign. Credit One Bank does not make it easy to examine the features of its cards, and muddies the water even more when it comes to what you’ll pay in annual fees and what you can earn in rewards.
And so, while it’s nice to find a credit card offering cash-back for those with no credit history, the terms of the Credit One Bank Unsecured Visa for Rebuilding Credit are so confusing that it’s a bit of a gamble to apply.
Rather than wading through this card’s terms and conditions, it may be best just to move along to better options.
So what does Credit One offer? You’ll earn 1% cash back on “eligible purchases.” Those include gas and grocery store purchases from merchants using specific “Standard Industrial Classification Codes.” No consumer should have to figure this out on their own.
What’s clear is you won’t earn any rewards from warehouse clubs and “discount supercenters” such as Wal-Mart and Target.
Even worse, consumers have no idea what annual fee they might have to pay – until after they apply. Annual fees run from $0 annually (reserved only for people with excellent credit) to $99. If you get tagged for the $99 fee, you’ll only have to pay $75 in the first year, which is hardly a break.
Cardholders with decent credit could pay as little as $45 a year.
Who should get this card
If you’re in a pinch and need access to credit, this card is better than the outrageously high interest rates charged by payday lenders. This is one of the few unsecured credit cards available for applicants with no credit history. It’s also one of the only credit cards in this category that offers cash-back rewards.
Fees and APR
- The annual fee varies based on creditworthiness from $0 to $75 the first year and $0 to $99 thereafter.
- The variable APR is 19.99% to 25.99%.
- Additional authorized users have an annual fee of $19 per card.
- There’s a $49 fee for requesting a higher credit limit.
- There’s an express payment fee of $9.95 for each expedited payment.
Extras, perks and using points
Rewards are automatically redeemed as a statement credit each month.
You can personalize your card by choosing from one of 20 designs. For some cards, a fee may apply.
This card comes with travel accident and auto rental collision insurance from Visa.
You can register to get a free monthly credit score report. You can also opt to enroll in the card’s Credit Protection program, which will help make monthly payments in the event of employment loss or disability. The fee for this is $0.96 for every $100 on your balance.
The Discover it Secured Card gives you a line of credit equal to the collateral you put down, anywhere from $200 to a maximum of $2,500. Although you have to put money down, there are no annual or other hidden fees with this card. It also has a generous rewards program.
As a rewards credit card, the Capital One QuicksilverOne Cash Rewards Credit Card just doesn’t stand up to the competition. As a rewards card for a consumer trying to rebuild (or build for the first time) their credit, this card is worth a look.
The Indigo Platinum Mastercard has an annual fee of either $0, $59, or $75 the first year, $99 thereafter based on credit profile. There’s a penalty APR of 29.9% that may apply indefinitely after one missed payment. This still might be a better choice than the murky charges levied by the Credit One Bank Unsecured Visa.