Credit One Bank® Platinum X5 Visa® review: Light rewards with heavy fees

Considering it’s available with only fair credit, the Credit One Bank offers an intriguing set of reward perks for cardholders.

Rewards rate: Surprisingly generous cash back for a credit-building card

The Credit One Platinum X5 Visa card earns 1 percent cash back rewards on all purchases and a formidable 5 percent cash back rewards on your first $5,000 in annual spending on eligible gas, grocery, internet service, cellphone service, cable, and satellite TV service purchases. After you meet this spending cap, your rate reverts to 1 percent back. 

That’s a generous rate and covers a terrific mix of everyday spending categories. In fact, it’s one of the highest rewards rates you can get in these categories on a card available with only fair credit. Most competing cards in this category only offer a flat 1 to 1.5 percent back.

That said, the card’s bonus category spending limit is disappointing. While a $5,000 annual rewards-eligible spending limit is impressive for a card designed for people with fair credit, it will likely be less lucrative than limit on most 5 percent rotating cash back category cards (typically $1,500 per quarter or $6,000 per year). Maximizing your rewards may also be unrealistic if you start with the minimum credit limit of $500. If you pay your bill monthly, you may only have $500 in purchasing power each billing cycle, which could mean missing out on potential cash back

There is also some fine print worth considering before you get excited about the Platinum X5 Visa card’s cash back rewards rate. To start, you may not qualify and get approved for the Platinum X5 Visa card specifically. Credit One brands its cards very similarly, and you may actually prequalify for a completely different card with a different rewards rate.

In addition, although it’s a Visa card, the Platinum X5 Visa card’s prequalification terms state that eligible purchases are defined by each merchant’s “Standard Industrial Classification Code” instead of Visa’s normal merchant category codes (MCCs). That means your Platinum X5 Visa might not earn rewards at the same places your other Visa cards do.

Other cardholder perks: More opportunities for cash back

The other two major perks on the Platinum X5 Visa aim to put even more cash back in your pocket. The Credit One More Rewards and Visa Offers + Perks programs allow you to save money with select online shopping retailers by linking your credit card to these online portals, just like you would with Amex Offers or Shop Through Chase.

Both programs cycle participating merchant offers for a limited time, but More Rewards deals can earn up to an extra 10 percent in cash back rewards, while Visa Offers + Perks mainly provides product discounts. Just be sure to read the offer limitations carefully.

All Visa credit cards also carry a roster of perks based on your credit limit. The Credit One Platinum X5 Visa card qualifies as a Visa Traditional card, which will get you basic features like $0 liability on unauthorized purchases, emergency card replacement, Emergency Cash Disbursement and 24/7 pay-per-use Roadside Dispatch.

While the Platinum X5 Visa offers a great rewards rate for a credit-building card, it falls short in other areas. 

Rates and fees: A few too many for a credit-building card

If you’re looking for a low-cost starter card, you might want to pass on the Platinum X5 Visa. The 29.24 percent variable APR is well above the current average credit card interest rate. Plus, you’ll have to spend at least $1,900 per year (or $159 per month) in the card’s 5 percent cash back rewards categories just to offset the $95 annual fee with rewards.

You may also need to pay a fee to upgrade your credit limit depending on your creditworthiness. A low starting credit limit could cause problems since it will make it harder to maintain low credit utilization and Credit One can cancel your account if you’re 20 percent over limit. The card’s 3 percent ($1 minimum) foreign transaction fee, up to $39 late payment fee and up to $39 returned payment fee could also snowball your balance given the high interest rate.

Credit-building features: Few to speak of 

Despite being marketed as a credit-building card, the Platinum X5 Visa offers little in the way of additional perks designed to help cardholders build credit. While it offers a mobile app and the ability to check your credit score for free, these are common features on nearly all credit cards on the market. 

And while the card also offers a “credit protection” program, its cost may outweigh its benefits. By paying 0.96 cents per $100 of your standing balance on each monthly statement, Credit One will waive your minimum payment for up to six months. Beneficiaries can also receive up to a $10,000 balance payoff in the event of death.

Along with the monthly fee for carrying a balance, drawbacks include having your account will be frozen (except to accrue interest) once you activate your protection and having to wait 30 days to see your policy take effect. Considering these setbacks and other major costs like compound interest, opting for another debt management plan might be a better idea.

Credit limit: It may be small to start

The minimum initial credit limit with the Credit One Bank X5 Visa is just $500 (minus the $95 annual fee). This credit limit doesn’t offer a lot of spending power month to month, and if the X5 Visa is your only credit card, you could easily wind up with a credit utilization ratio of greater than 30 percent, potentially harming your credit score over time.

This small credit limit is also counterproductive to the reward potential of the card, giving you less wiggle room to spend on eligible categories depending on your financial situation.

The Credit One Platinum X5 Visa is a notable credit-building tool that — unlike many credit-building cards — offers cash back on purchases. The card’s interest rate is in line with the standard interest rate on cards for fair credit, but the $95 annual fee is higher than similar cards’ fees and the lack of additional credit-building features is a sore spot. Here’s how the card stacks up to similar cards on the market. 

The Credit One Bank Platinum X5 isn’t the top pick on the market for credit building or rewards, but it can still suit a particular type of consumer. 

The Credit One Bank Platinum X5 Visa credit card dangles an alluring cash back rewards rate on major expenses like grocery, gas and eligible digital services. But the $95 annual fee and restrictive card terms mean it may not be worth the trouble if you’re focused on building credit.

While this card’s rewards rate may look fantastic, you can easily find well-rounded credit cards that won’t nickel and dime you as you build your credit score and work towards qualifying for a full-fledged rewards card.

Our proprietary card rating system takes into account a mix of factors when scoring credit cards for students and people building credit, including each card’s cost, APR, credit-building tools and more.

We analyzed over 50 of the most popular cards designed for students and people with no credit history, bad credit or a fair credit score and scored each based on where its key features stood in relation to others in its category. 

Here are some of the key factors that gave this card its score: