Credit One Bank® Platinum Visa® for Rebuilding Credit review: An expensive way to rebuild credit

This card is a plus if you want to earn rewards while rebuilding your credit. On top of that, the Credit One Platinum card is a great option if you want help paying off your balance each month since you can only redeem for statement credit. 

Rewards and redemption: Statement credit can help manage budget

The Credit One Bank Platinum Visa for Rebuilding Credit earns unlimited 1 percent cash back on popular spending categories, like gas and groceries, but it also includes categories not typically offered in other cash back programs, like internet and cable services. With these everyday categories, it shouldn't be hard to rack up cash back rewards. 

But you should be aware that Credit One uses “Standard Industrial Classification Codes” rather than the typical merchant category codes other Visa credit cards might use. These two work similarly, but it can be harder to track which stores earn cash back.

Also, your cash back rewards are automatically added to your account as a statement credit on each billing cycle’s statement. While more flexibility is great, having rewards automatically applied to your balance as a statement credit is a low-hassle benefit. 

Cards with multiple redemption options usually come with choices that are valued differently from one to the next. With Credit One’s simple redemption model you’re guaranteed to get the full amount of your cash back every statement.

Perks: Earn extra cash back 

Credit One Bank Visa cards feature two programs you can use to earn extra cash back and discounts. By linking your card and shopping with participating retailers, Credit One’s More Rewards and Visa Offers + Perks stack extra rewards or discounts on top of your original earnings for eligible purchases. 

More Rewards provides deals that offer up to 10 percent bonus cash back, while Visa Offers + Perks is tailored toward online shopping, apparel and dining discounts with select businesses. Issuer-run rewards programs like these usually come on some of the best credit cards available. 

Another nice perk is you can select a new payment due date that is at least six days before or after the original assigned date by calling customer service. You can only change your due date once in a six-month period, but it allows some flexibility if you need it. 

Rates and fees: Annual fee might be too costly 

Although it doesn’t require a security deposit, the Credit One Bank Platinum Visa for Rebuilding Credit is far from a low-cost card. The biggest potential cost to consider is the annual fee: $75 for the first year, then $99 per year after (billed at $8.25 per month).

Since the rewards rate is relatively low, the annual fee could make it hard to pocket any cash back. This is especially the case in the second year you hold the card,  since you’ll need to spend at least $825 per month (or $9,900 per year) just to offset the $8.25 monthly fee with cash back rewards.

The card’s APR is also higher than the current average credit card interest rate, but this is common on cards designed for people with bad credit. 

It’s important to note that if you make a card payment on your due date after 5:00 p.m. PST your payment might not be processed the same day. Unless you pay the optional express payment service fee, you could accumulate interest on any balance you’ve already sent a payment for and incur a late payment fee (up to $39).

Other fees include foreign transaction fees, credit limit increase fees, returned payment fees and cash advance fees.

Credit-building: No standout features

Outside of features like account alerts, zero fraud liability and free monthly credit score access, the Credit One Bank Platinum Visa for Rebuilding Credit doesn’t carry many extra perks — even for building your credit.

Credit One will regularly review your account for responsible card use to determine if you qualify for a credit line increase. With a higher credit limit, you may be able to keep your credit utilization lower, an important factor in determining your credit score. However, opportunities for credit line increase are typical for cards of this type. 

You might opt for Credit One's Credit Protection Program, designed to prevent your credit score from dropping for up to six months. This program will cover your card’s minimum payment if you lose your job or become disabled.

You must wait at least 30 days after enrolling, however, to activate your protection – and you’ll still accrue interest on your account (which will be frozen while you receive benefits).

But combined with this card’s high rates and fees, the mounting interest you would accrue by carrying a balance on your card could lead to a costly cycle. Although the program will cover your card’s minimum payment, you’re still on the hook for the rest of the balance. 

Since your protection and account can be forcibly closed if you’re 60 days past due or 20 percent overlimit, Credit One’s protection plan could end up costing more than other debt management options.

There are plenty of cards for people with no credit history that may be more straightforward and even easier to get than a Credit One card. When you have bad credit and want a new credit card, you should first decide whether you want a secured or unsecured credit card. 

Despite higher upfront costs, secured credit cards could be a better option. They can come with fewer potential costs and often include more credit-building features.

The Credit One Bank Platinum Visa for Rebuilding Credit doesn’t carry the same refundable (but expensive) upfront cost as a secured credit card, but it does come with a costly annual fee that will be difficult to offset with its limited 1 percent cash back. The card may be a decent option if you have bad credit, but sometimes depositing money to open a secured card with a larger credit limit can be a more effective strategy as you work on improving your credit score.

Simply put, there are better credit cards available that accept applicants with a less-than-ideal credit history, and your pool of options deepens considerably if you have fair credit.

*The information about Credit One Bank® Platinum Visa® for Rebuilding Credit has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.