Learn the Pros and Cons of a Credit One Bank Visa Platinum Card

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If you're in need of credit but don't have the best credit history, Credit One Bank has a reputation for approving applicants with poor credit.

While this might sound good for someone trying to rebuild his credit score, Credit One Bank makes its cardholders can pay dearly for the "privilege." If you're considering a Credit One Bank Platinum Visa, compare its features to other cards to make sure you're getting the best deal for your unique situation.

Credit One Bank Platinum Visa 

Credit One Bank makes money and offsets the risk associated with providing credit to riskier borrowers by charging fees. The annual fees fluctuate, but in the past, they have been up to $75 for this card in the first year and up to $99 each year after that. Moreover, the annual fee is charged to your account the date it's opened and reduces your available credit by that amount.

The minimum credit limit you'll be approved for is $300. So, with the annual fee, your initial available credit may only be $225. With some accounts, the annual fee is divided into 12 equal payments and charged monthly, rather than annually, in the second year. You won't know which method applies to your account until you're actually approved for a card. 

More Fees

If you add an authorized user to your account, you'll be charged an additional $19 annual fee for that user, and if you lose your card you'll pay $25 to get a replacement card.

The annual percentage rate (APR) for purchases depends on your credit history. If you have a better credit score, you'll likely qualify for a lower interest rate. The APR for cash advances will be slightly higher. 

As for cash advances, you'll find out the specific fee structure for your cash advance if you're approved. It's best to avoid cash advances unless you know the fee you'll be charged for them. You'll likely get either a cash charge of $5 to $10 per advance, or a percentage fee ranging from 3 to 8 percent of the advance. Again, you won't find out what rates apply to you until you get approved for a card.

Late payments and returned payments also result in fees of at least $35 per transaction. You should also know that some accounts do not have a grace period, which means your purchases will begin accruing interest right away.

You will not have a chance to pay in full and avoid interest on the credit card. You can, however, minimize the amount of interest you pay on your balances by paying the card balance off frequently.

Credit One Bank charge a credit limit increase fee from $0 to $49 if your credit limit was increased, even if you didn't request the limit increase. This fee range is mentioned in the latest version of the credit card terms.

How to Use the Credit One Bank Platinum Visa

Make no mistake about it, the Credit One Bank Platinum Visa is a risky credit card, especially when you can find several better options available on the market. It's a credit card you should only get if you have no other options and can't even afford to pay a deposit for a secured credit card. For a secured card, look at credit card offerings such as the Capital One Secured MasterCard.

This isn't the most cardholder-friendly credit card, and if you're not careful, you may find your credit limit used up by all of the card's various fees. It works decently as a credit card that you can use to start building up a payment history so you can qualify for something better. However, if you're not ready to make regular, timely payments on a credit card, don't get this or any other credit card.

Managing Your Card's Available Credit 

Pay off the annual fee right away to free up your card's usable credit. If your card does not have a grace period, pay your annual fee even before your first statement arrives and before you make any other purchases on your card. 

Keep your purchases to a minimum, particularly if you have a low credit limit. Aim to only charge a maximum of 30 percent of your credit limit, which is $90 if you have a $300 credit limit. This, and paying the card consistently on time, will help build your credit score and keep you out of debt.

if your card doesn't have a grace period, make your monthly payments on time each month, even before the due date so you don't keep accruing interest on an unpaid balance.

Apply for a better credit card after six to 12 months of using this card responsibly. Once you're approved for a credit card with better terms, close the Credit One Bank Platinum Visa and never look back.