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

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If you need credit but don't have a good credit profile, Credit One Bank, known for approving applicants with poor or no credit, may be an option.

While this might be favorable for those repairing their credit/credit score, Credit One Bank makes its cardholders pay dearly for the "privilege" of having their card. If you're considering a Credit One Bank Platinum Visa, compare its features to other cards to make sure you are getting the best deal for your unique situation.

Credit One Bank Platinum Visa 

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

The minimum amount of credit issued is $300. With the typical annual fee, that makes the initial available credit $225. With some accounts, the annual fee is divided into 12 equal monthly payments. You will not know which mode (annually or monthly) applies until approved for a card. 

More Fees

If you add an authorized user, an additional fee of $19 will be charged annually. If a card is lost, a $25 fee is assessed to replace it.

The annual percentage rate (APR) for purchases depends on the applicant's credit history. The better the credit score, the likelihood that this interest rate will be low. The APR for cash advances, however, will be slightly higher.

The cash advance fee structure varies per applicant; you will not find out what rates apply until approved for a card. It's best to avoid cash advances unless you understand and are comfortable paying the applicable fee. Charges typically range between $5 to $10 per advance or between 3% to 8% of the advance. Late payments and returned payments result in fees of at least $35 per transaction. 

Interest typically accrues immediately after the first purchase is made. 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 frequently paying the card balance.

Credit One Bank charges a credit limit increase fee from $0 to $49. This may be done even if you didn't request the limit increase. This fee 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 is decent if you want 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, do not 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% of your credit limit, which is $90 on a $300 credit limit. This and paying on time consistently 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 incur late fees and accrue interest on an unpaid balance.

Apply for a better credit card after 6 to 12 months of using the card responsibly. Once you're approved for a credit card with better terms, close the Credit One Bank Platinum Visa and never look back.