Credit One Bank Visa Platinum Card Review
High Fees That Rise in Year Two
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 Details
|Annual Fee||Up to $75 in first year and $99 in second|
|Rewards Rate||1% on eligible purchases|
|Ongoing APR||20.24%-26.24%, based on your creditworthiness|
|Late Payment Fee||Up to $39|
|Foreign Transaction Fee||Either $1 or 3% of each purchase in U.S. dollars|
Pros & Cons of Credit One Bank Platinum Visa
What We Like
Low credit scores can qualify
1% cash-back rewards on a low-credit card
What We Don't Like
High annual fee
Annual fee rises in second year
Credit One Bank Platinum Visa Sign-up Bonus
This card has no sign-up bonus.
Earning Points & Rewards
This card comes with 1% cash-back rewards that varies depending on your credit score. You will be informed of your rewards after you are approved. Possibilities include:
For Credit One Bank credit cards:
- 1.0% Cash Back Rewards on eligible Gas, Groceries, Mobile Phone Service, Internet Service, and Cable & Satellite TV Service; or
- 1.0% Cash Back Rewards on eligible Gas, Groceries, Dining Purchases, Mobile Phone Service, Internet Service, and Cable & Satellite TV Services; or
- 1.1% Cash Back Rewards on eligible Dining Purchases and 1.0% Cash Back Rewards on other eligible Purchases; or
- 1.0% Cash Back Rewards on eligible Purchases.
For Credit One Bank NASCAR credit cards:
- 1.0% Cash Back Rewards on eligible Gas and Automotive Purchases, Double Cash Back Rewards on NASCAR.com Purchases; or
- 1.0% Cash Back Rewards on eligible Purchases, Double Cash Back Rewards on NASCAR.com Purchases.
The exact meaning of "eligible purchases" is unclear.
You will receive cash back rewards in the form of an automatic statement credit equal to a set percentage identified in your Cardholder Agreement.
You will not earn rewards or receive rewards credits while your account is delinquent.
Credit One Bank Platinum Visa's Other Fees
|Returned Payment Fee||Up to $39|
|Cash Advance APR||26.24%|
|Cash Advance Fee||Either $5 or 8% of the amount of each cash advance or $10 or 3%|
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.
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 as much as $38 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.
Is This The Right Card For You?
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.
If you are interested in a card, visit the Credit One Bank website to apply.
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.