Credit One Bank offers several credit cards for consumers with less than perfect credit. These cards may seem tempting if youâ€™ve struggled with taking out credit in the past, but there are major red flags that should be considered before applying. Credit One Bank credit cards are laden with undisclosed terms and fees that you often wonâ€™t find with cards from major banks. In this post, weâ€™ll review what you should be aware of when considering a credit card from Credit One Bank and provide better alternatives.
Some cards have no grace period: Your card may not offer a grace period, which is a period of time â€” typically 21-25 days â€” from the close of your billing cycle where you wonâ€™t be charged interest. Without a grace period, you will incur interest charges from the date you make a purchase.
The annual fee is a shifting target: The annual fee ranges from $0-$75 your first year, then increases to $0-$99 in subsequent years. You wonâ€™t know which fee you receive until after you apply and if you receive an annual fee, it will be deducted from your initial available credit limit. That means if you are approved for a $300 credit limit and a $75 annual fee in year one, your initial available credit limit will be reduced to $225. After year one, some accounts may have the annual fee deducted all at once, or divided by 12 and spread out across the year.
Additional authorized user fee: For each authorized user, Credit One Bank charges a $19 fee. This is an uncommon fee and you can find many cards that donâ€™t charge a fee for authorized users.
Credit One Bank offers six different cashback programs where you may earn 1%-2% cash back on eligible purchases. The program you receive depends on your creditworthiness and looking at the terms and conditions, Credit One Bank states you wonâ€™t know the exact cashback rewards rate you receive until you submit a pre-qualification request. Thatâ€™s a drawback of Credit One Bank credit cards, since cards from the major issuers clearly disclose the rewards rate you receive prior to applying or pre-qualifying.
The cashback options you may qualify for Credit One Bank credit cards include:
For Credit One Bank NASCAR credit cards, you may receive:
Beyond a cashback program, Credit One Bank credit cards offer a few additional benefits that are pretty common:
Credit One Bank offers a pre-qualification feature where you can check to see if you may qualify for one of their credit cards and the terms you may receive. This does not affect your credit score and is a helpful feature if you plan to shop around for credit cards â€” which we recommend doing. You can simply fill out the form on their site by entering select personal and financial information. After pre-qualification and before you submit a full application, carefully read the terms to make sure theyâ€™re worthwhile. Note, once you submit your actual application, a hard pull will be done on your credit.
There are plenty of other credit cards available if youâ€™re looking to build credit or earn rewards with a credit card. You can check out no-annual fee secured cards that are often tailored to consumers looking to build or rebuild credit, or our list of the best credit cards for bad credit, or a wide selection of rewards and cashback cards.
If youâ€™re looking for cash and not a credit card, compare personal loans that offer a fixed amount of money, for a fixed time period, at a fixed interest rate. Personal loans can be a good option if you need cash, and often have options for people with bad credit.
This Cash Back Number May Surprise You
Best Travel Credit Cards With No Annual Fee
Getting Approved For 1 Of These Credit Cards Means You Have Excellent Credit
2 Credit Cards Charging 0% Interest until 2019