Friday, 27 November 2020

Credit One Bank Review: Average Credit Welcome But Complicated Terms

Credit One Bank offers several credit cards for consumers with less than perfect credit. These cards may seem tempting if you’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 won’t find with cards from major banks. In this post, we’ll review what you should be aware of when considering a credit card from Credit One Bank and provide better alternatives.

Fees and fine print

Some cards have no grace period: Your card may not offer a grace period, which is a period of time — typically 21-25 days — from the close of your billing cycle where you won’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 won’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 don’t charge a fee for authorized users.

Cashback rewards programs

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 won’t know the exact cashback rewards rate you receive until you submit a pre-qualification request. That’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:

  • 1% cashback rewards on eligible gas, groceries, mobile phone service, internet service, and cable & satellite TV service
  • 1% cashback rewards on eligible gas, groceries, dining purchases, mobile phone service, internet service, and cable & satellite TV services
  • 1.1% cashback rewards on eligible dining purchases and 1% cash back rewards on other eligible purchases
  • 1% cashback rewards on eligible purchases
  • Terms apply

For Credit One Bank NASCAR credit cards, you may receive:

  • 1% cashback rewards on eligible gas and automotive purchases, double cashback rewards on NASCAR.com purchases
  • 1% cashback rewards on eligible purchases, double cashback rewards on NASCAR.com purchases
  • Terms apply

Card benefits

Beyond a cashback program, Credit One Bank credit cards offer a few additional benefits that are pretty common:

  • Zero fraud liability protection (standard among credit cards)
  • Free monthly credit score access (standard among credit cards)
  • Select insurances: Paying for eligible trips may allow you to benefit from travel accident and auto rental collision insurance, at no additional cost.
  • Shopping discounts: With the Visa Offers + Perks program, you can receive discounts at select merchants including food and clothing stores, available when you use your card.

How to pre-qualify for a Credit One Bank credit card

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 — 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 they’re worthwhile. Note, once you submit your actual application, a hard pull will be done on your credit.

Alternatives to Credit One Bank

There are plenty of other credit cards available if you’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.

Secured card

Discover it® Secured

Regular APR
24.74% Variable
Annual fee
$0
Credit required
bad-credit
Poor/New to Credit

Credit union card for bad credit

Cashback card

Citi® Double Cash Card – 18 month BT offer

APPLY NOW Secured

on Citibank’s secure website

Read Full Review

Citi® Double Cash Card – 18 month BT offer

Regular Purchase APR
15.24% – 25.24%* (Variable)
Intro Purchase APR
N/A
Intro BT APR
0% for 18 months on Balance Transfers*
Annual fee
$0*
Rewards Rate
Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay
Balance Transfer Fee
3% of each balance transfer; $5 minimum.
Credit required
good-credit
Excellent, Good

Alternative to a credit card

If you’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.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Alexandria White

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Source: https://www.magnifymoney.com/blog/credit-cards-2/credit-one-bank-review/

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