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Credit One Bank Visa Credit Card Review

Credit One Bank Visa Credit Card Review

*Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

This article was last updated Jul 05, 2018. Terms and conditions may have changed. For the most accurate information, please consult the issuer website.

Who the card is best for

Credit building potential — with a catch. If you have excellent/good credit and have trouble qualifying for cards from major issuers, the Credit One Bank® Platinum Visa® with Cash Back Rewards may give you the opportunity to build credit. However, this carries a high $0-$99 annual fee and lacks transparency — you won’t know your exact fee until after you apply.

A better option: There are plenty of alternative cards that help you build credit without charging high fees. A no-fee secured card can be a better choice to improve poor credit, and we’ll cover secured cards later in this review. If you already have good credit or better, look at our top credit cards that have straightforward terms and more perks.

Where this card stands out in its category

Prequalify before you apply. This card allows you to check if you prequalify before applying. This doesn’t hurt your credit score and is a good way to see if you have a good chance of being approved. Take note that prequalification is not a guarantee you’ll be approved for the card.

Discounts and rewards. Additionally, this card has a few helpful perks like shopping discounts available through Visa and a rewards program where you can earn 1% on eligible purchases, terms apply. Compared to other cards for rebuilding credit that don’t offer rewards like the Horizon Gold Card and the First Progress Platinum Select Mastercard® Secured Credit Card , this is a decent perk of the Credit One Bank® Platinum Visa® with Cash Back Rewards .

Where this card falls short in its category

The opaque annual fee. There is a $0-$99 annual fee and you won’t know your exact fee until after you apply. The lack of disclosing your annual fee upfront means you may receive the highest fee, which is pretty steep for someone looking to improve their score. You can find cards for rebuilding credit that have lower annual fees like the First Progress Platinum Elite Mastercard® Secured Credit Card with a disclosed $29 annual fee.

The annual fee eats into your available credit limit. In addition, the annual fee is deducted from your initial available credit. For example, if you receive a credit limit of $300 and a $95 annual fee, your initial available credit will be reduced to $205.

Tip: There are lots of great cards with no annual fee.

How to use Credit One Bank® Platinum Visa® with Cash Back Rewards most effectively

You can see the most value with this card by following several credit building tips that can improve your score over time.

Pay on time. The most important factor of your credit score is payment history; therefore, it’s key to always pay on time and also in full. This prevents you from racking up interest fees, late payments and other penalties.

Keep your balance low. Another key practice to follow is maintaining a low utilization rate. Utilization is the amount of your total credit limit you use as a percent of your available credit. For example, if you have a card with a $1,000 credit limit and spend $200 a month, that means your utilization is 20% — which is generally ideal.

Seek out alternative options first. The high $0-$99 annual fee makes the Credit One Bank® Platinum Visa® with Cash Back Rewards a very expensive option for building credit. Check out alternative secured cards instead — they may require a deposit to open, but at least you know you’ll get your full deposit back so long as you pay your bill in full prior to closing or upgrading your account. In contrast, your Credit One Bank® Platinum Visa® with Cash Back Rewards annual fee is deducted immediately from your available balance and never refunded.

 

Rewards breakdown

This card offers 1% on eligible purchases, terms apply*. The rewards rate you receive depends on your creditworthiness and will be disclosed after you submit a pre-qualification request and you qualify for a credit card offer. Cash back is automatically redeemed in the form of statement credit with each statement.

Per Credit One’s terms and conditions, you can qualify for:

  • 1% cashback rewards on eligible gas, groceries, mobile phone service, internet service, and cable & satellite TV service; or
  • 1% cashback rewards on eligible gas, groceries, dining purchases, mobile phone service, internet service, and cable & satellite TV services; or
  • 1.0% Cash Back Rewards on eligible purchases; or
  • 5.0% Cash Back Rewards on eligible Gas, Groceries, Mobile Phone Service, Internet Service, and Cable & Satellite TV Services purchases for the first $5,000 per year, and then 1.0% thereafter. Plus 1.0% cash back rewards on all other purchases.

*Rewards are subject to change at any time.

Additional card benefits

The Credit One Bank® Platinum Visa® with Cash Back Rewards offers a few additional benefits:

  • Free credit score tracker: You can view your free monthly Experian ScoreX Credit Score to track you credit.
  • Select insurances: At no additional cost, receive travel accident and auto rental collision insurance when you use your card to pay for eligible travel or rentals.
  • Shopping discounts: The Visa Offers + Perks allows you to choose from numerous shopping discounts when you use your card. Check current offers here.

Compare it with the Discover it® Secured Credit Card

A good alternative to the Credit One Bank® Platinum Visa® with Cash Back Rewards is the Discover it® Secured Credit Card, another secured card that also helps you build credit.

Secured cards vs. unsecured cards. What makes secured cards different than regular “unsecured” cards is that they require a security deposit that becomes your line of credit. For the Discover it® Secured Credit Card, there is a minimum $200 security deposit, but it’s refundable if you’re transitioned to an unsecured card or pay your balance in full and close your account.

More info: Check out our full guide on secured vs. unsecured cards.

The Discover it® Secured Credit Card comes out on top. Comparing both cards, the Discover it® Secured Credit Card offers a more straightforward cashback program than the Credit One Bank® Platinum Visa® with Cash Back Rewards . Plus, it has a $0 annual fee while the Credit One Bank® Platinum Visa® with Cash Back Rewards has a $0-$99 annual fee, which is based on your creditworthiness.

While you can build credit with either card, the Discover it® Secured Credit Card is a better choice for those who can set money aside for the security deposit to benefit from the more robust card offering.

Here’s a breakdown of the key features of each card:

Credit One Bank® Platinum Visa® with Cash Back Rewards Discover it® Secured Credit Card
Annual Fee $0-$99 $0
Minimum Security Deposit N/A $200
Regular Purchase APR 17.99% to 23.99% Variable 22.99% Variable APR
Rewards 1% on eligible purchases, terms apply 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, 1% unlimited cash back on all other purchases - automatically
Sign-Up Bonus No bonus Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Foreign Transaction Fee Either $1 or 3% of each purchase in U.S. dollars, whichever is greater. None

Bottom Line

The fees associated with this card are something to consider before applying and while you may be better with a secured card, you still have a chance to build credit with Credit One Bank® Platinum Visa® with Cash Back Rewards when using it responsibly.


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