For more than a decade, Credit One Bank has been a leading source of credit repair and restoration for those with damaged credit and overall poor credit ratings. The company has gained recognition as offering credit cards to those individuals who have trouble qualifying for credit cards from more conventional, big-name lenders, and is often considered an essential stop on the road to full credit recovery. Its signature product is called the Credit One Bank Visa Platinum Card, and it’s a compelling option for many who are working hard to become stronger credit customers with higher scores and better credit card options overall.
The Benefits: A Card for People Who Have Trouble Getting Approved
The paradox of improving one’s credit is that it simply is impossible to do without being approved for new cards, but most banks won’t want to approve a customer who has damaged credit. Credit One was founded to solve this quandary and offer consumers a credit product that can put them on the road to better financial times in the future. The average customer approved by Credit One has a credit score of less than 630, and is offered a credit line of between $300 and $1,500 based on their credit score at the time of approval. This is not a secured credit card, but instead is a fully unsecured line of credit that consumers can use without any up-front deposits.
The Credit One Platinum Visa has a lower overall annual fee than many secured cards or other options targeted to customers who are considered “subprime” in today’s market. Currently, the card offers between $35 and $99 annual fees to customers, based on the card they apply for, are pre-approved for, or acquire once they visit the CreditOne.com website. Annual fees are not charged up-front, nor are they charged once per year. Instead, the fee is broken down into 12 payments each year, making it more affordable for customers who wish not to have extensive debt obligations.
The Platinum card’s cash advance fee is normally 8 percent, but the company gives customers the advantage of having that fee waived for the first year of their card membership. Since many customers only need the card for about a year as they improve their credit, this is actually a pretty generous policy. The Credit One Visa charges no fee for going over the card’s limit, though this can still affect customers’ standing with the bank and their overall credit profile as well.
Annual Fees and Other Potential Credit One Issues
Though there’s a lot to love about the Credit One Platinum Visa, especially for those consumers trying to repair their credit, the card does come with a few drawbacks that are notable enough to mention. The first of these is actually the downside of the annual fee. While it’s nice to split that fee up into 12 installments, it also means that consumers will always have a balance on the card that will be reported to credit bureaus. Some consumers prefer not to have any balance showing on their reports, but that will not be possible with this particular card.
Another factor that might affect some consumers is the Credit One Visa Platinum card’s interest rate. The Visa Platinum’s APR currently ranges from 17.90% to 23.90%, and this APR will vary with the market based on the Prime Rate.
For more information about current terms and conditions for all the credit cards you can apply for via the Credit One website, click here.
A Good Card for Repair
Credit One offers an excellent way for consumers to start repairing their credit with an unsecured credit card. With no over-limit fees and a year of waived cash-advance fees, the card does add value despite its annual fee. Even so, installment-based annual fee payments and higher interest rates mean that this card may not last long in most consumers’ wallets as their profile begins to improve. For careful consumers, the Visa Platinum can be a solid step along the way to improving credit.
