Rewards: Wait And See
The terms and conditions say that based on your creditworthiness, you can qualify for one of six cash-back rewards programs. Here are the possibilities:
1% cash back on gas, groceries, mobile phone service, internet service and cable and satellite TV service.
1% cash back on gas, groceries, dining purchases, mobile phone service, internet service and cable and satellite TV service.
1% cash back on all eligible purchases.
5% cash back the first $5,000 a year in combined spending on gas, groceries, mobile phone service, internet service, and cable and satellite TV service, and 1% cash back rewards on all other purchases.
NASCAR® Credit Card from Credit One Bank®
1% cash back on gas and automotive purchases and double cash back on NASCAR.com purchases.
1% cash back on all purchases and double cash back on NASCAR.com purchases.
The bottom line is that you wont know how you’ll earn cash back until you get your card.
Rewards are automatically redeemed as a statement credit each month, so at least that part is fairly straightforward.
How To Improve Your Credit Score With The Capital One Platinum Secured
Unlike many credit cards, you can qualify for the Capital One Platinum Secured even with a bad credit score. Its designed for those who are rebuilding their credit and have defaulted loans on their credit reports . Below youll find a few tips to help you boost your credit score by using the Capital One Platinum Secured.
Additional Fees And Penalties
In addition to the annual fee, the Credit One Bank Visa has a few other charges to look out for when choosing this card. For cash advances, there is a fee of $5 or 8 percent of the amount of each transaction as well as a 23.99% APR . Youll also be charged 3 percent on all foreign transactions. If you are looking for a card to use while you travel, this might not be the best choice for you.
Other fees for this card include a $19 annual charge to add an authorized user, a $1 minimum on interest charges and up to a $39 fee for late or returned payments.
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Interest Rates: They’re Ok
The interest rates cited on the “for informational purposes only” disclosure were 19.74% to 25.74% as of August 2018. If you have bad or limited credit, the interest rates you’ll pay on any card or loan will be on the high side. Credit One’s rates are in line with those on typical credit cards for bad credit.
Alternatives To Credit One Bank Cards
These five alternatives compete with Credit One for consumers who have bad credit. One is a secured card that requires a deposit. If you can swing it, a secured card is often the easiest to obtain, whatever your credit score.
|$0 – $99||Bad, Poor Credit|
The Indigo® Mastercard® invites applications from consumers with limited, bad, or no credit. It lets you prequalify without affecting your credit score. If you dont prequalify, the issuer may refer you to a credit card from another bank. You may qualify for one of three versions of the card, two of which charge an annual fee. The card reports your payments each month to the three national credit bureaus. Additional benefits include road assistance, extended warranty coverage, car rental insurance, and travel assistance services.
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Fees Can Vary Depending On Your Credit
This card does charge an annual fee for certain cardmembers. The fee ranges from $0 to $75 for the first year.
The amount you pay or whether you even pay this fee at all is based on your credit score and your income.
The annual fee is billed automatically when you set up your account.
For example, if youre approved for a $500 limit with a $75 annual fee, youd have $425 in available credit to start.
After the first year, the fee range goes from $0 to $99. Instead of paying it all at once, however, Credit One breaks it up into 12 equal payments.
Besides the annual fee, there are some other fees to keep in mind:
- Credit One charges you $19 to add an authorized user to your account
- Cash advance fee: If you decide to take a cash advance be prepared to pay for it. The cash advance fee is either $5 or a steep 8%, whichever is greater.
As a side note, late payments will cost you up to $37. Theres no foreign transaction fee, which is good if youre planning to use the card when you travel outside the U.S.
What Credit Score Do I Need To Get The Capital One Platinum Secured
If your credit score isnt quite where youd like it to be, youre in luck. The Capital One Platinum Secured is intended for those who are rebuilding their credit, meaning you can qualify even with a bad credit score.
In fact, Capital Ones website specifically says that this card could be a good fit if youve defaulted on a loan more than once or have been declined for another credit card within the last three months.
Keep in mind your credit score isnt the only factor that affects whether you qualify for a credit card. Card issuers also consider your income and the other contents of your credit report.
And in the case of a secured card like the Capital One Platinum Secured, youll have to make a security deposit to get the card. The amount you put down as your security deposit is the size of the credit limit youll be eligible for.
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It Pays You To Use It
The Platinum Rewards Visa card charges no annual fee, so you wont have to worry about this cutting into the cash back you earn. We estimate that a typical cardholder who spends the average amount across this cards categories and puts $3,600 on the card annually can earn about $35 dollars per year a good rating when compared to competitors. If youre approved for a higher credit limit, of course, you could spend and earn much more.
Upgrade To An Unsecured Card
If you use your Capital One Platinum Secured Credit Card regularly, stay below the recommended credit utilization and pay your balance off in full each month, youll probably see your credit score slowly increase. And when this happens, youll eventually be in the credit range to qualify for an unsecured credit card.
There are several credit cards on the market for borrowers with fair or average credit, and once your credit score exceeds 580, you could apply for one. Just like a secured credit card, these cards will help you boost your credit score if you use them responsibly.
You could also wait until your credit score exceeds 670 and apply for a card with slightly higher eligibility standards. While youll have to wait longer to upgrade to this type of card, they often offer better rewards, welcome bonuses and overall benefits.
Finally, keep in mind if you use your secured credit card responsibly, your card issuer may automatically upgrade you to an unsecured card. The benefit of this is that you may not have to complete another application or have another hard inquiry on your credit report.
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Applications: It’s All About Prequal
Many credit card issuers allow you to prequalify for their credit cards. With prequalification, you provide some basic information, and the issuer runs a quick check to see whether you’re likely to be approved for a card. Prequalification does not affect your credit scores. Only an actual application for credit produces the “hard inquiry” that can knock points off your score. But prequalifying also does not guarantee that you’ll eventually be approved. It’s like a “soft yes.”
Prequalification is optional with most issuers, but it’s an integral part of the Credit One application process. You must prequalify in order to learn the exact fees, rates and rewards structure of the card you’ll be applying for. Once you see those terms, you decide whether to apply and incur the hard inquiry. The application review is deeper than a “prequal” review, so you could still be rejected, or you could be approved for different card terms than what you saw after prequalification.
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Why do they do it this way?
For example, say an issuer offers three cards with annual fees of $99, $45 and $0. Someone with bad credit might qualify for the $99 card but not the other two but they would probably apply for the $0 card first, then the $45 card and finally the $99 card as a last resort. Their credit score would suffer the impact of three applications rather than one.
Spend Below Your Limit
While its important to use your card to build your credit score, you should also be mindful of just how much youre spending.
First, if you spend too much on your card, you may find you have a hard time paying your balance off in full each month. Second, spending too much on your card can affect your .
Credit utilization is one of the most important factors in determining your credit score. It refers to the percentage of your available credit youre using at any given time. A credit utilization below 30% will have the most positive effect on your credit score. So, as you spend on your card, be sure to keep your balance below 30% of your overall credit limit.
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Rewards And Benefits Comparison
Because both Petal 1 and the Credit One Bank Platinum Visa are for building credit, you wont get a ton of extra value in rewards and benefits. But there are some perks to consider.
The Petal 1 Visa Credit Cards biggest benefit is its alternative approval option Petal creates a Cash Score using bank account information you may provide to assess your creditworthiness beyond just your credit score. There are also some more traditional benefits, such as few fees and the opportunity to earn 2% to 10% back on purchases made with select merchants through Petal Offers.
By contrast, the Credit One Bank Platinum Visa earns 1% back in a few everyday bonus categories, including gas, groceries, and your monthly mobile phone, internet, cable, and satellite TV services. Thats not a great rate compared to more traditional cash back credit cards, but even 1% back in select categories is more than youll find from many credit-building cards. You can also earn up to 10% back with select merchants with this card.
Benefits That Help Manage Your Credit
On top of cash back rewards, the Credit One Bank Visa offers perks such as $0 fraud liability and a free monthly credit score and credit report through Experian. This is a great resource for those trying to build their credit, since you can keep a close eye on your progress.
The Credit One Bank Visa also offers optional credit protection in case of involuntary unemployment or disability, although it does come at an extra charge. The plan costs $.96 for every $100 of new balance, which can add up quickly if you are making significant charges. If you choose to invest in this option, you should expect to need it.
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Does Credit One Increase Credit Limits
Most issuers, including Credit One, offer increases on your credit limit, often without you asking for it. Issuers generally use a soft inquiry that wont hurt your credit score to decide if youre eligible for an automatic limit increase.
to increase your likelihood for a credit limit increase:
- Dont use too much of your available credit. Most issuers want you to keep our credit utilization ratio , at or below 30%. When your CUR rises too high, it could indicate financial distress and hurt your chances for a limit increase.
- Always pay your bills on time and always make at least the minimum payment. When you pay more than the minimum, you indicate that your finances arent stretching you too thin.
- Be on the lookout for unusual activity. You do this by periodically reviewing your account and your credit report. Errors, fraud, and identity theft can have devastating negative effects if you dont promptly respond.
A credit limit increase is rewarding in several ways:
What Are The Main Features Of Credit One Bank Platinum Visa
Like any other credit card, Credit One Bank Platinum Visa has various characteristics that distinguish itself from the others.
First of all, the card issuer has a minimum limit of $300 on this card. It means that you can get at least a $300 credit limit each month. The maximum limit depends on your score. The amount may be low, but remember that you are just building your credit and so you should not depend on the money so much for your various financial needs.
Secondly, prepare to pay an annual fee of between 0$-$99. That will be an affordable amount of money that will be easy to pay. Moreover, the regular APR will be 19.49% 25.49%, which is variable.
Upon getting this card, you will benefit from cash backs when you purchase any product from designated stores. The issuer gives you a 1% cashback on all eligible purchases. The purchases include gas, groceries, and phone services.
Transactions with Credit One Bank Platinum Visa cards are a bit costly. For your information, the card charges 3% as a foreign transaction fee. Other cards may charge lower than 3%. If you transfer money using the routing number and account number to another bank account outside the US, then you have to pay a 3% fee. For example, if you send $100 to someone in a foreign country, then you will part with 103$ since 3$ is the transaction fee.
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Should I Apply For A Credit One Credit Card If Its My Only Option
It’s unlikely that a Credit One credit card is your only option. Before you apply for one, you should shop around to see what better options may be available. There are other , such as secured credit cards, store credit cards, and student credit cards. If your credit score is poor, you can start with our list of expert-reviewed best credit cards for bad credit.
You can build your credit with a card from Credit One Bank. But for most consumers, there are alternatives, so it’s smart to look for cards that charge fewer fees.
Customizable Cash Back Rewards
One of the great features of the Credit One Bank Visa is the cash back rewards program. Even with a lower credit score, youll have the opportunity to earn 1 percent cash back on eligible purchases. Once you are approved for the card, youll choose between six categories of rewards programs which include cash back for gas, groceries, phone services, dining, automotive purchases and more. This lets you choose the categories that work best for you and maximize your reward potential.
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Summary Of The Best Credit One Credit Cards
To help you choose which of the eight Credit One credit cards will work best for you, Ive provided the table below to summarize the basic features of each credit card:
|N/A||Yes||5% cash back on the first $5,000 for gas, groceries, and communication services unlimited 1% cash back on all other purchases|
Americans with bad credit are faced with a dilemma. They need to be approved for a new line of credit in order to start improving their credit score, but most lenders wont give them a chance.
Those that will approve them for a new account are the sub-prime lenders, and their credit cards will offer less competitive rates and fees than others.
If youve been looking for a credit card for people with credit problems, then youve probably come across Credit One Bank credit cards.
Lets take a look at how Credit One works, and see if their cards are worth considering.
Bankrates Take Is The Credit One Bank Platinum Visa For Rebuilding Credit Worth It
The Credit One Bank® Platinum Visa® for Rebuilding Credit doesnt carry the same upfront cost as a secured credit card but its limited 1 percent cash back isnt worth being nickel and dimed over by the swarm of fees youll find in its complicated terms and conditions.
The card may be a decent option if you have bad credit but ponying up for a secured card with a larger credit limit will be a much more effective tool as you work on improving your credit.
Simply put, there are better credit cards available that accept applicants with a less-than-ideal credit history, and your pool of better options deepens considerably if you have fair credit.
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Credit One Credit Card Reviews
In the article below, well take a look at Credit One credit card reviews, including our own take on this card as well as the reviews of others.
Choosing a credit card when you have bad credit should be driven by a single, overarching factor: you need to rebuild your credit. So, the card you select should, above all else, help you reach that goal.
Of course, if you can also get some benefits or perks, like cash-back rewards, along the way, well thats just gravy. But money-saving features, such as a decent APR and low or no fees, should also be near the top of the wants list.
While it can be hard to find a credit card for bad credit that offers more than the basics, the meets many of the criteria for a well-rounded credit-builder card.