Credit One Bank^® Platinum Visa^® for Rebuilding Credit Review: A Costly Option With Confusing Terms

The Credit One Bank^® Platinum Visa^® for Rebuilding Credit is easy to qualify for and can help you build credit, but it comes at a high cost. There’s an annual fee of $75 for the first year. After that, $99 annually ($8.25 per month). Not only will this decrease your initial credit line on your card, but the money spent on this fee can add up over time.

You can find alternatives without an annual fee. Many secured cards let you earn rewards on your purchases and offer a path to upgrade to a card with more perks and a higher credit limit. The Discover it^® Secured Credit Card and the Capital One Quicksilver Secured Cash Rewards Credit Card (see rates & fees) are more cost-effective options for building credit.

• Annual fee: $75 for the first year. After that, $99 annually ($8.25 per month)
• Sign-up bonus: N/A
• Rewards: 1% Cash Back on eligible purchases and mobile phone service, internet, cable and satellite TV services. Terms Apply.
• APR: 29.49%* Variable
• Foreign transaction fee: 3%, Min: $1, whichever is greater
• Recommended credit: Poor / Fair

• Available if you have poor / fair credit

  The Credit One Bank^® Platinum Visa^® for Rebuilding Credit is an unsecured credit card that’s aimed at applicants with poor / fair credit. You can build credit over time with this card through responsible use like making on-time payments and keeping your credit utilization low. You’ll get free access to your online credit score and can choose your payment due date to help you stay on track.

  While this card is relatively easy to get approved for if you have bad credit, it’s not one of our top recommendations for building credit. There are other more affordable options with better terms, including secured credit cards, that can help you improve your credit score more effectively.

   See all of the top credit cards for bad credit.

• No deposit required

  The Credit One Bank^® Platinum Visa^® for Rebuilding Credit is an unsecured credit card. Unlike a secured credit card, you won’t need to put down a deposit to secure your line of credit. Note that, though no deposit is required, this card does come with additional fees that secured cards often don’t have, including an annual fee of $75 for the first year. After that, $99 annually ($8.25 per month).

• Credit line increase opportunities

  Though you’ll start with a low $300 credit line, Credit One Bank will regularly review your account and offer credit line increases based on your credit performance. If you don’t increase your monthly spending, these increases will help to keep your credit utilization low.

• Cash back rewards on eligible purchases

  With the Credit One Bank^® Platinum Visa^® for Rebuilding Credit, you’ll earn 1% Cash Back on eligible purchases and mobile phone service, internet, cable and satellite TV services. Terms Apply. So if you spend $300 on eligible grocery purchases in a month, you’ll earn $3 in rewards. Rewards are automatically applied as a statement credit.

  Although this rewards rate is relatively low, many cards designed for individuals with poor credit don’t offer any rewards at all. So, it’s still a valuable benefit.

• Annual fee

  The Credit One Bank^® Platinum Visa^® for Rebuilding Credit has an annual fee of $75 for the first year. After that, $99 annually ($8.25 per month). After three years of using the card, you’ll pay nearly $300 in annual fees that you won’t be able to get back.

  In comparison, most secured credit cards require a security deposit starting at around $200 to $300 and come with no annual fee. You’ll get the deposit back when you upgrade your card or close the account. This may save you more in the long run than paying the annual fee for the Credit One Bank^® Platinum Visa^® for Rebuilding Credit.

  Year	Cumulative cost of fees
  Year 1	$75
  Year 2	$174
  Year 3	$273

  Tip

  Once you build your credit score and qualify for a better credit card, you’ll probably want to close the Credit One Bank^® Platinum Visa^® for Rebuilding Credit to avoid the annual fee. This will reduce your overall credit limit, which can hurt your credit score. In contrast, you may be able to keep a no-annual-fee secured open indefinitely, which can help build up your account age.

• Low initial credit limit

  The minimum initial credit limit for the Credit One Bank^® Platinum Visa^® for Rebuilding Credit is $300. But the annual fee that’s charged to your account upon opening reduces your credit limit right off the bat — leaving you with only $225 if you’re approved for a $300 line of credit. While the card offers opportunities for a credit line increase, the initial credit line may be too small to be able to use your card frequently. Additionally, maintaining a low credit utilization rate, which is an important factor of your credit score, could be difficult with such a low credit limit.

  If you want more flexibility with your credit limit, you might want to choose a secured credit card. You can control your credit limit by simply putting down a larger deposit. For example, the Discover it^® Secured Credit Card has a credit limit of $200 to $2,500, equal to your deposit.

• Limitations on cash back rewards

  You likely noticed that you earn cash back on “eligible” purchases that fall within a few categories. This means that when you use your card for a copay at the doctor or a car wash, you probably won’t earn any cash back. Additionally, the rewards categories have complex terms that could limit your ability to earn rewards on many purchases.

  If you’re hoping to earn rewards while building credit, you’ll be better off with a secured card. For example, the Discover it^® Secured Credit Card has a $0 annual fee and offers 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. The Capital One Quicksilver Secured Cash Rewards Credit Card also has a $0 annual fee (see rates & fees) and offers 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply).

  Credit One Bank uses Standard Industrial Classification Codes (SIC) to classify purchases whereas most credit cards use Merchant Category Codes (MCC). This means that the same item charged to your Credit One Bank^® Platinum Visa^® for Rebuilding Credit and a card that uses MCC could yield different rewards.

• Customer service issues

  Credit One Bank has a pattern of complaints related to billing and collection issues. Cardholders in online forums frequently complain about payment issues, including payment taking several days to post and accounts being closed due to payment mishaps.

  Other customers have stated that canceling a card with Credit One Bank can be extremely difficult. And some have noted problems in reporting fraudulent charges on their cards.

  However, some customers do note that, if you keep a careful watch on your account, the Credit One Bank^® Platinum Visa^® for Rebuilding Credit can be a viable option for building credit, since it accepts applicants that other issues won’t typically approve.

Credit One Bank^® Platinum Visa^® for Rebuilding Credit vs. Discover it^® Secured Credit Card

The Discover it^® Secured Credit Card requires a minimum security deposit of $200 that will act as your line of credit, but it also has a $0 annual fee. That means it will cost you less to own the Discover it^® Secured Credit Card if you plan to keep your account open longer than two years. Plus, the deposit is refundable.

The card works just like an unsecured card, letting you charge and pay off purchases while reporting your credit usage to the three major credit bureaus. Also, Discover conducts automatic reviews of your account at seven months to possibly transition you to an unsecured account.

It also comes with a solid cash back rewards program. You’ll earn 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. Plus, Discover will match all the cash back you’ve earned at the end of your first year.

Credit One Bank^® Platinum Visa^® for Rebuilding Credit vs. Capital One Quicksilver Secured Cash Rewards Credit Card

The Capital One Quicksilver Secured Cash Rewards Credit Card is another $0-annual-fee secured credit card (see rates & fees) that requires a $200 refundable minimum deposit. This card is also more affordable than the Credit One Bank^® Platinum Visa^® for Rebuilding Credit if you keep your account open for more than two years.

Like the Credit One Bank^® Platinum Visa^® for Rebuilding Credit, it includes automatic credit line reviews. In as little as six months, Capital One will automatically consider you for a higher credit line with no additional deposit required. The Capital One Quicksilver Secured Cash Rewards Credit Card also offers rewards on every purchase. You’ll earn 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply).

Credit One Bank^® Platinum Visa^® for Rebuilding Credit vs. Petal^® 2 Cash Back, No Fees Visa^® Credit Card

The Petal^® 2 Cash Back, No Fees Visa^® Credit Card is an unsecured credit card for people with average or limited credit that’s a good alternative to the Credit One Bank^® Platinum Visa^® for Rebuilding Credit. Since it’s an unsecured card, you won’t be required to put down a security deposit. And, unlike the Credit One Bank^® Platinum Visa^® for Rebuilding Credit, there’s a $0 annual fee.

This card also doesn’t require a credit check to get approved and you’ll earn 1% cash back on eligible purchases right away, and 2% to 10% cash back at select merchants. Plus, earn up to 1.25% cash back on most purchases after six months of timely payments and up to 1.5% cash back on most purchases after 12 months of timely payments.

The Credit One Bank^® Platinum Visa^® for Rebuilding Credit isn’t the best card on the market for building credit due to its high annual fees and confusing terms.

In order to build credit in the most effective way, you should choose a card with a $0 annual fee like the Petal^® 2 Cash Back, No Fees Visa^® Credit Card. Or, if your credit is damaged, you should look at a secured card like the Discover it^® Secured Credit Card or Capital One Quicksilver Secured Cash Rewards Credit Card, which both offer rewards programs.

We devote a large part of the score for credit-building cards to features that help build credit — we want to help you locate cards that don’t cost a lot to own and get help you upgrade to better card offers.

• Annual savings (50% of rating): We calculate how much the average cardholder can save with the card on a yearly basis. If it is a rewards card, we use U.S. Bureau of Labor data and $300 in monthly spend (the typical starting credit limit for an introductory card) to calculate how much the average cardholder can earn in rewards. We then subtract fees — including annual fees and maintenance fees — from this amount.
• Credit building features (50% of rating): We give points for features that help build credit, including reports to all three credit bureaus, regular account reviews for card upgrades and free credit score access. We detract points for features that can be costly to cardholders trying to build credit, such as security deposits, penalty APRs and late payment fees.

Note, that our ratings are a starting point for comparing and choosing the best credit card for building credit. However, your needs may be different from the average cardholder. You should consider the amount you’re likely to spend in a card’s bonus categories and which benefits you value to choose the best card for you.