Credit One Bank: Consumer Beware

If you have a lower credit score, it can become difficult to find a credit card that will work with you. Consumers in such a position often receive popup ads online, about credit offers, or in their mail. 

Along comes issuers like Credit One Bank---often confused with Capital One---who offers said individual with bad credit, the opportunity of rebuilding. By prequalifying them for a small credit line. Typically in the ballpark of $200-$500. 

But, before taking the bait on applying for Credit One, here's a few things you should know:
Why Consumer reviews have rated them so poorly. And, why it may be the credit card to avoid.

Credit One's Reputation

• They are a credit company with a poor reputation because of their severe lack of consumer services, and their ever-changing, often, upgrading of fees
• They charge for credit increases, and 'Express Pay' on their website---or instant, overnight payments. Which isn't that great of an option, as some have reported their payments didn't actually post 'overnight'. But more like 4 - 6 days later
• After a year, Credit One tends to raise their annual fees to monthly. Meaning you'll pay additional each month, outside of your standard payments
• They don't offer 'autopay' (a very basic service with most other credit cards) So you'll need to remember your due date or get hit with a pricey late fee

No Minimum Credit Score

Okay, that's a given, with such a low-score credit card. Also, they run a very soft credit check (which doesn't impact your credit score.

What They Should Improve

Unfortunately, a lot. But don't count on the company to make any such 'changes' any time soon. 

Excessive Fees

One of the greater reasons for its bad rap. When you make a free, standard payment, it can take anywhere up to 6 days, before it actually posts. And even then, it may or may not reflect in your account balance, and available credit. 

I mentioned them charging a fee for credit increases, and express payments. The latter of which I believe is a ballpark $21.99. So, if you're rebuilding your credit, it's important to weigh those factors, about credit fees. Which for Credit One, is a major flaw.

They Can Be Vague About Upfront Terms and Conditions

Credit One differs from other credit card issuers, in that they release only portions of their cardholder terms and conditions online. The available terms and conditions they send, are usually 'for informational purposes only'  Which is not exactly legal, nor official. 

So Why Do Some Sites Give Credit One a Great Review?

Credit One sure looks like a decent option, for bad credit. But that's only the surface. Reality is a whole other ballgame. Anyone can qualify for the card. But that's where it ends. 

• You usually won't qualify for the $0 annual fee
• They likely will charge you for services that are typically free
• The card's cashback may apply only to very limited items
  
  

Some Better Alternatives Than Credit One

Secured cards are generally the better option because they require a security deposit upfront. And you get your deposit back when you close the account or upgrade it. 

You might also qualify for select unsecured credit cards (which don't require a security deposit). Like First Premier Mastercard or Visa: which does not have an annual fee (last I saw). And posts your payments on time, or 1-2 days. And also Open Sky Secured Visa

So What if You Already Have a Credit One Bank Card?

You don't really need to close it out or shred the card. Just keep it for credit rebuilding purposes. So if you do have the Credit One card,

• Only charge what you can afford so that you don't fall into debt
• Pay off your balance every month, or at least make weekly or biweekly payments, to keep your account current
• Track your credit score! Credit One offers free monthly tracking. So make sure they're reporting yours, accurately
• As you gradually raise your credit score, look for more reputable cards with no fees and more benefits

After about one year or more, your credit should be good enough, that you qualify for higher line cards, like Citibank and Capital One. 

So if you can upgrade, by all means, do so. And then cancel your Credit One card. So that you won't be paying anymore of its fees.