Credit One Bank cards work best if you have poor credit and need to rebuild, but they cost more than most alternatives
Credit One Bank issues secured credit cards — you put down a cash deposit, and that deposit becomes your credit limit. The bank reports your payments to all three credit bureaus, so on-time payments build your credit score over time. The catch is the fees. Credit One charges an annual fee ($39 to $99 depending on the card), a processing fee when you open the account ($29 to $99), and sometimes a monthly maintenance fee ($6 to $10). Those fees eat into any rewards you earn, and the interest rate is high (around 24% APR). If you carry a balance, you will pay significantly more than you would with a traditional card.
Whether Credit One makes sense depends on what other cards you can actually get. If you have been denied by other issuers or have no credit history at all, Credit One will take you. If you can get a Capital One Secured Card or Discover it Secured instead, both charge no annual fee and offer better terms — so check those first.
Key Takeaways
- Credit One is a secured card: you deposit cash upfront, and that amount becomes your spending limit.
- The card charges an annual fee ($39 to $99), an account opening fee ($29 to $99), and sometimes a monthly maintenance fee ($6 to $10), which adds up quickly.
- Your payment history reports to all three credit bureaus, so consistent on-time payments will raise your credit score over months.
- Capital One Secured and Discover it Secured offer similar credit-building features with no annual fee, so compare those options before you commit.
- Credit One works if no other issuer will approve you, but the high fees and interest rate (around 24% APR) make it expensive if you carry a balance.
How the Credit One secured card actually works
You send Credit One a cash deposit — typically $200 to $2,500 — and that becomes your credit limit. The deposit sits in a savings account held by the bank. You use the card like any other credit card: swipe it, get a monthly bill, and pay it back. The bank does not touch your deposit unless you stop paying your bill or close the account.
Every month, Credit One reports your payment activity to Equifax, Experian, and TransUnion. If you pay on time, your credit score goes up. If you miss a payment, it goes down — just like with any card. After 18 to 24 months of on-time payments, some cardholders report being offered an unsecured card or a deposit refund, though Credit One does not may provide this.
The card earns 1% cash back on all purchases with most Credit One cards, though some versions offer no rewards. That 1% sounds decent until you subtract the annual fee. If you spend $3,000 a year, you earn $30 in cash back but pay $39 to $99 in annual fees — you are losing money.
The fees add up faster than you might expect
Credit One's fee structure is where the card becomes expensive. You pay a one-time account opening fee ($29 to $99) the moment you open the account. Then you pay an annual fee every year ($39 to $99). Some versions of the card also charge a monthly maintenance fee ($6 to $10), which means you could pay $120 in maintenance fees alone over a year.
If you carry a balance, the 24% APR makes things worse. A $1,000 balance at 24% APR costs you $240 a year in interest alone. Add the annual fee and monthly maintenance fees, and you are paying $300 to $400 per year just to hold that balance.
Compare this to Capital One Secured, which charges no annual fee and has a lower APR (around 20%). Or Discover it Secured, which also charges no annual fee and offers 2% cash back on dining and gas, 1% on everything else. Both cards report to all three bureaus just like Credit One does.
When Credit One makes sense and when it does not
Credit One is worth considering if you have been turned down by other issuers. The bank approves people with no credit history, recent bankruptcy, or poor credit scores. If you cannot get a Capital One or Discover card, Credit One may be your only option to start rebuilding.
Credit One does not make sense if you can get approved elsewhere. The fees are straightforward too high compared to no-annual-fee alternatives. It also does not make sense if you plan to carry a balance month to month — the interest rate and fees together will cost you far more than the credit-building benefit is worth.
The card works best if you spend a small amount each month, pay the full balance, and keep it open for 18 to 24 months while your score improves. Once your score reaches the mid-600s or higher, you should be able to move to a card with better terms.
How Credit One compares to other secured cards
| Card | Annual Fee | Opening Fee | APR | Rewards |
|---|---|---|---|---|
| Credit One Bank | $39–$99 | $29–$99 | ~24% | 1% cash back (some versions) |
| Capital One Secured | None | None | ~20% | None |
| Discover it Secured | None | None | ~20% | 2% dining/gas, 1% other |
| OpenSky Secured | None | $25 | ~20% | None |
Capital One Secured and Discover it Secured are the strongest alternatives. Both charge no annual fee, have lower APRs, and report to all three bureaus. Discover it Secured even offers cash back rewards. If either issuer will approve you, choose them over Credit One.
OpenSky Secured charges a one-time $25 opening fee but no annual fee, making it cheaper than Credit One over time. The trade-off is that OpenSky does not offer rewards.
What happens to your deposit when you close the account
Your deposit is yours to keep. When you close the account or convert to an unsecured card, Credit One returns the deposit to you. The deposit does not pay for fees or cover missed payments — it is held separately. If you stop paying your bill, the bank will use the deposit to cover the debt, but only after you have defaulted.
Some cardholders report that Credit One offers to return the deposit and convert them to an unsecured card after 18 to 24 months of on-time payments. This is not may provide, and Credit One does not publish the criteria for who gets this offer. If it happens, you get your deposit back and keep the card with a new credit limit set by the bank.
Red flags and complaints about Credit One
Credit One has faced complaints about unexpected fees and difficulty reaching customer service. The Consumer Financial Protection Bureau has received reports of cardholders being surprised by monthly maintenance fees they did not know about, or by fees appearing on statements without clear explanation.
Some customers also report that the card does not graduate to an unsecured version even after years of on-time payments. Credit One does not promise graduation, so there is no recourse if it does not happen. You could be paying annual fees indefinitely.
Before you open an account, read the full terms and conditions. Call the customer service number and ask specifically about all fees you will pay, including any monthly maintenance charges. Ask whether the card ever converts to unsecured and what the criteria are. Get the answers in writing if possible.
Frequently Asked Questions
Will Credit One help my credit score?
Yes, if you pay on time every month. Credit One reports to all three bureaus, so consistent on-time payments will raise your score over months. Most people see a 40 to 100 point improvement within 6 to 12 months, depending on their starting score and other accounts.
Can I get my deposit back?
Yes. Your deposit is held separately and returned when you close the account or convert to an unsecured card. The bank does not use it to pay fees or cover your balance unless you default on the account.
What is the difference between Credit One and a regular credit card?
A regular card extends you credit based on your creditworthiness. A secured card requires a cash deposit upfront. Credit One is secured, so it is easier to get approved if you have poor credit or no credit history. The trade-off is higher fees and a lower credit limit.
Should I use Credit One if I have fair credit?
Probably not. If your credit score is 600 or higher, you should be able to get a card with lower fees from Capital One, Discover, or another issuer. Check those options first. Credit One's fees are only worth paying if you cannot get approved elsewhere.
How long does it take to build credit with Credit One?
Most people see meaningful improvement within 6 to 12 months of on-time payments. After 18 to 24 months, you may be offered an unsecured card or deposit refund, though Credit One does not may provide this. Your timeline depends on your starting score and other accounts you hold.