What Credit One's Card Costs You and What It Offers

Credit One Bank issues a credit card marketed to people rebuilding credit, but the card's fees are substantially higher than what you would pay elsewhere for the same credit-building purpose. The annual fee is $39 to $99 depending on your creditworthiness at approval. Beyond that, you'll pay a one-time account opening fee of $35 to $75, a monthly maintenance fee of $6.50 to $10.95, and a foreign transaction fee of 3% if you use the card abroad. The card reports to all three major credit bureaus, which is useful for credit building, but the fee structure means you're paying a significant amount just to hold the card before you charge anything to it.

The card comes with a cash back reward of 1% on all purchases, which is standard for cards in this category. Your credit limit at approval typically ranges from $300 to $2,500, and Credit One may offer a limit increase after you've made on-time payments for several months. However, the combination of annual fees, monthly fees, and opening fees means you need to use the card regularly and keep it open for a while before the rewards begin to offset what you're paying.

Key Takeaways

  • Credit One charges $39 to $99 annually plus a $35 to $75 opening fee and $6.50 to $10.95 monthly, making it one of the most expensive cards for credit building.
  • The card reports to all three credit bureaus, so on-time payments will show up on your credit report and help rebuild your score.
  • You earn 1% cash back on purchases, but the fees mean you need to charge several thousand dollars per year just to break even on what you're paying.
  • Credit One has faced complaints about unclear fee disclosure and unexpected charges, so read the terms carefully before you open an account.
  • Other cards with no annual fee or much lower fees exist for the same credit-building purpose and will cost you significantly less over time.

How the Fees Add Up Over a Year

To understand whether this card makes sense for your situation, it helps to see the actual cost. If you're approved with a $39 annual fee, $50 opening fee, and $6.50 monthly fee, you're paying $39 + $50 + (12 × $6.50) = $187 in fees alone in your first year, before you charge a single dollar to the card. If you're approved with higher fees — say, $99 annual, $75 opening, and $10.95 monthly — your first-year cost is $99 + $75 + (12 × $10.95) = $305.40.

The 1% cash back means you'd need to spend $18,700 in the first year to earn $187 in rewards and break even on the lower fee tier, or $30,540 to break even on the higher tier. Most people rebuilding credit don't charge that much to a single card in a year. Even if you do, you're only breaking even — you're not getting ahead. In contrast, a card with no annual fee and no monthly fee costs you nothing to hold, and the same 1% cash back is pure reward.

Why Credit One Targets People With Bad Credit

Credit One's business model depends on people who have limited options. If you have poor credit, you may have been turned down by other card issuers, and Credit One will approve you when others won't. The company counts on the fact that you may not know what alternatives exist, or that you may feel you have no choice. The high fees are possible because the company is betting you'll accept them rather than go without a credit card.

The card does report to the credit bureaus, which means it can help you rebuild your score — but so do secured credit cards and some no-annual-fee cards from mainstream banks. A secured card from a bank like Capital One or Discover, for example, requires a cash deposit but has no annual fee and no monthly fee. You're paying for the deposit itself, not for the privilege of holding the card. Over time, a secured card or a no-fee card will cost you far less and accomplish the same credit-building goal.

What Happens If You Carry a Balance

Credit One's interest rate for purchases ranges from 19.99% to 24.99% APR depending on your creditworthiness. If you carry a balance, you'll pay interest on top of the fees you're already paying. For example, a $1,000 balance at 22% APR costs you about $220 in interest over a year if you make no payments. Add the annual and monthly fees, and you're paying $400 or more per year on a $1,000 balance — a 40% cost just to borrow that money.

The card's terms allow Credit One to increase your interest rate if you miss a payment or if your credit report changes. This means the APR you're quoted at approval is not may provide to stay the same. If you're rebuilding credit and your payment history is uncertain, the risk of a rate increase is real.

Complaints and Transparency Issues

Credit One has received complaints to the Consumer Financial Protection Bureau about unclear fee disclosure, unexpected charges appearing on statements, and difficulty reaching customer service to dispute them. Some customers report that fees were higher than what they understood at approval, or that the company added fees they didn't expect. While the terms are disclosed in the fine print, the company's marketing emphasizes the credit-building benefit and downplays the cost.

Before you open an account, request the full terms and fee schedule in writing. Read the periodic rate table, the annual fee amount, and the monthly maintenance fee. If anything is unclear, contact the company and ask for clarification before you explore. Once the account is open, review your first statement carefully to make sure all charges match what you were told.

Better Alternatives for Rebuilding Credit

If your goal is to rebuild credit, you have options that cost less. A secured credit card requires you to deposit cash as collateral, but the deposit is yours to keep — you're not paying a fee, you're setting aside money. Cards like the Capital One Secured Mastercard or the Discover Secured Card have no annual fee, no monthly fee, and report to all three bureaus. Your deposit becomes your credit limit, and after you make on-time payments for several months, you may be able to move to an unsecured card and get your deposit back.

Some mainstream banks and credit unions offer no-annual-fee cards to people with fair or poor credit. These cards may have higher interest rates than cards for people with excellent credit, but they have no monthly fees and no opening fees. The Discover It Secured Card, for example, has no annual fee and offers 1% cash back — the same reward as Credit One, but without the monthly charges.

If you have a bank account or credit union membership, ask whether they offer a card for members with lower credit scores. Many do, and the terms are often better than what Credit One offers because the institution already has a relationship with you.

When Credit One Might Make Sense

Credit One is rarely the best choice, but there are narrow situations where it might be worth considering. If you've been turned down by every other card issuer and a secured card is not an option for you, and you're confident you can charge enough to the card to offset the fees, then Credit One is better than no card at all. The key word is "confident" — you need to know you'll actually use it and pay the balance in full each month.

Even then, explore for a secured card first. Secured cards are easier to get approved for than unsecured cards, even Credit One's, because the bank's risk is lower. If a secured card approves you, take it instead. You'll pay less and build credit just as effectively.

Frequently Asked Questions

Does Credit One report to the credit bureaus?

Yes, Credit One reports to Equifax, Experian, and TransUnion. On-time payments will show up on your credit report and help your score improve over time. Late payments will also be reported, so the card can hurt your score if you miss a payment.

Can I get my annual fee waived?

Credit One does not waive the annual fee for existing cardholders. The fee is charged every year you hold the card. Some customers have reported success calling to negotiate, but the company is not obligated to waive it, and there's no may provide they will.

What's the difference between Credit One and a secured card?

A secured card requires a cash deposit that becomes your credit limit, but has no annual fee or monthly fee. Credit One is unsecured, meaning you don't need a deposit, but you pay annual and monthly fees instead. Both report to the credit bureaus. A secured card typically costs less over time.

Will Credit One increase my credit limit?

Credit One may offer a credit limit increase after you've made several months of on-time payments. The increase is not may provide, and the company may charge a fee to increase your limit. Check your account terms to see whether limit increases are available.

What happens if I miss a payment?

A missed payment will be reported to the credit bureaus and will damage your credit score. Credit One will also charge a late fee, typically $25 to $35 depending on your account terms. Your interest rate may increase as well. If you miss a payment, contact the company as soon as possible to bring the account current.