What Credit One Credit Cards Are

Credit One Bank issues credit cards marketed to people rebuilding credit or with limited credit history. The cards come with an annual fee, a security deposit requirement, and a higher interest rate than cards for people with established credit. Credit One does not require a perfect credit score to open an account — that is the trade-off for the higher costs.

Credit One offers two main card products: the Credit One Visa and the Credit One Mastercard. Both work like standard credit cards — you charge purchases, receive a monthly statement, and pay a bill. The difference is in the cost structure and the terms.

Credit One reports your payment history to all three major credit bureaus (Equifax, Experian, and TransUnion), which means on-time payments can help your credit score over time. However, the card's fees and interest rate mean you will pay more to use it than you would with a card for people with good credit.

Key Takeaways

  • Credit One cards require a security deposit (usually $200 to $2,500) and charge an annual fee of $39 to $99 depending on the card and your deposit amount.
  • The interest rate is typically 19.99% to 24.99% APR, higher than most other credit cards, so carrying a balance costs significantly more.
  • Credit One reports to all three credit bureaus, so consistent on-time payments can help rebuild your credit score.
  • You can request a credit limit increase after six months of on-time payments, and Credit One may return your security deposit after 18 to 24 months of responsible use.

How the Security Deposit Works

When you open a Credit One card, you must deposit money into a savings account held by the bank. This deposit becomes your credit limit — if you deposit $500, your credit limit is $500. The deposit is not a fee; it is your own money held as collateral.

You can request your deposit back after 18 to 24 months of on-time payments and responsible account management. Credit One will notify you when you become may be able to access. The deposit does not earn interest, so you are not gaining anything by leaving it there longer than necessary.

If you close the account or miss payments, Credit One may use the deposit to cover unpaid balances. If you pay your bill on time and in full each month, the deposit remains untouched and available for return.

Fees and Interest Rates

Credit One charges an annual fee ranging from $39 to $99, depending on which card you choose and the size of your deposit. This fee is charged to your account once per year, usually on your account anniversary. The fee is separate from interest charges and applies whether or not you use the card.

The purchase APR (annual percentage rate) is typically between 19.99% and 24.99%. If you carry a balance from month to month, you will pay interest on that balance at this rate. For example, a $500 balance at 24.99% APR costs roughly $10.42 per month in interest alone.

Credit One also charges a cash advance fee (usually 3% of the amount withdrawn) and a late payment fee (typically $25 to $35 if you miss a due date). These fees add up quickly, so using the card only for small purchases you can pay off in full each month keeps costs lower.

How to Use a Credit One Card to Build Credit

The main reason to use a Credit One card is to build or rebuild your credit history. Each on-time payment is reported to Equifax, Experian, and TransUnion. Over time, a record of on-time payments raises your credit score.

To maximize the benefit, charge a small purchase each month — $10 to $25 — and pay it off in full before the due date. This shows lenders you can manage credit responsibly without paying interest. Avoid carrying a balance, because the high interest rate will cost you money and may not help your score as much as a low balance would.

Keep your balance below 30% of your credit limit. If your limit is $500, try to keep your balance under $150. Credit bureaus track your credit utilization ratio, and a lower ratio signals responsible credit use.

When Credit One Cards Make Sense

A Credit One card is worth considering if you have been denied for other credit cards, have no credit history, or are actively rebuilding after past credit problems. The card's main value is access to credit reporting — you cannot build a credit score without a credit history, and Credit One will report your activity.

However, Credit One cards are expensive. The annual fee plus the high interest rate means you pay more than you would with a standard credit card. If you can open a card with a lower fee or no annual fee, that is usually the better choice.

Before opening a Credit One card, check whether you may have access to for a secured card from a bank or credit union with lower fees. Many credit unions offer secured cards with no annual fee or a fee under $25. If you cannot find an alternative, Credit One is an option — just understand the cost.

Credit Limit Increases and Deposit Return

After six months of on-time payments, you can request a credit limit increase. Credit One may increase your limit without requiring an additional deposit, or it may ask you to deposit more money. A higher limit gives you more flexibility and can lower your credit utilization ratio if you keep your balance the same.

After 18 to 24 months of on-time payments and responsible account management, you become may be able to access to have your security deposit returned. Credit One will contact you when you reach this milestone. Once your deposit is returned, your credit limit becomes unsecured — it is no longer backed by your own money.

Some cardholders use the deposit return as a milestone to close the account and move to a card with lower fees. Others keep the account open to maintain a long credit history, which helps your credit score. Closing the account will not hurt your score when ready, but it does remove an active account from your credit report.

Comparing Credit One to Other Bad Credit Options

Credit One is one of several options for people with bad credit or no credit history. Secured cards from traditional banks (like Capital One Secured or Discover Secured) often have lower annual fees or no annual fee at all. Secured cards from credit unions may offer even better terms.

Unsecured cards marketed to people with bad credit (like Credit One's competitors) typically charge similar annual fees and interest rates. The main difference between them is the specific terms, the credit bureaus they report to, and customer service quality.

Before choosing Credit One, compare it to at least one or two other secured card options. Look at the annual fee, the interest rate, the minimum deposit, and whether the card reports to all three credit bureaus. A card with a $25 annual fee instead of $99 saves you money over time, even if the interest rate is the same.

Frequently Asked Questions

Can I get my security deposit back before 18 months?

No. Credit One requires 18 to 24 months of on-time payments before you become may be able to access for deposit return. Closing the account early means you forfeit the opportunity to have it returned. If you need the money before then, you will have to withdraw it and close the account.

What happens if I miss a payment?

A missed payment is reported to the credit bureaus and damages your credit score. Credit One will charge a late fee (typically $25 to $35) and may increase your interest rate. If you miss multiple payments, Credit One may use your security deposit to cover the unpaid balance.

Can I use a Credit One card to pay off other debts?

You can use the card to make purchases, but using it to pay off other credit cards or loans is not recommended. The high interest rate (19.99% to 24.99%) means you will pay more in interest than you would with most other borrowing options. Pay off the card in full each month instead.

Will Credit One ever offer me an unsecured card?

After 18 to 24 months of on-time payments, your deposit is returned and your card becomes unsecured. However, Credit One does not automatically convert your account to a different product. You would need to open a new unsecured card if Credit One offers one, or move to a different issuer.

Is Credit One a scam?

Credit One is a legitimate bank, but the card is expensive. The annual fee and high interest rate mean you pay more than you would with other options. It is not a scam, but it is not the cheapest way to build credit. Compare it to other secured cards before deciding.