- Cash back and earning potential
- Review of automatic credit line increases
- There is no security deposit
- Can help build credit
- Annual fees high
- Credit limit possibley low
- Only one cash-back redemption option
The Credit One Bank (r) Platinum Visa(r), for Rebuilding Credit
It can be difficult to qualify for traditional credit cards if you don’t have good credit. You may need to apply for a secured card, which requires a security deposit. The unsecured Platinum Visa(r), for Rebuilding Credit is an alternative to putting down a deposit. However, it does come with a high annual fee.
Here are some things you need to know if you want to apply for this card.
Earn cash back
Poor credit cards and cards with no credit are often very basic. They don’t offer any additional benefits or rewards, particularly when compared to other cards. The Credit One Bank(r), Platinum Visa(r), for Rebuilding Credit allows you to earn 1% cashback on eligible gas, grocery and mobile phone purchases. You will automatically receive a statement credit for the cash you earn.
This rate is the lowest for cash back cards. Many credit-builder cards do not offer rewards. The Credit One Bank(r), Platinum Visa(r), for Rebuilding Credit is an option for those who want to earn with every purchase. To get the rewards, you need to be careful not overspend.
Cashback is applied automatically as a statement credit
You can receive your cash as a statement credit if you prefer simplicity. This is a limited option compared to other rewards card that allow you to redeem points for merchandise, airline miles and gift cards.
Credit line increases automatically considered
Minimum credit limit for the Credit One Bank (r) Platinum Visa(r), Rebuilding Credit card is $300 This credit limit is quite low and could affect your spending power. Credit One claims that it reviews your account activity on a regular basis and considers you for credit limit increases based on your “overall Credit Performance.” However, consistent payment of your credit card bills on time and in full will likely be a good way for you to show that you are ready for one.
Your credit card usage is an important aspect of building credit. It’s also important to have low balances when trying to establish credit. It’s a good idea to limit your credit usage to 30%. If you have $300 in credit, don’t carry more than $100. To avoid interest charges, you should aim to pay your bill in full each cycle.
Although you will need to be careful about how you use the card with such low credit lines, Credit One can increase your credit limit over time. This can improve your credit utilization rate as well as your overall credit health.
High annual fees
High fees are not unusual for unsecured credit cards. The Credit One Bank (r) Platinum Visa(r), for Rebuilding Credit, is no exception.
The annual fee is $75 the first year and $99 each subsequent. Your credit limit is reduced by the first year’s annual fees. The fee increases to $8.25 per month after the first year.
Ability to prequalify
Credit One’s prequalification tool can help you determine if your eligibility for the Credit One Bank (r) Platinum Visa(r), for Rebuilding Credit. This will not affect your credit. Keep in mind that you will need to prequalify before you can proceed with your application. This could result in your credit score dropping by a few points.
Learn more about the Credit One Bank (r) Platinum Visa(r), for Rebuilding Credit
Here are some other factors to consider if you aren’t sure if the Credit One Bank (r) Platinum Visa(r), for Rebuilding Credit is right for your needs.
- Credit reporting —Credit One reports on your activity to the three main credit bureaus each month.
- Fees If you use your card to make a cash advance, you will be charged 8% (minimum $1). A 3% (minimum 1) foreign transaction charge will be added for international transactions. You can also expect to pay a fee of $39 if your payment is returned or late.
- Credit score access When you are a cardholder you have free online access to your Experian score.
- Fraud protection — The Credit One Bank (r) Platinum Visa(r), for Rebuilding Credit comes with $0 fraud liability coverage, so you’re not responsible for any unauthorized charges.
This card is for
The Credit One Bank (r) Platinum Visa(r), for Rebuilding Credit, is designed specifically for people who are building credit. It might suit you if your goal is to build credit, or if your credit history is not yet established.
Credit One reports your activities to the major credit bureaus. This can help you improve your credit score if you are careful with how you use your card. You may be eligible for credit cards that have no annual fees or cards with higher rewards.
If you are unable to apply for this card, you might have to look into other cards that don’t require credit checks or that require a security deposit.
Are you unsure if this card is right for you? These are some alternatives.
These are some other cards you might consider to replace the Credit One Bank (r) Platinum Visa (r) for Rebuilding Credit.