Credit One Credit Card Review: Start Building Your Credit Score Now

How to Improve Credit Score

People with bad credit scores run into problems when they require financial services. When a person has a bad credit score, getting finance becomes nearly impossible for them. If this is true for you, there is no need to lose hope. You can turn this unfortunate situation around by taking steps to build your credit score. One of these steps is applying for a credit card with relaxed terms. These cards may help you in your quest to improve your credit score. One such card that you should look into is the Credit One Credit Card.

 

Credit Building Cards

You should realize that such credit cards primarily build your damaged credit score. They will also offer modest rewards like cash back or other benefits but these should be treated as fringe benefits. They are not your primary aim so don’t be put off if the rewards seem modest compared to other leading credit cards – cards which you won’t get anyway because of your low score.

 

So there is no point bemoaning the fact that you can’t qualify for leading credit cards. However, credit score building cards like the Credit One Credit Card can provide you the opportunity that you have been looking for. Once you restore your credit score via the Credit One Credit Card, you can then apply for better credit cards.

 

You have to start small and then grow big. This is precisely what you are going to do with the help of the Credit One Credit Card. It may take a little time to get there but your patience and effort won’t go unrewarded.

 

No Security Deposit

One of the great advantages of the Credit One Credit Card is the fact that you don’t have to make a security deposit. Credit One Credit Card does not demand a security deposit like other cards that can be used for credit building. So this is one major plus point.

 

Other credit score building credit cards demand a security deposit that amounts to at least $300. Not only that but they also put an initial credit limit that matches with what you can contribute.

 

With the Credit One Credit Card, the amount of credit that is extended towards you depends on your annual fee. Your credit limit will, therefore, range from $225 to $300 depending upon how much annual fee you are being charged.

 

This is not really an enormous credit limit when compared with other cards. But you can at least save precious cash from being tied up as a security deposit. Moreover, you can increase your credit limit by being a responsible cardholder. Your account will be reviewed automatically. If you pay your dues on time and refrain from carrying balances, then your credit line will also increase.

 

So, you should start small but think big and make the right moves.

 

Annual Fee

Although the Credit One Credit Card does not ask for a security deposit, it still requires annual fees – as most other cards do. Depending on your credit rating, you will be charged anywhere from zero to $75 annual fee during your first year. In the subsequent years, you will then be charged anywhere from zero to $99. An annual fee like this will likely cancel out any of the rewards that you will gain unless you are spending a hefty amount via the Credit One Credit Card.

 

This should not bother you because rewards are not your primary concern. You should prioritize building up your credit score.

 

Even if you are charged the maximum fee of $75 in the first year, it is a small price to pay for building up your wrecked credit score. You will also be able to somewhat lower this cost through the cash back rewards that you will earn. The annual cost of building your credit score will further go down to an even lower amount.

 

Note that the annual fee will be charged on a monthly basis and divided accordingly.

 

APR

APR can range from 20 percent to 26 percent which is what many store credit cards charge. So it should not really be a reason for concern. What you should be more concerned about is making timely payments not just to avoid high-interest charges but also more importantly to bolster your low credit score.

 

Delaying payments will not only incur interest but will also defeat the very purpose for which you are using this card.

 

Flexible Cash Back Rewards Program

Another major benefit of using the Credit One Credit Card is that, in spite of a low credit score, you will still have a chance to gain 1% cash back on eligible expenditure. After getting approved for this card, you will have the option of choosing from six different types of rewards programs to gain cash back rewards on groceries, gas, dining and phone services. Depending on your spending habits, you should choose the option that maximizes your cash back rewards.

 

Other Benefits to Build up Your Credit Score

This credit card also offers other standard benefits like the $0 fraud liability safeguard. One really great benefit is the credit report and free monthly credit score that you will obtain via Experian. This will allow you to follow your progress and serve as a great resource for improving your creditworthiness.

 

Other benefits include an optional protection scheme that protects against events like disability or involuntary employment. You will have to pay 96 cents for every $100 increase in your balance. Use it if you feel you are vulnerable to any such event.

 

Other Charges and Penalties

There are also other charges in addition to the annual fees. In case of cash advances, you will have to pay an 8% fee and an APR of nearly 26%.

 

For foreign transactions, you will also be charged a fee that is 3% of the transaction value. This is obviously not the best travel card.

 

$19 is also charged annually if you wish to include another authorized user. There is a minimum of $1 by way of interest charges. There is a $38 penalty for returned or late payments.

 

High Chances of Approval

If you have a credit rating from 300 to 670, there is a good chance that you will get approved. Even if you are unsure whether or not you will get approved, there is no harm in applying because it won’t hurt your credit score.

 

They have not defined any minimum credit score so you should feel free to try. The only requirement is for a verifiable income. Different income sources can qualify for this category such as self-employment income, regular employment, part-time earning or even public assistance.

 

By filling out the pre-qualification form, you will know your chances of approval. It is not perfectly reliable but it can nevertheless give you a good idea.

 

You should visit this link to see if you prequalify.

 

Online and Mobile App

The online and mobile websites are fairly intuitive and easy to use. You should have no problems finding your way around. Whether it’s checking your balance, your online credit score or making payments, it can all be easily done with the help of the mobile app. For added safety, you can also opt for alerts and SMS messages for any account activity.

 

Our Last Thoughts About the Credit One Credit Card

The Credit One Credit Card was established for the purpose of rebuilding credit and it is a good choice for those seeking to improve their credit score. Use it if you have a poor credit score. If your credit score is not bad, you can find better credit card offerings elsewhere.

 

3 Alternative Credit Cards to Consider

This is not the only credit card aimed at people with a subprime credit score. There are some other options you should consider that may suit your situation better. The credit cards below are a few of our favorites, especially if you’re looking to rebuild your credit score through responsibly making your payments. The middle card even earns rewards which should offset the annual fee of the card.

 

 Poor Credit AlternativeFair Credit AlternativeLimited/No Credit Alternative
Milestone Unsecured
Capital One Quicksilver One
Capital One Platinum
RewardsNo rewards1.5% cash back on all purchasesNo rewards
Annual FeeSee terms$39$0
Extra PerksQuick pre-qualification that won't hurt your credit score.

Free custom card design.

Free online account access.

Previous bankruptcy OK.
Access a higher credit line after making your first 5 on-time monthly payments.

Free credit monitoring.

$0 Fraud liability.

Access a higher credit line after making your first 5 on-time monthly payments.

Online banking.

Pay by check, online, or at a local branch.
Best for People Who...Have bad credit and need help to strengthen it through responsible use.Need help to strengthen their credit through responsible use. Also earns rewards.Need help to strengthen their credit through responsible use.
Learn More >>Learn More >>Learn More >>

 

Decision Time: Which Credit Card is Really the Best for You?

Here at Travel Freedom, we like to travel, which is why we always prefer to get travel credit cards for ourselves. We also know that travel credit cards are not available to all credit score levels. With anything less than a good credit score it will be hard to be approved for a travel card. Any of these cards will be beneficial in rebuilding your credit so that you’ll have the option in the future of what card type to get. After your credit is good, you’ll have the opportunity to be approved for valuable travel rewards or cash back cards.

 

Good luck on your road back to good credit. It’s great that you’re looking to improve your credit score and the way you live.

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