Credit One Bank® Platinum Visa® for Rebuilding Credit Review | Bankrate (2024)

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It can be difficult to find the right credit card when you have bad credit, especially if you want to earn rewards, avoid annual fees and find a manageable APR. If you want to avoid a security deposit, it can be even harder since secured credit cards are the most common type of card available to people with poor credit.

But a handful of unsecured credit cards like the Credit One Bank® Platinum Visa® for Rebuilding Credit is available if you prefer no upfront costs. It's an unsecured credit card (meaning no security deposit) that also earns cash back on everyday purchases.

However, this card’s APR is very high, and its annual fee is as high as many premium rewards cards. Also, your initial spending limit will only be $300 to $500. If you’re focused on improving your credit score,the Credit One Platinum could be a short-term solution, but a secured card can be a more sustainable, less costly choice for achieving fair or good credit.

• Rewards

  • Earn 1% cash back rewards on eligible gas, grocery purchases and mobile phone service, internet, cable and satellite TV services (Terms apply)

  Expert Appraisal: Exceptional
  See our expert analysis

• Rates and fees

  • Annual fee: $75 the first year, then $99 ($8.25 per month)
  • Regular APR: 29.74 percent (variable)

  Expert Appraisal: Unimpressive
  See our expert analysis

• Credit-building features

  • Accounts reviewed regularly for credit line increase
  • Free credit score tracking and credit score report

  Expert Appraisal: Typical
  See our expert analysis

  See Also

  Is 600 a Good Credit Score? | Capital One

• Other cardholder perks

  • More Rewards program offers additional cash back when shopping at select merchants
  • Free membership in Experian IdentityWorksSM
  • Zero fraud liability if your card is lost or stolen
  • Pick Your Payment Due Date

  Expert Appraisal: Typical
  See our expert analysis

This card is a plus if you want to earn rewards while rebuilding your credit. On top of that, the Credit One Platinum card is a decent option if you want help paying off your monthly balance since you can only redeem for a statement credit.

Rewards and redemption: Statement credit can help manage budget

The Credit One Bank Platinum Visa for Rebuilding Credit earns unlimited 1 percent cash back on popular spending categories, like gas and groceries, but it also includes categories not typically offered in other cash back programs, like internet and cable services. With these everyday categories, it shouldn't be hard to rack up cash back rewards.

But you should be aware that Credit One uses “Standard Industrial Classification Codes” rather than the typical merchant category codes other Visa credit cards might use. These two work similarly, but it can be harder to track which stores earn cash back.

Also, your cash back rewards are automatically added to your account as a statement credit on each billing cycle’s statement. While more flexibility would be great, having rewards automatically applied to yourbalance is a low-hassle benefit if you are managing debt and working toward a more positive payment history.

Perks: Earn extra cash back

Credit One Bank Visa cards feature two programs you can use to earn extra cash back and discounts. By linking your card and shopping with participating retailers, Credit One’s More Rewards and Visa Offers + Perks stack extra rewards or discounts on top of your original earnings for eligible purchases.

More Rewards provides deals that offer up to 10 percent bonus cash back, while Visa Offers + Perks is tailored toward online shopping, apparel and dining discounts with select businesses. Earning extra cash back may not be your primary focus as you rebuild credit, but you can enjoy issuer-run rewards programs that usually come on some of the best credit cards available.

Another nice perk is you can select a new payment due date that is at least six days before or after the original assigned date by calling customer service. You can only change your due date once in a six-month period, but it allows some flexibility if you need it.

While this card has many advantages, you might want to consider some of its drawbacks, such as its annual fee and lack of credit-building perks.

Rates and fees: Annual fee might be too costly

Although it doesn’t require a security deposit, the Credit One Bank Platinum Visa for Rebuilding Credit is far from a low-cost card. The biggest potential cost to consider is the annual fee: $75 for the first year, then $99 per year after (billed at $8.25 per month). Considering the low initial credit line, that is a lot to pay for not much spending power.

Since the rewards rate is relatively low, the annual fee could make it hard to pocket any cash back. This is especially true in the second year, since you’ll need to spend at least $825 per month (or $9,900 per year) just to offset the $8.25 monthly fee with cash back rewards.

The card’s APR is also higher than the current average credit card interest rate, but this is common on cards designed forcredit-building. Other fees include late payment fees, foreign transaction fees, credit limit increase fees, returned payment fees and cash advance fees.

Credit-building: No standout features

Outside of features like account alerts, zero fraud liability and free monthly credit score access, the Credit One Bank Platinum Visa for Rebuilding Credit doesn’t carry many extra perks — even for building your credit.

Credit One will regularly review your account for responsible card use to determine if you qualify for a credit line increase. With a higher credit limit, you may be able to keep your credit utilization lower, an important factor in determining your credit score. However, opportunities for credit line increase are typical for cards of this type.

You might opt for Credit One's Credit Protection Program, designed to prevent your credit score from dropping for up to six months. This program will cover your card’s minimum payment if you lose your job or become disabled.

You must wait at least 30 days after enrolling, however, to activate your protection – and you’ll still accrue interest on your account (which will be frozen while you receive benefits).

But combined with this card’s high rates and fees, the mounting interest you would accrue by carrying a balance on your card could lead to a costly cycle. Although the program will cover your card’s minimum payment, you’re still on the hook for the rest of the balance.

Since your protection and account can be forcibly closed if you’re 60 days past due or 20 percent over the limit, Credit One’s protection plan could end up costing more than other debt management options.

Plenty of cards for people with no credit history are available that may be more straightforwardand even easier to get, but you might need to put down a security deposit first.

Despite higher upfront costs, secured credit cards could be a better option, especially if you need a higher initial spending limit. They can come with fewer potential costs and often include more credit-building features.

The Credit One Bank Platinum Visa for Rebuilding Credit doesn’t carry the same refundable upfront cost as a secured credit card, but it does come with a costly annual fee that will be difficult to offset with its limited 1 percent cash back. The card may be a decent option if you have bad credit, but sometimes a secured card with a larger credit limit can be a more effective strategy as you work on improving your credit score.

Simply put, there are better credit cards available that accept applicants with a less-than-ideal credit history, and your pool of options deepens considerably if you have fair credit.

*The information about Credit One Bank® Platinum Visa® for Rebuilding Credit has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.

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