|Credit Building Rating:||2.8 / 5|
|Cost of Membership||3.4|
|Ease of Building Credit||3.2|
In a Nutshell:
While this isn’t the best Visa card Credit One has to offer, the Credit One Bank Visa Cash Back Rewards still offers cardholders a fairly good value. With a decent cash back rewards program and modest annual fee, this card may be the best option for customers with average credit who face more limited options. See rates and fees
Average cost of membership per year ($3,600 annual spend)
Security deposit required
Initial credit limit
Access to higher credit line?
Other rates and fees
Other Notable Features: Free online credit monitoring, fraud liability protection, customizable account notifications and alerts, flexible due date, no late-penalty increase in APR, shopping discounts
The Credit One Bank Visa Cash Back Rewards is a is a practical choice especially for people just starting their credit-building journey or who need to repair past credit. While this card doesn’t offer all the bells and whistles as comparable cards, it still boasts a solid rewards program, as well as many other perks.
Low initial credit limit
This card is targeted toward customers with fair to average credit, who may not have the wide range of choices offered to those with higher credit scores. As such, most customers begin with a low credit limit of around $300. While it might seem low, this is smart for people who are learning or relearning good credit habits. Also, keep in mind that timely payments and good performance will lead to regular credit increases.
Better-than-average rewards program
For a starter card, the Credit One Bank Visa Cash Back Rewards card offers a decent rewards program, though there are better ones around. Cardholders can earn 1% cash back on all eligible purchases, which include gas, groceries, mobile phone, internet, cable and TV. Since for many, these are recurring purchases, there are plenty of opportunities to earn cash back rewards. And the best part? There’s no annual limit on what you can earn.
For more benefits, theCredit One Bank Visa Cash Back Rewards card offers 10% more cash back rewards from participating top retailers. Not a bad deal if you remember to shop at the right places.
Low cost of ownership
Credit isn’t free, and neither is the Credit One Bank Visa Cash Back Rewards card. For a starter card, it offers a pretty good value. By our estimates, the average cardholder charges approximately $3,600 per year on their Cash Back Rewards card. When factoring in the annual fee (up to $39) and average cash back rewards earned ($17), you’re looking at a yearly cost of $22, which is considered “very good,” especially for cardholders with more limited options.
Beware of the high APR
Because this card is targeted toward customers with less-than-stellar credit, the Credit One Bank Visa Cash Back Rewards card can get away with charging a higher variable APR: 23.99%. While some may balk at such a high interest rate, it may be better to just consider the APR a deterrent for irresponsible behavior, such as overspending or making late payments. Plus, if you pay off your balance in full each month, that high APR will never affect you.
Average fees and penalties
Credit card fees and penalties are the price of admission to the wonderful world of credit, especially when you’re just starting out. And if you are building or repairing poor credit history, you already know that the no-fee cards won’t be rolling your way.
For now, make do with what you can. While the card’s fees may be higher than average, they’re manageable, with an 8% ($5 minimum) fee for cash advances and 3% ($1 minimum) for foreign transaction fees. As with most cards, the late payment fees, at up to $39, is where you’ll get hit the hardest. Consider this another reason to avoid late payments.
Other card benefits
Besides its cash back rewards program, the Credit One Bank Visa Cash Back Rewards card offers all cardholders these great perks, from online credit monitoring (great for those seeking to improve credit) to even more discounts from participating retailers. The key is to remember to take advantage of them.
- Free monthly online credit score monitoring
- Custom notifications, payment reminders and fraud alerts
- Notification preference by text, push notification or email
- Zero liability and fraud protection
- Secure access to online account information (paperless)
- Anytime account management via mobile banking app
- Automatic account reviews for credit increases
- Optional credit protection
- Exclusive discounts from Visa
Great approval odds
If you are worried about your chances of qualifying for a credit card due to a low score or limited credit history, the Credit One Bank Visa Cash Back Rewards card is a good place to start. With a higher APR and fees than other cards, it is specifically targeted toward those with poorer credit. That means it has a lower barrier to entry than flashier rewards cards.
Additionally, you can check for a prequalified offer on the Credit One website with no affect to your credit score. That way, you can get a better idea of approval before submitting an application.
Why get the Credit One Bank Visa Cash Back Rewards card?
- You are looking for a valuable starter card with a cash back rewards program.
- You are trying to build credit or repair poor credit.
- You want a card with opportunities for credit increases based on good credit performance.
How to use the Credit One Bank Visa Cash Back Rewards card:
- Use the card to pay for eligible purchases to earn 1% cash back.
- Use the card at participating retailers to earn up to 10% cash back.
- Make payments on time and in full to improve your credit score.
- Take advantage of regular credit increases when offered.
About the author
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