Is Credit One legit?

What is Credit One Bank?

Credit One Bank helps people with imperfect credit scores to get secured and unsecured credit cards, which can help improve credit scores over time with responsible use. Through the Credit One Bank mobile application, cardholders can track their credit scores for free. Users are also able to access their accounts from anywhere in the world using the mobile application. 

The issuer claims that to make cards available to as many subprime borrowers as possible, they have to do things differently from card issuers marketing to higher-credit customer demographics. 

About Credit One Bank credit cards

There are three types of cards available from Credit One:

• Credit One Bank Platinum Rewards Credit Card
• Credit One Bank Platinum Visa for Building Credit
• NASCAR Credit Card from Credit One Bank
• Credit One Bank American Express Card

An issue frequently flagged by users is the confusing process of application for cards through the company. 

When starting the process, applicants do not know what kind of card they will end up getting. This means important details, such as fees, rates, rewards and even a grace period are hidden until your application has been granted. 

The issuer’s terms and conditions remain general on the website intended for “informational purposes only” at Credit One. Actual terms are only accessible upon qualification from a specific card. 

Furthermore, Credit One’s similar brand name to Capital One has been accused as being misleading, despite them being entirely distinct and separate companies. 

Credit One Bank benefits

A variety of benefits are offered to cardholders. Users are given the option of choosing their payment due date. Another plus is that after a few months responsible use, the Credit One team will reassess your account and evaluate whether your account is eligible for a credit limit increase.

Other benefits include:

• Cash back rewards: cardholders can qualify for different cash back rewards programs. Credit One Bank Platinum Visas, for rebuilding credit, earn up to 2% back on eligible purchases.
• Zero fraud liability: if your card is lost or stolen, you are not responsible for unauthorised charges on your card.
• Free credit score: you are able to access your Experian credit score and credit report summary for free each month online
• Credit limit increases: Credit One automatically reviews your accounts for credit limit increase opportunities. 

Are there alternatives?

The Capital One and Credit One’s distinctly similar brand ‘swoosh’ is admittedly confusing, despite the fact that Credit One predated the latter according to Bloomberg. 

Better alternatives are available for those with less-than-perfect credit. Major issuers offer secured credit cards with better terms, lower fees and guaranteed grace periods, in contrast to the opacity of the Credit One application process. 

Of course, secured cards demand a deposit of between $200-300 which may present a daunting challenge for some. However, remember you will receive this money back when the account is closed, or upon qualification for a regular unsecured card.

We recommend looking at the following alternatives:

• The Discover it Secured- 2% cash back , up to $1,000 in spending on gas and restaurants per quarter and 1% blanket cash back on all other purchases. Annual fees are $0.
• Capital One Secured Mastercard- $200 credit line with a deposit of $49, $99 or $200 and installment payments are available before account activation. Annual fees are $0.
• Capital One QuicksilverOne Cash Rewards Card- unsecured with an annual fee of $39- although requires a healthier credit score than Credit One’s cards. 

The bottom line: is Credit One Bank a legitimate company?

Yes. Credit One Bank is an online-operating major credit card company without any physical branch locations. 

It is aimed at customers with less-than-perfect credit scores and provides an adequate means for these individuals to build up a fair credit score through responsible usage of its cards.