How LendingTree Rates Credit Cards?
Our experts rate credit cards based on several factors including card benefits, bonus offers and independent research. Credit card issuers do not influence or have a say in our card ratings. Read our credit card methodology here.
For someone who is looking for a no-frills card with which to rebuild credit, the Credit One Bank® Platinum Visa® for Rebuilding Credit can help you achieve that goal. It’s a relatively easy credit card to qualify for, and responsible use of it will help to build your credit. There’s nothing magical about the card; you’ll have to demonstrate good financial habits with other payments that are reported to the credit bureaus such as student loans and auto loans.
The primary downside of this card is that it comes with an annual fee, which ranges from $75 for the first year. After that, $99 annually ($8.25 per month), which you will have to pay as long as you have the card. Not only will this decrease your initial credit line on your card, the money spent on this fee adds to a significant amount of money. However, if you’ve exhausted all other credit card options, then the fee will be worth it to get back on track.
If you don’t want to put money toward an annual fee, want to earn rewards on what you purchase or have a path to upgrade to a card with more perks and a higher credit limit, you should consider alternative cards including secured credit cards with no annual fees.
Intro Purchase APR
N/A
Regular Purchase APR
29.49%* Variable
Intro BT APR
N/A
Regular BT APR
N/A
Annual Fee
$75 for the first year. After that, $99 annually ($8.25 per month)
Cash Advance Fee
$5/8%, whichever is greater (see terms)
Foreign Transaction Fee
3%, Min: $1, whichever is greater
Balance Transfer Fee
N/A
Applicants with damaged credit are welcome
Since the Credit One Bank® Platinum Visa® for Rebuilding Credit is branded as a credit card to help rebuild credit, anyone with poor or bad credit is welcome to apply. Over time, and with responsible use of the card, you can expect to see your credit score improve.
No deposit required
Successful applicants of the Credit One Bank® Platinum Visa® for Rebuilding Credit do not need to send in a deposit to secure their line of credit. This is great if you don’t have cash that you can spare to have tied up since security deposits can be upwards of $200 or more on secured credit cards. That said, deposits are refundable but annual fees — which this card has — are not.
Credit line increase opportunities
The Credit One Bank® Platinum Visa® for Rebuilding Credit offers a minimum $300 credit line, which is fairly good for an unsecured credit card. Credit One Bank will regularly review your account and offer credit line increases based on your credit performance. If you don’t increase your monthly spending, these increases will help to keep your credit utilization low.
Cash back rewards on eligible purchases
Credit One Bank® Platinum Visa® for Rebuilding Credit cardholders 1% Cash Back on eligible purchases and mobile phone service, internet, cable and satellite TV services. Terms Apply. So if you spend $300 on eligible grocery purchases in a month, you’ll earn $3 in rewards. Rewards are automatically applied as a statement credit.
One caveat is that Credit One Bank uses Standard Industrial Classification Codes (SIC) to classify purchases whereas most credit cards use Merchant Category Codes (MCC). What this means to you is that the same item charged to your Credit One Bank® Platinum Visa® for Rebuilding Credit and a card that uses MCC could yield different rewards because of how it’s classified.
Choose your payment due date
Some cards assign an arbitrary payment date, which can cause financial struggles if it doesn’t work for you. With the Credit One Bank® Platinum Visa® for Rebuilding Credit, you can change the date to a more convenient one.
You may call customer service to change the date after your initial billing cycle. You’re allowed to change the due date once in a six month period.
Annual fee
While the annual fee is less than the amount of most down payments on secured credit cards, the main difference is that once an annual fee is paid, you won’t get it back. A security deposit can be returned to you if you close your account in good standing, so you will get the money back eventually.
The Credit One Bank® Platinum Visa® for Rebuilding Credit has a $75 for the first year. After that, $99 annually ($8.25 per month) annual fee, which is charged to your account upon opening. This reduces your credit limit right off the bat; leaving you with only $225 if you’re approved for a $300 line of credit. The annual fee increases in your second year, and you’re charged in monthly installments.
While this is more manageable than paying the fee as a lump sum, a secured card may be more cost-effective in the long run. After three years of using the Credit One Bank® Platinum Visa® for Rebuilding Credit, you’ll pay nearly $300 in annual fees. This matches or surpasses the deposit on most secured cards, which mostly don’t include an annual fee:
| Year | Annual fee | Cumulative cost of fees |
|---|---|---|
| Year 1 | $75 | $75 |
| Year 2 | $99 | $174 |
| Year 3 | $99 | $273 |
Plus, once you qualify for a better credit card, you’ll probably want to close the Credit One Bank® Platinum Visa® for Rebuilding Credit to avoid the annual fee. This will reduce the average age of your credit accounts, which can hurt your credit score. With a no-annual-fee secured card, you may be able to keep your card open indefinitely to build up your account age.
No bonus
Many credit cards that cater to poor or bad credit cardholders don’t offer a sign-up bonus, so this shouldn’t be a huge deciding factor in whether or not to apply. However there are secured credit cards that offer sign-up bonuses, so consider your options carefully to see which works best for your needs.
Not all purchases earn cash back
You likely noticed that you earn cash back on “eligible” purchases that fall within a few categories. This means that when you use your card for a copay at the doctor or a car wash, you probably won’t earn any cash back.
Customer service issues
Credit One Bank has a B rating with the Better Business Bureau. This isn’t terrible, but there is a pattern of complaints related to billing and collection issues. Carefully check your statements each month and handle any discrepancies immediately.
The card works just like an unsecured card, letting you charge and pay off purchases while reporting your credit usage to the three major credit bureaus. Also, Discover conducts automatic reviews of your account at seven months to possibly transition you to an unsecured account.
It also comes with a solid cash back rewards program. You 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically Plus, Discover will match all the cash back you’ve earned at the end of your first year for new cardholders.
In as little as six months, Capital One will review your account to consider your for a higher credit line. It also comes with the potential to graduate to an unsecured card and have your deposit refunded. While Capital One doesn’t guarantee a timeline for this, it does have a great line of cards to graduate to.
On the downside, it doesn’t offer a rewards program. However if your goal is to build credit with the possibility of a low security deposit and no annual fee, this is one to look into.
| Credit Cards | Our Ratings | Welcome Offer | Rewards Rate | Annual Fee | |
|---|---|---|---|---|---|
|
Credit One Bank® Platinum Visa® for Rebuilding Credit*
|
N/A | 1% Cash Back on eligible purchases and mobile phone service, internet, cable and satellite TV services. Terms Apply. | $75 for the first year. After that, $99 annually ($8.25 per month) | ||
|
Discover it® Secured Credit Card*
|
Discover will match all the cash back you’ve earned at the end of your first year. | 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically | $0 | ||
Capital One Platinum Secured Credit Card*
|
N/A | Non-rewards Card | $0 |
The Credit One Bank® Platinum Visa® for Rebuilding Credit is a good card but it’s not the best one on the market because of the high annual fees and lack of a solid rewards program.
If you are able to put down the $200 security deposit for a Discover it® Secured Credit Card, it’s a better card overall. If you never carry a balance and pay interest, you can build credit for free — and earn rewards.
No matter which credit card you choose, follow these steps to build credit with a credit card and improve your credit score.
For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply
The information related to the Credit One Bank® Platinum Visa® for Rebuilding Credit, Discover it® Secured Credit Card and Capital One Platinum Secured Credit Card has been collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply.
The content above is not provided by any issuer. Any opinions expressed are those of LendingTree alone and have not been reviewed, approved, or otherwise endorsed by any issuer. The offers and/or promotions mentioned above may have changed, expired, or are no longer available. Check the issuer's website for more details.
