Visa Credit One for Credit Review Rebuilding
The Visa Credit One card is not one of our highest rated cash back credit cards. You can consult our list of best cash back credit cards for what we think are better options.
Full Credit One Visa Credit Rebuilding Review
Access to credit without a security deposit
1% cash back on select purchases
Periodic Line of Credit Reviews
Credit limit may be low
Problems with customer service
- Access to credit without a security deposit: Most credit cards designed for people with poor credit or no credit are secure, which means they require you to put a security deposit on the card. The Credit One visa for credit rebuilding is not guaranteed, so there is no need for a deposit. You also have access to a revolving line of credit. The minimum line of credit you can receive is $ 300.
- 1% cash back on select purchases: With the Visa Credit One for Reconstruction Credit, you will receive 1% cash back on qualifying purchases of gasoline, groceries, mobile phone service, Internet service and cable TV services and by satellite. A 1% rewards rate is relatively low for a rewards credit card. However, credit cards designed for people with poor credit often don’t have any rewards, so being able to make money on some purchases is a decent perk.
- Periodic Line of Credit Reviews: Credit One will periodically review your account and payment history. If you’ve used your account responsibly and made all of your payments on time, you could automatically benefit from an increase in your credit limit. Having a higher credit limit gives you more purchasing power. And, when you have a higher limit, you might find it easier to maintain a lower credit utilization ratio, assuming your average level of card spending doesn’t increase. Your credit usage – or how much of your available credit you use – represents 30% of your credit score. With lower credit usage (along with responsible card use and other favorable credit behaviors), you can potentially increase your credit score over time and potentially benefit from other credit cards or loans. .
- Annual fees: The Credit One Visa for Rebuilding credit card has an annual fee, just like most unsecured credit cards. Fees range from $ 0 to $ 99 ($ 0 to $ 95 for the first year) and are determined by your creditworthiness. A similar card, the AvantCard, has a maximum fee of $ 59, so this card’s maximum of $ 99 is relatively high.
- Credit limit may be low: This card’s initial $ 300 minimum line of credit roughly matches the minimum credit limit options with other secured cards, but some cards offer higher maximum lines – provided, of course, that you are willing and able to qualify for a higher limit with a deposit of an equal amount with a secured card. Credit One says it will review your credit limit from time to time and may increase it. Still, if you have more than $ 300 for a security deposit, a secured card will allow you to charge a card more, at least initially, than Visa Credit One will for rebuilding credit.
- Problems with customer service: Credit One’s customer service for this card falls short of the credit card industry standard in several respects. 24/7 human phone support is only available for lost or stolen cards, where most issuers provide it on an ongoing basis. Unlike most other issuers, Credit One does not offer online chat. Even when you first join the company, the quality of the experience can be lacking. Credit One ranked last out of 11 national card issuers in the 2020 JD Power US Credit Card Satisfaction Survey.
Visa Credit One for Credit Rebuilding aims to attract people with poor credit or no credit at all who want a credit card without needing to deposit money to do so. According to Equifax, bad credit is a score below 600. FICO tells us that 18.9% of Americans have a score below 600.Unlike secured cards for consumers with a credit deficit, the Credit One Credit Rebuilding Credit Card provides access to a revolving line of credit without a security deposit.
It is also a card for those willing to pay an annual fee, although it may be $ 0 for some applicants. However, it could be offset by 1% cash back rewards on certain categories of daily expenses.
With the Credit One Visa for Credit Rebuilding, you will earn 1% cash back on gas, groceries, cell phone service, internet service, and cable and satellite TV services.
Reward redemption details
You will automatically receive your cash back rewards in the form of a statement credit. Unlike some other credit cards, you don’t have any other repayment option. You cannot use your rewards for gift cards, merchandise, travel arrangements, or charitable donations.
How to Maximize Your Rewards
To get the most out of the card, use it for everyday purchases of gas, groceries and other qualifying services to earn 1% cash back and avoid carrying balances forward each month, as the Interest incurred would more than outweigh the value of any rewards earned.
To show you how your rewards can add up, let’s consider some typical spending habits:
- Fuel: According to AAA, the average vehicle owner will spend $ 1,681.50 per year on gasoline for their car.
- Races: The Bureau of Labor Statistics reported that the average person spends $ 4,643 per year on groceries consumed at home.
- Cellular service: In a recent study, the Tax Foundation found that the average cell phone bill is $ 38.66 per month, or $ 463.92 per year.
If you spent the average amount in each of these three categories, you would spend $ 6,788.42. If you used your Visa Credit One Credit Rebuilding to pay off all of those bills, you’ll get 1% cash back on the total spent, giving you $ 67.88 in rewards. However, keep in mind that this type of rewards scenario would require a credit limit of around $ 575 to be able to hit that average level of spending in all three categories listed. Cardholders with lower credit limits would logically earn less.
The Credit One Credit Rebuilding Credit Card offers a few standard benefits for basic credit cards, including:
- Free online access to your Experian credit report
- Zero liability for fraud
Unfortunately, Credit One ranks poorly when it comes to customer service. In the 2020 JD Power US Credit Card Satisfaction Survey, Credit One was ranked last out of 11 national card issuers in terms of customer satisfaction. His score of 739 was well below average.
Its general customer support line is only available during certain hours. However, if your card is lost or stolen, you can get help 24 hours a day, seven days a week by calling 1-877-825-3242. There are no chat or email options for customer service.
This card has some standard features for credit cards, such as fraud alerts and zero fraud liability.
Fees to watch out for
If you are planning to apply for this card, there are four fees (in addition to any annual fees) that you should be aware of first. Neither is unusual for the industry, but a first-time credit cardholder may not be familiar with them:
- Foreign transaction fees: If you use the card when traveling outside of the United States, you will pay a 3% fee on each transaction, whichever is greater.
- Cash advance fees: If you purchase a cash advance, the cash advance fee is $ 5 or 8% of the amount, whichever is greater. If you took out a cash advance of $ 100, that means you will pay $ 8 in fees. You could also have $ 10 or 3% or a third possibility of $ 10 or 5%. It is not specified how they choose the fees you receive.
- Authorized user fees: If you want to add an authorized user to the account, such as your spouse or child, you will need to pay an annual fee of $ 19. The fees will also reduce the amount of your available credit.
- Late fee: If you pay your minimum monthly payment late, you will be charged up to $ 39 in late fees.
If your credit is poor or you don’t have a credit history, Visa Credit One for credit rebuilding may give you access to an unsecured line of credit and the opportunity to earn rewards on your purchases. The card looks like AvantCard, another unsecured card that has a lower maximum annual fee ($ 59, compared to $ 99 for this card) but offers no rewards, which could potentially justify this discrepancy in annual fees.
If you want to avoid the fees, consider the Discover it Secured card. Although it does require a security deposit, it does not charge an annual fee. Plus, cardholders will receive 2% cash back on purchases of up to $ 1,000 at gas stations and restaurants each quarter, and 1% cash back on all other purchases. There’s also the Petal Visa card, which has no annual fee or fees for late payments, overseas transactions, or adding authorized users.
Another option is the Green Dot Primor Visa Gold Secured card. There’s an annual fee of $ 49, but the APR is a bit flat at 9.99%, well below the norm for cards for people with poor credit or no credit.