Credit One American Express is a secured card with high fees that make it expensive to use, even if you're rebuilding credit
Credit One American Express is a secured credit card issued by Credit One Bank, not by American Express directly. You put down a cash deposit (usually $200 to $2,500) that becomes your credit limit. The card charges an annual fee of $39 to $99 depending on which version you choose, plus a one-time processing fee of $35 to $75 when you open the account. On top of that, it charges a monthly maintenance fee of $6.95 if your account is in good standing, or $7.95 if you miss a payment. Those monthly fees add up to $83.40 to $95.40 per year before you've paid a cent in interest.
The card does report to all three credit bureaus, which is useful if you're rebuilding credit. But the combination of the annual fee, the monthly maintenance fee, and a variable interest rate (typically 24.99% APR or higher) means you're paying a lot just to hold the card. If you carry a balance, the interest charges stack on top of the fees, making this one of the most expensive ways to rebuild credit.
Key Takeaways
- Credit One American Express charges a $39 to $99 annual fee plus a $6.95 to $7.95 monthly maintenance fee, totaling $83 to $95 per year in fees alone.
- The card reports to all three credit bureaus, so on-time payments do help rebuild your credit score, but the fees eat into any benefit.
- Interest rates run 24.99% APR or higher, and the card offers no rewards or cash back, so you're paying to use it with no offsetting benefits.
- You must put down a cash deposit equal to your credit limit, and that deposit is held the entire time you own the card.
- Better alternatives exist for rebuilding credit, including secured cards with lower or no monthly fees and cards that offer cash back to offset costs.
How the fees break down and what they cost you over time
When you open a Credit One American Express account, you pay a one-time processing fee of $35 to $75 immediately. This is not refundable and is charged before you use the card. Then, every month you hold the card, you pay a $6.95 maintenance fee if your account is in good standing, or $7.95 if you've missed a payment or are behind. That's roughly $83 to $95 per year in maintenance fees alone, on top of your annual fee.
The annual fee itself ranges from $39 (for the basic version) to $99 (for the premium version with a higher credit limit). If you choose the $99 annual fee card, your total yearly fees before interest or any purchase you make come to $35 to $75 (one-time) plus $99 (annual) plus $83.40 to $95.40 (monthly maintenance), totaling $217 to $269 in the first year and $182 to $194 in subsequent years. That's a significant cost just to hold the card, especially if you're using it to rebuild credit on a tight budget.
Compare this to other secured cards: the Capital One Secured Mastercard charges no annual fee and no monthly maintenance fee. The Discover it Secured charges no annual fee and no monthly maintenance fee. Even if you pay interest on a balance, you're not also paying monthly fees to the card issuer on top of it.
What happens to your deposit and when you can get it back
Your cash deposit becomes your credit limit. If you deposit $500, your credit limit is $500. That deposit sits in a separate account held by Credit One Bank and earns little to no interest. You cannot use that money while you hold the card — it's locked up as collateral.
You get your deposit back only when Credit One closes your account or converts it to an unsecured card. Credit One does not publish clear guidelines for when conversion happens. Some cardholders report conversion after 18 months of on-time payments; others report it takes much longer or never happens. There is no timeline you can count on. Until conversion or closure, your deposit is unavailable to you, even though you're paying monthly fees to hold the card.
If you close the account yourself, your deposit is returned within 7 to 10 business days, but you lose the credit history the card has been building. If Credit One closes the account (for example, due to missed payments), your deposit may be applied to any outstanding balance before being returned to you.
Interest rates and what carrying a balance costs
Credit One American Express charges a variable interest rate, typically starting at 24.99% APR. This rate is not fixed and can increase over time. The rate you receive depends on your credit profile at the time you apply, but even applicants with fair credit often receive rates at or near the maximum.
If you carry a $500 balance at 24.99% APR, you'll pay roughly $10.42 per month in interest alone. Over a year, that's $125 in interest charges. Add the $83 to $95 in annual maintenance fees, and you're paying $208 to $220 per year just to borrow $500. That's a 42% to 44% effective cost in the first year, far higher than most other credit products.
The card offers no rewards, cash back, or points. You receive no offsetting benefit for paying these high rates and fees. Every dollar you spend on this card costs you money in fees and interest with nothing coming back to you.
How Credit One reports to credit bureaus and what that means for rebuilding
Credit One American Express does report payment history to Equifax, Experian, and TransUnion. This is the main reason someone might consider the card: if you make on-time payments, that history appears on your credit report and can help raise your credit score over time. The card also reports your credit utilization (how much of your limit you're using), so keeping your balance low relative to your deposit helps your score.
However, the reporting benefit does not offset the cost. You can rebuild credit with a secured card that charges no monthly fees and no annual fee, and your score will improve just as quickly. The difference is that with a no-fee card, you're not paying $83 to $95 per year for the privilege of rebuilding. That money could go toward paying down your balance faster, which would improve your score even more.
If you're rebuilding credit and have limited funds, a card with lower or no fees will get you to the same result faster and cheaper. The reporting to three bureaus is standard for most secured cards, not unique to Credit One.
Comparing Credit One American Express to other secured cards
The main competitors for a secured card are Capital One Secured Mastercard, Discover it Secured, and U.S. Bank Secured Visa. Here's how the costs compare:
| Card | Annual Fee | Monthly Fee | Interest Rate Range | Reports to All 3 Bureaus |
|---|---|---|---|---|
| Credit One American Express | $39–$99 | $6.95–$7.95 | 24.99% APR+ | Yes |
| Capital One Secured Mastercard | $0 | $0 | 24.99% APR+ | Yes |
| Discover it Secured | $0 | $0 | 24.99% APR+ | Yes |
| U.S. Bank Secured Visa | $0 | $0 | 24.99% APR+ | Yes |
Capital One, Discover, and U.S. Bank all charge no annual fee and no monthly maintenance fee. They report to all three bureaus just like Credit One does. The interest rates are similar across all four cards. The only advantage Credit One has is that it may be easier to open if you have very poor credit or a recent negative event, because Credit One's approval standards are looser. But if you can open any of the other three cards, you should, because you'll save $83 to $95 per year in fees.
Discover it Secured also offers 1% cash back on all purchases, which means you earn money back while you rebuild credit. That's a direct financial advantage Credit One does not offer.
When Credit One American Express might make sense
Credit One American Express is worth considering only in a narrow situation: you have been turned down by Capital One, Discover, and U.S. Bank, and you need a secured card to rebuild credit right now. If you can open any of those three cards instead, do so. The fee difference will save you hundreds of dollars over the time it takes to rebuild your credit.
If you do open a Credit One card, treat it as a temporary tool. Use it to make small purchases and pay them off in full each month so you don't carry a balance and pay interest on top of the fees. The goal is to build enough credit history that you can move to an unsecured card or a better secured card within 12 to 18 months. The sooner you close this account or convert it to unsecured, the sooner you stop paying the monthly maintenance fee.
Do not open this card if you have other options. The fees are simply too high relative to what you get in return.
Frequently Asked Questions
Can I get my deposit back before I close the account?
No. Your deposit is held as collateral for the entire time you own the card. You can only recover it by closing the account or by having Credit One convert the card to unsecured, which happens at Credit One's discretion and has no set timeline. Some cardholders report conversion after 18 months; others report it never happens.
What happens if I miss a payment?
Your monthly maintenance fee increases from $6.95 to $7.95, and the missed payment is reported to all three credit bureaus, which will lower your credit score. If you miss multiple payments, Credit One may close your account and apply your deposit to any balance owed before returning the remainder to you.
Does Credit One American Express offer any rewards or cash back?
No. The card offers no rewards, cash back, or points. You receive no benefit for using it beyond the credit history reporting, which most other secured cards also provide without charging monthly fees.
Is Credit One American Express a real American Express card?
No. It is issued by Credit One Bank and carries the American Express network logo, but it is not issued or backed by American Express. American Express does not sponsor or endorse this card. The branding can be confusing, but this is a Credit One product.
How long does it take to convert from secured to unsecured?
Credit One does not publish a timeline. Conversion depends on your payment history, credit score, and Credit One's internal review process. Some cardholders report conversion after 18 months of on-time payments; others report longer waits or no conversion at all. There is no may provide conversion will happen.