Credit One Bank cards are designed for people rebuilding credit, but they cost more than most alternatives
Credit One Bank offers secured credit cards — cards backed by a cash deposit you put down upfront. The deposit becomes your credit limit, so a $500 deposit gives you a $500 limit. The card reports to all three credit bureaus, which means on-time payments build your credit history.
The catch is the fees. Credit One charges an annual fee of $39 to $99 depending on which card you choose, plus a one-time processing fee of $35. You also pay interest on any balance you carry — currently around 19.99% to 22.99% APR. If you're rebuilding from a low credit score, you'll find similar secured cards from other banks with lower or no annual fees and lower interest rates.
Credit One is not a scam, but it's not the cheapest path forward. The company is legitimate, regulated by the Office of the Comptroller of the Currency, and does report to credit bureaus. The question is whether the cost is worth it for your situation.
Key Takeaways
- Credit One requires a cash deposit upfront (your credit limit), making it a secured card that works for people with no credit history or damaged credit.
- Annual fees range from $39 to $99, plus a $35 processing fee upfront — costs that cut into the credit-building benefit compared to other secured cards.
- Interest rates of 19.99% to 22.99% APR mean carrying a balance is expensive; the card works best if you pay in full each month.
- Alternatives like Discover Secured, Capital One Secured, or Self Visa exist with lower or zero annual fees and similar credit reporting.
- Credit One does report to all three bureaus and does not require a credit check, making it accessible if your credit is very low or nonexistent.
How the Credit One card actually works
You deposit money into a savings account held by the bank. That deposit becomes your credit limit — you cannot spend more than what you've deposited. The card itself works like any other: you swipe it, the charge appears on your statement, and you pay a bill each month.
The deposit stays in the account the entire time you hold the card. You don't lose it; it's collateral. If you stop paying your bill, the bank can take money from the deposit to cover what you owe. If you close the account in good standing, you get the deposit back.
Credit One reports your payment history to Equifax, Experian, and TransUnion. Making on-time payments builds your credit score over time. Most people see score movement within 3 to 6 months of consistent use.
The fees add up faster than you might expect
When you open an account, you pay a $35 processing fee upfront. Then you pay an annual fee of either $39 (for the basic card) or $99 (for the premium card with higher rewards). That fee hits your account once a year, every year you hold the card.
On a $500 deposit, a $39 annual fee is 7.8% of your limit just to have the card. If you're using the card to build credit and paying it off in full each month, that fee is pure cost with no benefit. Compare that to Discover Secured, which charges no annual fee, or Capital One Secured, which also charges no annual fee — and both report to the same credit bureaus.
The processing fee is a one-time hit, but it's worth knowing about. Some people don't realize it's separate from the annual fee.
Interest rates and when they matter
Credit One's APR ranges from 19.99% to 22.99% depending on the card and your creditworthiness at the time of approval. That's in line with other cards for people with poor credit, but it's still expensive if you carry a balance.
If you charge $300 and pay it off in full the next month, you pay no interest. Interest only applies to the balance you carry from one month to the next. But if you charge $300 and pay only $100, you'll owe interest on the remaining $200 at roughly 20% APR — that's about $3.33 in interest that month alone.
The card works best as a tool for building credit, not for borrowing. If you need to carry a balance, the high interest rate makes it expensive. A personal loan from a credit union or a 0% promotional credit card (if you can get approved) would be cheaper.
Credit One versus other secured cards
Several banks offer secured cards with lower costs. Here's how the main competitors stack up:
| Card | Annual Fee | Processing Fee | APR Range | Reports to All Three Bureaus |
|---|---|---|---|---|
| Credit One Bank | $39–$99 | $35 | 19.99%–22.99% | Yes |
| Discover Secured | $0 | $0 | 19.99%–25.99% | Yes |
| Capital One Secured | $0 | $0 | 19.99%–26.99% | Yes |
| Self Visa | $0 | $0 | N/A (no interest if paid on time) | Yes |
Discover Secured and Capital One Secured have no annual fee and no processing fee. Their APRs are similar to or slightly higher than Credit One's, but if you're paying in full each month (which you should be), the APR doesn't matter. You save $39 to $99 per year plus the $35 processing fee upfront.
Self Visa is different — it's a credit-builder loan disguised as a card. You deposit money, and Self holds it in a savings account while you make monthly payments. There's no interest if you pay on time, and it reports to all three bureaus. It's slower (you're making payments rather than spending freely), but it's cheaper if you're purely focused on building credit.
When Credit One might make sense for you
Credit One is worth considering if you've been turned down for other secured cards or if you need a card quickly and other options have longer approval times. The company does not require a credit check, so even if your credit is very low or you have no credit history, you can be approved as long as you have the deposit.
If you have a specific reason to prefer Credit One — for example, you like their customer service, or you already bank with them — the fees are not prohibitive. They're just higher than alternatives. The card will still build your credit if you use it responsibly.
Credit One also offers a path to graduation: after 18 months of on-time payments, you may be offered an unsecured card. If you're approved, you get your deposit back and move to a regular credit card. That's a real benefit if it happens, though it's not may provide.
Red flags and what to avoid
Credit One is not a scam, but the company has faced complaints about unclear fee disclosures and difficulty reaching customer service. Before you apply, read the terms carefully. The annual fee and processing fee should be clearly stated in the disclosure document you receive before you open the account.
Do not apply for Credit One if you're considering multiple secured cards at once. Each application triggers a hard inquiry on your credit report, and multiple inquiries in a short time can lower your score. Space applications out by at least a few weeks.
Do not use the card to carry a balance if you can avoid it. The interest rate is high, and the fees already make the card expensive. If you need to borrow money, look for a personal loan or a credit union loan instead.
Frequently Asked Questions
Can I upgrade to a regular credit card after using Credit One?
Credit One may offer you an unsecured card after 18 months of on-time payments, at which point you get your deposit back. This is not may provide, and the unsecured card will have its own terms and fees. Check your account periodically to see if you've been pre-approved for an upgrade.
What happens to my deposit if I close the account?
If you close the account in good standing with no outstanding balance, your deposit is returned to you, usually within 7 to 10 business days. If you have an unpaid balance, the bank may hold the deposit to cover it.
Does Credit One report to all three credit bureaus?
Yes, Credit One reports to Equifax, Experian, and TransUnion. This means your payment history affects your score across all three bureaus, which is important for building credit.
Is the $35 processing fee waived if I'm a current customer?
No, the processing fee applies to all new accounts. Some promotions may waive it, but you should assume it will be charged unless you see a specific offer stating otherwise.
What's the difference between Credit One and a regular credit card?
Credit One is a secured card — your deposit is your limit. A regular credit card is unsecured, meaning the bank extends credit based on your creditworthiness, not collateral. Secured cards are for people building or rebuilding credit; regular cards require an established credit history.