Credit One Bank is a secured card issuer that works for people rebuilding credit, but the fees are high and the rewards are minimal

Credit One Bank issues secured credit cards designed for people with limited or damaged credit history. You put down a cash deposit (usually $200 to $2,500), and that becomes your credit limit. The card reports to all three credit bureaus, so on-time payments build your credit score over time. The company has been operating since 1984 and is FDIC-insured, which means your deposit is protected.

The catch is straightforward: Credit One charges annual fees that are higher than most competitors in the secured card space, and the rewards structure is weak. If you're choosing between Credit One and other secured cards, you're usually paying more for the same outcome. The card makes sense only in specific situations — mainly if you've been denied elsewhere or if you need a card quickly and don't have time to shop around.

Key Takeaways

  • Credit One charges an annual fee of $39 to $99 depending on the card version, plus a one-time processing fee of up to $99, making the first-year cost substantial before you earn any rewards.
  • The card offers cash back rewards of 1% to 2% on certain purchases, but many unsecured cards for people with fair credit offer the same or better rewards without requiring a deposit.
  • Your deposit is held as collateral and does not count toward your credit limit — a $500 deposit gives you a $500 limit, not a $1,000 limit.
  • Credit One reports to all three bureaus, which helps build your score, but you can find other secured cards with lower fees that do the same thing.
  • The card is easiest to get approved for if you have very poor credit or a recent bankruptcy, because Credit One's approval standards are looser than most competitors.

How the fees actually add up in year one

Credit One's fee structure is where the card becomes expensive. The company charges a one-time processing fee of up to $99 when you open the account, plus an annual fee that ranges from $39 to $99 depending on which version of the card you choose. Some versions also charge a monthly maintenance fee of $6 to $10, which adds $72 to $120 per year on top of the annual fee.

If you open a card with a $99 processing fee, a $99 annual fee, and a $10 monthly maintenance fee, you're paying $288 in fees before you spend a single dollar or earn a single reward. On a $500 deposit, that's more than half your credit limit gone to fees in the first year. Compare this to Capital One's Secured Mastercard, which charges no processing fee, no annual fee, and no monthly fees — just your deposit. The difference in cost is substantial.

The monthly maintenance fee is the most frustrating part because it's unusual for secured cards. Most competitors charge only an annual fee, not a recurring monthly charge. If you're trying to keep costs low while rebuilding credit, these monthly charges add up quickly.

Rewards are minimal and come with conditions

Credit One offers cash back of 1% on most purchases and up to 2% on certain categories like gas and groceries, depending on which card version you hold. That sounds reasonable until you compare it to unsecured cards available to people with fair credit. The Discover it Secured card offers 2% cash back on gas and restaurants (up to $1,500 per quarter, then 1%), plus 1% on everything else — and it has no annual fee and no processing fee.

The rewards also come with a catch: Credit One caps your cash back earnings at $25 per month, which means you can earn a maximum of $300 per year in rewards. If you spend $15,000 annually on the card, you're earning rewards on only a fraction of that spending. Most other cards have no monthly cap on rewards.

The real value of a secured card isn't the rewards — it's the credit-building. You're paying for the ability to report to the bureaus and prove you can handle credit responsibly. If you're comparing cards purely on rewards, Credit One loses to nearly every competitor in its category.

When Credit One makes sense as a choice

Credit One is worth considering if you have very poor credit (below 550 FICO) or a recent bankruptcy and have been denied by other secured card issuers. The company approves people that Capital One, Discover, and other mainstream issuers turn down. If you've exhausted other options, Credit One will likely approve you.

The card also makes sense if you need a card immediately and don't have time to wait for approval elsewhere. Credit One's approval process is fast, and you can sometimes use the card within days of opening the account. If you're in a situation where you need to establish credit quickly for a specific reason — a job that requires a credit check, for example — the speed might justify the higher fees.

Beyond those two situations, you're usually better off looking elsewhere. If you have fair credit (580 to 669 FICO), you can get approved for Discover it Secured or Capital One Secured with lower fees and equal or better rewards. If you have good credit (670+), you don't need a secured card at all — you can get an unsecured card with better terms.

How to compare Credit One to other secured cards

When you're deciding between Credit One and another secured card, build a spreadsheet with these columns: processing fee, annual fee, monthly fee, deposit amount, credit limit, rewards rate, rewards cap, and whether the card graduates to unsecured status. Fill in the numbers for Credit One and at least two competitors (Capital One Secured and Discover it Secured are the main alternatives).

Then calculate your total cost for year one and year two. Include the deposit (which you'll get back eventually, but it's still money out of pocket), all fees, and subtract any rewards you expect to earn based on your typical monthly spending. The card with the lowest total cost is usually the right choice, unless you have a specific reason to choose Credit One (like being denied elsewhere).

Pay attention to the graduation policy too. Some secured cards automatically convert to unsecured status after 6 to 18 months of on-time payments, which means you get your deposit back and keep the card. Credit One does offer graduation, but it's not automatic — you have to request it, and approval depends on your payment history and credit score at the time. Other issuers graduate automatically, which is simpler.

What happens to your deposit and credit limit

Your deposit is held in a separate account and does not count toward your credit limit. If you deposit $500, your credit limit is $500, not $1,000. The deposit earns little to no interest — Credit One pays a very low rate on the deposit account, so you're not building wealth while you rebuild credit.

You can request a credit limit increase after six months of on-time payments. Credit One may increase your limit without requiring an additional deposit, or it may ask you to deposit more money. There's no set formula — it depends on your payment history and current credit score. If you're approved for an increase without a deposit, your original deposit is returned to you.

When you close the account or graduate to an unsecured card, your deposit is returned within 5 to 7 business days. If you have a balance on the card when you close it, the deposit is applied to that balance first, and any remainder is returned to you. Make sure you pay off the card before closing it, or you'll lose part of your deposit to the balance.

Red flags and complaints about Credit One

Credit One has faced complaints about unexpected fees and unclear terms. The Consumer Financial Protection Bureau (CFPB) has received hundreds of complaints about the company, with common issues being surprise monthly maintenance fees that weren't clearly disclosed upfront, difficulty reaching customer service, and slow processing of credit limit increases.

Some customers report that the company's website and terms are confusing about which version of the card they're getting and what fees apply. Before you open an account, read the Pricing and Terms document on Credit One's website carefully — don't rely on the marketing language on the main page. The Pricing and Terms document is the legally binding version and will show you every fee you'll pay.

The company also has a history of marketing aggressively to people with poor credit, which has led to criticism that it preys on vulnerable consumers. The high fees and low rewards do disproportionately affect people who can least afford them. This doesn't mean the card is a scam — it's a legitimate product — but it does mean you should exhaust other options first.

How to use a Credit One card to actually build credit

Opening the card is only the first step. To build credit, you need to use it responsibly: keep your balance low (under 30% of your limit), pay on time every month, and avoid closing the account too soon. The credit bureaus need to see a pattern of responsible behavior, which takes at least six months and ideally 12 to 18 months.

Set up automatic payments for at least the minimum due, or better yet, the full balance each month. Missing a payment will damage your score and defeat the purpose of the card. If you can't afford to pay the balance in full, at least pay more than the minimum — this shows lenders you're serious about managing debt.

After six to twelve months of on-time payments, check your credit score using a free tool like Credit Karma or AnnualCreditReport.com. If your score has improved to fair or good range (620+), you can start looking for unsecured cards with better terms. Once you're approved for an unsecured card, you can close the Credit One card and get your deposit back.

Frequently Asked Questions

Can I get my deposit back while keeping the card open?

Only if Credit One approves you for a credit limit increase without requiring an additional deposit. This typically happens after six months of on-time payments and a score improvement. You can request an increase, but approval is not may provide. Most people get their deposit back when they graduate to an unsecured card or close the account.

Does Credit One report to all three credit bureaus?

Yes, Credit One reports to Equifax, Experian, and TransUnion. This is one of the card's strengths — your payment history will show up on all three reports, which helps your score improve faster than a card that reports to only one or two bureaus. Make sure you pay on time every month so the reports are positive.

What's the difference between Credit One and Capital One Secured?

Capital One Secured has no annual fee, no processing fee, and no monthly maintenance fee. Credit One charges up to $99 in processing fees, $39 to $99 in annual fees, and sometimes $6 to $10 monthly. Both report to all three bureaus and offer rewards, but Capital One is cheaper. Capital One is harder to get approved for if you have very poor credit, which is the main reason to choose Credit One instead.

Will the card automatically convert to unsecured status?

Credit One does not automatically graduate your card. You have to request graduation after meeting the company's requirements, which usually means six months of on-time payments and a credit score improvement. The company will review your request and decide whether to approve it. Other issuers like Capital One graduate automatically, which is simpler.

What if I can't afford the monthly maintenance fee?

If the monthly fee is a burden, choose a different card. Capital One Secured and Discover it Secured have no monthly fees, only an annual fee (or no annual fee at all). The monthly charge adds up to $72 to $120 per year on top of other fees, and there's no reason to pay it when competitors don't charge it. If you're on a tight budget, the fee-free options are better.