The Credit One Card is built for people rebuilding credit, but it costs more than most alternatives
The Credit One Bank Credit Card is a secured card — you put down a cash deposit, and that becomes your credit limit. It reports to all three credit bureaus, which means on-time payments build your credit history. The catch is the fees. You'll pay an annual fee (usually $39 to $99 depending on the version), a monthly maintenance fee ($6 to $10), and a one-time processing fee when you open the account. Those fees eat into your deposit before you even use the card.
Whether it's a good choice depends on what other cards you can actually get. If you've been denied everywhere else — no credit history, recent bankruptcy, or damaged credit — Credit One will take you. If you have options, there are secured cards with lower or no fees that build credit just as well.
Key Takeaways
- Credit One charges an annual fee plus monthly maintenance fees that reduce the value of your deposit, making it more expensive than competing secured cards.
- The card does report to all three bureaus and works like any other card for building payment history, but the fees mean you're paying for that benefit.
- You can find secured cards with no annual fee or monthly maintenance fees that offer the same credit-building function at lower cost.
- Credit One makes sense only if you've exhausted other options and need a card that will accept you with minimal credit history.
How the fees actually work
When you open a Credit One account with a $500 deposit, you don't get a $500 limit. The card charges a one-time processing fee (usually $25 to $35) that comes out of your deposit first. Then you pay a monthly maintenance fee ($6 to $10 per month) that also comes from your deposit. After one year, you may have paid $100 to $150 in fees alone — meaning your actual available credit is closer to $350 to $400.
The annual fee ($39 to $99) is charged separately to your statement, so you have to pay it out of pocket or carry a balance. Most people rebuilding credit can't afford to carry a balance, because interest rates on secured cards run 18% to 24% APR. That means you're paying the annual fee in addition to interest on whatever you don't pay off.
Compare this to the Capital One Secured Mastercard or the Discover Secured Card, both of which charge no annual fee and no monthly maintenance fees. Your deposit becomes your full credit limit, and you build credit the same way.
What Credit One does well
The card reports to Experian, Equifax, and TransUnion every month, so your payment history reaches all three bureaus. That's the core function of any credit-building card, and Credit One does it. If you pay on time every month, you'll see your credit score move upward over 6 to 12 months.
Credit One also doesn't require a minimum credit score to open an account. You don't need a credit history at all — the card is designed for people starting from zero. That's genuinely useful if you're a young adult with no credit, an immigrant new to the U.S. credit system, or someone rebuilding after a major setback.
The card comes in two versions: the standard Credit One card and the Credit One Platinum. The Platinum has a higher annual fee but a lower interest rate. For most people rebuilding, the standard version is the better choice because you're unlikely to carry a balance anyway.
When you should look elsewhere
If you have any credit history at all — even a thin file or a past problem — you should try the Capital One Secured Mastercard or Discover Secured Card first. Both will consider you even with a lower score, and both charge zero annual fees. You'll save $40 to $100 per year, and your deposit goes further.
If you've been denied for a secured card, that's a sign your credit situation is more serious than a secured card can fix. A secured card is meant to be a stepping stone, not a permanent solution. If you're being rejected across the board, talk to a nonprofit credit counselor (through the National Foundation for Credit Counseling or your state's attorney general office) before opening any card. They can tell you whether a secured card is the right next step or whether you need to address something else first — like a collections account or a judgment.
How to use Credit One if you do open it
If you decide to open the card, treat it like a tool with an expiration date. Use it for one small recurring charge — a streaming service, a gas station, something you'd pay anyway — and set up automatic payment from your bank account. That way you never miss a payment, and you build history with minimal effort.
Don't max out the card. Keep your balance below 30% of your limit. If your limit is $500, keep your balance under $150. Credit bureaus look at your utilization ratio, and low usage helps your score climb faster.
After 6 to 12 months of on-time payments, call Credit One and ask whether you can graduate to an unsecured card. Some issuers will convert your account and return your deposit. If they won't, you can close the card and move to a better option — by then your credit history should be strong enough to get approved elsewhere.
The real cost of the fees
Let's say you open Credit One with a $500 deposit. Here's what you actually pay in year one:
- Processing fee: $25 to $35
- Monthly maintenance fees: $72 to $120 (12 months × $6 to $10)
- Annual fee: $39 to $99
- Total: $136 to $254
That's 27% to 51% of your deposit gone to fees before you use the card for anything. With Capital One Secured or Discover Secured, you pay zero in fees. Your $500 deposit is your full $500 limit.
Over three years — a typical timeline to rebuild credit enough to get an unsecured card — Credit One costs you $408 to $762 in fees alone. That's money that could have stayed in your deposit or gone toward paying down debt.
Frequently Asked Questions
Will Credit One improve my credit score?
Yes, if you pay on time every month. The card reports to all three bureaus, so your payment history will show up on your credit report. Most people see their score move up 30 to 100 points over 6 to 12 months of on-time payments, depending on how damaged their credit was to start.
Can I get my deposit back?
Yes, but not immediately. After you've shown a year or more of on-time payments, you can ask Credit One to convert your account to an unsecured card and return your deposit. Some people have to close the card and open a new one elsewhere to get their money back. Ask about their conversion policy before you open the account.
What's the interest rate if I carry a balance?
Credit One's APR ranges from 18% to 24%, depending on your creditworthiness at the time you open the account. That's high, which is why you should avoid carrying a balance. If you can't pay off your statement in full each month, the card isn't the right tool for you yet.
Is Credit One a scam?
No, it's a legitimate bank, and the card does report to the credit bureaus. But the fees are high compared to other secured cards that do the same thing. It's not a scam — it's just expensive. You're paying a premium for a card that will take you when others won't.
Should I get Credit One or Capital One Secured?
Try Capital One Secured first. It has no annual fee, no monthly maintenance fees, and will consider you even with poor credit. If Capital One denies you, then Credit One is a reasonable backup option. But most people can get approved for Capital One Secured, so there's no reason to pay Credit One's fees unless you have to.