A Tool for Rebuilding Your Credit
Like many of us who are seeking to rebuild poor credit, you might be struggling to qualify for a credit card. You are finally in a place where you can keep up with your monthly payments, only to find yourself in a catch-22: You need a line of credit in order to prove your creditworthiness, but you can’t get approved for a credit card.
Often, the only options available to you are a prepaid debit card, which won’t positively or negatively impact your credit because it isn’t a line of credit. Or there are the secured credit cards, where you are required to make a hefty deposit, often equal to the line of credit. If paying a lump sum upfront isn’t feasible for you, this unsecured Visa credit card might be your answer.
|Product Name||Credit One Bank® Unsecured Platinum Visa®|
|Annual Fee||Up to $75 annual fee for the first year (up to $99 thereafter)|
|APR (Annual Percentage Rate) for Purchases||17.49% to 25.49% variable|
|Cash Advance Rate||19.4% to 25.49% variable|
|Cash Advance Fee||$10 or 3% of the cash advance amount, whichever is greater|
|Foreign Transaction Fee||$1|
|Interest Free Period||Up to 24 days|
|Late Payment Fee||Up to $38|
|Returned Payment Fee||$38|
|Additional Cardholder Fee||$19|
|Minimum Age||18 years of age|
Just remember that re-establishing your credit takes patience and time. You must continue to make timely payments on all outstanding debts, including your new credit card. But consumers should beware: Some current and former account holders of Credit One Bank® credit cards complain of poor customer service, hidden charges and excessively high APRs. Some even report being unable to access their accounts online.
Searching Credit One’s website for details on its individual cards can prove to be fruitless. You must submit a short application before being provided any specifics. Once you pre-qualify for one of Credit One Bank®’s credit card offers, you will be provided with the actual disclosures and terms and conditions of your specific offer. So read them over carefully before accepting the offer. Still, this is the range of the rates:
- APR for purchases: 17.49% to 25.49% variable
- APR for Cash advances: 19.4% to 25.49% variable
- Variable Annual Membership Fee: Up to $75 annual fee for the first year (up to $99 thereafter)
- Authorized User Participation Fee: $19 annually (if applicable)
- Cash advance fee: $10 or 3% of the cash advance amount, whichever is greater
- Late Payment: Up to $38
- Returned payment: Up to $38
- Poor credit is acceptable. Credit One Bank® Unsecured Platinum Visa® is intended to help you rebuild your credit.
- Minimum required age is 18 years of age.
Application Requirements Checklist
- Full name
- Mailing address
- Email address
- Phone number
- Social Security number
- Total monthly income
- Date of birth
Fees & Repayments
There are no out-of-pocket costs to open an account. However, you will be charged an annual membership fee of up to $75 the first year, and up to $99 thereafter, and the APR for purchases can soar to as high as 25.49% variable. In addition, an annual “participation” fee of $19 is charged if you want to add an authorized user.
Benefits of Credit One Bank® Unsecured Platinum Visa®
- Build credit. If used carefully, the Credit One Bank® Unsecured Platinum Visa® offers services that can be used to build a positive credit history.
- Stay informed. Credit One Bank® will send email or text alerts to remind you when your payment is due, and free online access to your credit score is available to help you monitor your credit.
- Control payments. Credit One Bank® also allows you to pick your payment due date, but it must be at least six days before or after the originally assigned date, and you can only change your due date once in a six-month period.
- Fraud Protection. Being a credit card owner pretty much means you’re going to get your identity stolen. Credit One make sure you will be protected against unauthorized charges.
Drawbacks of Credit One Bank® Unsecured Platinum Visa®
- Annual membership. Once your account is charged an annual membership fee of up to $100, you will begin making monthly payments on that fee and incurring interest before even making a purchase. For many, $99 is a hefty price tag for rebuilding credit. And considering you may receive a credit line of as low as $300, once you factor in the annual membership fee, you are potentially left with only $200 in available credit.
- Grace Period. It is unclear which Credit One Bank® credit cards provide a grace period, and that’s something you need if you don’t want to end up in over your head in debt again. With no grace period, you begin incurring interest on purchases as soon as they post to your account. Paying your full balance each month won’t help you avoid being charged interest. Credit cards that come with a grace period (and most do) aren’t charged interest on purchases made during the billing cycle. If you pay your balance in full at the end of the month – interest begins after the due date if you choose to carry a balance. So if you intend to keep your purchases interest-free by paying your balance in full each month, be sure the card comes with a grace period.
How to apply
Consumers can apply for a Credit One Bank® credit card online. You will be taken through a pre-qualification application to determine what terms the bank feels comfortable giving you. Essentially, the bank is determining how much of a risk you are and setting rates, features, and terms accordingly. Please review carefully before accepting the terms.