Credit One Bank has built its brand by providing consumers with bad credit a chance to rebuild their credit with a friendly product. No, not Capital One. That is a different bank. Most credit cards for bad credit individuals charge unfriendly interest rates, high annual fees, or require a security deposit up front. Credit One has managed to build a credit card product that caters to your personal credit profile and has taken steps to help reduce the amount of applicants that are declined for their product.
If you're interested in a Credit One product, you can check to see if you are pre-qualified before you apply. You'll need to provide Credit One with your name, address, and social security number. In turn, they will run a soft credit inquiry (which does not impact your credit score) in order to determine if you are a good fit for their offer. If Credit One likes what they see, they'll provide you with what is known as a firm offer of credit. This will include items like your interest rate and annual fee. If you like what you see you are invited to apply for the credit card. This is when Credit One will perform a hard credit inquiry and ultimately decide whether or not to approve your application.
Credit One will continue to look out for you after the pre-qualification process too. For those that choose to sign-up for a Credit One card, you'll get access to a monthly credit score. You'll be able to monitor your score over time and learn more about what factors are impacting your score. As your score increases over time you may be eligible for account upgrades, like larger lines of credit.
Another nice perk Credit One offers is the ability to pick your monthly payment date. Pick a payment date that works for your payday cycle. This will help you manage your finances and make sure that your payments are being made on time.
Credit One has a sliding scale of fees depending on how good your credit score is. The annual fee will range from $0 - $99. Interest rates (APR) will be a variable 17.24% - 25.24%. This is actually not a terrible range for a bad credit product. Keep in mind that you'll want to start to establish some good payment habits and pay off your balance in full each month. If you are carrying a $500 balance from month to month, you're going to be paying between $86 - $126 a year in interest. That doesn't include your annual fee.
Depending on your credit score, you may also be eligible for 1% cash back rewards for eligible purchases including gas, groceries, and services such as mobile phone, internet, cable and satellite TV. This is a nice benefit for customers with bad credit, since few credit cards offer rewards for customers with bad credit.
Credit One is a solid option for you if you don't want a secured card, but your credit isn't the greatest. For a secured card option, the Discover it Secured card is our go-to recommendation. If you're working to re-establish your credit and build some good payment habits, Credit One is a good place to begin your credit journey. Credit One pairs nicely with Self Lender's Savings Plan that builds credit. Self Lender will report to all 3 major credit bureaus as an installment loan rather than a line of credit. Self Lender and Credit One make for a nice one-two punch if you need to a bit.
Anyone with fair-good credit. There are going to be lower interest rate/annual fee offers out there for you if your credit is a bit stronger. In addition to Credit One, you can find pre-qualified offers from many other banks with a pretty painless search. CardMatch is a tool that aggregates targeted offers from American Express, Chase, Bank of America, and Capital One. If you're looking for other offers that might be a fit for your credit score, CardMatch is a great option. Again, the tool will use a soft credit pull so you don't damage your credit score while you try to figure out what offer is a good fit. If you like what you see, you'll need to apply for a credit card with the bank of your choice.
If you're looking at Credit One because you have bad credit, you're in the right place. If you want an unsecured credit card so that you can start building your credit profile this card is a good option. The pre-qualification step is a great way to prevent you from applying for a product that you may not actually want. It also prevents you from applying for a card you are likely to get declined for. Applying for cards and getting declined actually lowers your score about 5 points, so it is best to avoid that whenever possible. The cash back feature, flexible payment due date, access to a credit score, and the user friendly mobile app all round this product out to be a good option for those with less than perfect credit scores.