Credit One Bank's card comes with high fees and a rewards program that doesn't offset them for most people
Credit One Bank is a card issuer that targets people rebuilding credit or with limited credit history. The card charges an annual fee (currently $39 to $99 depending on the version), a monthly maintenance fee ($6.95), and a one-time account opening fee ($29 to $75). Those fees add up to $150 to $200 in the first year alone, before you charge anything.
The card does offer 1% cash back on all purchases and up to 5% on certain categories, which sounds useful. But the cash back rarely covers the fees, especially in the first year. If you spend $3,000 in a year, you earn $30 to $150 in cash back depending on your mix of purchases—nowhere near enough to offset $150 to $200 in fees.
Credit One does report to all three credit bureaus, which means using it responsibly can help build your credit score. That's the main reason someone would choose this card: not because it's a good deal, but because it's one of the few options available if your credit is very new or damaged.
Key Takeaways
- Credit One charges $39 to $99 annually plus $6.95 monthly ($83.40 per year) plus a one-time opening fee of $29 to $75, totaling $150 to $200 in year one.
- The 1% to 5% cash back rarely covers the fees, so you lose money in the first year even if you use the card regularly.
- The card's real value is that it reports to all three credit bureaus, which helps if you're rebuilding credit from scratch or have no credit history.
- Secured cards from other banks (Capital One, Discover, Chase) often have lower or no annual fees and offer the same credit-building benefit.
- If your credit score is above 620, you have better options that cost less and offer stronger rewards.
How the fees actually work
Credit One's fee structure is front-loaded. When you open the account, you pay the opening fee ($29 to $75) immediately. Then the annual fee ($39 to $99) posts in the first month or two. The monthly maintenance fee ($6.95) starts right away and hits your account every single month, even if you don't use the card.
This means that in month one, before you've earned any cash back, you've already paid $36.94 in fees (one month of maintenance plus the annual fee). By month twelve, you've paid roughly $150 to $200 in fees total. The cash back from normal spending rarely exceeds this.
Some versions of the Credit One card charge lower fees than others. The basic version has lower annual and opening fees but still includes the monthly maintenance charge. Always check the specific terms of the card you're considering, because Credit One offers multiple versions with different fee structures.
When Credit One makes sense
Credit One is worth considering if you have no credit history or your credit score is below 580 and you've been denied by other card issuers. In that narrow situation, the card's main value isn't the rewards—it's that Credit One will approve you and report your payment history to the credit bureaus.
If you use the card responsibly (charge small amounts, pay on time every month, keep your balance low), your credit score should improve within 6 to 12 months. Once it does, you can move to a card with lower fees and better rewards. Think of Credit One as a stepping stone, not a long-term card.
The card also makes sense if you need a card specifically for credit building and you've exhausted other options. Some people in this position decide the $150 to $200 annual cost is worth paying to prove they can manage credit responsibly.
Better alternatives if you have options
Discover Secured Card has no annual fee, no monthly maintenance fee, and offers 2% cash back on dining and gas, 1% on everything else. You need a $200 to $2,500 deposit, but there's no opening fee. After 8 months of on-time payments, Discover may convert you to an unsecured card.
Capital One Secured Card has no annual fee and no monthly maintenance fee. It offers 1% cash back on all purchases. Like Discover, you need a deposit ($49 to $200 minimum), but the card reports to all three bureaus and can graduate to an unsecured card after responsible use.
Chase Slate Edge (if you can get approved) has no annual fee, no monthly maintenance fee, and offers 1.5% cash back on all purchases. It's harder to get approved for if your credit is very low, but if you can get it, it's significantly cheaper than Credit One.
If your credit score is above 620, you likely have access to at least one of these alternatives. Compare the terms before choosing Credit One.
What happens to your credit score
Credit One reports to Equifax, Experian, and TransUnion, so your payment history will show up on your credit report. This is important: the card only helps your score if you pay on time and keep your balance low. Late payments hurt you more than the card helps you.
Your credit score typically improves after 3 to 6 months of on-time payments, assuming you're also not carrying high balances on other cards. The improvement accelerates after 12 months. If you're starting from a very low score (below 550), you might see a 50 to 100 point improvement in the first year.
The monthly maintenance fee doesn't directly hurt your credit score, but it does reduce the amount of cash back you earn, which means you're paying more to build credit than you would with a card that has no monthly fee.
Red flags and complaints
Credit One has a history of complaints about unexpected fees and difficulty reaching customer service. The Better Business Bureau and Consumer Financial Protection Bureau both have complaint records for the company. Common complaints include monthly fees that weren't clearly disclosed upfront and difficulty getting fees waived or refunded.
Before opening an account, read the full terms and conditions, not just the summary. Look specifically for the monthly maintenance fee, which is easy to miss. Call the customer service number and ask them to walk you through every fee you'll pay in the first year.
If you do open the account and discover fees you didn't expect, contact Credit One's customer service immediately. Some people have reported success getting the monthly maintenance fee waived if they complain, though this isn't may provide.
How to decide: Credit One or something else
Ask yourself three questions. First: have you been denied by other card issuers? If yes, Credit One might be your only option. If no, check Capital One Secured, Discover Secured, or Chase Slate Edge first.
Second: what's your credit score right now? If it's above 620, you almost certainly have better options. If it's below 580, Credit One is more likely to approve you, but so are the secured cards from Capital One and Discover.
Third: can you commit to paying on time every month for at least 12 months? If you can't, the card won't help your credit and you'll just pay fees for nothing. If you can, the card works—it's just expensive compared to alternatives.
Frequently Asked Questions
Does Credit One report to all three credit bureaus?
Yes. Credit One reports to Equifax, Experian, and TransUnion, so your payment history appears on all three of your credit reports. This is one of the few advantages of the card compared to some other options.
Can I get the monthly maintenance fee waived?
Some cardholders have reported success calling customer service and requesting a waiver, but it's not may provide and depends on your account history. The fee is part of the standard terms, so you shouldn't count on it being removed.
How long does it take to graduate to an unsecured card?
Credit One doesn't have a formal graduation program like Capital One or Discover do. You can request a credit limit increase or apply for a different card once your credit improves, but there's no automatic path to an unsecured version of this card.
What if I can't pay my balance in full?
Credit One charges interest on balances you carry month to month. The APR varies but is typically 19% to 24% depending on your creditworthiness. Carrying a balance defeats the purpose of using the card to build credit, because high utilization hurts your score.
Is Credit One a scam?
No, but it's a legitimate business that charges high fees. The card works as described—it reports to the bureaus and offers cash back. The problem is that the fees are steep compared to alternatives, and the company has a complaint history. It's not a scam; it's just expensive.