What the Credit One American Express Card Is
The Credit One American Express Card is a secured credit card issued by Credit One Bank. Unlike a standard credit card, a secured card requires you to put down a cash deposit that becomes your credit limit — so if you deposit $500, your limit is $500. The card reports to all three major credit bureaus (Equifax, Experian, and TransUnion), which means your payment history builds your credit score over time.
This card is designed for people rebuilding credit after missed payments, collections, or a thin credit file. It is not a rewards card and does not offer cash back or travel points. The main value is the credit-building mechanism: if you use it responsibly and pay on time, the issuer may eventually convert it to an unsecured card and return your deposit.
Key Takeaways
- You must deposit cash upfront to open the account, and that deposit becomes your credit limit.
- The card charges an annual fee (the exact amount varies by the deposit tier you choose) and reports to all three credit bureaus each month.
- On-time payments build your credit score, but late payments damage it just as they would with any other card.
- After 18 months of on-time payments, you may be offered conversion to an unsecured card, though this is not may provide.
- The card's interest rate is higher than standard credit cards, so carrying a balance costs more than with other options.
How the Deposit and Credit Limit Work
When you open a Credit One American Express account, you choose a deposit amount between $200 and $2,500. That deposit sits in a reserve account held by the bank and becomes your credit limit. If you deposit $500, you can charge up to $500 on the card.
Your deposit is not spent when you use the card. Instead, you make monthly payments just like with any credit card. The deposit stays frozen in the reserve account for as long as you hold the card. If you close the account in good standing, the bank returns your deposit to you, usually within 7 to 10 business days.
The deposit amount also determines your annual fee. A $200 deposit carries a lower annual fee than a $2,500 deposit. Credit One publishes these fee tiers on their website, but the exact amounts change, so check their current terms before you open an account.
Annual Fees and Interest Rates
Credit One charges an annual fee that is deducted from your available credit. This means if your limit is $500 and your annual fee is $39, your usable credit drops to $461 until you pay the fee down. The fee is charged on your statement each year, and you can pay it like any other charge on the card.
The card's annual percentage rate (APR) is significantly higher than standard credit cards — typically in the range of 23% to 26%, though the exact rate depends on your creditworthiness at the time of approval. This means if you carry a balance, interest accrues quickly. For example, a $300 balance at 24% APR costs roughly $6 per month in interest alone.
Because of the high APR, this card works best when you pay your full statement balance each month. If you need to carry a balance, the interest cost may outweigh the credit-building benefit.
How Credit Reporting and Score Building Work
Credit One reports your account activity to Equifax, Experian, and TransUnion every month. This means every on-time payment you make is recorded on your credit report and helps raise your score. Conversely, any late payment is also reported and damages your score.
The credit bureaus calculate your score based on several factors: payment history (35%), amounts owed relative to your limits (30%), length of credit history (15%), credit mix (10%), and new credit inquiries (10%). A secured card helps most with payment history and credit utilization. If you keep your balance low (ideally under 30% of your limit) and pay on time every month, you will see your score improve over several months.
The speed of improvement depends on your starting point. If you have no credit history, you may see meaningful gains within 6 to 12 months. If you have recent negative marks like collections or charge-offs, improvement takes longer — typically 12 to 24 months of clean payment history.
When Conversion to an Unsecured Card Happens
After 18 months of on-time payments, Credit One may offer to convert your secured card to an unsecured American Express card. Conversion means you no longer need the deposit, and the bank returns it to you. Your credit limit may increase, and your annual fee may change.
Conversion is not automatic and is not may provide. Credit One reviews your account based on your payment history, credit utilization, and current creditworthiness. If you have missed even one payment in that 18-month window, conversion is unlikely. Some cardholders are offered conversion earlier (around 12 months), while others wait longer or are never offered it.
If you are not offered conversion after 18 months, you can request a review by calling the customer service number on the back of your card. However, the bank's decision is final, and there is no formal appeal process.
Comparing This Card to Other Credit-Building Options
Secured cards are not the only way to rebuild credit. Other options include becoming an authorized user on someone else's established credit card (which reports to your credit file without requiring a deposit), using a credit-builder loan from a credit union (which costs less in fees but does not give you a card to use), or using a regular unsecured card if your credit score is high enough to may have access to.
The Credit One card's main advantage is accessibility — it approves people with poor or no credit history. Its main disadvantage is the annual fee and high APR. If you can may have access to for a different secured card with lower fees (some credit unions offer secured cards with $25 or less in annual fees), that may be a better choice. If you can may have access to for an unsecured card, that is almost always better because there is no deposit to tie up and fees are typically lower.
The right choice depends on your credit score, your access to other options, and how much you can afford to deposit. If this is your only realistic option, it works — but compare it to at least one or two alternatives before opening the account.
What Happens If You Miss a Payment
If you miss a payment on the Credit One card, the consequences are the same as with any credit card. A payment 30 days late is reported to the credit bureaus and damages your score. A payment 60 days late causes further damage. A payment 90 days or more late may result in the account being charged off (closed by the bank as a loss), which stays on your credit report for seven years.
Late fees are also charged to your account, typically $25 to $35 per occurrence. These fees are added to your balance and accrue interest at the card's APR. If you fall behind, the debt grows quickly.
If you are struggling to make a payment, contact Credit One's customer service before the due date. Some issuers offer hardship programs or temporary payment deferrals, though Credit One's policies vary. It is always better to communicate early than to miss a payment and deal with the consequences later.
Frequently Asked Questions
Can I use the Credit One American Express card everywhere American Express is accepted?
Yes. The card carries the American Express logo and works at any merchant that takes American Express. However, not all merchants accept American Express — some only take Visa or Mastercard. Before opening the account, confirm that the places where you shop most often take American Express.
What happens to my deposit if I close the account?
If you close the account in good standing (no outstanding balance, no late payments), the bank returns your deposit within 7 to 10 business days. If you close the account with a balance owed, the bank may use your deposit to pay down that balance first, then return any remainder. If you close with a late payment on record, the bank may hold the deposit longer or explore it to fees and interest.
How long does it take to build credit with this card?
You will see the account appear on your credit report within 30 to 45 days of opening it. Meaningful score improvement typically takes 6 to 12 months of on-time payments, depending on your starting credit profile and how much of your limit you use. The longer you hold the card and maintain clean payment history, the more your score improves.
Is there a way to lower the annual fee?
The annual fee is set by the deposit tier you choose and does not change based on your account behavior. You cannot negotiate it down or have it waived. Your only option is to close the account and open a different secured card with a lower fee, though this will temporarily hurt your credit score because closing an account reduces your average account age.
What credit score do I need to be approved?
Credit One does not publish a minimum credit score requirement. The card is designed for people with poor or no credit history, so approval is possible even with a score below 600. However, approval is not may provide for everyone — the bank reviews your full process, including income, existing debt, and credit history. If you are denied, you can reapply after 30 days.