What the Credit One Bank American Express Card Actually Is
The Credit One Bank American Express Card is a secured credit card issued by Credit One Bank, a bank that specializes in cards for people rebuilding credit or starting from scratch. You put down a cash deposit — typically between $200 and $2,500 — and that deposit becomes your credit limit. You then use the card like any other credit card, paying a monthly bill. The deposit stays in a separate account and is not touched unless you stop paying.
This card reports to all three major credit bureaus (Equifax, Experian, and TransUnion), which means your payment history shows up on your credit report. That's the main reason people get it: to build a credit history or repair one that's been damaged. It's not a way to borrow against your own money — it's a way to prove to lenders that you can handle borrowed money responsibly.
Key Takeaways
- You must deposit $200 to $2,500 of your own money upfront, and that amount becomes your spending limit.
- The card charges an annual fee (the amount varies by deposit level) plus interest on any balance you carry month to month.
- On-time payments are reported to all three credit bureaus, so consistent use can raise your credit score over time.
- After 18 months of on-time payments, you may be able to convert to an unsecured card and get your deposit back.
- The card's high fees and interest rate mean it works best as a short-term credit-building tool, not a long-term everyday card.
How the Deposit and Credit Limit Work
When you open the account, you choose how much to deposit. Credit One Bank requires a minimum of $200 and allows up to $2,500. Your credit limit equals your deposit amount — so a $500 deposit gives you a $500 limit. The bank holds your deposit in a separate savings account that earns a small amount of interest (the rate is set by the bank and changes over time).
The deposit is yours. You can request it back, but only after you close the account or convert to an unsecured card. Until then, it sits untouched. If you miss payments or default on the card, the bank can use the deposit to cover what you owe, but they cannot touch it for routine charges or fees.
Your limit does not grow automatically as you use the card. Some cardholders report that Credit One Bank has offered them a higher limit after several months of on-time payments, but this is not may provide and requires the bank to approve an increase.
Fees and Interest Rates You'll Actually Pay
Credit One Bank charges an annual fee that depends on your deposit amount. The fee typically ranges from $35 to $99 per year. This fee is charged to your account, which means it reduces your available credit. For example, if you deposit $300 and the annual fee is $35, you have $265 left to spend.
The card also charges interest on any balance you carry from month to month. The interest rate (called the APR, or annual percentage rate) varies by applicant and is not published in advance — you find out what rate you get only after you explore. Based on recent cardholder reports, rates have ranged from around 19% to 27%, which is high compared to most other credit cards.
There are no foreign transaction fees, and there is no penalty APR (a higher rate charged if you miss a payment). However, if you miss a payment by 30 days or more, the bank reports it to the credit bureaus, which damages your credit score.
How This Card Affects Your Credit Score
The Credit One Bank American Express Card reports to Equifax, Experian, and TransUnion every month. This means your payment history — whether you pay on time, how much of your limit you use, and whether you miss payments — shows up on your credit report and affects your credit score.
If you pay on time every month and keep your balance low (ideally below 30% of your limit), your score should improve over time. Most people see a modest increase within 3 to 6 months of consistent on-time payments. The exact increase depends on your starting score, your other accounts, and how much of your limit you use.
If you miss a payment or carry a high balance, the opposite happens: your score drops. A single late payment can lower your score by 50 to 100 points or more, depending on your credit history. This is why the card works best for people who are confident they can pay on time every month.
When You Might Convert to an Unsecured Card
After 18 months of on-time payments, Credit One Bank may offer to convert your account to an unsecured American Express card. "Unsecured" means you no longer need the deposit — the bank trusts you based on your payment history. When this happens, your deposit is returned to you, usually within 5 to 7 business days.
Conversion is not automatic. The bank reviews your account and decides whether to offer it. If you have missed even one payment in those 18 months, conversion is unlikely. If you have paid on time every single month and kept your balance reasonable, your chances are much better.
The unsecured card may have a different annual fee and interest rate than the secured version. Read the offer carefully before you accept, because the terms might not be better than what you have now.
Whether This Card Makes Sense for You
The Credit One Bank American Express Card is useful if you have no credit history or a damaged credit history and you need to prove you can handle credit responsibly. It's also useful if other cards have turned you down and you need a card that will report to the credit bureaus.
It is not useful if you already have a credit score above 650 or if you have other cards that report to the bureaus. In those cases, you likely may have access to for a card with lower fees and a lower interest rate. It's also not useful if you cannot commit to paying on time every month, because the high interest rate and fees make carrying a balance expensive.
Before you open this account, compare it to other secured cards. Some banks and credit unions offer secured cards with lower annual fees or lower interest rates. The difference might be small, but over 18 months it adds up. Also consider whether a credit-builder loan from a credit union might work better for your situation — it's a different tool, but it can build credit without the ongoing fees.
What Happens After You Close the Account
If you close the account, your deposit is returned to you within 5 to 7 business days. However, closing the account affects your credit score in two ways. First, you lose the monthly reporting of on-time payments, which stops helping your score. Second, closing an account lowers your average account age, which can lower your score slightly.
For this reason, many credit counselors recommend keeping the account open even after you convert to an unsecured card or move to a different card. The longer the account stays open with a clean payment history, the more it helps your credit score.
Frequently Asked Questions
Can I get my deposit back before 18 months?
You can request your deposit back at any time by closing the account. However, closing the account stops the bank from reporting your payments to the credit bureaus, which slows your credit-building progress. If you need the money urgently, you can close the account, but it's usually better to wait until you convert to an unsecured card.
What if I miss a payment?
A missed payment is reported to the credit bureaus and damages your credit score. If you miss a payment by 30 days or more, the bank may also use your deposit to cover what you owe. Contact the bank when ready if you think you'll miss a payment — sometimes they can work out a payment plan.
Is the American Express logo on this card the same as the regular American Express card?
Yes, it's a real American Express card and works at merchants that take American Express. However, some merchants may treat it differently because it's a secured card. In practice, most people report no problems using it at stores, restaurants, and online retailers.
How much should I deposit to start?
Start with the smallest amount you can afford to tie up for 18 months — usually $200 or $300. Your goal is to build credit, not to have a large spending limit. A small deposit keeps your fees low and forces you to use the card responsibly without overspending.
Can I use this card if I'm not a U.S. citizen?
Credit One Bank requires a Social Security number or Individual Taxpayer Identification Number (ITIN) to open an account. You also need a U.S. address and a U.S. bank account to fund the deposit. Check the bank's current requirements before you explore, as these rules can change.