Credit One Bank is a real card, but it costs more than most alternatives for the same credit-building work
Credit One Bank issues a Visa card designed for people rebuilding credit or starting from scratch. The card reports to all three credit bureaus, which means your payment history can help your credit score move up. But the card charges an annual fee of $39 to $99 depending on the version, plus a monthly maintenance fee of $6.95 to $7.95. Those fees eat into any benefit you get, and you can build credit just as effectively with cards that charge no annual fee at all.
The core question is not whether Credit One Bank works — it does report to the bureaus and accepts payments that show lenders you can handle debt responsibly. The question is whether you should pay for that when free or cheaper alternatives exist. For most people, the answer is no. But if you have been turned down everywhere else, or if you need a card right now and have limited options, Credit One Bank will take you. Just know what you are paying for.
Key Takeaways
- Credit One Bank charges both an annual fee ($39–$99) and a monthly maintenance fee ($6.95–$7.95), which means you pay $120 to $194 per year before you charge anything.
- The card reports to all three credit bureaus, so on-time payments do help your credit score, but you can get the same reporting from cards with no annual fee.
- Credit limit is usually $300 to $500, and the card may require a security deposit, though Credit One Bank does not always disclose this upfront.
- Your first statement may include a "credit line increase fee" of $19 to $25 if the bank raises your limit, which is unusual and worth avoiding.
- Secured credit cards from other issuers (Capital One, Discover, Chime) offer the same credit-building function with lower or no annual fees.
How the fees work and what they cost you
Credit One Bank charges you money in two ways. The annual fee ranges from $39 to $99 depending on which version of the card you get. On top of that, you pay a monthly maintenance fee of $6.95 or $7.95 every single month, whether you use the card or not. That is $83.40 to $95.40 per year just in monthly fees, plus the annual fee on top.
Add them together and you are paying $122.40 to $194.40 per year before you charge a single dollar. If you carry a balance, you also pay interest at a rate that varies but is typically 19% to 22% APR. The combination of fees and interest makes this card expensive to use for anything other than small, planned purchases that you pay off when ready.
Some versions of the card also charge a "credit line increase fee" of $19 to $25 if the bank raises your credit limit. This is not standard practice. Most card issuers raise limits for free or do not offer them at all. Credit One Bank sometimes raises limits automatically and then charges you for the privilege, which is worth watching for.
What credit bureaus see and how it affects your score
Credit One Bank reports your payment history to Equifax, Experian, and TransUnion — all three major credit bureaus. That means every on-time payment you make shows up on your credit report and can help your score climb. If you miss a payment, that also gets reported, so the card cuts both ways.
The credit-building mechanism is real and works the same way as any other card: you make a purchase, you pay the bill on time, the payment gets reported, and your score improves over time. The problem is that you pay $120 to $194 per year for this same service from cards that charge nothing. A secured card from Capital One, Discover, or Chime will report to the bureaus just as faithfully and cost you zero in annual fees.
If you are rebuilding from a very low score or a recent default, the extra cost might feel worth it just to get approved. But before you accept that trade-off, check whether you can get a free alternative first. Many people assume they have exhausted their options when they have not.
Security deposit, credit limit, and what happens if you close the card
Credit One Bank may require a security deposit to open the account, though the bank does not always make this clear in its marketing. The deposit typically ranges from $200 to $2,500 and becomes your credit limit. So if you deposit $300, your card limit is $300. The deposit sits in an account at the bank and earns little to no interest.
Your actual credit limit is usually $300 to $500 for new cardholders. If the bank raises your limit later, it may charge you a fee for doing so — again, not standard practice. You can request a limit increase, but know that Credit One Bank may charge you $19 to $25 for it.
If you close the account, the bank returns your security deposit, but it may take several weeks. During that time, the account shows as closed on your credit report, which can temporarily lower your score because it reduces your available credit. If you are trying to rebuild, closing the card is usually a mistake. Keep it open and use it sparingly for small purchases you pay off right away.
How Credit One Bank compares to other credit-building cards
The main competitors for someone rebuilding credit are the Capital One Secured Mastercard, the Discover it Secured Credit Card, and the Chime Credit Builder Visa. All three report to the credit bureaus. None of them charge an annual fee. Capital One and Discover require a security deposit just like Credit One Bank does, but they do not charge monthly maintenance fees.
Capital One's card has no annual fee and no monthly fee. Discover's secured card also has no annual fee. Chime's card is designed for Chime bank customers and has no annual fee. All three will approve you if you have poor credit or no credit history, just as Credit One Bank will. The difference is that you save $120 to $194 per year by choosing one of them.
The only scenario where Credit One Bank might make sense is if you have been rejected by Capital One, Discover, and Chime and need a card when ready. Even then, shop around first. Many regional banks and credit unions offer their own secured cards with lower fees. Before you pay Credit One Bank's fees, exhaust the free options.
Red flags in Credit One Bank's marketing and terms
Credit One Bank advertises itself as a path to building credit, which is true, but the marketing often downplays the fees. The annual fee and monthly maintenance fee are disclosed in the terms, but they are not the focus of the pitch. The bank also sometimes advertises credit limit increases as a benefit, without mentioning that it charges you for them.
Another red flag: Credit One Bank has faced complaints to the Consumer Financial Protection Bureau about surprise fees and unclear terms. The bank has settled regulatory actions in the past. This does not mean the card is illegal or that you cannot use it, but it is a sign that the bank's practices have drawn scrutiny. Read the full terms before you open an account.
The card's interest rate is also high — typically 19% to 22% APR — which is normal for secured cards aimed at people with poor credit, but it means carrying a balance is expensive. If you are considering this card, commit to paying off your balance in full every month. If you cannot do that, the card will cost you far more than the fees alone.
When Credit One Bank might actually make sense for you
Credit One Bank is worth considering if you have been rejected by at least two other card issuers and you need a card now. If you have a bankruptcy on your record, a recent default, or a credit score below 500, mainstream cards may not approve you. In that case, Credit One Bank's willingness to take you might outweigh the fees.
The card also makes sense if you are disciplined about using it only for small, planned purchases that you pay off when ready. If you charge $50 per month and pay it off in full, the card reports that positive history to the bureaus. Over 12 months, you pay $120 to $194 in fees but you also move your credit score up, which can save you thousands in interest on a future mortgage or car loan.
But if you are tempted to carry a balance, or if you have not yet tried a free alternative, skip Credit One Bank. The fees plus interest will cost you far more than the credit-building benefit is worth. Start with Capital One or Discover. If both reject you, then revisit Credit One Bank.
Frequently Asked Questions
Does Credit One Bank charge interest on the security deposit?
No. The security deposit earns little to no interest. It sits in an account at the bank and is returned to you when you close the card. The deposit is not an investment — it is collateral that protects the bank if you default.
Will closing the Credit One Bank card hurt my credit score?
Yes, temporarily. Closing any credit card reduces your available credit, which can lower your score by 10 to 50 points depending on your overall credit profile. If you are rebuilding, keep the card open even after you stop using it. The account history will continue to help your score.
Can I get my annual fee waived or refunded?
Credit One Bank does not typically waive annual fees, and refunds are rare. Some cardholders have reported success calling customer service and asking, but there is no may provide. The fee is built into the card's pricing model, so assume you will pay it.
What is the difference between Credit One Bank and a regular unsecured credit card?
A secured card requires a deposit and is designed for people with poor credit. An unsecured card does not require a deposit and is for people with established credit history. Credit One Bank is secured. If you have fair credit or better, you may may have access to for an unsecured card with no annual fee and better terms.
How long does it take to build credit with Credit One Bank?
Credit bureaus typically update your report monthly. You should see your score start to move within three to six months of on-time payments. Significant improvement usually takes 12 to 24 months. The timeline depends on your starting score and how much negative history you are working to overcome.