What Credit One Bank's Card Offers and What It Costs
Credit One Bank issues a Visa card marketed to people rebuilding credit, but the card's fee structure is the real story. You pay an annual fee (currently $39 to $99 depending on credit limit), a monthly maintenance fee ($6.99), and a one-time account opening fee ($29 to $75). On top of that, the card charges a cash advance fee and a late payment fee. The interest rate starts at 24.99% APR and goes higher. None of these fees are hidden — they appear in the terms — but they stack in a way that makes the card expensive to carry even if you never use it.
The card does report to all three credit bureaus (Equifax, Experian, and TransUnion), which is the main reason someone would consider it. Building credit history requires a card that reports your payment record, and Credit One does that. But you are paying for the privilege of being reported on, not for credit-building features that other cards offer for free or at lower cost.
Key Takeaways
- Credit One Bank charges both an annual fee and a monthly maintenance fee, meaning you pay to carry the card whether you use it or not.
- The card reports to all three credit bureaus, so on-time payments do build your credit history if you keep the account open.
- Interest rates start at 24.99% APR and the card carries multiple additional fees (opening, cash advance, late payment), making it one of the most expensive cards available.
- Secured cards from other banks (Capital One, Discover, OpenBank) offer credit bureau reporting without monthly maintenance fees, making them a lower-cost alternative for the same outcome.
How the Monthly Maintenance Fee Works Against You
The $6.99 monthly maintenance fee is unusual among credit cards. Most cards charge an annual fee once per year; Credit One charges this fee every month regardless of whether you use the card. Over twelve months, that is $83.88 in maintenance fees alone, before you add the annual fee, opening fee, or any interest.
This matters because the fee is deducted from your available credit. If you receive a $300 credit limit, the first month's $6.99 maintenance fee reduces your usable credit to $293.01. The fee comes out whether you carry a balance or not, so even responsible use costs you money. Someone paying the card off in full each month still loses $83.88 per year to this fee.
Credit Reporting and Building History
Credit One does report your account activity to Equifax, Experian, and TransUnion each month. This means on-time payments show up on your credit report and contribute to your payment history, which makes up 35% of your credit score. If you use the card responsibly and pay on time, you will see your score move upward over time.
However, credit reporting alone does not justify the cost. Discover it Secured Card and Capital One Secured Mastercard also report to all three bureaus and charge no annual fee and no monthly maintenance fee. You get the same credit-building outcome for significantly less money. The only reason to choose Credit One over those options is if you cannot meet their requirements (such as a higher minimum deposit for a secured card), but most people rebuilding credit can may have access to for at least one alternative.
The Interest Rate and How It Compares
Credit One's starting APR of 24.99% is at the high end of the market for credit cards issued to people with poor credit. Some cards in this category charge 23% to 26% APR, so Credit One is not an outlier, but it is not competitive either. The actual rate you receive depends on your credit profile at the time of process.
The high rate matters most if you carry a balance. A $500 balance at 24.99% APR costs you roughly $10.42 per month in interest alone. Add the $6.99 maintenance fee and you are paying $17.41 per month just to hold that balance, before you make a single payment toward principal. This is why carrying a balance on a high-APR card is expensive: the fees and interest compound faster than your payments reduce the balance.
When Credit One Makes Sense (and When It Does Not)
Credit One makes sense only in a narrow situation: you have been turned down for every other secured card option and you need to report activity to the credit bureaus when ready. If Capital One, Discover, OpenBank, and other secured card issuers have all declined you, then Credit One's willingness to issue a card has value despite the fees.
Credit One does not make sense if you have other options. A secured card from Capital One or Discover costs less per year and builds your credit just as effectively. If you already have a credit card (even one with a high APR), adding Credit One as a second card means paying two sets of fees for the same outcome. If you are not sure whether you may have access to for a better card, contact the issuer directly — most will tell you whether you likely may have access to before you explore.
Alternatives That Cost Less
Capital One Secured Mastercard charges no annual fee and no monthly maintenance fee. You put down a cash deposit ($200 to $2,500) which becomes your credit limit, and the card reports to all three bureaus. After responsible use, Capital One may convert it to an unsecured card and return your deposit.
Discover it Secured Card works the same way: no annual fee, no monthly maintenance fee, deposit-backed credit limit, and reporting to all three bureaus. Both cards have lower APRs than Credit One (typically 19% to 24% depending on your credit). OpenBank also offers a secured card with no annual fee.
If you do not have cash for a deposit, some credit unions offer credit-builder loans, which let you borrow against money you deposit into a savings account. You make monthly payments, build payment history, and end up with both a higher credit score and savings. This costs less than a high-fee credit card and produces the same credit-building result.
What Happens After You Build Credit
Credit One's terms do not mention a clear path to an unsecured card or a reduction in fees. Capital One and Discover both state that after responsible use, they will review your account for conversion to an unsecured product. Credit One's website does not make this promise, which means you could pay fees indefinitely without the card ever graduating to a better product.
This is a practical difference. If you use a Capital One secured card responsibly for 6 to 12 months, you have a reasonable chance of getting your deposit back and moving to an unsecured card with no annual fee. With Credit One, you have no clear endpoint — you are paying the monthly maintenance fee as long as you hold the account, even after your credit improves.
Frequently Asked Questions
Does Credit One report to the credit bureaus?
Yes, Credit One reports to all three bureaus (Equifax, Experian, TransUnion) each month. On-time payments show up on your credit report and help build your score. However, other cards offer the same reporting without monthly maintenance fees.
What is the total cost of holding this card for one year?
The minimum cost is $29 to $75 (opening fee) plus $39 to $99 (annual fee) plus $83.88 (monthly maintenance fees), totaling $151.88 to $257.88 per year before interest or other charges. This assumes you never use the card and never pay late.
Can I get my money back if I close the account?
No. The opening fee, annual fee, and monthly maintenance fees are non-refundable. If you close the account after one month, you have paid $35.98 to $81.98 and have nothing to show for it except a closed account on your credit report.
Is Credit One better than having no credit card at all?
If you have no other way to build credit history, Credit One does report to the bureaus and will help your score move upward with on-time payments. But before paying Credit One's fees, check whether you may have access to for a secured card from Capital One or Discover, which cost significantly less and build credit just as effectively.
What if I cannot afford the monthly maintenance fee?
The fee is charged automatically each month and deducted from your available credit. If you cannot afford it, the card will become more expensive to use because your usable credit shrinks. In this case, do not open the account — look for a card with no monthly fees or consider a credit-builder loan through a credit union instead.