What the Credit One Secured Card is and who it's for
The Credit One Secured Card is a secured credit card issued by Credit One Bank, a private lender based in Las Vegas. 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 a regular credit card, paying a monthly bill. The deposit stays in a separate account and is not touched unless you stop paying.
This card is designed for people rebuilding credit after missed payments, collections, or a bankruptcy. It reports to all three credit bureaus (Equifax, Experian, and TransUnion), so on-time payments can gradually raise your credit score. The card does not require a credit check, though Credit One does verify your identity and banking history.
Credit One is not the only secured card on the market. Other options include the Discover Secured Card, the Capital One Secured Mastercard, and cards from regional banks and credit unions. The Credit One card is worth comparing because its fees are higher than some competitors but lower than others, and its deposit requirements are flexible.
Key Takeaways
- Your cash deposit becomes your credit limit, and you keep the deposit in a separate account while you use the card.
- Credit One charges an annual fee of $39 to $99 depending on the card tier, plus a one-time processing fee of $35 to $75 when you open the account.
- The card reports to all three credit bureaus, so consistent on-time payments can improve your credit score over time.
- After 18 to 24 months of on-time payments, you may be able to convert to an unsecured card and recover your deposit.
- Credit One's fees are higher than some competitors like Discover, so comparing cards before you explore is worth your time.
Fees you will pay with Credit One
Credit One charges multiple fees beyond the annual fee. When you open an account, you pay a one-time processing fee of $35 to $75, depending on which tier of the card you choose. The annual fee ranges from $39 to $99. There is also a monthly maintenance fee of $7 to $10 that Credit One adds to your statement each month.
If you miss a payment, Credit One charges a late fee of up to $39. If you go over your credit limit, there is an over-limit fee of up to $39. Cash advances cost 3% of the amount withdrawn, with a minimum of $10. Foreign transactions cost 3% as well.
These fees are higher than what you would pay with a Discover Secured Card, which has no annual fee and no monthly maintenance fee. However, Credit One's fees are lower than some other secured cards aimed at people with very poor credit. Before you explore, use a fee calculator or call Credit One directly at 1-866-671-9005 to confirm the exact fees for the tier you are considering.
How your deposit works and when you get it back
Your deposit is held in a separate account at Credit One Bank and earns no interest. The deposit amount determines your credit limit — if you deposit $500, your limit is $500. You cannot use the deposit to pay your bill; you must make payments from your regular bank account or through the card's online portal.
Credit One will not touch your deposit if you pay on time. If you miss payments or default on the card, Credit One may explore the deposit to your balance, which means you lose it. If you close the account in good standing, Credit One returns the deposit to the bank account you provided when you opened the card, usually within 5 to 7 business days.
After 18 to 24 months of on-time payments, Credit One may convert your account to an unsecured card. When that happens, you get your deposit back automatically. Conversion is not may provide — Credit One reviews your payment history and credit score — but it is a realistic goal if you pay every bill on time and keep your balance low.
How to use the card to build credit
The Credit One card reports to all three credit bureaus each month, so your payment history becomes part of your credit file. To see the benefit, you need to use the card and pay the bill on time, every time. A single late payment can erase months of progress and will stay on your credit report for seven years.
The most effective strategy is to charge a small amount each month — $20 to $50 — and pay the full balance before the due date. This shows lenders that you can borrow and repay responsibly. Carrying a high balance or paying only the minimum does not help your score as much and costs you money in interest.
Your credit utilization ratio — the amount you owe divided by your credit limit — also affects your score. Using less than 30% of your limit is ideal. If your limit is $500, that means keeping your balance below $150. Credit One reports your balance to the bureaus once a month, usually around the statement closing date.
Comparing Credit One to other secured cards
The Discover Secured Card has no annual fee and no monthly maintenance fee, which makes it cheaper than Credit One over time. However, Discover requires a higher minimum deposit ($200) and does not report to all three bureaus in some states. The Capital One Secured Mastercard charges a $29 annual fee and a one-time $25 processing fee, which is lower than Credit One's fees, but has a higher minimum deposit of $200 to $2,500.
Some credit unions offer secured cards to their members with lower fees or no fees at all. If you belong to a credit union, ask whether they offer a secured card before you explore elsewhere. Regional banks sometimes offer secured cards as well, though availability varies by state.
The main reason to choose Credit One over a competitor is if you have been denied by other issuers or if you need a lower minimum deposit. Credit One's approval process is more lenient than Discover's or Capital One's. However, if you can open a Discover or Capital One card, those are usually the better financial choice because the fees are lower.
What happens after you convert to an unsecured card
If Credit One converts your account to an unsecured card, your deposit is returned and your credit limit may increase. The new card will still report to all three bureaus, and your payment history will continue to build your credit score. The terms of the unsecured card — annual fee, interest rate, and other fees — may be different from the secured card, so read the new terms carefully.
Conversion is not automatic. Credit One reviews your account after 18 to 24 months and decides whether to convert based on your payment history, credit score, and account activity. If you have missed payments or carried a high balance, conversion may be delayed or denied. If you are denied, you can ask Credit One to review your account again after another six months of on-time payments.
Once you have an unsecured card, you can explore for other credit products — a second credit card, a small personal loan, or a car loan — to further diversify your credit mix. A mix of credit types (cards, installment loans, and so on) also helps your credit score.
how the process works and what to expect
You can explore for the Credit One Secured Card online at creditone.com or by phone at 1-866-671-9005. The process takes about 10 minutes and asks for your name, address, Social Security number, income, and employment information. Credit One does not run a hard credit inquiry, so explore does not hurt your credit score.
Credit One will verify your identity and check your banking history to confirm you have a valid bank account. If you are approved, you will receive a decision within one to three business days. You then choose your deposit amount and send the money to Credit One. The card is usually mailed within 7 to 10 business days after your deposit clears.
Before you explore, gather your Social Security number, a valid ID, proof of income (a recent pay stub or tax return), and the routing and account number of the bank account where you want your deposit held. Having this information ready speeds up the process.
Frequently Asked Questions
Can I use the Credit One card internationally?
Yes, the card works at merchants and ATMs outside the United States. However, Credit One charges a 3% foreign transaction fee on all purchases and cash withdrawals made outside the U.S. If you travel frequently, a card with no foreign transaction fee may be cheaper.
What is the interest rate on the Credit One card?
Credit One does not publish a single interest rate. The rate depends on your creditworthiness and ranges from around 19% to 24% APR. You will see your exact rate in the terms and conditions before you complete your process.
Can I increase my credit limit without adding more money?
Credit One may increase your credit limit after six to twelve months of on-time payments, but you will need to add more money to your deposit to match the new limit. The increase is not automatic and depends on your payment history and credit score.
What happens if I lose my card or it is stolen?
Call Credit One when ready at 1-866-671-9005 to report the card lost or stolen. Credit One will cancel the card and issue a replacement, usually within 7 to 10 business days. You are not responsible for fraudulent charges if you report the card missing promptly.
Can I pay my bill online or by phone?
Yes. You can pay online through creditone.com, by phone at 1-866-671-9005, or by mail. Online and phone payments usually post within one business day. Mail payments take longer and may arrive after your due date, so pay online or by phone to avoid late fees.