Credit One American Express is a rebuilding card with high fees that works best if you need to prove creditworthiness and can pay the full balance monthly
Credit One American Express is a secured card issued by Credit One Bank, not by American Express directly — the Amex branding means it runs on the American Express network, but Credit One owns the card and sets the terms. You put down a cash deposit (usually $200 to $2,500), and that deposit becomes your credit limit. The card reports to all three credit bureaus, which is useful if you're rebuilding credit. The real question is whether the fees justify what you get in return.
The card charges an annual fee of $99 (or $39 if you meet spending thresholds in your first year), a monthly maintenance fee of $9.99, and a one-time processing fee at account opening. Those fees add up to roughly $220 in year one before you charge anything. If you carry a balance, the interest rate is high — typically in the 24% to 27% range. The card does not offer a grace period on purchases, meaning interest accrues from day one unless you pay in full. For comparison, most standard credit cards charge $0 annual fees and offer 21-day grace periods.
Key Takeaways
- Credit One American Express charges $99 annually plus $9.99 monthly maintenance fees, totaling roughly $220 in fees before you use the card.
- The card has no grace period on purchases, so interest starts accruing when ready unless you pay the full balance each month.
- Your deposit becomes your credit limit, and Credit One reports to all three bureaus, which helps if you're rebuilding from a low score.
- The card makes sense only if you can pay the full balance monthly and need to demonstrate creditworthiness to lenders; carrying a balance at 24%+ interest defeats the purpose.
- Alternatives like Chime SpotMe, Capital One Secured, or even a basic savings-backed card may offer lower fees and better terms for the same goal.
How the deposit and credit limit work
You send Credit One a deposit between $200 and $2,500, and that amount becomes your credit limit. The deposit sits in a savings account that Credit One holds; you don't earn interest on it. You can request a credit limit increase after 6 to 12 months of on-time payments, and Credit One may increase your limit without requiring an additional deposit. If you close the account in good standing, you get your deposit back.
The deposit is not a payment toward your balance. When you charge $500 on a $500 limit, you still owe $500 to Credit One, and your deposit remains locked. This is standard for secured cards, but it's worth understanding because it means you need cash on hand both for the deposit and for paying your monthly bill.
The fee structure compared to other rebuilding cards
Credit One's total first-year cost is steep. The $99 annual fee, $9.99 monthly fee ($119.88 per year), and one-time processing fee combine to roughly $220 before interest. Capital One Secured, by contrast, charges $0 annual fees and has no monthly maintenance fee. Chime SpotMe (a debit-based option) charges no fees at all. Even Discover Secured, which does charge an annual fee, keeps it to $0 in the first year and $35 thereafter.
The monthly maintenance fee is unusual and punitive. Most cards charge annual fees only; Credit One charges both. If you're using this card to rebuild credit on a tight budget, that $10 monthly charge adds friction to an already expensive product. The high interest rate (24% to 27%) only matters if you carry a balance, but the fees hit you regardless of whether you use the card.
When the card makes sense for your credit goals
Credit One American Express works if you meet two conditions: you can pay the full balance every month, and you need to show lenders that you can manage an American Express product specifically. The Amex network carries weight with some lenders, and the card does report to all three bureaus, so on-time payments build your score. If you're rebuilding from a score below 550 and have been denied by Capital One or Discover, Credit One may be one of the few cards that will approve you.
The card also works if you're willing to pay the fees as the cost of a second chance. Some people in deep credit trouble have no other option, and $220 in fees is cheaper than the cost of a missed opportunity. But this is a last-resort card, not a first choice. If you can get approved for Capital One Secured or Discover Secured, those cards will serve the same purpose — building payment history and a positive mix of credit — without the monthly maintenance fee.
The risk of carrying a balance on this card
Do not carry a balance on Credit One American Express. The 24% to 27% interest rate, combined with no grace period, means you pay interest on every dollar from the day you charge it. If you charge $500 and pay $250 the next month, you owe interest on the full $500 for that month, not just the $250 you didn't pay. Over a year, carrying even a small balance costs far more than the annual fee.
The card's purpose is to prove you can manage credit responsibly. Carrying a balance and paying interest undermines that goal. Lenders want to see that you pay on time and in full. If you can't pay the full balance monthly, this card is not the right tool — you need a lower-rate card or a plan to reduce spending first.
Better alternatives for rebuilding credit
Capital One Secured charges $0 annual fees, has no monthly maintenance fee, and reports to all three bureaus. Discover Secured charges $0 annual fees in the first year and $35 thereafter, also reports to all three bureaus, and offers 1% cash back on all purchases. Both cards offer grace periods on purchases, so interest doesn't accrue if you pay in full. Both are easier to get approved for than unsecured cards, and both serve the same credit-building purpose as Credit One.
If you want to avoid a credit card entirely, Chime SpotMe (a debit-based option) or a credit-builder loan from a credit union can also build your score without the risk of high-interest debt. A credit-builder loan works differently — you borrow money that sits in a savings account, make payments to yourself, and the lender reports your payment history. The cost is lower, and you end up with savings instead of debt.
What happens after you rebuild your credit
Credit One American Express is a stepping stone, not a long-term card. Once your score reaches 650 to 700 (usually after 12 to 18 months of on-time payments), you should move to an unsecured card with better terms. At that point, you can close the Credit One account and get your deposit back. The card's job is to prove you can pay on time; once you've done that, you don't need to keep paying $220 per year in fees.
When you close the account, your payment history stays on your credit report for seven years, so the work you did with Credit One continues to help your score even after you stop using the card. The goal is to graduate to a card with no annual fee, a lower interest rate, and rewards or cash back — cards that are only available to people with scores above 650 or so.
Frequently Asked Questions
Does Credit One American Express report to all three credit bureaus?
Yes, Credit One reports to Equifax, Experian, and TransUnion. This is one of the card's strengths — your payment history reaches all three bureaus, which helps your score grow faster than a card that reports to only one or two. On-time payments are the most important factor in building credit, so this reporting matters.
Can I get my deposit back if I close the account?
Yes, if you close the account in good standing (no late payments or outstanding balance), Credit One returns your deposit within 7 to 10 business days. The deposit is yours; it's not forfeited. However, closing the account does lower your available credit, which can slightly lower your score in the short term, though the long-term benefit of a higher score usually outweighs this.
What's the difference between Credit One and American Express?
Credit One Bank issues the card and sets the terms and fees. American Express is the network that processes the transactions. You're dealing with Credit One for customer service, billing, and disputes — not with American Express. The Amex branding means the card works anywhere Amex is accepted, but Credit One owns your account.
Will this card help me get approved for other credit cards later?
Yes, if you use it responsibly. Lenders look at your payment history, credit mix, and age of accounts. Six to 12 months of on-time payments on Credit One, combined with a rising score, makes you a better candidate for unsecured cards. However, the high fees mean you're paying for this benefit — you could get the same result with a $0-fee card from Capital One or Discover.
What if I miss a payment on Credit One American Express?
A missed payment is reported to all three bureaus and damages your score. Late fees explore (typically $25 to $35), and your interest rate may increase. If you miss payments consistently, Credit One may close the account and keep your deposit. This defeats the purpose of rebuilding credit, so set up automatic payments for at least the minimum to avoid this outcome.