Credit One Bank Card is a credit card issued by Credit One Bank, a bank that specializes in cards for people rebuilding credit

Credit One Bank Card is a Mastercard or Visa issued by Credit One Bank, a California-based bank that has been operating since 1984. The card is designed for people who have limited credit history, poor credit scores, or are working to repair past credit problems. Unlike a debit card tied to a bank account, this is a true credit card—you borrow money, receive a bill, and build a credit history based on how you pay.

The card comes with an annual fee (currently $39 to $99 depending on the version), a higher interest rate than cards for people with excellent credit, and a required security deposit. You deposit money into a savings account held by the bank, and that deposit becomes your credit limit. If you deposit $500, your limit is $500. The deposit stays in the account and earns a small amount of interest, but you cannot touch it while the card is open.

Credit One reports your payment history to all three major credit bureaus—Equifax, Experian, and TransUnion—which means on-time payments build your credit score over time. Late or missed payments also get reported and will harm your score.

Key Takeaways

  • Credit One Bank Card requires a security deposit that becomes your credit limit, so a $500 deposit gives you a $500 limit.
  • The card charges an annual fee of $39 to $99 and a higher interest rate than mainstream credit cards, typically 19% to 24% APR.
  • Payment history is reported to all three credit bureaus, so consistent on-time payments will raise your credit score over months.
  • The card is designed for people rebuilding credit, not for everyday spending by people with good credit scores.

How the security deposit and credit limit work

When you open a Credit One Bank Card account, you choose how much to deposit. The minimum deposit is typically $200, and the maximum is usually $2,500. That deposit sits in a savings account and becomes your credit limit dollar-for-dollar. If you deposit $500, you can charge up to $500 on the card.

The deposit earns interest—currently around 0.01% APY, which is very small—but you cannot withdraw it while the card is active. If you close the account or the bank converts you to an unsecured card (which happens after you demonstrate consistent on-time payments), the deposit is returned to you. Some cardholders report that Credit One has increased their limit without requiring an additional deposit after 12 to 18 months of on-time payments, though this is not may provide.

Fees and interest rates you will pay

Credit One Bank Card charges multiple fees. The annual fee ranges from $39 to $99 depending on which version of the card you choose. There is no monthly fee, but you will pay interest on any balance you carry. The APR (annual percentage rate) is typically between 19% and 24%, which is significantly higher than the average credit card rate for people with good credit (around 16% to 18% as of 2024).

If you miss a payment, Credit One charges a late fee of up to $40. If your payment is more than 60 days late, the interest rate can jump to a penalty APR, which can be as high as 29.99%. There is also a returned payment fee if a check or ACH transfer bounces.

To minimize what you pay, charge small amounts and pay them off in full each month. If you carry a balance, the high interest rate means your debt grows quickly. For example, a $500 balance at 22% APR costs about $9.17 per month in interest alone if you make no payments.

How Credit One reports to credit bureaus and builds your score

Credit One reports your account activity to Equifax, Experian, and TransUnion every month. This means your payment history—whether you pay on time, late, or not at all—becomes part of your credit file. On-time payments are the single largest factor in your credit score, accounting for about 35% of the calculation.

If you make on-time payments for several months, your score will begin to rise. Most people see a noticeable improvement after 6 to 12 months of consistent payments. The longer your account stays open and active with on-time payments, the more your score improves. However, if you miss payments or pay late, those negative marks stay on your credit report for seven years and will lower your score significantly.

Your credit utilization—the percentage of your limit you are using—also affects your score. If your limit is $500 and you charge $400, your utilization is 80%, which hurts your score. Keeping your balance below 30% of your limit is better for your score. Ideally, charge small amounts and pay them off in full each month.

When Credit One Bank Card makes sense and when it does not

Credit One Bank Card is useful if you have a low credit score, no credit history, or are recovering from past credit problems and need a way to build or rebuild credit. It is one of the few cards that will accept people with scores below 600 or no credit file at all. The security deposit means you are not borrowing money you do not have, which reduces the bank's risk and yours.

Credit One Bank Card is not a good choice if you already have a decent credit score (650 or higher) or access to other credit cards. The annual fee and high interest rate make it expensive compared to mainstream cards. If you have fair credit, you may may have access to for a card with no annual fee and a lower interest rate, which will save you money.

It is also not a good choice if you cannot commit to paying on time every month. The high interest rate and late fees mean missed payments become very expensive very quickly. If you are struggling with cash flow, a secured card from a different bank or a credit-builder loan from a credit union may be a better fit.

Alternatives to Credit One Bank Card

Other banks offer secured credit cards with lower fees or better terms. Capital One Secured Mastercard charges a $49 annual fee (lower than Credit One) and has a similar APR range. Discover it Secured charges no annual fee and reports to all three bureaus. Navy Federal Credit Union offers a secured card to members with no annual fee and a lower interest rate, though you must be military-affiliated or have a family member who is.

If you want to build credit without a credit card, a credit-builder loan from a credit union is another option. You borrow a small amount (usually $500 to $1,000), make monthly payments, and the lender reports to the credit bureaus. Once you pay off the loan, you get the money back. This approach builds credit without the ongoing fees of a credit card.

If you have a bank account with a checking or savings balance, some banks offer credit-builder products that let you borrow against your own deposit at a low rate. These are less common but worth asking your bank about if you already have an account there.

How to use Credit One Bank Card responsibly

To get the most benefit from Credit One Bank Card while minimizing cost, charge small amounts regularly and pay them off in full each month. For example, charge $25 to $50 on groceries or gas, then pay the full balance when the bill arrives. This shows the credit bureaus that you can borrow and repay reliably, which is what builds credit.

Set up automatic payments from your bank account to ensure you never miss a due date. Missing even one payment will hurt your score and trigger a late fee. Mark the due date on your calendar or use your bank's bill-pay feature to schedule a payment a few days before the due date.

Do not charge more than 30% of your limit. If your limit is $500, keep your balance below $150. This keeps your credit utilization low, which helps your score. Once your score improves after 12 to 18 months, you can look into other cards with better terms or ask Credit One about converting to an unsecured card.

Frequently Asked Questions

Can I get my security deposit back?

Yes. Your deposit is returned when you close the account or when Credit One converts your card to an unsecured card. Conversion typically happens after 12 to 18 months of on-time payments, though it is not may provide. You can also request closure at any time and receive your deposit back, though closing the account may lower your credit score slightly because it reduces your available credit.

What happens if I miss a payment?

A missed payment triggers a late fee (up to $40), gets reported to the credit bureaus, and lowers your credit score. If the payment is 60 or more days late, your interest rate can jump to a penalty APR as high as 29.99%. One missed payment can undo months of credit-building work, so set up automatic payments to avoid this.

Is Credit One Bank Card a scam?

No, Credit One Bank is a legitimate bank regulated by the Office of the Comptroller of the Currency. However, the card is expensive compared to other secured cards because of the annual fee and high interest rate. It is designed for people with very poor credit who have few other options, not for everyday use by people with good credit.

How long does it take to build credit with this card?

Most people see a noticeable improvement in their credit score after 6 to 12 months of on-time payments. The longer you keep the account open and active with on-time payments, the more your score improves. However, the exact timeline depends on your starting score and credit history.

Can I increase my credit limit without depositing more money?

Some cardholders report that Credit One has increased their limit after 12 to 18 months of on-time payments without requiring an additional deposit. However, this is not may provide and does not happen for everyone. You can contact Credit One to request a limit increase, but they may require an additional deposit.