Should you apply for the Credit One Bank Amex Credit Card The bank has a very bad reputation due to its predatory credit cards with numerous fees. Its credit cards are intended for people with bad credit scores. This American Express card is the least horrible. Anyway, with a $39 annual fee, it is a bad choice.
It may seem like a good option if you struggle to get approved for other credit cards and cannot afford a security deposit. It has a pre-qualification option after all! However, before you apply for the card, make sure you understand what you are stepping into.
Credit limit
The total maximum you can spend using your Credit One Bank Amex Credit Card is called a credit limit. The initial credit limit of a Credit One Bank card is $500 which is better than the $300 that other cards offer. Bank can increase your initial credit limit. It may happen 6 months after you apply if your credit score improves. Otherwise, it can easily take 12 months. Most often it never happens.
Credit One Bank Credit Card annual fee
Banks often charge customers an annual or monthly fee for using a credit card. Credit One card has a $39 annual fee. Getting your first credit card is important, but even a very small annual fee can spoil your first credit card. Credit score should never cost you money. Without significant benefits, the annual fee is a red flag for credit cards.
Cashback
Credit One Bank American Express has 1% cashback. Some experts may argue that it is a good compensation for the annual fee. I think the flat 1% reward is too little to compensate for the annual fee. You’ll have to spend more than $3,600 annually just to break even. If you want to earn cashback apply for a Discover Secured credit card.
Credit One Bank Card Foreign transaction fee
If you have to travel abroad, leave the Credit One Bank card at home. It’s 3% foreign transaction fee disqualifies the American Express credit card. There are many credit cards that have no fees for transactions in currencies other than the US dollar.
Cash Advance
Taking cash from a credit card is always a bad and expensive idea. But Credit One Bank goes “above and beyond” and charges an 8% fee. It exceeds the 3% or 5% fee that is often charged by other credit cards. Other than that APR on the cash advance is super high and exceeds 27%.
Bottom line
The Credit One Bank Card falls into the same bucket as Mission Lane Credit Card and Merrick Bank Double your line credit card. They all charge you high annual fee without giving you any benefit. Under no conditions, you should open Credit One Bank Card. There are numerous better credit cards that you can get without an annual fee.