If you’re trying to rebuild your credit, most of the cards available to you are secured cards, cards which require a deposit to open a line of credit. We’ve reviewed a number of secured cards, including ones from Discover and Capital One. Credit One (not to be confused with Capital One), however, breaks this norm and offers unsecured credit cards to people with below average credit. Although Credit One doesn’t declare a credit score cutoff, they have specifically labeled one of their unsecured cards “Platinum Visa for Rebuilding Credit.” Additionally, they have prominently posted user reviews thanking Credit One for extending credit despite low credit score.

Of course, until you apply to different cards, you won’t know what your options are. But if you’re given the choice between Credit One’s unsecured card and a secured card from, say, Discover or Capital One, which should you choose? The unsecured card from Credit One is a no-brainer, right? Maybe, but maybe not. Credit One’s unsecured cards have both pros and cons.

Credit One’s Transparency (or Lack Thereof)

Perhaps the first thing that strikes you when you see Credit One’s logo is it’s similarity to Capital One’s logo. Perhaps not, but I suspect this is a deliberate attempt to mislead consumers. Unfortunately, it seems that this is only the surface of the issue.

Before applying for a card, you’d like to know what you’re applying for. Yes, on the surface, Credit One has a mere 3 credit cards, all touting many of the great features that come with other credit cards, such as cash-back and fraud protection. Not apparent at all, however, is any mention of fees or interest. Unless you dig through their website to find a PDF of their cardholder agreements do you find that they actually have dozens of variations of these three cards, most of which charge substantial annual fees (for no apparent reason, these fees are sometimes broken up into monthly payments and other times charge annually). Additionally, the cards may (or may not) come with authorized user charges or fees for changing your due date. Compare this to many of the larger companies, who are upfront with the fees they charge (often $0). These companies prominently post these fees where people will see them, as opposed to burying them in cardholder agreements.

Credit One’s Customer Service

Credit One’s customer service has some of the worst user reviews out there, with 96% negative reviews on the Better Business Bureau! Reviews range from complaints of missing bills and surprise fees to poor communication. Consumer Affairs also gives them a one star review with numerous negative reviews, including complaints of payments being mysteriously held up until they are past due, at which point the user gets nailed with late fees.

Of course, keep in mind that few, if any, of these reviews are verifiable. However, when the same stories continue to pop up from numerous users and on multiple sites, it gives reason to pause.

Fewer Bells and Whistles

Although Credit One does offer some of the staple perks of credit cards, such as 1% cash back and $0 fraud liability, it lacks some of the newer features offered by some of the other credit cards, including more robust identity theft protection, extended warranties, or purchase protections. On their own these features might not amount to a deciding factor, but combined with other issues with Credit One’s cards, they may be enough to disqualify Credit One.

But No Deposit Required

Despite all the negative points against Credit One, the fact remains that Credit One might be your only option for a credit card that doesn’t require an up-front deposit. Especially in the process of rebuilding credit, money can be tight, and you may be unable to afford that security deposit. If this is the case you may still be considering Credit One’s card, which is understandable. But remember that Credit One typically charges an annual fee (likely $75 or more), where other companies often do not. While the annual fee is probably less than the deposit on most secured cards (but not all), remember that the annual fee is ongoing, while the deposit is one time and refundable. In the long run, the annual fee will cost you much more than the deposit.

Consider the Alternatives

Unless you need a credit card right now that requires no money down, consider some of the secured cards from more of the reputable companies around. There are so many other companies that are more upfront about the fees you’ll be charged, are more willing to work with you when an issue arises, and have a better track record of avoiding errors. To help you get started, we have a list of 5 Great Secured Cards That Require a Low Deposit. Furthermore, if you make your payments on time, many credit card companies will upgrade you from a secured card to an unsecured card in a few short months, refunding your entire opening deposit.

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