Credit One Bank® Platinum Visa®: Credit Building for a Price

The Credit One Bank® Platinum Visa® is designed for those with less-than-perfect credit. It provides 1% cash back on select purchases like gas, groceries, telecommunications and cable and satellite TV. However, this cash back rate comes with a $39 annual fee. While this card helps with credit-building and offers rewards, its limited scope could constrain your earnings. As your credit improves, more lucrative options with higher cash back and fewer restrictions become available, offering better value for those with fair credit.

The Credit One Bank® Platinum Visa® offers a 1% cash back on eligible purchases, targeting individuals working to build or rebuild their credit. Eligible purchases include gas, groceries (except for groceries purchased at stores selling groceries and non-grocery items), internet, cable and satellite TV and mobile phone purchases. Purchases made at superstores and discount stores such as Walmart and Target are not eligible.

While the cash back feature could be more impressive, cardholders may benefit from the card if they spend heavily on gas and groceries and can manage the card's $39 annual fee. However, it lacks the cash back on other categories and the higher reward rates some competitors offer.

Despite its appeal to those with fair credit, the card does not offer a 0% intro APR period for purchases or balance transfers, which is a common feature among other credit-building cards. The high regular APR of 29.74% should also be considered, especially for those who may carry a balance.

The Credit One Bank® Platinum Visa® also falls short in its limited rewards program and the exclusion of cash back at major superstores. The card may offer less value for consumers who shop frequently at these locations. Additionally, the lack of introductory offers and a relatively high APR compared to other cards in the market might lead some to seek more cost-effective alternatives.

>> More: Best Cash Back Credit Cards

The Credit One Bank® Platinum Visa® offers a modest rewards program. Cardholders receive 1% cash back on eligible purchases and payments for mobile phones, internet and cable and satellite TV services.

Similar to its sibling, the Platinum® Visa® with No Annual Fee, the Platinum® Visa® card does not award cash back on grocery purchases made at stores that sell groceries and other items, such as convenience stores, drugstores or confectionary shops. It also does not reward purchases from discount stores and superstores like Walmart, Target and Costco.

While the card does not offer exceptional rewards-earning opportunities through a cobranded portal or issuer-specific promotions, its simplicity may appeal to those who prefer a no-fuss approach to earning rewards. Redemption is also straightforward since your cash back earnings automatically apply as a statement credit.

This card helps you stay informed about your credit status by providing free access to your credit score and a summary of your credit report. Additionally, the ability to choose your payment due date and set up customizable alerts can help you manage your finances more effectively.

Credit Building With Rewards: The Credit One Bank® Platinum Visa® can help improve credit for those with less-than-stellar credit histories. It also offers the opportunity to earn rewards on everyday purchases.

While the Credit One Bank® Platinum Visa® offers credit-building opportunities, it's not without its downsides.

1% Cash Back Rate: Earning only 1% cash back on select categories and excluding major superstores may not provide the best value, particularly when other cards offer higher cash back percentages or more inclusive reward programs. The Capital One QuicksilverOne Rewards card offers a higher cash back rate of 1.5% for the same annual fee.

$39 Annual Fee: The card has a $39 annual fee, which is a cost to consider, especially when other credit-building cards may offer no annual fee options. The Citi Custom Cash card is another popular choice for people with fair credit since it offers better cash back at a $0 annual fee.

Limited Rewards Program: The rewards program is restrictive and does not cover popular shopping destinations like Walmart and Target, which could be a significant drawback for everyday spenders looking to maximize their rewards. The Platinum X5 Visa card has a better cash back program and offers 1% cash back on non-eligible spending, including purchases made at superstores and discount stores.

No Intro Offers on Transfers and Purchases: The absence of introductory APR offers for purchases or balance transfers means you won't get a break on interest costs, which can be a valuable feature for managing debt or making large purchases.

To help you make the best decision, we have compared the Credit One Bank® Platinum Visa® with other cash back cards that build your credit.

The Credit One Bank® Platinum Visa® caters to individuals with fair credit aiming to build their credit history. If you rarely shop at superstores and can benefit from 1% cash back on eligible purchases, this card may serve your needs despite the $39 annual fee.

Consider other options if you're looking for a card with a more generous rewards program or lower costs. This card is a basic unsecured credit option but can be a stepping stone for those building better credit. Once your credit score improves, more rewarding cash back cards will hopefully become available.

Our evaluation of the Credit One Bank® Platinum Visa® card involved a comprehensive review process, considering its performance across multiple weighted categories. Here's how we broke it down:

• Cash Back Score (50% Weight): This is the most heavily weighted factor, assessing the card's rewards rate and how it translates to cash back for the user. A 5 rating represents the most rewarding cash back rate.
• Balance Transfer Score (10% Weight): Evaluates the attractiveness of the card's balance transfer offers. A 5 rating indicates an excellent balance transfer option.
• No Interest Score (5% Weight): Looks at the card's introductory offers on purchases and balance transfers. A 5 rating means a highly competitive no-interest period.

Other categories such as issuer satisfaction and penalties were also considered, each contributing to the card's overall score.