Credit One American Express Card Review And Limit
Its low cash back return and annual fee make it unsuitable for people with good credit.
But if you want to build credit without a deposit or incurring expensive fees, its straightforward rewards earning and redemption system and excellent cardholder perks could be a good fit. This article outlines Credit One American Express Card Review And Limit.
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Pros
• No cap on how much cash back you can receive.
• Cash back is automatically applied.
• Low fees
• Offers cardholders several essential bonuses.
• Find out whether you qualify online.
• Free credit score
Cons
• Low cash back rate
• Cash back is only redeemable as a credit.
• High APR, no matter your credit score.
Notification of credit limitations is delayed.
• No welcome bonus • Foreign transaction cost
Unlimited 1% cash back
The Credit One Bank American Express card earns cash back in three ways:
You get 1% cash back on all transactions, no matter where or what you buy, and it’s immediately credited to your account each month. The Credit One Bank American Express card is a simple way to minimize your monthly balance.
However, 1% cash back is nothing compared to many cash back cards. Most cash back cards will match the Credit One Bank American Express card’s cash back rate, and some will pay even more on purchases in certain bonus areas.
Others can match or even beat the Credit One Bank American Express card’s rewards rate. Consider the Petal® 2 “Cash Back, No Fees” Visa® Credit Card, which offers 1% cash back on eligible purchases and increases to 1.25% after 12 on-time monthly payments, all without any fees.
Automatic redemption as a statement credit also means you can’t request a cheque or redeem your cash back for travel or gift cards.
Annual charge may not be covered by cashback.
The Credit One Bank American Express card’s cash back program is mediocre on its own, but it’s disappointing given the $39. Even with no cash back cap, it will be tough to cover the yearly cost with cash back rewards.
Charge at least $3,900 per year or $325 per month on the Credit One Bank American Express card to break even. Given the card’s initial $500 credit limit, that may be achievable.
Consider the card’s cash back program as a way to lower the total cost of card ownership rather than a way to earn rewards.
Unsecured credit-building cards can include exorbitant annual fees or a slew of initiation, maintenance, and program costs, with no cash back.
However, the Credit One Bank American Express fees are simple: An annual price of $39, a $19 fee to add an approved user card, and an optional payment protection plan fee (based on your monthly billing statement).
If you don’t mind putting down a deposit, there are secured credit cards with larger benefits and no annual fee. After the initial deposit, you can get your money back when you close your account. Some secured cards allow you to upgrade to an unsecured card if you pay on time consistently. The best cash back programs for students are those with no yearly fees.
No welcome bonus
No sign-up bonus for Credit One Bank American Express. Regrettably, many cash back cards provide a $100 or more sign-up bonus. These cards are designed for people with good credit.
Even so, several competitive credit-building tools give a sign-up incentive. As an introductory offer, the Discover it® Secured Credit Card will double your first year’s cash back, and the Amazon Credit Builder will give you a $10 Amazon.com gift card.
No deposit $500 credit limit
An unsecured Credit One Bank American Express card requires no security deposit. This is a useful function if you need to develop credit but don’t want to put much down.
While the $500 minimum credit limit is more than other credit-building cards, Credit One Bank says it can boost it based on your overall credit performance. The bank does not provide a schedule for assessing credit limits. Your account will be considered for a higher credit line after 6 months of on-time payments on the Capital One QuicksilverOne Cash Rewards Credit Card.
If you get the $500 credit limit, keep track of your expenditures to keep your credit use low, which affects your credit score.
APR higher than certain credit-building options
The Credit One Bank American Express card has a high variable APR of 23.99% for all customers, regardless of credit history.
While this is more than the typical credit card APR, it is comparable to the average APR for a card meant for those with fair credit and is actually cheaper than other credit-building options.
Prequalify online.
You can check your credit score and prequalify for the Credit One Bank American Express card online before applying. This is good news if you are doubtful of your approval chances or have a low credit score, as a soft credit inquiry will not harm your credit score.
Why Get a Credit One Bank Amex?
No expenditure tracking or bonus categories required.
* You wish to develop credit without a deposit.
* You can’t get a greater cash back rate or no annual fee. You want a card with purchase and return protection.
You can pre-qualify online before applying for the Credit One Bank American Express Card.
* Use the card often to earn rewards and offset the yearly charge.
* If you get a $500 credit limit, keep an eye on your expenditures to keep your credit use low.
* Pay off your monthly purchases in full to avoid the hefty APR. Use Amex Offers to save on regular purchases.
Is the Credit One Bank Amex Card Worth It?
In addition to great advantages and a cash back rewards program, the Credit One Bank American Express Card should help you develop credit at a minimal cost. To be sure, the card is meant to help you build credit and get a better rewards card later.
