Credit One Bank® Platinum Rewards Visa® Credit Card Review

Credit One Bank® Platinum Rewards Visa® Credit Card Review

This article is about the pros and cons of the Credit One Bank® Platinum Rewards Visa® Credit Card. The card offers a high rewards rate on everyday-purchase categories, but with a threshold spending limit.

Credit One Bank® Platinum Rewards Visa®: pros and cons

Rewards system in a nutshell

The rewards system has a promising start with the 5% rewards rate on everyday spending categories like gas, groceries, internet, cable, mobile phone services, satellite TV, and others. Unfortunately, the 1% cash back you’re left with after spending $5,000 in those categories among the lowest in the industry. The same rate of 1% is applied to all other purchases. There is no cap on the amount you can earn with cash back rewards.

Bear in mind that not all gas and grocery purchases will be eligible for the higher rewards rate. Whether a purchase qualifies for the 5% rate, depends on the merchant’s code. Note that purchases at warehouse clubs (like Sam’s Club and Costco), with PayPal, or at a discount supercenter (like Walmart® and Target®) are excluded from the higher rewards rate. There are other exclusions, besides those mentioned.

Although the rewards are stated as a cash back, you cannot redeem them by requesting a check or direct deposit. Instead, the only redemption option is that the rewards are automatically added to your account as a statement credit.

You’ll offset the $95 annual fee if you spend $1,900 on purchases eligible for a 5% cash back rate. Your purchases will probably depend on the credit limit. The minimum credit line for this card is $500, it is determined based on your creditworthiness. However, the bank hasn’t disclosed a maximum limit.

The Credit One Bank® offers to Platinum Rewards Visa® cardholders up to 10% more in cash rewards from top retail partners. However, it is not disclosed which are included until you get the card.

Who can benefit from getting the Credit One Bank® Platinum Rewards Visa® Credit Card?

People with fair credit scores who are struggling to get a better rewards credit card will benefit from the Credit One Bank® Platinum Rewards Visa® Credit Card. What’s more by paying off their balance every month, they can build up their credit score and later opt for better rewards credit cards.

Those with better creditworthiness will qualify for additional rewards. Also, there is a possibility that their credit limit will increase with responsible account use.

We’ll talk numbers to give you a better understanding of the rewards program. The $5,000 threshold is $417 a month. According to the Bureau of Labor Statistics’ data, the average American spends around $747 a month on food only. That means that most people will earn 5% only during the first half of the year, while for the rest the 1% rewards rate will be applied.

You should analyze the amount you spend on gas and groceries each year. Of course, also look into other rewards credit card possibilities available for those with fair credit. If you’re able to, you should think about pairing it with another credit card that has no annual fee and the standard 1.5% rewards rate.

Are there any other benefits?

Some additional benefits cardholders’ can expect to get are:

• Extra cash back rewards – you can get extra rewards from merchant partners.
• Automatic credit line reviews – The Credit One Bank reviews your account regularly and if you improve your creditworthiness, you’ll be considered for a credit limit increase.
• $0 fraud liability – if your card gets stolen, you won’t get charged for any payments you didn’t authorize.
• Free access to Experian credit score – you can monitor your credit score and you’ll get monthly credit reports. This will help you stay on top of your credit.
• Flexible payments – you can set your payments’ due date.
• Online access to documents – you can review all your statements and card-related documents online.

Conclusion

The Credit One Bank® Platinum Rewards Visa® Credit Card is a decent card, but falls short on many aspects. We don’t like that it includes so many fees and has a fixed APR that disregards your creditworthiness. The $95 annual fee cuts your credit limit right away. If you are approved for the minimum credit line of $500, you’ll actually have $405.

The customer experience is not optimal either. There is no customer service available to you 24/7 and according to a customer satisfaction survey (J.D. Power 2020 U.S. Credit Card Satisfaction Study), it was ranked among the worst credit card companies in the country.

People who steer clear of balances and spend smartly to maximize rewards might find it useful. As far as fair credit score goes, there aren’t many similar options. The free credit score access is a nice feature that creditholders, especially credit-builders will appreciate. Our bottom line is, if your priority is credit-building and not rewards, this card is not a bad option. The cash back rewards are just a bonus here. However, if you regard them highly, other credit card options might be more appropriate. For example, the Capital One® QuicksilverOne® Credit Card offers a flat 1.5% rate on all purchases and is also available to those with an average credit score.

It is a good thing that it offers free pre-qualification. You can apply for it, check out your offer’s terms, benefits, and credit limit. It will give you a better insight and help you reach a decision.