I’m a recent college graduate with a credit score in the 630-689 range. I have almost 30,000 in student debt which is probably why I’ve been denied before. I’ve recently been pre-approved for a credit one platinum credit card. However, I’m skeptical after reading about it. Should I accept the credit one offer or find a different options?
Credit One specializes in cards for people who are building or rebuilding credit. If you’re going to get one, be careful, as their terms and conditions can be confusing. NerdWallet’s review of Credit One credit cards touches on some of the more common problems with this issuer’s cards. Among them:
- It may not be clear when you apply for the card what your annual fee will be. And the annual fees on these cards can be quite steep — $75 to $99 a year.
- Many cardholders have complained about long delays in the issuer processing their payments. A cardholder will pay their bill before the due date, only to find out that the company didn’t process that payment until after the due date, which resulted in a steep late fee.
- You might not be eligible for a grace period, which means you can end up paying more in interest.
If you choose to get a Credit One card, be very careful with it. Read your prequalification/preapproval materials and make sure you know how much the card will cost you. Play your bill well ahead of your due date — at least two weeks. Make only small purchases with the card, and pay your bill in full every month.
If you’re looking for an alternative, consider a secured credit card. These cards require a cash security deposit (which makes them easier to get), but unlike with an annual fee, you can get your deposit back when you upgrade to a regular credit card or close your account in good standing once your credit improves. You may also be able to qualify for a good credit card for fair or average credit. These cards don’t require a deposit, most don’t charge an annual fee and some even offer rewards or other benefits.