Yipee, I just got preapproved for a CreditOne platinum credit card

[Logan]

$45 annual membership fee
$19 authorized user fee if applicable
Cash advance 0% 1st year but 8% after 3 years.
Interest charges begin the day of posting for purchases and cash advances. No grace period.

That last one is a doozy. Anyone getting this card is either desperate or stupid.

[SadPanda]

They keep sending the pre-approval letters to me. They didn't get the hint when I ignored their first 10 (or more) letters. I've looked at some of the letters, just out of curiosity about the ridiculous fees they charge. I think the annual fee in the letters they sent me was $75! I think there was even a fee if you wanted to choose your own card design. They also have a logo similar to Capital One, which is obviously an attempt to trick people into thinking it's a Capital One card (at least at first glance).

I agree, you'd have to be really desperate to accept their offer. But some people probably give up on getting regular/no-fee cards, so they figure they can get this card to rebuild their credit, and then close it after they get better cards.

[RichM]

As much as I hate banks in general, and those that cater to people with marginal credit in particular...

I do know a few people (including a relative) who have accepted the Credit One offer post-BK and who are satisfied with the bank.

According to my relative, the bank makes no secret of the fact that they target people with marginal credit, that their rates are high, and that there is no grace period. They also offer some services that he finds useful in terms of credit-building, such as free credit reports, score calculators, and so forth. They have regularly increased his limit, and the one time he used more than (I think) 40 percent of it, they sent him some sort of message advising him that it would be more advantageous to him, credit building-wise, to keep his credit utilization under whatever that percentage was.

His opinion is that Credit One is actually one of the few banks out there targeting post-BK people that actually wants to help them get back on their feet, rather than trying to get them back in over their heads.

Long story short, despite their high rates and fees, the people I know who have accepted the Credit One card seem to feel that at least the bank is honest with them and is not trying to get them back into financial trouble. Personally, however, I'm still a fan of secured cards for the first couple of years post-BK, and I still prefer the worst credit union to the best bank.

-Richard

[Logan]

As much as I hate banks in general, and those that cater to people with marginal credit in particular...

I do know a few people (including a relative) who have accepted the Credit One offer post-BK and who are satisfied with the bank.

According to my relative, the bank makes no secret of the fact that they target people with marginal credit, that their rates are high, and that there is no grace period. They also offer some services that he finds useful in terms of credit-building, such as free credit reports, score calculators, and so forth. They have regularly increased his limit, and the one time he used more than (I think) 40 percent of it, they sent him some sort of message advising him that it would be more advantageous to him, credit building-wise, to keep his credit utilization under whatever that percentage was.

His opinion is that Credit One is actually one of the few banks out there targeting post-BK people that actually wants to help them get back on their feet, rather than trying to get them back in over their heads.

Long story short, despite their high rates and fees, the people I know who have accepted the Credit One card seem to feel that at least the bank is honest with them and is not trying to get them back into financial trouble. Personally, however, I'm still a fan of secured cards for the first couple of years post-BK, and I still prefer the worst credit union to the best bank.

-Richard

The problem I have with Credit One is they actually charge you to use the card unlike every other card out there. I charge about 4K a month on my cards and I get cash back so I am rewarded for using my credit cards rather than penalized. CreditOne with no grace period charges you for using the card the day you use it.

And yes, if I choose one of their premium design cards I get charged $6.95.

Logan

[RichM]

The problem I have with Credit One is they actually charge you to use the card unlike every other card out there. I charge about 4K a month on my cards and I get cash back so I am rewarded for using my credit cards rather than penalized. CreditOne with no grace period charges you for using the card the day you use it.

And yes, if I choose one of their premium design cards I get charged $6.95.

Logan

Oh, don't get me wrong: I'm not saying that it's a good deal by any stretch of the imagination. But according to people I know, Credit One are not vultures, either. They're up-front about everything, and they don't do things like some of these outfits do such as send you a card that's already maxed out when you get it because of the annual fees, "application fees," "program fees," "participation fees," and whatever other fees they dream up.

I know a lot of people who have fallen into that trap: They accept an offer and get a card with a $300.00 credit limit, of which $299.00 has already been used up by fees by the time they receive the card. Amazing.

As for the custom card fee, back in the old days when you handed your card over to the clerk at the checkout line, maybe there would be an advantage to, say, putting your own picture on the card. Other than that, I can't imagine why anyone would care what the card looks like. And nowadays, because you just swipe the card in the machine yourself, there's even less of a reason. So really, who cares what it looks like? I wouldn't bother with it, anyway, even if it was free.

All that being said, as far as I'm concerned, there are much better alternatives out there. Secured cards are great, and either Cap One or Barclay's are less usurious.

-Richard

[Logan]

Oh, don't get me wrong: I'm not saying that it's a good deal by any stretch of the imagination. But according to people I know, Credit One are not vultures, either. They're up-front about everything, and they don't do things like some of these outfits do such as send you a card that's already maxed out when you get it because of the annual fees, "application fees," "program fees," "participation fees," and whatever other fees they dream up.

I know a lot of people who have fallen into that trap: They accept an offer and get a card with a $300.00 credit limit, of which $299.00 has already been used up by fees by the time they receive the card. Amazing.

As for the custom card fee, back in the old days when you handed your card over to the clerk at the checkout line, maybe there would be an advantage to, say, putting your own picture on the card. Other than that, I can't imagine why anyone would care what the card looks like. And nowadays, because you just swipe the card in the machine yourself, there's even less of a reason. So really, who cares what it looks like? I wouldn't bother with it, anyway, even if it was free.

All that being said, as far as I'm concerned, there are much better alternatives out there. Secured cards are great, and either Cap One or Barclay's are less usurious.

-Richard

They are vultures in disguise

[tobee43]

wow logan, you scared me there for a moment!!


we just got wells fargo approved...first my spouse for 2k and then my for 2500....i'm stunned!!!!! really i'm still in complete shock LOL!!!