In business, a good credit score is one of your best assets when it comes to establishing vendor lines of credit, securing a startup loan, or obtaining other types of business financing. Your credit score influences both your approval odds and the interest rates you’ll pay to borrow.
A credit card can be a convenient and helpful way to build or rebuild positive credit history. If you’re in the market for a credit-building card, the Credit One Bank Platinum Visa is one you may consider. Before you apply for an account, here’s what you need to know about the card’s features and benefits.
Rebuild Credit with Good Payment Habits
The Credit One Bank Platinum Visa is primarily designed to help users build credit. This card reports your payment history and account activity to each of the three major credit bureaus: Equifax, Experian, and TransUnion.
Payment history carries the most weight for FICO credit score calculations, followed by credit utilization. This factor refers to the amount of your available credit limit you’re using at any given time. Assuming you make your monthly payments on time and maintain a low balance on your card, the Credit One Bank Platinum Visa could help you to build and improve your credit score over time.
Members get free monthly access to their Experian credit score, which helps track credit score progress. Your account is reviewed regularly to determine whether you qualify for a credit limit increase, which could help boost your score. Raising your credit limit can improve your credit utilization ratio if you continue to maintain a low balance.
Earn Cash Rewards on Purchases
Earning rewards with credit-building credit cards is a rarity, but the Credit One Bank Platinum Visa is an exception. All Platinum Visa members get 1% cash back rewards on eligible purchases, including:
- Monthly services, such as mobile phone, internet, cable, and satellite TV
Cash back rewards are unlimited on eligible purchases. Getting cash back is effectively like getting a discount on what you spend. It’s a simple way to save your business money on essential expenses, but it’s important to weigh the value of rewards you’re earning against interest and fees.
What about the APR and Fees?
There are two annual percentage rates (APR) that apply to the Credit One Bank Platinum Visa: one for purchases and one for cash advances. Both are variable rates, and the rate you’re assigned depends on your creditworthiness. There’s no 0% APR introductory promotional rate and the card doesn’t allow balance transfers.
The Credit One Bank Platinum Visa charges several fees. The first and most important is the annual fee.
The annual fee is billed to your account automatically at opening. The amount varies, based on your creditworthiness. For the first year, your annual fee can range from $0 to $75. This amount is deducted from your available credit. So if your initial credit limit is $500 and you have a $75 annual fee, your available credit would be $425.
After the first year, your annual fee can range from $0 to $99. Again, the fee you pay depends on your creditworthiness. Credit One Bank may charge the annual fee in a lump sum on your account anniversary or spread the fee out over the course of the year in 12 equal charges.
Other fees to know about include fees for cash advances, foreign transactions, late payments, returned payments, and authorized users.
The cash advance fee is either $5 or 8% of the amount of each cash advance you take, whichever is greater, or $10 or 3% of each cash advance, whichever is greater. Credit One Bank doesn’t specify how it determines which cash advance fee range to apply to member accounts.
The foreign transaction fee is either $1 or 3% of each purchase, whichever is greater. Both the late payment fee and the returned payment fee max out at $39. The fee to add an authorized user to your account is $19 annually.
Other Account Features
The Credit One Bank Platinum Visa comes with a few other perks you might appreciate, including:
- Zero fraud liability protection
- Customizable account notifications
- Flexibility to choose your payment due date
- Personalized card design
- Visa benefits, such as discounts at partner Visa merchants
Is the Credit One Bank Platinum Visa Right for You?
Possibly, if you need a credit card to build credit and you want to earn some cash back rewards on business or personal purchases. With this card, or any other credit-building card, carefully consider the fees and the APR if you think you may carry a balance from month to month. While building good credit can be invaluable for your business, it’s important to understand what you may pay in fees or interest for that benefit.
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