CreditOne Visa with Gas Rewards Review

CreditOne Gas Rewards Visa

The CreditOne Visa with Gas Rewards is designed for people who want to establish, rebuild, or improve their credit.  Unlike many credit cards which target consumers with little credit or bad credit, there is no enrollment fee for this card.  This is a nice benefit since no one wants to waste money on an application fee and then be denied the credit card.  Approved applicants are guaranteed a credit line of at least $300.

This card also gives members 1% cash back rewards on eligible gasoline purchases made with the credit card.  This is an added bonus since there are very few credit cards aimed at people with bad credit that offer any type of rewards.  Eligible gas purchases must be submitted by merchants using the Standard Industrial Classification Codes (SIC Codes) to qualify for the cash back rewards.  The 1% cash back is given as a statement credit which can be used to reduce the balance on your account.  Note: Statement credits do not take the place of your regular monthly payment.  You must still pay at least the Minimum Payment Due as shown on your statement each month.

The Annual Percentage Rate for purchases and cash advances will vary between 17.90% and 23.90% depending on your individual credit score and financial history.  There is no grace period for either purchases or cash advances- interest charges begin on the posting date.

The CreditOne Visa with Gas Rewards offers an introductory cash advance fee waiver.  If your credit line is less than $400 you will not be charged a cash advance transaction fee during the first year of membership.  Once this introductory period expires, the standard cash advance fee of either 8% of the total amount or $5 (whichever is greater) will be applied to all cash advances.  This is a comparatively steep rate.

The annual membership fee for this card depends on your individual credit history.  For the first year (introductory period) it ranges from $35 to $75.  Each year after that, it will vary from $35 to $99.  Initially, your membership fee will be billed to your account when it is opened and will reduce the amount of your available credit.  For instance, if you are given a $400 credit limit and your membership fee is $75 you will only have $325 as an initial available balance.  Considering that this card offers relatively low credit lines, the annual fee is high.

A nice perk is that card members can choose their payment due date. This allows you to pick a convenient date to make your payments that best suits your budget and cash flow.  This feature can help eliminate late payments which is very important when establishing or rebuilding credit.

Pre-qualifying for this card does not negatively impact your credit score.  The CreditOne website allows prospective applicants to see if they are preapproved without it affecting their credit score.

Other benefits of this card include:

  • Automatic Credit Line Increase Reviews
  • Updates to All Major Credit Bureaus
  • Free Online Monthly Credit Score Tracking
  • 0% Fraud Liability
  • Platinum Status Visa

The Facts

Below we have broken down the specific details of the CreditOne Visa with Gas Rewards to help you determine if it’s a good choice for you.

The Good:

No enrollment fee:

Many other credit cards which target people with no credit or bad credit charge prospective card members a fee just to apply with no guarantee of approval.  The CreditOne Visa with Gas Rewards does not charge a fee to apply.

Guaranteed minimum credit line:

Card members are guaranteed a minimum credit line of $300 upon approval.  The maximum initial credit line is $500.  While this may not be a substantial amount compared to other credit cards, it is a fairly reasonable amount for people who want to establish or rebuild their credit.  Plus, this is not a secured credit card so you do not have to deposit a large amount of cash (as collateral) in order to obtain this card.

Cash back on gas purchases:

Cardholders earn unlimited 1% cash back rewards on all eligible gasoline purchases made with the card.  However, all transactions must be submitted with the proper merchant code in order to qualify for the 1% cash back. Cash back earned is given as a statement credit which can be used to lower your outstanding balance.

Prequalifying has no negative impact:

You can visit the CreditOne website and see if you prequalify for the credit card without it having a negative impact on your credit score.

Introductory cash advance fee waiver:

If you are approved for a credit line of less than $400 you will not pay a cash advance fee for the first year.  Note:  After this introductory period expires, the standard fee of 8% of the total cash advance or $5 (whichever is greater) will apply to all advances.  This is a relatively steep rate.

Little or bad credit ok:

This card is specifically aimed at people who want to establish or rebuild credit so a poor credit score will most likely qualify for approval.

The Bad:

APR depends on your credit:

The annual percentage rate on purchases and cash advances varies between 17.90% and 23.90% and is based on your credit score and financial history.

Interest charges begin immediately:

Card members do not receive a grace period on either purchases or cash advances.  Interest charges begin as soon as a transaction posts to your account.

The Ugly:

High annual fee:

The fee for this card varies between $35 and $75 for the initial year according to your creditworthiness at the time of approval.  Thereafter, the annual fee will be between $35 and $99.  There is also a $19 annual fee for each additional card issued to an authorized user.

This card is a mixed bag as far as credit cards go.  It is designed for people with little or bad credit so the relatively high interest rate and pricey annual fee are somewhat expected.  However, it does offer 1% cash back on gasoline purchases and rewards with this type of credit card are not typical.  The initial credit lines offered range from a guaranteed minimum of $300 to a maximum of $500.  But CreditOne does routinely perform credit line increase reviews so if you make your payments on time and maintain your account responsibly, you may qualify for an increase.  Also, the CreditOne Visa with Gas Rewards is not a secured credit card so members don’t have to open a saving account or deposit any money as collateral.

It’s a well-known fact that people with bad credit have fewer options when it comes to obtaining credit.  Overall this card may be worth considering.