Review: Credit One Bank Gas Rewards Credit Card

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This post comes from Logan Abbott, editor of the credit cards section of MyRatePlan.com.

If you’ve found yourself in a situation where you have bad credit, applying for a credit card specifically for those with poor credit may be the first step you need to take to start improving your credit scores. Responsible use of a credit card that reports to the three major credit bureaus can help build your scores.

The Credit One Bank Gas Rewards credit card is a new credit card from Credit One Bank, and it’s one of the only bad-credit credit cards on the market that offer a rewards program.

Advantages

  • Get pre-qualified before you apply. Credit One will let you provide some basic information in order to know which cards (including the Credit One Bank Gas Rewards credit card) you are pre-qualified for. The information you provide is not an application for credit and won’t affect your credit scores.
  • 1 percent cash back on all gas purchases. The card offers a 1 percent cash-back bonus on all gas purchases made with the card. It is usually unheard of for a bad-credit credit card to offer a rewards program of any kind.
  • Reports to the three major credit bureaus. The card reports to Equifax, TransUnion and Experian. This is very important for rebuilding one’s credit scores. Using the card responsibly and paying your bill on time will ensure that your credit scores increase.
  • No deposit required. Although this card is for people with poor credit, it is not a secured credit card, which means it does not require a cash deposit for approval.
  • Credit line increase potential. You can get your credit line increased by making your first six payments on time.
  • Monthly credit score tracking. The card offers free online monthly credit score tracking so you stay up-to-date on your credit score.
  • Choose your card design. You can choose the design on your card from a premium gallery.
  • Email and text alerts. The card will notify you by email or text message before your payment is due, to help you make on-time payments.

Disadvantages

  • Annual fee. The card charges a $75 annual fee for the first year, and $99 for each year after that. This isn’t a huge downside, however, because almost all bad-credit credit cards charge similar fees. It’s worth noting that the annual fee is charged not all at once, but in monthly installments of $8.25.
  • High interest rate. The interest rate is somewhat high at 23.9 percent, but this is to be expected with a credit card for people with bad credit. Pay your bill in full every month and you’ll avoid interest charges.

Bottom line

Get it if: You have bad credit and are looking for a credit card with the intention of rebuilding your credit over time with responsible use, and you like the idea of the cash-back bonus on gas purchases.

Forget it if: You don’t have poor credit.

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Note: While we attempt to be completely objective when reporting on credit cards, this site may be compensated by issuers when a reader applies for a credit card through the links within credit card stories or on our credit card search page. Also note that any terms, rates or other features described in this article can change without notice. Always double-check everything with the issuer before applying for any credit card.

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