Credit One Subprime Credit Card

Credit One American Express Card Subprime Credit Card

UNDERSTANDING CREDIT SCORECREDIT REPAIRBAD CREDITSUBPRIME LENDER

Raoul Cannon / Ten Dollar Credit Repair

6/16/20251 min read

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Credit One has carved out a unique position in the subprime credit card market by offering an American Express branded card. This association with what many perceive as a prestigious brand is used to attract consumers with poor or no credit. However, it's crucial to understand that this card, despite the American Express logo, remains a subprime product with characteristics that can be financially burdensome.

The Reality of the Credit One American Express Card:

  • Subprime Focus: Credit One remains a subprime lender, and this card is designed for individuals who may not qualify for traditional American Express cards.

  • Revenue Model: Credit One generates a significant portion of its revenue (over 85%) from fees, and the American Express branded card is no exception.

  • Elevated Fees: In fact, this card often carries the highest fees among Credit One's offerings, including:

    • Separate annual and membership fees.

    • A significant annual fee.

    • A recurring membership fee.

  • Low Initial Credit Limits: Like other Credit One cards, a large percentage (over 90%) of first-time cardholders are typically offered a very low initial credit limit, often $300.

  • Reduced Available Credit: The upfront fees further reduce the available credit. For example, a card with a $300 limit, a $100 annual fee, and a $50 membership fee would only provide $150 in usable credit.

  • Credit Line Increase Fees: Some cardholders report being charged a fee (ranging from $50 to $100) to obtain a credit line increase, a practice uncommon with other issuers who base increases on creditworthiness and payment history.

The Bottom Line:

While the American Express branding may be appealing, it's essential to recognize that the Credit One American Express card operates within the subprime lending model. Consumers should carefully evaluate the potentially high costs and fees before applying.

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