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CreditOne - Activate or Close?

New Member

CreditOne - Activate or Close?

Hi all,

 

Long story short, I'm 26 and in the process of rebuilding my poor credit score. I started out with a secured Capital One Platinum card. After a couple months of making payments, I received an offer in the mail from CreditOne. I was foolishly enticed by the $400 CL and accepted the offer. After the fact I read about all the hidden charges and lack of bill payment options...

The card arrived in the mail last week and I haven't activated it. It shows up on my CreditKarma report as an active line of credit and it raised my score from 600 to 655! So my question is, would I be better off activating this card and never using it or let it automatically close? (The card says it will be automatically closed if not actived in 14 days) I like the fact that it increased my score, but I'm worried about the hassle keeping it open. Any input would be greatly appreciated. Thanks!

Message 1 of 12
11 REPLIES
Regular Contributor

Re: CreditOne - Activate or Close?

Do you have other cards ?   Credit oNe is expensive.  I used one for sometime to get my score up (9 months) and recently closed it since I now have a drawer full of good cards.   If you are just starting, it might be ok, but like i said, they are expensive., annual fees, etc.   If you are just getting started, it should be ok, just make sure you are making payments on time and use it sparingly.  dont go over 10% utility or pay it off. 

 

I started with Credit Karma as well, dont get your hopes up too much with them.  As you get deeper into this, you will see that CK is good to glance at once in awhile but I wouldnt rely on it at all.

 

Good Luck !

My Sock Drawer: Care Credit $4200-0, JCP 2100-0, Chase 3000-0, Chase Freedom $4500.00-0, WF $1000.00-0.00
In Use: NFCU Visa Sig $17.5k- 0.00k
I still have too MANY CARDS
Starting Score 538
Current Score Oct 30-14 701 fico Eq-- 745 Fico Tu-- 713 Fico Ex
Message 2 of 12
New Member

Re: CreditOne - Activate or Close?

All I currently have is the Capital One and now the CreditOne. I'm definitely just starting out as I got my first card less than 6 months ago.

Message 3 of 12
Regular Contributor

Re: CreditOne - Activate or Close?

Well the rule I give my 19 yr old is this.  If a card has a limit of 400 bucks, dont spend more than 40 and if you do make dang sure you pay it off.   I got into cc trouble out of college and it can hurt ya for sometime.  Becareful and use it to build your credit Smiley Happy

 

 

and welcome to the forum !

My Sock Drawer: Care Credit $4200-0, JCP 2100-0, Chase 3000-0, Chase Freedom $4500.00-0, WF $1000.00-0.00
In Use: NFCU Visa Sig $17.5k- 0.00k
I still have too MANY CARDS
Starting Score 538
Current Score Oct 30-14 701 fico Eq-- 745 Fico Tu-- 713 Fico Ex
Message 4 of 12
Valued Contributor

Re: CreditOne - Activate or Close?

They probably sent a bill for the annual fee already.

 

If you paid it, might as well keep it open for one year. Toss it in a drawer and don't use it much.

Scores 5/15/2016 (clean reports!): TU Walmart FICO: 696 | EQ FICO: 679 | EX AMEX FICO: 680

In my new wallet: American Express Green EMV: PSL $2000 | BankAmericard Cash Rewards Visa EMV: $2500 | Citi AAdvantage Platinum Select World MasterCard: $6400 | Barclaycard Arrival World MasterCard: $1000 | Discover IT: $2500 | Amazon Rewards Visa Signature: $1500 | Chase Freedom: $1500 | Capital One QuicksilverOne MasterCard: $2100 | Target: $2800 | J.Crew $21,550 | Marvel (Captain America) MasterCard: $6000
Message 5 of 12
New Member

Re: CreditOne - Activate or Close?

They have charged me the annual fee according to Credit Karma, but I haven't paid it yet. Having multiple cards will help my score if I use them responsibily, not hurt it, correct? Thanks for the input so far!

Message 6 of 12
Frequent Contributor

Re: CreditOne - Activate or Close?

credit one charges an AF each month and interest on purchase from the day you swipe it.

 

 



12/28/13 (Garden Start Date)



Message 7 of 12
Moderator

Re: CreditOne - Activate or Close?


TMannion87 wrote:

Hi all,

 

Long story short, I'm 26 and in the process of rebuilding my poor credit score. I started out with a secured Capital One Platinum card. After a couple months of making payments, I received an offer in the mail from CreditOne. I was foolishly enticed by the $400 CL and accepted the offer. After the fact I read about all the hidden charges and lack of bill payment options...

The card arrived in the mail last week and I haven't activated it. It shows up on my CreditKarma report as an active line of credit and it raised my score from 600 to 655! So my question is, would I be better off activating this card and never using it or let it automatically close? (The card says it will be automatically closed if not actived in 14 days) I like the fact that it increased my score, but I'm worried about the hassle keeping it open. Any input would be greatly appreciated. Thanks!


I think it's best to have at least two cards to "garden" with.  Maybe you should try for a store card to use and close the CreditOne.

I currently have an AF waiver on my CreditOne.  I'm paying it off and closing before that waiver runs out.

 



Start: 619 (TU08, 9/2013) | Current: 799 (TU08, 1/09/18)
Sam's Club MC $25000 | Marvel MC $25000 | Macy's AMEX $25000 | AMEX BCE $20400 | Discover IT $20000 | Macy's Store $20000 | Cap 1 QS WMC $17250 | BoA BBR #1 $17200 | JCP $15000 | Citi DC $12600 | Freedom VS $12000 | BofA BBR #2 $11800 | Disney VS $11500 | Care Credit MC $11200 | Cash+ VS $10500 | CashForward WMC $10000 | Barclay Rewards WMC $10000 | WCU Visa $10000 | Amazon Store $8000 | Blispay $7500 | Target MC $5000 | Sony Card $4250 | ~~Gardening Since 11/2/17
Message 8 of 12
New Member

Re: CreditOne - Activate or Close?

Will my score take a hit if I close the CreditOne card? With a FICO score of 641, are store cards an option for me?

Message 9 of 12
Valued Contributor

Re: CreditOne - Activate or Close?

It's not worth the fees!  You could try for a different Capone card, you can have multiple. 

It is by will alone I set my mind in motion.....
Always follow these rules: Only take a HP for a new account. Always use the best rewards card for that reward category. Don't close a card unless you know you really should. Never use more than 35% of a credit limit. Recon as much and as best you can. Use the introductory period to the best advantage. Get the signup bonus. Whenever possible PIF or balance transfer so you pay less in interest. Never give an excellent rating when it is actually the norm. Always look for a discount as more is always better.
Always accept candy from strangers because they have the best candy or from people you know have good candy.
Message 10 of 12