Should I activate the CreditOne Card

[unusuallyconfused]

When it comes to stuff as important as this: NEVER take anybody's word for it - look at your documentation.

First, take a look at your Credit One agreement. Since you have not activated the card yet, keep this in mind:

"You may still reject this plan, provided that you have not yet used the account or paid a fee after receiving a billing statement. If you do reject the plan, you are not responsible for any fees or charges". 

In other words, you've applied for the card, got approved for the card (and reasonable to assume Credit One has an account made up for you and has or is in the process of reporting the account to the credit bureaus) and you shall receive the card.

Obviously don't activate it. By not activating it, you're "rejecting the plan". 

But don't leave it at that. You'd be a great fool to think that just by not activating it, everything is going to go according to plan.

See Section 21: Termination of Account: "This Account may be terminated by you at any time by giving notice in writing to Credit One Bank..."

Don't activate the card.

Photocopy the card, keep it for your records and: 

1. Certified letter sent to Credit One advising them that their card is being returned to them, that you did not activate the card (thus "rejecting the plan"), did not use the card in any and wish to CLOSE the account immediately. Obviously request written confirmation that this has/will be done.

After that, you're in the clear regardless of what happens.

Don't take this stuff lightly and put a little effort into making sure things are done correctly.

As an aside: looking at your scores, beggers can't be choosers. Rebuilding credit is a challenge and in some cases you should be prepared to pay for the process. If that means getting some crappy card with high fees, then consider those fees "payment" as part of the process of establishing a credit history. Yes, I have this card (started at $300 limit, then gave me a $150 increase four months after opening the card - CLI didn't cost me anything) and it's helping me. After a year I will dump this Credit One card so as to avoid the high annual fee.

Thus, I totally disagree with everybody here who says you should dump this card. My vote is to activate it and use it. Get what you can out of it and stop worrying about the fees and interest. Otherwise, read your paperwork and do everything by the book so that you are SURE this card will not come back to haunt you later...Good luck!

[mkkbell]

Thank You!!

I will activate this card and use for 11 months and cancel to avoid another large fee

Mark

[goosedog]

Whether you activate the card or not, it will still report to the credit bureau. If you recall, when you applied for the card, it told you what the rate would be, the annual fees, yada yada yada, so there's no "rejecting" this card because you knew what you were applying for when you hit submit. It's not the creditors problem if you are now having second thoughts about the card.

The information was disclosed to you prior to being approved. It will just show open and closed with a zero balance and reported for 1 month.

[mkkbell]

got it thanks...

[tld409]

I would recommend not activating Credit One. I believe interest is charged starting the day of a purchase.  In other words, there isn't a 'grace period' like your cap one cards will have. Stick with your 2 cap one cards and within 6 months, you should be able to receive limit increases.  Just use capone cards regularly and only leave around 9% or less on one of tthe cards monthly so that it post on your reports.  This will help improve your credit score quicker than having credit one in your profile.   I then would suggest joining a good credit union and applying for  one of their cards once your scores are in the mid 600's. 

[trying_to_B_good]

ive had one for 6 months now. I'm in the rebuilding phase, of my credit carrer too(lol)! they are a decent enough company. the fees are high but like most other people have said the report faithfully. start with a 300 limit...and get regular increases....which you have to pay for(nickel and dime)!  If you need the credit for something use it.....but if not then try to keep the balance low and the reason you get charged every month is they split the annual fee up for you....not just charge you for no reason.  If you pay the fee up front =no charges each month.  activate it use it then dump it later! thats what im doin with it....i needed brakes for the car so when that is paid it will be dumped.....better than a small  installment loan on the credit.