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I filed for BK at the end of March 2019. In June of that year I got a preapproval notice in the mail from Credit One. $99 annual Fee waived the first year, $2000 SL. The usual $8.25 billed monthly the second year on, and typical to credit one, no grace period on purchases. That starting line has grown to $2400. I almost closed them after the first year but didn't because I needed the padding for utilization, and they where the first card to give me a shot out of BK. Interest rate is high, but no higher than other cards of this category.
Now on to why I say unicorn. I log in today and find an offer for a second card. $1500 SL, same expected high interest BUT here's the difference. This one has a annual $29 fee NOT billed monthly AND it has a grace period.
I was never aware that Credit One had a low annual fee and offered a grace period.
I know Credit One has a bad rep around here, and surely deserved. I can only say in my experience they have been one of the better companies to deal with during my rebuild process.
They do have a bad rep, but they're also a valuable lifeline for many when rebuilding. They have expanded their portfolio in recent years and aren't exclusively in the fee-harvester business these days. They even have some products now that have no annual fee, earn rewards, and have grace periods. While those may not be available to someone fresh out of a BK, with many recent derogs, or with a very low credit score, they are definitely more of a traditional credit card product.
@Maker_Bayfield, I see no benefit in adding another Credit One card. Rather, I'd be charting out when it's time to rid yourself of the one you have.
A single card with a 2k limit that's aged a bit can be a great springboard for building. And because it'd still be present on your report, it's also a decent springboard if the card is closed.
What other cards do you have right now, and what do their limits look like?
Actually the having a grace period part isn't that unheard of anymore. It used to be the case a few years back, but recently I've seen (and in fact have been getting them myself) offers for cards with a lower AF (billed annually), a slightly lower interest rate, AND. a regular 25 day grace period. Credit One has admittedly gotten better over the years, though they're still a ways away from the prime banks.
While this second card may have some benefits if you need the CL to make things easier to pay for, it would have very little advantage for your credit, and at this point, I imagine you could pick up something better (either cashback rewards, or lower interest rate). JMO.
Having said that, I think Credit One is hoping to move upmarket. They have a couple of cards with decent rewards, and at least one on the Amex network, which is not what you expect from a subprime.
I get why they have a bad rep, but as always YMMV.
The Credit One card I have has a grace period, and 5 months ago they gave me a full year with no AF after I wanted to close. They've since done away with the AF completely. On top of that, I haven't used the card in a year. I will keep it sock drawered unless something changes.