Credit One is the devil

[IllinoisNative]

So, I've been rebuilding since I was diagnosised with cancer in 2010.  All of my debt was medical.  So I started with Capital One secured card (which was fantastic).  They raised my secured card to $750 and solicited me for the QuickSilver Visa card which I applied for and was approved.  In the meantime, Credit One solicited me and I was approved.  I then got  Merrick card and Kohl's card.  Now I have Chase Freedom, American Express and Discover soliciting and preapproving me.  So I'm on the right path.  

However, I'm keeping my other accounts open to help with my ultilization and AAoA which is why I'm not closing them.  I use the cards infrequently to keep them open but I always pay in full and usually before the statement closing date so that it reports a zero balance.  I didn't know that Credit One does not allow you to make a payment prior to the due date without being assessed interest charges.  They told me there is no period in which it avoid interest charges.  

Now, I work for a bank (A LARGE PREMIUM bank) in the credit card department who deals with this on daily basis. We allow a minimum of 21 days to make a payment before interest is assessed....unless it's a cash advance/balance transfer.  Then, there is no period in which to avoid interest charges.  But on a purchase balance?  We allow a minimum 21 days and follow the CARD ACT in that regard.  Credit One charges an annual fee that posts on your statement closing date (the crooks), so it posted after I paid the statement in full on the statement closing date leaving me with a balance.  Which is fine.  I monitor my accounts often.  I paid it within the week.  BUT THEY STILL CHARGED ME INTEREST.  It didn't occur to me that they don't provide a time frame to make a payment after the statement closing date and before or on the due date to avoid interest charges.

The interest charge is only $2 but the fact that you can't pay the annual fee to prevent a balance from reporting...and the fact that they charge interest IMMEDIATELY on purchases...makes me hate them.  Along with the fact that they don't offer AutoPay.  

Long story short, I will no longer use them.  I will keep them open until my AAoA improves but then I'm closing them.  

[Anonymous]

You should just close the account now.  It'll help your AAoA for the next 10 years, even when it's closed.  Most people like to go the sock-drawer route with unused credit cards, but Credit One is one of the few cards that I would advocate closing ASAP when it's no longer needed.  The AF and no-grace-period interest charges are a pain. 

[Anonymous]

Just close it. It will still be on your credit report for 10 years.

[xXIDaShizIXx]

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@IllinoisNative wrote:

So, I've been rebuilding since I was diagnosised with cancer in 2010.  All of my debt was medical.  So I started with Capital One secured card (which was fantastic).  They raised my secured card to $750 and solicited me for the QuickSilver Visa card which I applied for and was approved.  In the meantime, Credit One solicited me and I was approved.  I then got  Merrick card and Kohl's card.  Now I have Chase Freedom, American Express and Discover soliciting and preapproving me.  So I'm on the right path.  

However, I'm keeping my other accounts open to help with my ultilization and AAoA which is why I'm not closing them.  I use the cards infrequently to keep them open but I always pay in full and usually before the statement closing date so that it reports a zero balance.  I didn't know that Credit One does not allow you to make a payment prior to the due date without being assessed interest charges.  They told me there is no period in which it avoid interest charges.  

Now, I work for a bank (A LARGE PREMIUM bank) in the credit card department who deals with this on daily basis. We allow a minimum of 21 days to make a payment before interest is assessed....unless it's a cash advance/balance transfer.  Then, there is no period in which to avoid interest charges.  But on a purchase balance?  We allow a minimum 21 days and follow the CARD ACT in that regard.  Credit One charges an annual fee that posts on your statement closing date (the crooks), so it posted after I paid the statement in full on the statement closing date leaving me with a balance.  Which is fine.  I monitor my accounts often.  I paid it within the week.  BUT THEY STILL CHARGED ME INTEREST.  It didn't occur to me that they don't provide a time frame to make a payment after the statement closing date and before or on the due date to avoid interest charges.

The interest charge is only $2 but the fact that you can't pay the annual fee to prevent a balance from reporting...and the fact that they charge interest IMMEDIATELY on purchases...makes me hate them.  Along with the fact that they don't offer AutoPay.  

Long story short, I will no longer use them.  I will keep them open until my AAoA improves but then I'm closing them.  

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Honestly, I'd go ahead and close them. Its not worth being charged extra money, especially after a cancer diagnosis, I'm sure you've spent enough extra money as it is. Plus with all of those good cards you have, I'd just let it go.

[IllinoisNative]

Thanks guys.  I'm closing it now.

[1GaDawg85]

CreditOne preys on people because they know they can. "Most" people that get their card, don't know or don't care...they just want a credit card no matter the cost

[jim44]

I read about the "no grace period" on anything..... purchases etc that is why I've never taken advantage of their preapproval.  I have to admit though the offers from them are still coming after 4 years post BK but as my credit score has improved, so have their offers. The last offer I had was 19.99% interest and no AF however that "no grace period on purchases" is still in the T & C. JME. 

[CreditCuriosity]

As I have stated in other posts I use to work for credit one as a programmer/DBA... Worked with the marketing dept and they have ALL kinds of offers 19 dollar annual fees to huge annual fee.  Some have grace periods, some offers don't... It depends on what offer you were targeted for...  I am sure they have cards now with no AF as someone else has mentioned but no grace period.. 

Anyways, long story short OP has good enough credit now where he can cancel it and should as long as it doesnt impact his Utilization.

[jamesdwi]

Saying creditone is the devil, isn't justified there are a lot worse companies out there, I don't have a Creditone card and never have, but when compared to personal loan offers I have been receiving for the last 6 months or so, credit one is just a minor demon, 240% APR, 180% APR, 150% APR... now those are devils and begin to make loan sharks seem like the good guys. 

[IllinoisNative]

I agree if we are comparing Credit One to loans.  Those personal loan companies are horrific (I also get those offers in the mail).  But I think Credit One is the devil when compared to other credit companies out there.  There is no reason not to have an interest-free period on purchases when every other reputable (reputable as far as banks go...lmao) credit card company does.  What's the point of having a credit card when you can't even pay it off immediately to avoid a penalty?

I know...I know...if you're rebuilding you have to take what you can get.  I should have stuck with Capital One.  Lesson learned.