What is credit one american express credit limit?

But if you’re hoping to build your credit without putting down a deposit or paying exorbitant fees, it could be a solid option thanks to its no-fuss rewards earning and redemption structure and impressive cardholder perks.

Other Notable Features: Pick your payment due date, zero fraud liability, access to pre-sale tickets, car rental loss and damage insurance, travel accident insurance, purchase protection, return protection, extended warranty, Amex Offers, Free online credit score and credit report summary (terms apply).

As a general cash back credit card, the Credit One Bank American Express Card falls short, offering a rock-bottom cash back rate and carrying an annual fee that’s hard to justify for cardholders with excellent credit.

But if you’re hoping to build your credit without putting down a deposit or paying exorbitant fees, it could be a solid option thanks to its no-fuss rewards earning and redemption structure and impressive cardholder perks.

As a credit-building tool, the Credit One Bank American Express Card is a solid choice. Its costs are low – the annual fee is only $39 – certainly lower than other Credit One cards. Other features like the $500 starting credit limit make it a bit easier for cardholders to boost their credit scores by keeping their credit utilization ratios under 30% (or only using $150 of available credit at the end of a billing cycle). While the perks and benefits of the card are pretty bare-bones, for people with less-than-stellar credit, this card offers plenty

The Credit One Bank American Express card offers a simple cash back earning scheme: You earn 1% cash back on all purchases, regardless of where or what you buy, and cash back is automatically applied to your account each statement period as a statement credit. If you’re looking for a no-fuss way to reduce your monthly balance, the Credit One Bank American Express card will do the job.

That said, a 1% cash back rate pales in comparison to the rate offered by many of the best cash back cards. Not only will most cash back cards match the Credit One Bank American Express card’s cash back rate, some can get you 1.5%-2% back on all purchases or even more on purchases in specific bonus categories.

Even some credit-building cards can match or beat the Credit One Bank American Express card’s cash back rate. Consider the Petal® 2 “Cash Back, No Fees” Visa® Credit Card, which offers 1% cash back on eligible purchases right away and allows you to increase your cash back rate to up to 1.5% back after you make 12 on-time monthly payments, all without paying any fees.

Additionally, automatic redemption as a statement credit, while convenient, means you won’t have the option of requesting a check or redeeming your cash back for travel or gift cards.

See related: Best flat rate cash back cards

The Credit One Bank American Express card offers some quality perks for cardholders, especially compared to most credit-building options. Benefits you’ll enjoy with the card include:

While these perks fall short of those offered by higher-end rewards cards, they’re very respectable for a credit-building card.

You can check if you prequalify for the Credit One Bank American Express card online before you apply, with no impact to your credit score. This is good news if you’re unsure of your approval odds or your credit score is less than stellar, as a hard credit inquiry can be a harder blow to your credit score.

See related: See prequalified credit card offers in CardMatch

Since the Credit One Bank American Express card is an unsecured card, no security deposit is required. This is a nice feature if you need to build your credit but don’t want to put down a lot of money to start. The card’s minimum starting credit limit – $500 – is significantly higher than the average credit-building card, and cardholders can expect an increase in their credit limit over time as long as they exhibit good credit behaviors like paying the bill in full and on-time every month. The higher your credit limit, the easier it is to keep your credit utilization ratio in check. If you are offered the $500 credit limit, be sure to track your spending to ensure your credit utilization ratio stays below 30%. Keeping your credit utilization ratio as low as possible is key to building good credit since this is a major factor in credit scoring.

See related: How to get a credit limit increase with Credit One Bank

The card doesn’t provide a lot of long term value. There are certainly other credit-building cards on the market that top the rewards rate (the card carries a 1% rewards rate). Also many of the card’s touted perks – like access to Amex Offers, and travel and purchase protections – are outclassed by other similar cards.

While the Credit One Bank American Express card’s cash back program is lackluster on its own, the $39 annual fee is another reason potential cardholders should pause before considering this card. Even with no cash back limit, it will be difficult to make up the card’s annual fee via cash back rewards, though you may come close.

To break even with the Credit One Bank American Express card, you’d have to charge at least $3,900 per year or $325 per month with the card. Depending on your spending habits, that may be doable, given the card’s initial minimum credit limit is $500.

Still, it may be best to approach the card’s cash back program with less of a rewards mindset and instead consider it a means of reducing the total cost of card ownership.

Unfortunately, fees are a common feature of unsecured credit-building cards, and plenty of them – especially credit cards for people with bad credit – charge even higher annual fees or carry an array of initiation, maintenance and program fees, without offering any sort of cash back.

By contrast, Credit One Bank American Express card’s fees are pretty straightforward: A $39 annual fee, a $19 fee if you decide to add a card for an authorized user and an optional payment protection plan fee (based on your monthly billing statement).

If you don’t mind putting down a deposit, there are a few secured credit cards that offer a better rewards rate and bonuses without charging an annual fee. While you’ll have to tie up some money initially, you can get it back when you close your account. Some secured cards will even let you upgrade to an unsecured card if you make consistent on-time payments. Many of the best student credit cards also offer solid cash back programs without charging an annual fee.

The Credit One Bank American Express card offers no sign-up bonus. This is disappointing since many cash back cards offer a sign-up bonus of $100 or more. To be fair, though, those cards are typically geared for cardholders with excellent credit.

Still, some competing credit-building products manage to offer some form of a sign-up bonus. The Discover it® Secured Credit Card, for example, will match all the cash back you earn at the end of your first year, and the Amazon Credit Builder offers a $10 Amazon.com gift card as a sign-up bonus.

Cardholders should avoid carrying a balance on this card. The card’s APR is significantly higher than the average credit card APR. Though the 28.74% variable APR is lower than some credit-building card APRs, there are certainly cards on the market that are geared toward credit builders that offer lower APRs.

Petal® 2 “Cash Back, No Fees” Visa® Credit Card

A unique credit-building offering, the Petal® 2 “Cash Back, No Fees” Visa® Credit Card allows you to earn true cash back with no deposit and no fees of any kind. You’ll earn 1% back on eligible purchases to start, with this rate increasing to 1.25% after you make six on-time monthly payments and to 1.5% after 12 on-time monthly payments. Additionally, since the issuer considers alternative credit data in its approval decisions, it’s a great option for someone with spotty credit but a good income and bill payment history.

Discover it® Secured Credit Card

Another card that combines help building credit with cash back rewards, the Discover it Secured card offers 2% back at gas stations and restaurants (on up to $1,000 in purchases per quarter) and 1% back on all other purchases. This is a respectable rate even compared to many general cash back cards. Plus, Discover will match all your cash back in the first year.

Capital One QuicksilverOne Cash Rewards Credit Card

Designed for cardholders looking to bolster their credit scores, the Capital One QuicksilverOne card offers unlimited 1.5% cash back on every purchase. While this is not the most impressive cash back rate, it should help to offset the card’s $39 fee. You’ll also have a chance at a credit limit increase if you make six consecutive on-time payments.

See related: Credit One vs Capital One