Credit One charges an annual fee on every card it offers
Credit One Bank charges an annual fee on all of its credit cards. The fee ranges from $35 to $99 per year, depending on which card you hold. Unlike many other credit card issuers, Credit One does not offer a card without an annual fee, and the fee is charged even if you never use the card.
The annual fee appears on your statement once per year, usually in the month you opened the account. You are charged this fee regardless of your credit limit, your spending, or whether you carry a balance. This is a key difference from cards issued by larger banks and credit unions, where annual fees are rare or reserved only for premium rewards cards.
Key Takeaways
- Every Credit One card charges an annual fee between $35 and $99, with no fee-free option available.
- The annual fee is charged once per year on your account anniversary, even if you do not use the card.
- Credit One's cards are typically marketed to people rebuilding credit, and the annual fee is part of the cost of access to that credit.
- You can compare the annual fee cost against the card's rewards rate and other features to decide whether the card makes sense for your situation.
How much the annual fee actually costs over time
If you hold a Credit One card for five years, the annual fee alone will cost you between $175 and $495, depending on which card you carry. This cost stacks on top of any interest you pay if you carry a balance, and it is separate from any other fees the card may charge (such as late fees or foreign transaction fees).
The annual fee is charged whether or not you use the card. Many people open a Credit One card, use it once or twice to build credit history, and then forget about it—but the annual fee continues to be charged every year. If you are not actively using the card and monitoring your statement, you may not notice the fee being deducted.
Which Credit One cards have which annual fees
Credit One offers several different cards, and the annual fee varies by card. The entry-level cards typically charge $35 to $39 per year, while cards marketed as "premium" or with higher credit limits may charge $75 to $99 per year. The exact fee depends on the specific card product you are approved for.
When you apply for a Credit One card, the issuer will disclose the annual fee in the terms and conditions before you complete your application. You should review this information carefully, because the fee is non-negotiable—Credit One does not waive annual fees based on customer request or account history.
Why Credit One charges an annual fee when other issuers do not
Credit One's business model relies on annual fees because the bank primarily serves people with limited credit history or past credit problems. Traditional banks and credit unions can afford to offer cards without annual fees because they earn money from interest charges on balances and from merchant fees. Credit One charges an upfront annual fee to offset the higher risk of lending to people rebuilding credit.
This does not mean the card is a bad choice for your situation—it means you should understand what you are paying for. If you are rebuilding credit and cannot get approved for a card from a larger issuer, the annual fee may be worth the cost of access to credit and the opportunity to improve your credit score over time.
Comparing the annual fee to rewards and other benefits
Some Credit One cards offer cash back or other rewards on purchases. If a card charges a $39 annual fee but offers 1% cash back on all purchases, you would need to spend at least $3,900 per year on the card just to break even on the fee. If you spend less than that, the rewards do not offset the cost of the annual fee.
Before opening a Credit One card, calculate whether any rewards or benefits justify the annual fee for your spending pattern. If you plan to use the card only occasionally or to hold it for credit-building purposes without regular spending, the annual fee is a pure cost with no offsetting benefit.
What happens if you close the card
If you close a Credit One card, you will not be charged the annual fee in future years. However, you should check your statement to confirm that the fee stops being charged after you close the account. Some cardholders have reported being charged the annual fee even after requesting account closure, so follow up with the issuer in writing if this happens to you.
Closing a card does have a small negative effect on your credit score, because it reduces your total available credit and may increase your credit utilization ratio if you carry balances on other cards. If your only goal is to stop paying the annual fee, you might instead keep the card open and unused—the fee will still be charged, but the card will continue to help your credit history.
Alternatives to Credit One if you want to avoid annual fees
If you are rebuilding credit and want to avoid annual fees, a secured credit card may be a better option. Secured cards require a cash deposit but typically charge no annual fee. You can open a secured card through many banks and credit unions, and after 12 to 24 months of on-time payments, you may be able to graduate to an unsecured card.
Credit unions often offer credit-builder cards or secured cards with no annual fee to their members. If you have access to a credit union account, check what cards they offer before applying to Credit One. You may also find that after six months to a year of rebuilding your credit with a secured card, you become may be able to access for cards from larger issuers that charge no annual fee.
Frequently Asked Questions
Can I get the annual fee waived if I call Credit One and ask?
No. Credit One does not waive annual fees based on customer request, account history, or spending. The annual fee is a fixed part of the card's terms and cannot be negotiated. If you want to stop paying the fee, your only option is to close the account.
Is the annual fee charged the first month or after a year?
Credit One typically charges the annual fee in the first month after you open the account, not after a full year has passed. This means you will see the fee on your first statement. The fee is then charged again on the anniversary of your account opening each year.
What if I don't use the card—do I still have to pay the annual fee?
Yes. The annual fee is charged regardless of whether you use the card, carry a balance, or make any purchases. The fee is a cost of holding the account, not a cost of using it.
Does Credit One charge any other fees besides the annual fee?
Yes. Credit One also charges late fees, foreign transaction fees, and other standard credit card fees. The annual fee is separate from these charges. Review the card's full fee schedule in the terms and conditions to understand all costs.
If I pay off my balance in full each month, does that reduce the annual fee?
No. The annual fee is charged the same way regardless of whether you carry a balance, pay in full, or do not use the card at all. Paying your balance in full will save you interest charges, but it will not reduce or eliminate the annual fee.