Q: Hello, I received an offer in the mail from YesCreditOne.com. Is this a scam? Because I am having a hard time finding information about the issuer, Credit One Bank.
A: It’s funny you mention Credit One Bank. A few years ago I had a roommate – albeit a short-lived one – that had horrible credit. However he was able to get a credit card from Credit One Bank. I can’t recall a great deal about his personal experiences with them, but I can tell you some things I do know about the issuer…
YesCreditOne.com is not their only website
If the reason you think Yes Credit One is a scam is because the website doesn’t have much information on it, then you are mistaken. The reason there is not much information on YesCreditOne.com is because it appears to be a secondary site setup solely for offers sent through the mail, like the one you received. The official site for Credit One Bank has much more information on it.
Conclusion? The YesCreditOne.com website is not a scam.
Are their offers any good?
Well for starters, it’s important to point out that Credit One Bank focuses on credit cards for bad credit… and it’s hard to call any cards in that category “good” since the typically charge fees and have high interest rates. So we have to look at them in context to others in their league.
Here’s my review of the YesCreditOne.com card offer as of February 2011:
- The credit card offered is a Visa
- The APR listed is 23.90% or 26.90%. Both are very high but that is not unusual for cards in this category.
- The annual fee for the first year is $75.00 and $99.00 each year after that (billed at $8.25 monthly)
- I do not know if there is a processing fee or not. I cannot view the Credit One Bank card application directly because I don’t have an offer code to enter. From what I can seen on the YesCreditOne.com website, there is no mention of a processing fees but I have read reviews elsewhere where people mention a processing fee (But is there for this particular card? There doesn’t appear to be.)
- The credit line on the YesCreditOne site says “up to $1,500.” But remember that “up to” means you may or may not get anything close to that. Purportedly it can be as low as $300 (and from what I recall, $300 is what my former roommate had as his credit limit on his card).
I don’t know exactly how long Credit One Bank has been around, but it has been at least a few years so yes, they are a real company and a real bank chartered by the OCC (Office of the Comptroller of the Currency). They are not a scam – their operation is completely legal.
Are their credit cards a good deal? No, the fees are high and so are the interest rates. But that does not mean they are a scam. To the best of my knowledge, the Yes Credit One/Credit One cards are legitimate and if used responsibly, they can be used to build credit.
If you would like to check out alternatives, please see my sponsored rankings of the best secured credit cards to rebuild credit.
Or better yet, use the below tool to find the best offers matched to your credit.