Although they sound alike, make no mistake that Capital One and Credit One offer very dissimilar credit cards. Capital One is a dominant issuer and suits folks with excellent, good, or average credit. Credit One is a smaller financial institution geared toward consumers with bad or no credit. To quickly navigate to what you’re interested in most, use the links below.
Capital One® — Best for Average/Good/Excellent Credit
Capital One is a Fortune 500 diversified bank with a broad offering of financial services and products to consumers and businesses. It is among the top 10 largest banks in the U.S. with respect to deposits. The bank branches are primarily located in the District of Columbia, Louisiana, Maryland, New Jersey, New York, and Virginia.
Capital One offers credit cards with many benefits:
- Online Banking Access: Allows you to easily and quickly manage your account whenever.
- Capital One Wallet App: Provides instant purchase notifications, receipt capture, digitized gift cards, and purchase details.
- 24/7 Customer Service: Available from real human beings.
- Automatic Account Alerts: Alerts via email or text keep you up to date on your account, as well as 24/7 monitoring and security alerts to inform you whenever unusual activity is detected.
- Fraud Coverage: Interactive alerts in real time via email, text, or phone whenever fraudulent use of your card is attempted, with 100 percent coverage against fraud liability.
- No Foreign Transaction Fees: Never any on international purchases.
- Travel & Auto Rental Insurance: For peace of mind when you’re away from home.
- Free Capital One Credit Tracker: Provides your credit score, a what-if simulator, and more.
- Second Look Program: Recognizes and informs you of unusual or duplicate charges.
- Digitally Enhanced Transaction Details: Allows you to keep track of all your activity.
- Extended Warranty: Additional coverage on items purchased with a Capital One Card.
3 Capital One® Credit Cards for Excellent Credit
If you have excellent credit, you might select among these three Capital One cards:
3 Capital One® Credit Cards for Average/Fair Credit
In addition, Capital One offers similar cards for consumers with good to average credit ratings with somewhat higher interest rates.
Credit One Bank® — Best for Poor/Limited Credit
As mentioned, Credit One cards are for consumers with poor credit. Their cards offer various features, such as zero fraud liability, automatic alerts, automatic reviews for more credit, and free credit tracking, but have low credit limits ($300 to $500).
Credit One reports monthly to all three major credit bureaus, which is important for rebuilding your credit. Unfortunately, Credit One does not specify the individual terms for each credit card until you apply, so we’ll give a general summary:
- Purchases – 18.15% to 24.15%, based on your creditworthiness when you open your account. This APR will vary with the market based on the Prime Rate.
- Transfers – Same as purchases.
- Annual Fees – $35 to $75 for first year, $35 to $99 thereafter. $19 for adding an authorized user.
Note: Beware that Credit One charges interest starting on the posting date, not the monthly payment date.
These cards serve two different populations. If you have an average or higher credit rating, Capital One offers great benefits, reasonable rates, and quick payments. If you are a sub-prime borrower, the Credit One cards are a perfectly legitimate way to get back into the game. They have higher fees and tend to nickel and dime you, but they do report your activity to the credit bureaus, so over time you can raise your credit score and apply for better cards.
Editorial Note: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.