If we quickly compare Credit One vs. Capital One, we immediately understand how similar they seem. Because they have such similar names and logos, many people believe that they are the same company, especially since they are both financial companies that issue credit cards. However, that’s where the similarities end.
Capital One is one of the largest and most diversified banks in the United States. They offer a wide range of financial products other than credit cards, including car loans, checking, and savings accounts. Instead, Credit One is a relatively small bank that only issues credit cards and does not offer any deposit account.
Now, as credit card issuers, Credit One is the same as Capital One in that they both offer cards to people with no or bad credit. But Capital One has cards for people of all credit levels. In this sense, Capital One also issues student and business credit cards, while Credit One does not.
Below you will find a detailed analysis of the similarities and differences between these two companies and what they offer to consumers.
Credit One vs. Capital One: Similarities and Differences
Offices and branches. Capital One has 755 units in 8 states (Connecticut, Delaware, Louisiana, Maryland, New Jersey, New York, Texas, Virginia, and Washington, DC). For its part, Credit One is an entirely online bank, so it does not have an office that you can go to.
Types of products offered. Capital One offers a much broader range of products, including credit cards, auto loans, mortgages, checking accounts, savings accounts, and money market accounts. Credit One offers only credit cards.
Card networks. Capital One has credit cards on the Mastercard and Visa networks. Credit One cards are all in the Visa network.
Terms and Conditions. You can find the terms and conditions for the different Capital One credit cards online. Instead, Credit One only posts “sample” terms and will give you the exact details after you’re pre-approved for a card.
Minimum credit score. There are Capital One credit cards for excellent, good, fair/limited, or even harmful. For its part, Credit One only offers cards intended for people with little/appropriate or bad Credit.
Credit cards to rebuild credit. The Capital One Secured Card charges no annual fee and gives you a $200 secured line of credit with a $0, $99, or $200 deposit. The Credit One Platinum Visa offers 1% cashback on purchases you make but charges an annual fee of $39.
Cards for people who have never had a credit card. Capital One’s QuicksilverOne offers 1.5% cashback, while Credit One’s Platinum Visa offers 1%. The annual fee for QuicksilverOne is $39, and Visa Credit One Platinum is between $20 and $99, depending on your financial situation.
Credit cards with cash rewards. The Capital One Quicksilver offers 1.5% cashback on all purchases and a $150 bonus when spending $500 in the first three months. That beats 1% Credit One Platinum on all purchases. And what’s better: the Quicksilver does not charge an annual fee.
Travel rewards credit cards. The Capital One Venture offers a whopping 50,000 bonus miles when you spend $3,000 in your first three months. In this sense, it awards 2 miles for every dollar spent on all purchases and has an annual fee of $95. In contrast, Credit One Bank does not have cards of this type.
Credit cards with an introductory APR of 0%. Capital One Quicksilver offers 0% for 15 months on purchases and balance transfers (3% commission per transfer). By contrast, none of Credit One’s cards have a 0% introductory APR.
Credit cards for students. Capital One’s Journey Student Rewards offers 1% cashback on all purchases and 1.25% if you pay on time. Likewise, it does not charge annual fees. As for Credit One, this is another area where it fails, as it lacks student products.
Credit cards for small businesses. Capital One Spark Cash for Business gives 2% cashback on all purchases and offers a $500 bonus when you spend $4,500 in the first three months. Likewise, it charges an annual fee of $95 that is waived the first year. By contrast, Credit One does not have business credit cards.
Credit One vs. Capital One: 4 Reasons Why Capital One is the Best Choice
We are not Capital One evangelists, and we think that smaller banks and credit unions are a great option, especially for people with bad credit. So, to be blunt, we’re not saying that Capital One is the best credit card issuer out there. We are saying that if you are not sure which company to choose, then Capital One is your best option. But to clarify things a little better, below we explain our reasons.
A more comprehensive range of products
Capital One offers a wide range of products, such as checking and savings accounts and auto loans, as a large financial institution. It also has credit cards to fit a variety of credit scores and needs, including student and business cards.
Not to mention, many of their credit cards offer rewards like extensive cash back and sign-up bonuses and high-end perks like Global Entry application fee credits and direct point transfers to airlines and hotels.
On the other hand, Credit One is an exclusively online institution that offers less than ten credit cards, including one from NASCAR. While their cards are available to users with bad or excellent credit, there’s no reason to choose any Credit One card when there are better options. And while some of Credit One’s cards offer cash back, none have comparable benefits to Capital One.
When you apply for a Capital One credit card, you’ll know your interest rate, annual fee, and card rewards.
Instead, with Credit One, you’ll only get access to a set of sample terms and conditions “for informational purposes only.”
To see which Credit One card you could get and its exact rates and rewards, you’ll need to first pre-qualify through a short online application. Although this will not affect your credit score, it is still a very opaque process.
However, the company’s opacity goes further. For example, you won’t know if your annual fee will be billed in monthly installments or all at once after the first year.
Although you won’t know precisely what the fees are on a Credit One card until you’ve pre-qualified, you can safely assume they’ll be higher than Capital One.
For example, the Capital One Secured Mastercard, aimed at people with bad credit, does not charge any annual fee. All Capital One credit cards are also free of foreign transaction fees, making them an excellent option for frequent travelers.
Credit One’s main card for wrong credit users is the Platinum Visa for Rebuilding Credit. Their annual fee is $0-$99, based on each customer’s creditworthiness. Therefore, we presume that the $0 price is reserved for users with better Credit, and if you are in that group, you have better cards to choose from in the market. And even if you’re not, you can probably get cards with lower annual fees from other companies.
Here are some other fees that Credit One charges that we feel are very high, which, in addition, are services that most other credit card companies offer for free.
- Authorized users: $19 per year
- Credit limit increase: No exact amount is quoted, although the company may impose a fee to process the request according to the terms.
- Duplicate of the monthly statement: 10 dollars
- Replacement card: Up to $25
On the other hand, and what we consider a big drawback, some Credit One cards don’t even offer a grace period, which means you’ll start accruing interest as soon as you make a purchase. With most other issuers, like Capital One, you won’t accrue interest on your purchases until after the billing cycle due date, which means you’ll never owe interest if you pay your statement balance in full each month.
best customer service
Ready for the biggest reason to choose Capital One over Credit One?
Although no financial company is universally beloved, Capital One is a central bank with a modern infrastructure and usual service standards. Its ConsumerAffairs rating is 3/5, based on 1,830 reviews submitted over the past year. Compare that to Credit One, which is 1/5, based on 184 reviews.
In this order of ideas, in a JD Power satisfaction study carried out in 2019, Credit One received 728 out of 1,000, ranking it in the last place among 12 banks. Instead, Capital One tied Chase for third place, scoring 807 points.
Research by NerdWallet found that Credit One was the subject of more than 5,000 complaints to the Better Business Bureau, putting it in “the top 1% of financial companies consumers complain about the most.”
People reported several issues, including:
- Slowness in processing payments leads them to incur late fees even if they have paid on time
- The inability to pay online forces them to pay over the phone or by mail, thus causing additional charges
- Difficulty closing accounts, causing problems with your credit reports
In addition, among Credit One’s terms and conditions, we find the following: “We may delay increasing your available credit by the amount of any payment we receive for up to 12 calendar days.” So let’s say you have a credit limit of $300, which is the maximum. You make a $200 payment because you want to use the card again soon. Credit One, however, can’t make that $200 available for up to 12 days, keeping the card off commission for nearly two weeks.
An advantage? Since most Credit One cards work on the Visa network, you’ll receive the company’s benefits like travel insurance and $0 fraud liability for unauthorized charges. Plus, Credit One cards report your behavior to all three credit bureaus ( Experian, TransUnion, and Equifax ) which means making payments on time (if they let you!) will help build your Credit.