By : 
Mr Credit Card
Mr Credit CardBottom Line
Overview
Still, Credit One requires that you go through their pre-approval process that covers all other Credit One credit cards. Depending on their assessment of your credit worthiness, you may or may not be pre-approved for the X5 or any other credit cards. Going through this pre-approval or pre-qualification process involves only a soft pull and will not affect your credit score.
Aside from the 5% cash back, Credit One also offers features that are more commonly found in prime credit cards. They offer free Vantage 3.0 scores from Experian. They have a mobile app and their cards are eligible for digital wallets.
For prime consumers, the Credit One Bank Platinum X5 Visa might be a good card to plug in the holes in categories which you are not earning 5% cash back from your portfolio of credit cards. For rebuilders, this card offers a chance to earn cash back in an inflationary environment where it was only once possible if you had good credit.
Advantages and Disadvantages
| Pros | Cons |
|---|---|
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Card Details
| Annual Fee | $95 |
| Foreign Transaction Fee | 3% |
| Cash Back | Earn 5% cash back on the following categories: Gas, Grocery, Internet, Cable, Satellite TV, Mobile Phone. You can earn up to a combined spending on these categories of $5,000 year. |
| Starting Credit Limit | Min $500 |
| Chip Technology | Chip and Signature |
Fees and Credit Limits
The Credit One X5 has an annual fee of $95. The minimum starting credit limit is $500 though Credit One has been known to give higher credit limits. My suspicion are that if your credit score is on the high 600 low 700 range then you should expect a higher starting credit limit. Many people have gotten credit limits ranging from $1,500, $2,000 and even $5,000 on Credit One credit cards. Rebuilders who have mid 600 credit score should expect a starting credit limit close to $500.Earning and Redeeming Cash back
Earning Cash Back - The Credit One X5 allows you to earn 5% cash back on the following categories: Gas, Grocery, Internet, Cable, Satellite TV, Mobile Phone. You can earn up to a combined spending on these categories of $5,000 year. Once you reach the $5,000 spending threshold, you will earn 1% cash back from then on. For regular purchases, cardholders will earn unlimited 1% cash back.There are some exclusions that you have to be aware of. Firstly, the groceries category does not include warehouses like Sam's Club or Costco and nor does it include store whose main products are not groceries but happen to sell groceries. These include supercenters like Walmart and Target, drugstore or other retailers that also have to have a small grocery section. Purchases from Paypal are also excluded from the 5% category.
Redeeming Cash Back - Cash back is redeem automatically via statement credits every month.
Credit One More Program - This program allows you to earn up to 10% cash back with select online merchants and their offers. You have to find out what offers are available and from which merchant. And if anything fancies you, just use your Credit One card to make the purchases. You will earn cash back automatically. You can find what deals are available here.
Other Benefits
Traditional Visa Benefits - basic features like $0 liability on unauthorized purchases, Emergency card replacement, Emergency Cash Disbursement and 24/7 pay-per-use Roadside Dispatch.Free Experian IdentityWorks for Online Applicants - If you apply for Credit One Bank credit cards online, you can apply for a free Experian IdentityWorks (worth $112/year). You do not have to be approved to get this. Experian IdentityWorks is an ID theft protection service.
Free Experian Vantage 3.0 Score - All Credit One Bank provides free Vantage 3.0 scores from Experian.
Mobile App and Ability to change due dates - Credit One has a mobile app and allow you set your own due date as well.
Credit Protection Program - Credit One has an optional credit protection program whereby you pay $0.96 for every $100 of balance. In the event of an involuntary unemployment or being disabled, your minimum payment will be suspended for 6 months. Furthermore, there is a up to $10,000 balance payoff for beneficiaries in the event of a death to the cardholder.
Cash Back Comparisons
| Card | Annual Fee | 5% Cash Back Categories | Earning Limits | Overlapping Categories |
|---|---|---|---|---|
| Credit One X5 | $95 | Gas, Grocery, Internet, Cable, Satellite TV, Mobile Phone | Up to $5,000 in annual spending for all categories | |
| Blue Cash Preferred | $95 |
6% at supermarkets (up to $6,500 in annual spending) 6% on streaming 3% on Transit Travel 3% on Gas |
$6,500 year on supermarket spending No limit for other categories |
Groceries, Gas, Streaming |
| Capital One Savor | $95 |
4% cash back on dining, entertainment, and popular streaming services 3% at grocery stores |
Unlimited Cash Back for Bonus Categories | Streaming services, groceries |
| Citi Custom Cash | $0 | 5% on Restaurants, gas stations, grocery stores, select travel, select transit, select streaming services, drugstores, home improvement stores, fitness clubs, live entertainment | $500 per month on highest spending category | Gas, Groceries, Streaming Services |
| US Bank Cash+ | $0 |
Choose 2 categories: 5% on cell phone providers, Department stores, Electronics Store, Fast Food, Furniture Store, Ground Transportation, Gym/Fitness, Home Utilities, Movie Theaters, Select Clothing Stores, Sporting Goods Stores, TV, Internet & Streaming Services Choose one Category from Gas & EV Charging Stations, Groceries, Restaurants |
Up to $2,000 per quarter on two 5% categories of your choice Unlimited cash back on one 2% category of your choice |
Cell Phone Providers, TV, Internet & Streaming Services |
As you can see from the table above, the Credit One Bank X5 is very competitive with other bonus category credit cards. You will also observe that we can split these bonus category competitors into two groups. The first group have no annual fee while the second group have (coincidentally) $95 annual fee. We can also see that with the exception of the Capital One Savor (which allow you to earn unlimited cash back though it tops out at 4%), all the other 5% bonus category credit cards cap the amount that you can earn 5% based on spending amount either by month, by quarter or by year.
As far as spending caps go, Credit One X5 offer 5% cash back on a few key "everyday purchase" categories for up to $5,000 in annual spending for all combined categories. This is equal to $416 in monthly spending on these categories and is quite comparable with the Citi Custom Cash, which caps monthly spending to $500 but only for the highest spending category. The US Bank Cash+ allows you to choose 2 categories that earn you 5% cash back for up to $2,000 a quarter. That works out to $666.67 a month. The Blue Cash Preferred puts a cap only on their grocery spending ($6,500 in annual spending for this category). The only card above that has no spending cap and allow you to earn unlimited cash back is the Capital One Savor. However, with a $95 annual fee, the maximum cash back you can earn for a bonus category is 4%, which is lower than the 5% of the other cards including Credit One.
As far as specific categories go, there are many overlapping categories that the Credit One X5 has with it's competitiors. For example, gas, grocery and streaming services are common categories. However, Credit One X5 has two unique categories that stand out. They are cable and satellite TV. While other cards offer internet and streaming services, sometimes, cable and Direct TV are not covered. If you have not "cut the cord" and/or are using Direct TV, then the Credit One X5 will cover you.
Our Evaluation: Fill in the Gaps for Prime Cardholders, A Chance to Battle Inflation for Rebuilders
Evaluation on Cash Back Basis
As far as cash back earnings go, Credit One X5 is one of the few bonus category credit cards that actually give you 5% cash back. Most bonus category credit cards have a rewards earning rate of 3% or 4%. Having said that, among bonus category credit cards that offer 5% cash back, the Credit One X5 faces stiff competition from cards that have no annual fee (versus $95 for the Credit One X5). For example, both the Citi Custom Cash and US Bank Cash+ have no annual fee and also have overlapping categories like groceries, gas, internet, streaming services and mobile pan plans. Though there are other $95 annual fee cards like the Blue Cash Preferred and the Capital One Savor, it is hard to beat a no annual fee bonus category card.Having said all that, the Credit One X5 has 2 unique categories that no other cash back credit card has. And that is the cable and satellite tv category. If you still have cable and have not "cut the cord" or are using Direct TV as your satellite TV provider, them the Credit One X5 is the only card that will let you earn 5% on these categories.
As a Rebuilder Card
While the Credit One X5 faces tough competition among no annual fee 5% bonus category credit cards, you have to remember that it is competing against prime credit cards. If you are a rebuilder, chances are that you will not be approved for the Citi Cash Returns or US Bank Cash+. Among rebuilder credit cards for fair credit, the X5 is the only 5% bonus category credit card. And you can save 5% cash back on everyday purchases items like gas and groceries which are facing inflation and increasing prices where previously, only those with prime credit have the opportunity to do so. Hence, for a rebuilder who has rebuilt his credit steadily but are not prime yet, this is a great cash back credit card to get until you have a shot at other prime cash back credit cards.However, some of you rebuilders may have already improved your credit enough to the point where you have a few no annual fee credit cards with high credit limits. In that case, you may find the X5 not as appealing.
Past Reputation vs Rewards
One of the dilemas for those looking at this card is Credit One's past reputation. They used to only issue subprime credit cards and most subprime issuers do not exactly have a stellar reputation among rebuilders. Terms like "predatory" are often associated with issuers like Credit One. Yet recently, Credit One has been trying to move up the credit scale by issuing a few cards like this one that targets prime customters as well as their existing customer base. And to be honest, the terms and rewards are quite good and many have been pre-approved for decent credit limits ranging from $1,500 to $3,000 as well.If you have good credit and are considered to have "prime" credit, then I can understand if you take a pass on this card based on it's reputation as a subprime issuer. The X5 also has an annual fee and many of their 5% categories overlap and can be found in bonus category credit cards with no annual fee. But if you still have cable or satellite TV, this card may just be the card to "plug the gap" in your portfolio of cash back credit cards.
If you are a rebuilder and your credit score is shy of prime status, then the Credit One X5 makes a compelling case if the 5% cash category interest you (after factoring in the $95 annual fee, the "net cash back" on the bonus category is 3.1%). There are no other subprime credit cards that offer 5% cash back and even many prime cash back credit cards do not offer 5% cash back on bonus categories. Instead of having to wait until your credit improves further, you can get into some serious cash back earning now with the Credit One X5 (albeit with a $95 annual fee).
If you are an existing Credit One cardholder, you may be offered this card as an "upgrade". Just be aware that Credit One does not do any PC (product change). Instead, you will get an additional Credit One credit card if you accept a new and perhaps better offer from Credit One.