Credit score One Wander assessment: Journey rewards with honest credit score

Snapshot

BEST FOR TRAVEL

Credit score One Financial institution Wander® Card

Intro provide

10,000 Bonus Factors

Common APR

25.49% Variable

Really helpful Credit score Rating

Truthful to Good 
(580 – 740)

Credit score One Financial institution Wander Card Overview

Whereas it’s removed from the greatest journey bank card on the market, the Credit score One Wander Card fills an enormous hole within the journey rewards card market: It’s obtainable with solely honest credit score.

Since almost all competing journey playing cards require candidates to have a minimum of good credit score to be accredited, the Credit score One Wander Card might make sense for people who find themselves engaged on their rating however nonetheless need an opportunity to earn rewards on quite a lot of travel-related purchases. Even when you solely have a 600 credit score rating, the Credit score One Wander Card might be an excellent match, particularly when you spend quite a lot of time on the street or in resorts (due to its elevated rewards charges on eligible lodge and rental automobile bookings in addition to eligible journey and gasoline). It’s additionally an unsecured bank card, so that you gained’t must tie up lots of in a safety deposit simply to get began as you’ll with a secured card.

That mentioned, the cardboard comes at a excessive value of $95 per yr. That’s on par with the annual price charged by among the greatest journey and rewards bank cards available on the market — playing cards that have a tendency to hold extra precious rewards and higher journey perks and bonuses. The cardboard’s APR can also be fairly excessive, so it might be a dangerous selection when you suppose you’ll want to hold a steadiness now and again. And whereas the cardboard gives a pleasant mixture of redemption choices, its rewards program merely can’t compete with these of the highest journey playing cards from Chase, Amex and Capital One in relation to rewards flexibility.

Credit score-builders wanting to earn rewards on journey may get loads of worth out of the Credit score One Wander Card, however a lower-cost credit-building card might make extra sense for others.

What are the benefits and downsides?

A deeper look into the present card provide

Fast highlights

• Rewards fee: Earn 10X factors on eligible resorts and automobile leases booked utilizing the Credit score One Financial institution journey web site, 5X factors on eligible journey, eating, and gasoline purchases, and 1X factors on all different purchases
• Welcome provide: Earn 10,000 bonus factors after spending $1,000 on eligible purchases within the first 90 days
• Annual price: $95
• Buy intro APR: N/A
• Stability switch intro APR: N/A
• Common APR: 25.49 p.c (variable)

Present welcome provide

The Credit score One Financial institution Wander Card is presently providing 10,000 bonus factors after you spend $1,000 on eligible purchases in your first 90 days as a cardholder. These factors are value 1 cent every, giving this bonus a price of $100 when you redeem for an announcement credit score, present playing cards or journey.

This bonus is a little bit of a blended bag: On one hand, sign-up bonuses are laborious to search out on playing cards obtainable with solely honest credit score and the Wander card’s bonus may fully cowl its annual price within the first yr. Assuming you already spend $1,000 over 90 days on on a regular basis purchases, this bonus may make the Wander card a much less dangerous possibility than many unsecured credit-building playing cards that cost a decrease annual price however provide no bonus or rewards.

However, the cardboard’s bonus is low in comparison with the gives you’ll discover on a lot of the journey and rewards playing cards obtainable at this worth stage (and even in comparison with most no-annual-fee journey playing cards). Whereas these playing cards could also be out of attain with solely a good credit score rating, their bonuses — typically a minimum of double the worth of the Wander card’s — might make them value ready for as you’re employed to enhance your rating.

Whereas solely a handful of playing cards obtainable with honest credit score carry sign-up bonuses that may compete with the Wander card’s, they could provide higher general worth given the Wander card’s excessive annual price. The Uncover it® Secured Credit score Card, for instance, comes with a primary yr Cashback Match™, with Uncover matching all of the money again you’ve earned on the finish of your first yr. Contemplating the Uncover it Secured costs no annual price, that might simply beat out the whole worth provided by the Wander card. In the meantime, the Capital One Walmart Rewards® Mastercard®* is without doubt one of the few unsecured playing cards obtainable with honest credit score that comes with a welcome bonus. It costs no annual price and gives a bonus of 5 p.c money again in Walmart shops on your first 12 months if you use Walmart Pay.

Rewards fee

For a bank card obtainable with honest credit score, the Credit score One Financial institution Wander Card gives very beneficiant rewards charges — maybe the very best and widest-reaching charges obtainable within the credit-building card class. The cardboard’s charges even rival these of among the premier journey rewards playing cards available on the market, making it a aggressive rewards possibility for frequent vacationers who don’t prioritize journey perks like credit for expedited safety screening or transferring factors to journey companions (neither of which can be found with the Wander card).

The way you earn

Credit score One Financial institution Wander cardholders earn 10X factors on eligible resorts and automobile leases booked utilizing the Credit score One Financial institution journey accomplice, 5X factors on eligible journey, together with flights, eating, and gasoline purchases, and 1X factors on all different purchases. That’s a formidable set of rewards charges and mixture of bonus classes which may assist you to rack up quite a lot of factors. You’ll additionally earn a flat 1X factors on all different purchases.

The Chase Sapphire Reserve® and the Capital One Enterprise X Rewards Credit score Card, two of the highest journey rewards playing cards available on the market, each provide 10X factors or miles respectively if you make eligible lodge and rental automobile bookings via their designated journey portals, however their annual charges eclipse these of the Wander card. Take into account, nevertheless, that these playing cards provide loads of worth by way of different perks that might simply justify a better price.

The right way to redeem

Relating to redeeming your rewards, there are fairly a number of choices on the desk. For instance, you may redeem your factors for assertion credit (in 1,000-point increments), present playing cards, merchandise and journey.

Whereas the assertion credit score, present card and merchandise choices are fairly minimize and dry, journey redemptions include a number of caveats. For starters, your factors don’t have a baseline redemption worth if you use them for journey. The place many journey card rewards applications assure a minimum of 1 cent per level in redemption worth if you go for journey, the worth you get out of your Wander card factors will fluctuate based mostly on the main points of your reserving.

You can too solely redeem for journey via Credit score One Financial institution’s personal journey portal, which companions with Aspire Loyalty Journey Options, LLC. This implies you may’t use or switch your factors to guide instantly with airways, resorts and different journey distributors for a doubtlessly higher deal. The highest journey playing cards at this worth stage normally provide both a better level worth if you guide via an issuer portal or allow you to switch factors to different journey loyalty applications to prime off an current steadiness or squeeze extra worth out of your factors.

How a lot are the rewards value?

Rewards earned with the Credit score One Financial institution Wander Card are value 1 cent every when redeemed for assertion credit. With this redemption fee, 1,000 factors are value $10. Nonetheless, the worth on your rewards can fluctuate when you redeem for present playing cards, merchandise or journey.

Different cardholder perks

The Credit score One Financial institution Wander Card doesn’t have a ton of significant cardholder perks, however that is frequent amongst bank cards for honest credit score. In order for you a bank card that comes with all of the bells and whistles, you’ll must enhance your credit score rating till it’s within the “good” vary or higher and check out for a higher-tier rewards card.

You’ll be able to count on the next advantages when you join the Credit score One Financial institution Wander Card.

Extra Money Again Rewards Program

The Credit score One Financial institution Wander Card has a bonus program known as the Extra Money Again Rewards Program that permits you to earn as much as 10 p.c additional cash again with taking part retailers (relying on the provide’s phrases). New gives are added on a regular basis, much like different issuers’ card-linked provide applications, resembling Amex Affords, so you may all the time verify in and see which shops can be found.

Zero fraud legal responsibility

When you’re simply getting the grasp of utilizing a bank card, it is best to know this card gives zero fraud legal responsibility for unauthorized costs. This perk can offer you appreciable peace of thoughts and a few safety if a hacker or thief will get their fingers in your bank card or your card quantity by making certain that you simply gained’t must pay promptly reported, unauthorized purchases.

Nonetheless, this account safety is an trade normal for almost any bank card, so it’s not a singular perk to hinge your card resolution on.

Elective Credit score Safety Program

Like different Credit score One playing cards, the Credit score One Wander additionally comes with the choice to enroll within the issuer’s Credit score Safety Program. It might probably waive your card’s minimal fee for as much as six months within the occasion you’re involuntarily unemployed or disabled when you pay 96 cents per $100 of your new steadiness every month, however comes with a substantial catch. Fairly than activating instantly, it is going to take 30 days on your coverage to take impact, which then freezes your account whereas permitting compound curiosity to maintain accruing.

Since this will snowball your steadiness throughout a time if you won’t have the ability to make your minimal fee to start with, you would possibly need to contemplate a cheaper debt administration plan as a substitute that gained’t pose the chance of over-extending and shutting your account.

Charges and charges

The Credit score One Financial institution Wander Card costs a $95 annual price, which is larger than many playing cards obtainable with honest credit score cost (some playing cards cost no price in any respect). It’s value factoring into your price range forward of time because it has the potential to offset an enormous chunk of your yearly rewards. In case your primary purpose is constructing credit score, you may nearly actually discover a lower-cost card possibility, even if you wish to keep away from a safety deposit. Nonetheless, the price could also be value it when you’re trying to earn rewards and suppose you’ll spend sufficient within the Wander card’s classes.

The cardboard’s ongoing APR (25.49 p.c, variable) can also be nicely above the common bank card APR, however it’s not the worst fee obtainable amongst credit-building playing cards. Different charges to concentrate on embody late fee and returned fee charges as much as $39 (phrases apply) and a 5 p.c money advance price (minimal $10) you’ll pay when you use your card to get money at an ATM.

On the plus aspect, you gained’t have to fret about overseas transaction charges on purchases made overseas (a perfect characteristic for a journey card).

All issues thought-about, a lot of the charges for the Credit score One Financial institution Wander Card are about common if you evaluate them to the charges you’ll discover on comparable choices, however the annual price could also be a deal-breaker when you’re centered on constructing credit score over incomes journey rewards.

How the Credit score One Wander compares to different rewards playing cards

As you determine which bank card to enroll in, it is best to be sure to evaluate a minimum of two or three of the highest choices. A couple of different bank cards for honest credit score characteristic their very own rewards applications and worth proposition. You could even discover {that a} totally different card would depart you with extra rewards on the finish of the yr, or cost a decrease — or no — annual price.

Credit score One Financial institution Wander Card vs. Capital One QuicksilverOne Money Rewards Credit score Card

When you have a good credit score rating, the Capital One QuicksilverOne Money Rewards Credit score Card is a superb credit-building money again card with extra of a spotlight in your day-to-day bills. Its limitless flat 1.5 p.c money again fee may also help you rake in rewards from nearly any buy, together with all the classes lined on the Wander Card.

Whereas it doesn’t carry the identical tiered bonus class construction because the Wander card, the QuicksilverOne’s flat-rate rewards could also be extra profitable for the common spender. Based mostly on a $15,900 annual spend, the QuicksilverOne would earn about $239 in money again or round $200 after subtracting the cardboard’s $39 annual price. Until you spend closely within the Wander card’s bonus classes, that might beat the Wander card’s earnings. The $39 annual price can also be a lot decrease than the Wander card’s $95 annual price, and will add extra worth for much less value, relying in your spending habits.

Nonetheless, when you see your self carrying a steadiness, it’s greatest to select the Wander card over the QuicksilverOne. The QuicksilverOne’s excessive 26.99 p.c variable APR will value you barely extra in curiosity costs than the Wander’s 25.49 p.c variable APR, although carrying a steadiness with both card shall be pricey and neither card gives a breaks on curiosity by way of intro APR gives.

Credit score One Financial institution Wander Card vs. Financial institution of America® Custom-made Money Rewards Secured Credit score Card

The *Financial institution of America® Custom-made Money Rewards Secured Credit score Card carries no annual price and its versatile money rewards program gives bonus rewards in all kinds of spending classes that will attraction to you when you’re contemplating the Credit score One Wander card. These embody eating and journey, with the latter class protecting amusement parks, aquariums, zoos, campgrounds, resorts, vacationer sights and extra.

The Custom-made Money Rewards Secured permits you to decide one in all six 3 p.c money again classes, which will be swapped as soon as every calendar month, and in addition gives consistency by way of its mounted 2 p.c again at grocery shops and wholesale golf equipment. However remember the fact that these classes will share a $2,500 quarterly spending restrict earlier than your money again drops to 1 p.c.

And when you’ll must put down a safety deposit to get began with the Custom-made Money Secured card, this characteristic may truly assist you to construct credit score extra simply with accountable use. With an identical safety deposit, you will get entry to a credit score line of $300 to $5,000. In comparison with the Wander card’s $500 minimal credit score line, the Custom-made Money Secured’s credit score restrict providing may offer you way more wiggle room to maintain your credit score utilization — a key credit score scoring issue — in verify.

Finest playing cards to pair with the Credit score One Wander card

When you’re nonetheless working in your credit score rating, it might be higher to carry off on making use of to a number of bank cards. This may make it simpler to maintain your balances low and keep away from pointless dings to your rating courtesy of laborious inquiries. When you’re feeling assured in your rating and are able to optimize your rewards technique, having a second card can’t solely assist you to earn extra rewards, but in addition assist you to decrease your credit score utilization ratio by way of extra obtainable credit score.

Because the Credit score One Financial institution Wander Card solely gives 1X factors on purchases exterior its bonus classes, you might need to pair it with a card that gives a better rewards fee on common purchases. The Capital One QuicksilverOne Money Rewards Credit score Card could also be an excellent card to pair with because you earn 1.5 p.c money again proper off the bat.

Equally, the Financial institution of America Custom-made Money Secured or Capital One SavorOne Scholar Rewards Credit score Card might also be useful for his or her bonus classes the Wander card is lacking, particularly on a regular basis classes like grocery shops.

Bankrate’s Take: Is the Credit score One Financial institution Wander Card value it?

The Credit score One Financial institution Wander Card can positively be value it as a consequence of its beneficiant incomes charges in a number of totally different classes. Nonetheless, you’ll must pay a $95 annual price every year you have got the cardboard, and this price will wipe out the primary $95 in rewards worth you get every year. In the meantime, the actual fact you solely earn 1X factors on common spending additionally makes the Credit score One Financial institution Wander Card barely disappointing when there are many flat-rate rewards playing cards that earn a minimum of 1.5 p.c again or extra, even for the honest credit score credit score tier.

That mentioned, this card does allow you to get prequalified on-line with out a laborious inquiry in your credit score report, and also you get the prospect to make use of it to construct your credit score over time.

Our recommendation: The Credit score One Financial institution Wander Card is value a glance when you’re set on incomes journey rewards when you work in your credit score rating, however you might be higher off constructing your rating with a lower-cost credit-building card earlier than making use of for a extra versatile and doubtlessly extra rewarding  journey card.

*The details about Capital One Walmart Rewards^® Mastercard® and Financial institution of America^® Custom-made Money Rewards Secured Credit score Card been collected independently by Bankrate.com. The cardboard particulars haven’t been reviewed or accredited by the cardboard issuer.