Credit One Bank emerged into the credit card industry in 2006. For the 22 years prior to this, they were known as First National Bank of Marin. Since then, Credit One Bank has built a reputation for issuing credit cards to consumers with low credit scores.
Regardless of which consumers they target, they have successfully found their way into the top 20 list of banks with the largest outstanding balances. According to WalletHub.com, Credit One clients carried a total balance $8.25 billion in credit card debt in 2021.
What are your options to pay back your Credit One Bank credit card debt?
Facing a large amount of credit card debt can be scary. It’s a constant reminder that we messed up. And chances are neither your formal education nor your family prepared you on how to handle this situation.
There are many debt consolidation options to consider when trying to pay back your Credit One debt. The five main options include:
- Debt Consolidation Loan
- 0% Balance Transfer
- Credit One Internal Hardship Plan
- Debt Management Plan (Credit Counseling)
- Debt Settlement Plan
But the one thing that must be done regardless of what option you select is stop overspending. Each time we use a credit card we are likely purchasing something we can’t afford. Put an end to using cards.
Create a detailed budget outlining all income and all expenses. Revisit this budget periodically and make revisions. Increase income. Decrease expenses.
Credit One Bank Credit Card Hardship program
If you find yourself struggling with credit card debt, hardship programs can help. Contact Credit One Bank directly and let them know about your personal hardship. Provide as many details as possible about your financial situation. They will likely ask about your monthly income and expenses. Telling them that you are simply looking for a lower interest rate and payments won’t suffice. You must have a compelling hardship such as job loss or medical emergency to qualify.
Any concessions granted by Credit One will likely be temporary. A lower interest rate will likely last less than 12 months. Take advantage of that time and attack your debt with extra payments. Some creditors might reduce your credit limit or even close your card once they approve you on their hardship plan.
If you have no luck getting concessions or want more long-term benefits, credit counseling is your next best option. Credit One works very well with nonprofit organizations offering their clients interest rates usually below 10%. Payments typically get lowered as well. Your credit card will be closed on their debt management program. This can be viewed as a good thing for some as the temptation to continue using the card is eliminated.
DebtWave has been helping Credit One clients for more than 20 years
DebtWave has worked with various credit card accounts, including Credit One, since 2002 helping clients pay off debt at lower interest rates. Most clients add other credit cards to their plan such as Synchrony and Chase accounts. Clients make payments via ACH either monthly, semi-monthly, weekly or biweekly and then DebtWave disburses payments to their creditors. Most clients complete their program and become debt free in less than 5 years. DebtWave has a 68% successful completion rate.
From 2010 to 2024, DebtWave enrolled more than 5,000 Credit One accounts onto their program. Many clients witnessed their interest rates cut in half along with a reduction in monthly payments. As a matter of fact, the average payment reduced 42%.
The Dream of Getting Out of Debt on Your Own is Still Alive
Paying back your credit card debt seems unrealistic. But it has proven to be achievable by thousands of DebtWave clients. If you would rather tackle the debt on your own, it can be achieved. Create your own plan. The first step is lower interest rates. High interest rates (25-30% APR) on credit cards make it challenging. This would require you to significantly increase your minimum payments (at least 2x) to make progress.
If you have your rates reduced to less than 10%, then use a payoff calculator or google spreadsheet to create a plan. Find ways to increase income and reduce expenses. Stay motivated and refrain from using cards again. Build an iron clad budget that accounts for all expenses.