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It’s almost too easy to mistake Credit One for Capital One, and vice versa. Their names sound similar, and their logos could be fraternal twins. Both Credit One and Capital One are banks that issue credit cards and other financial products.
However, Credit One and Capital One are unrelated to one another and do not belong to the same business, and both banks’ credit card offerings generally differ significantly in terms of quality. Although Credit One cards are sometimes easier to obtain, Capital One cards typically offer greater benefits and lower fees than Credit One cards.
Thus, confirm the name of the bank issuing the card twice before applying for a Capital One credit card (or, wait, is it Credit One?). Those extra moments could guarantee that the card you’ve been wanting ends up in your wallet.
Is Credit One owned by Capital One?
This is a common question especially considering the similar names and logos. However, the answer is a resounding no. Despite their visual similarities Credit One and Capital One are two distinct financial institutions with no affiliation whatsoever.
So, what’s the difference between Credit One and Capital One?
Credit One:
- Smaller company: Primarily focused on personal credit cards, especially for those with average credit or rebuilding credit.
- Higher APRs: Typically higher than Capital One, reflecting their focus on less-than-stellar credit.
- Limited credit card offerings: Primarily cash-back rewards and co-branded cards.
- Online-only: No physical branches, all banking is done online.
Capital One:
- Large bank: Offers a wide range of financial products, including credit cards, bank accounts, loans, and more.
- Lower APRs: Generally lower than Credit One, reflecting their broader customer base.
- Diverse credit card offerings: Travel, cash back, secured, student, and business cards.
- Physical branches: Offers a wider range of services and in-person assistance.
Here’s a table summarizing the key differences:
| Feature | Credit One | Capital One |
|---|---|---|
| Company size | Smaller | Larger |
| Focus | Credit cards for average/rebuilding credit | Diverse financial products |
| APRs | Higher | Lower |
| Credit card offerings | Primarily cash-back and co-branded | Diverse, including travel, cash back, secured, student, and business |
| Physical branches | No | Yes |
Choosing the right card for you:
The best credit card for you depends on your individual needs and financial situation. Consider the following factors:
- Credit score: If you have average or rebuilding credit, Credit One might offer more options. For good or excellent credit, Capital One might have more competitive choices.
- Spending habits: If you spend heavily on specific categories like travel or dining, a card with rewards in those areas might be beneficial.
- Annual fees: Some cards offer valuable perks but come with annual fees. Consider whether the benefits outweigh the cost.
- APR: If you carry a balance, a lower APR can save you money on interest charges.
Pre-qualifying for a card:
Both Credit One and Capital One offer pre-qualification tools on their websites. This lets you check which credit cards you might qualify for without having an effect on your credit score. Although it can give you a good idea of your chances, pre-qualification does not guarantee approval.
Despite having a similar appearance, Credit One and Capital One are two separate businesses with unique advantages and disadvantages. Carefully consider your needs and compare card options before making a decision. Keep in mind that the best credit card is the one that supports and helps you reach your financial objectives.
What is Capital One?
The Federal Reserve ranks Capital One as the ninth-largest bank in the United States. The company’s prominence is demonstrated by the variety of financial products it offers and the well-known spokespersons it hires to promote them. Capital One offers nearly three times as many credit cards as Credit One, along with loans, checking, and savings accounts. Capital One’s credit card portfolio caters to a diverse set of consumers. It comprises store cards, business cards, fancy travel cards with yearly fees, and secured cards for people trying to rebuild their credit.
Fees
Annual fees are another key difference between Credit One and Capital One credit cards. Capital One cards with annual fees tend to offer more value than their Credit One counterparts.
For instance, both banks offer cash-back credit cards that come with an annual cost of $95: Capital One offers the Capital One Savor Cash Rewards Credit Card*, which is similar to the Platinum X5 Visa offered by Credit One.
- Credit One E2%80%99s credit card earns 5% cash back on gas, groceries, and internet/cable/satellite TV/mobile phone services every year on up to $5,000 in total spending. Following that cap, sales in those categories made up just 1% of total sales. To be eligible for the card, your credit must be at least average.
- The Capital One Savor Cash Rewards Credit Card generates a percentage of cash back on dining, entertainment, and popular streaming services; 3% at grocery stores; and 1% on all other purchases. However, you must have excellent credit (credit scores of at least 720).
At first glance, a card that offers the highest rate of 5% may appear to outperform a card that tops out at 4% back 20% E2%80%94% except that, in contrast to the Credit One card, the Capital One card has no spending cap on its bonus rewards; the total amount you can earn in those categories is unlimited. If you were to use the Credit One card, your maximum earnings in its five categories would amount to $250% annually.
In addition, there are yearly authorized user card fees, foreign transaction fees, and returned payment fees associated with Credit One cards.
None of Capital One’s credit cards charge foreign transaction fees or authorized user card fees.
Is Credit One and Capital One the same bank?
FAQ
What bank is Credit One owned by?
Is Credit One and Capital One related?
Is Credit One a good credit card company?
What bank is Capital One owned by?
Is credit one owned by Capital One?
No, Capital One does not own Credit One, nor is Credit One affiliated in any other way with the much larger Capital One. While Capital One and Credit One Bank have similar names and branding, they are two separate credit card issuers and financial entities.
What is the difference between Capital One & credit one bank?
Although they sound and look alike, make no mistake that Capital One and Credit One are very different. Capital One Bank is a dominant card issuer and suits folks of all credit scores. Credit One Bank is a smaller financial institution that mostly caters to consumers with bad or no credit.
Is Capital One a good bank?
Capital One is a major financial institution with various products, ranging from checking accounts to loans and credit cards. It’s well known for its diverse portfolio of credit cards, from student and secured cards for building credit to high-end travel rewards cards.
Who owns Credit One Bank?
Credit One Bank is owned by Credit One Financial Inc. Credit One Financial is a Subchapter-S corporation closely affiliated with Sherman Financial Group, LLC, a private equity firm that makes investments in consumer finance businesses with a focus on credit cards, consumer loans and real estate. Is Credit One Bank a legitimate company? Yes.