Is Credit One Owned by Capital One? The Truth Behind These Two Banks

Credit One and Capital One – you’ve probably seen these names before and wondered if they were related After all, they sound similar and have almost identical logos But are they actually the same company?

The short answer is no. Credit One and Capital One are two different banks that work on their own. However, their striking similarities understandably cause confusion among consumers.

In this article we’ll break down the key differences between Credit One and Capital One. We’ll look at their origins financial products, credit cards, fees, and more. By the end, you’ll have a clear understanding of these two financial institutions.

The Origins of Credit One and Capital One

First, let’s look at the background of each bank.

Credit One was founded in 1984 as First National Bank of Marin in San Rafael, California. In 2006, it was acquired by Sherman Financial Group and rebranded as Credit One Bank. The bank is headquartered in Las Vegas, Nevada.

Capital One, on the other hand, began in Richmond, Virginia, in 1988. It has a lot of assets and is the ninth biggest bank in the US. It provides many different financial things and services.

Both Capital One and Credit One were founded in the 1980s, but Capital One has grown into a much bigger national bank.

Overview of Products and Services

Here’s a quick rundown of what each bank offers:

Credit One is mostly known for its credit cards, especially for people with bad credit. They also offer jumbo certificates of deposit (CDs).

Capital One provides credit cards, bank accounts, auto loans, and more. They have an extensive credit card portfolio with options for consumers of all credit levels, including secured cards, travel rewards cards, cash back cards, and co-branded cards.

Comparing the Credit Cards

Now let’s dive into the credit cards from each bank, which is what causes the most confusion between the two.

Credit One has around 11 personal credit cards, most aimed at average or below average credit. Their cards feature cash back rewards up to 5%.

Capital One offers nearly 3 times more cards than Credit One. Their rewards credit cards tend to provide higher earnings rates and more valuable benefits. For example, the Capital One Savor card earns unlimited 3% cash back on dining and entertainment, versus the 5% cash back cap on the Credit One Platinum Rewards card.

Fees and Costs

When it comes to fees, Capital One cards generally charge less than Credit One. Here are some key differences:

• Annual fees: Credit One’s fees range from $0-$99, while Capital One’s range from $0-$395. However, Capital One’s premium cards offer more value to justify the higher fees.

• Foreign transaction fees: Credit One cards charge this fee, Capital One cards do not.

• Authorized user fees: Credit One charges annually for authorized user cards, Capital One does not.

So while Credit One markets to subprime borrowers, their cards ultimately end up costing more in fees. Capital One provides better card benefits and lower costs overall.

Verdict: Completely Separate Banks

While Credit One and Capital One may sound and look similar, they are completely independent companies. Capital One is a much larger national bank that offers a wider variety of financial products. Its credit cards also generally provide better rewards and benefits for the fees charged.

So next time you see ads for Credit One or Capital One cards with strangely identical logos, rest assured they are not the same. Hopefully this breakdown clarifies that despite the name and branding similarities, Credit One is not owned by Capital One. They just happen to compete in the same credit card space.