Capital One Platinum Credit Card review: Best unsecured credit-building card?
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Capital One Platinum Credit Card Overview
The Capital One Platinum Credit Card doesn’t let you earn rewards or score any meaningful cardholder perks, but it is available for consumers with fair credit who may not be eligible for the best rewards cards on the market today.
Keep in mind that a “fair” credit score is any FICO score that falls between 580 and 669, which puts consumers in a range where they can get approved for a limited number of unsecured credit cards. The Capital One Platinum gives those pursuing a credit card for fair credit the chance to improve their credit and prove their creditworthiness so they can move up to a better credit card later on.
Best of all, the card is available with no annual fee and does not require you to tie up money in a security deposit just to get started. With a low entry barrier and low ongoing cost, the Capital One Platinum card is no doubt one of the best unsecured credit-building card options on the market.
What are the advantages and disadvantages?
- This card has no rewards structure, so you won’t be rewarded for your spending.
- Some of the perks and benefits one might expect from a card for fair credit are missing from this card.
A deeper look into the current card offer
- Rewards rate: None
- Welcome offer: None
- Annual fee: $0
- Purchase intro APR: N/A
- Balance transfer intro APR: N/A
- Regular APR: 28.49 percent variable
Current welcome bonus and rewards
The Capital One Platinum doesn’t offer a sign-up bonus or any rewards for your regular spending, which is typical among credit cards for fair credit.
Other cardholder perks
You’ll likely notice that the Capital One Platinum is fairly light on benefits, but you do get some perks that can help you improve your credit standing over time. This card also comes with a surprising number of insurance protections and travel perks considering there’s no annual fee.
This card comes with $0 fraud liability, emergency card replacement, security alerts, virtual card numbers and no foreign transaction fees.
You’ll also get extended warranties on eligible items that come with a manufacturer’s warranty when you pay with your credit card.
How the Capital One Platinum card helps build credit
If you’re building your credit score with a credit card, it’s crucial to understand how a card can help you in your credit-improving efforts before you apply. The Capital One Platinum card has a variety of features that make it useful for people trying to increase their credit scores. Here’s how it can help.
Automatic credit increase reviews
Instead of opening a new card in the hopes of increasing your credit limit, adding hard pull on your score, you may be able to get a higher one with the Platinum. Capital One will automatically review your account after six months for a credit line increase. This is especially helpful if you start out with a low deposit or plan on keeping the Capital One Platinum long-term as a higher limit makes it easier for you to keep your credit utilization low.
Unlimited CreditWise Access
While CreditWise gives you snapshots your credit score from TransUnion and Experian, it’s also a great tool for finding out why your score is going up or down. It also gives suggestions on how to increase your score and can alert you when there is a change to your report, such as delinquent accounts or credit inquiries.
Assistance with Eno
If you’re nervous about overspending, Eno can help you keep track of recurring charges, reminders on free trials and helpful spending insights. It also assists in keeping your card safe by alerting you of suspicious activity and duplicate charges. This way, nothing sets back your credit journey.
Rates and fees
The Capital One Platinum doesn’t charge an annual fee, but watch out for the 28.49 percent variable APR rate you’ll pay on purchases if you choose to carry a balance. A 3 percent cash advance fee (minimum $3) can also apply if you use your credit card to get cash out, and you could also be liable for a late payment fee up to $40 if you pay your bill beyond its due date.
How the Capital One Platinum compares to other credit cards for fair or average credit
If you’re looking at credit cards available with only a fair credit score, you’ll probably find that you have a decision to make. You can either opt for a bare-bones unsecured credit-building card like the Capital One Platinum card and pay no annual fee, or you can try for a card available with fair credit that also offers rewards on some of your everyday spending but requires you to put up a modest annual fee for the privilege. The latter can make a lot of sense — if you put a decent amount of spend on the card, you can easily cover the annual fee and actually earn money while building your credit just by using the card for your everyday spending. Here are a few of our favorite alternatives to the Capital One Platinum card:
Capital One Platinum vs. Capital One QuicksilverOne Cash Reward Credit Card
The Capital One QuicksilverOne is an alternative Capital One credit card to consider if you want rewards. The QuicksilverOne earns 5 percent cash back on hotels and rental cars booked through Capital One Travel (terms apply) and a respectable 1.5 percent cash back on every purchase, but if you stick with the Platinum you’ll forgo earning rewards altogether. However, QuicksilverOne cardholders will have to pay an annual fee ($39), whereas the Capital One Platinum skips the annual fee.
For such a low-cost card, the QuicksilverOne’s rewards rate is generous. A QuicksilverOne cardholder earning rewards can easily cover the cost of the annual fee and even earn some extra cash back. In fact, a cardholder would only need to spend $2,600 in a calendar year to recoup the cost of the Quicksilver One’s annual fee.
Both cards carry similar minimum initial credit limits — $300 — which may make it difficult to keep credit utilization low (an important factor to consider when trying to build your credit). Bearing in mind their comparable credit score requirements and interest rates, a cardholder who had a similar budget and could afford the annual fee would likely do better — and have a bit more cash in-hand — with the Capital One QuicksilverOne.
Capital One Platinum vs. Petal 2® 2 “Cash Back, No Fees” Visa® Credit Card
The Petal 2 “Cash Back, No Fees” Visa Credit Card might be a better choice for people with limited credit histories than people with past financial mistakes to correct. As a credit-building tool, the Petal 2 is a great option for establishing credit history for the first time — especially for people who have a solid income and financial history but are still working to build their scores up. That’s because the Petal 2, unlike the Capital One Platinum, considers your credit score and alternative financial data like bill payment history in evaluating your application.
Where the Petal 2 really pulls ahead is in rewards earnings. Petal 2 cardholders will earn 1 percent cash back on purchases to start (up to 1.5 percent back with 12 on-time monthly payments). Platinum cardholders will forgo earning rewards altogether. With its potentially lower APR (16.74 percent to 30.74 percent, variable APR) and no annual fee, the Petal 2 likely comes out ahead for most cardholders.
Best cards to pair with the Capital One Platinum
If you can’t choose between the two, the Capital One QuicksilverOne is a great card to pair with the Capital One Platinum. The QuicksilverOne presents cardholders the opportunity to earn rewards in the form of unlimited 1.5 percent cash back while they build their credit. The combined credit limit of the Capital One QuicksilverOne and the Platinum cards would give a cardholder more flexibility and the opportunity to keep their credit utilization low.
Bankrate’s Take: Is the Capital One Platinum worth it?
The Capital One Platinum is a smart option to consider if you need a card for fair credit but you’re adamant about sticking to a no-annual-fee credit card. If you sign up, you would be smart to use your card responsibly and wisely, keep a low balance and always pay your credit card bill early or on time. If you take those steps, you’ll be on your way to a better credit score and a more lucrative rewards credit card in no time.