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When it comes to your credit score and overall credit health, using a credit card can be a blessing or a curse. It really depends on how you use your credit card, including whether you max out your limits and pay your monthly bill on time.
Of course, the right credit card can also help you mend your credit or fix credit mistakes you’ve made in the past. The biggest problem with this strategy is the fact that, by and large, most card issuers save their best credit card offers for people with good or excellent credit.
Enter the Capital One Platinum Credit Card, which gives consumers with “fair” credit the chance to change their fortunes when it comes to their credit score. If you need to build credit and aren’t sure where to start, read on to learn more about this credit-building card.
Capital One Platinum Credit Card details
Before we dive into the reasons why you’ll love the Capital One Platinum Credit Card, here’s a rundown of its most important features:
- Preapproval without any impact to your credit score
- Available for fair credit
- No annual fee
- 26.99 percent variable APR
5 reasons to love the Capital One Platinum Credit Card
While the Capital One Platinum Credit Card doesn’t offer any rewards for your spending, there are other reasons to sign up. Kyle Kroeger, the owner of the travel website ViaTravelers, did exactly that when he graduated college a little over a decade ago.
According to Kroeger, there are numerous reasons he chose this card, and he has no regrets.
First off, it’s worth noting that the Capital One Platinum Credit Card lets potential customers get preapproved without a hard inquiry on their credit reports. Not only that, but this unsecured card is available for people with “fair” credit. This typically includes FICO credit scores that range from 580 to 669.
Capital One even goes a step further to say this card is available for people who have defaulted on a loan in the past five years as well as those with a limited credit history.
Ultimately, Kroeger signed up for this card due to its easy approval process, and because he needed a card he could use to build credit for the future.
Automatic credit line reviews
Kroeger says he was awarded a very low credit limit at first, but this helped him stay in check with his spending so he could pay off his balance in full each month.
“This card was a godsend for me to build credit and continue stepping up to higher credit limits and cards with other benefits,” he says.
Speaking of higher limits, the Capital One Platinum Credit Card offers automatic credit line reviews with a minimum of six months of on-time payments. With a higher credit limit, cardholders can enjoy more borrowing power. A higher credit limit also makes it possible to carry a larger balance without showing high credit utilization.
No annual fee
Also, be aware that the Capital One Platinum Credit Card doesn’t charge an annual fee. This was a major benefit to Kroeger when he was first building credit since he was trying to keep costs at a minimum.
While a high variable APR of 26.99 percent applies to purchases made with this card, also note that cardholders don’t pay a dime in interest charges when they pay their bill off each month.
You should also know about Capital One Platinum benefits, all of which are available to cardholders for free. Not only does this card come without any foreign transaction fees, but you get free credit monitoring through Capital One CreditWise, $0 fraud liability coverage and security alerts that help you spot fraudulent transactions made with your card.
And since this card is unsecured, there’s no requirement for a security deposit.
Reports to the three credit bureaus
Finally, Kroeger says this card provided a great way to get the “wheels turning” on his credit history. This is made possible due to the fact that Capital One reports cardholder balances and payments to the three credit bureaus—Experian, Equifax and TransUnion.
The Capital One Platinum Credit Card even offers a free credit score through the Capital One CreditWise program. This helps users monitor their credit score and progress over time.
The bottom line
The Capital One Platinum Credit Card is definitely no frills, but it does help individuals who need to build credit they’ll need later in life. With a chance to get preapproved without a hard inquiry, reporting to the three credit bureaus and automatic credit line reviews in as little as six months, this card is one of the best credit cards for fair credit when it comes to helping fix credit mistakes made in the past.
But don’t take our word for it. Compare other credit-building cards to see if the Capital One Platinum is a good fit for your needs. If not, you’re bound to find other options that make sense for your spending and goals.