Platinum Capital One® Credit Card Review: Build Your Credit

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Platinum Capital One® Credit Card Review: Build Your Credit

Learn more about this card and find out how you can apply here.

The Capital One Platinum Credit Card is a no-fee, no-annual-fee credit card designed for consumers who want to build their credit. Although it is not a secured credit card and therefore does not require an upfront deposit, it does have a fairly high annual percentage rate and a low initial credit limit. However, when used responsibly, Capital One Platinum is a useful bridge to higher spending limits and more generous rewards credit cards.

Capital One Platinum is comparable to other unsecured credit cards for consumers with average credit, including Capital One QuicksilverOne Cash Rewards. It also competes with several secured credit cards designed to build and improve credit, including the Capital One Secured MasterCard Card and BankAmericard Secured Credit Card. It’s important to note that this card is outdated and devoid of many of the perks that more generous credit cards offer, like cash back or travel rewards and early-spend bonuses. However, that does not mean that it is not a potentially innovative card for people who need to improve their credit situation.

main features

Credit line increase

If you make your first 5 monthly payments on time, you will automatically be considered an increase in your credit line. It is possible to increase the line of credit with continuous payments on time.

important fees

This card has no annual fee, balance transfer fee, or foreign transaction fee. The cash advance fee is greater than $10 or 3%, and the late payment fee can be as high as $38.Capital One CreditWise

Thanks to Capital One’s CreditWise package, you’re entitled to a free credit score with your paper or online statement each month. You can also access your score at any time in your online account dashboard. In addition, CreditWise includes several credit-building tools and educational content.

Required Credit

The Platinum card is for consumers with fair credit and is actively marketed as a credit-building tool. Even if your credit history is checkered or patchy, you can still apply.

Advantages

  1. No Deposit Required The Capital One Platinum Card does not require an advance deposit to secure your account. That’s a huge advantage over safe competitors, some of which require minimum deposits of $200 (or more) before you can use their card. Most also limit your spending to the amount deposited, preventing the possibility of an increase in your credit line until you get more funds.
  2. No annual fee. This card has no annual fee. Many of its closest competitors, including the BankAmericard Secured Card ($39) and the Citi-Secured MasterCard ($25), do have annual fees.
  3. No balance transfer fee or foreign transaction fee. Capital One Platinum charges no balance transfer fees or foreign transaction fees, exceptional benefits in the credit building category. That’s great news for cardholders who want to transfer balances from other cards or use their Platinum cards outside of the United States.
  4. No APR penalty. This card does not have a penalty APR, which is a great benefit if you occasionally miss a payment. Both the OpenSky Open Visa and the Citi Secured Credit Card have a penalty APR.
  5. Opportunity to increase credit line in 5 months.
  6. If you make timely payments on this card, you are eligible for a credit line increase in as little as 5 months. Many competing cards make you wait up to 12 months to request a raise. If you’re planning to make a large, urgent purchase or simply want more flexibility in monthly spending, a year is a long time to wait.
  7. Useful tools for credit control and credit development. The free credit score from other Capital One CreditWise tools is super helpful for cardholders committed to building and understanding their credit. Some competing cards, including the BankAmericard Secured Card, don’t include free credit scores.

Disadvantages

  1. No Rewards Capital One Platinum does not have a cashback program or travel rewards. If you want a card designed to build credit and earn rewards, consider Capital One’s QuicksilverOne Cash Rewards Card ($39 annual fee) or Navy’s Credit Union n Rewards Guaranteed Card (no annual fee).
  2. High APR. Even with my credit card standards, this card comes with a regular high APR. If you intend to carry a balance from month to month, consider lower-cost options like Navy Federal Credit Union n Rewards or DCU Visa Platinum Secured, which have lower APRs.
  3. Credit check required. The Capital One Platinum app requires a credit check. While substantial credit deficiencies likely won’t disqualify you, you probably won’t be approved for this card with a recent bankruptcy, foreclosure, or pattern of delinquency on your record. Some competing cards, such as Merrick Bank Secured Visa ($36 annual fee) and OpenSky Secured Visa ($35 annual fee), do not run your credit during the application process.

Final word

Let’s address the elephant in the room: This credit card has a very misleading name. Platinum is a precious metal worth hundreds of dollars per ounce. Platinum levels of travel loyalty programs are often at or near the top of their frequent flyer ranks, granting lavish perks fit for true VIPs. The best-known “platinum” credit card is the legendary American Express Platinum, one of the original status symbols of the credit card world. It goes without saying that the Capital One® Platinum Credit Card is not exclusive. However, when used responsibly, it is absolutely worth its weight in gold, or platinum. If this Platinum Card is what finally teaches you the value of making timely payments and spending within your means, you may find a “real” Platinum Card in your wallet one day.