Capital One Platinum Review Summary
The Capital One Platinum Credit Card is one of the best starter credit cards on the market. Capital One Platinum is a great credit card for people who are new to credit because it has a $0 annual fee and reports to the major credit bureaus each month. Responsible use of the Capital One Platinum Card could therefore take you from no credit to good credit at no cost.
Still, Capital One Platinum is not perfect. It does not offer rewards, for one thing. The card’s interest rate is very high, too, which makes carrying a balance from month to month a bad idea. But if you want to earn rewards and avoid expensive interest charges, you generally need to prove yourself with a card like Capital One Platinum first.
You can find more information about the pros and cons of this offer below. This should help you decide whether or not applying for the Capital One Platinum Card is a good idea in your situation. You can also see how Capital One Platinum compares to some popular alternatives.
Capital One Platinum Highlights
No Annual Fee
Most of the nonstudent credit cards available to people with limited or no credit either charge an annual fee or require a security deposit. Capital One’s Platinum Mastercard is therefore a rarity that stands out for something it doesn’t have, promising to leave you with a better credit score and more money in your pocket when it comes time to graduate to a higher plateau of plastic.
“Credit Steps” Spending-Limit Increase Program
After as little as 6 months, you will automatically be considered for a credit-limit increase, which is a big deal considering how low the credit lines on fair/limited-credit credit cards tend to be. And while you aren’t guaranteed to actually receive a higher credit limit, most issuers won’t even promise to contemplate such a change according to any disclosed schedule. Submitting the minimum required payment by your due date each month is recommended, but it’s best to just pay your full balance in order to avoid interest charges. In addition to helping you avoid late fees, making timely payments and securing a higher credit limit will benefit your credit score by strengthening two of its crucial components: your payment history and your available credit.
No Foreign Transaction Fee
The right credit card is the perfect companion for international travel or commerce. For one thing, all credit cards have $0 fraud liability guarantees, making you far less susceptible to pickpockets and fraud. Visa and Mastercard also offer exchange rates that are significantly cheaper than what banks or airport kiosks charge to convert hard currency. In fact, a Visa or Mastercard credit card that doesn’t charge a foreign transaction fee can save you an average of more than 7% on every purchase processed abroad. Capital One Platinum is one such offer.
Capital One Platinum Lowlights
A strong rewards program would be the cherry on top of this delectable credit sundae, but it’s still satisfyingly filling without such a garnish – at least as far as your credit report is concerned. Sure, a card with no annual fee and no rewards isn’t automatically better than one with a modest fee and modest rewards. But it’s more likely to be, considering how difficult it is to out-earn fixed costs in the face of the low credit lines and scarce rewards for which “limited-credit” credit cards are known.
Fairly High Regular APR
The Capital One Platinum Credit Card’s 26.99% (V) APR is higher than the average rates charged by credit cards for people with fair credit (23.13%), secured credit cards (16.63%) and store credit cards (23.91%). That’s not terribly surprising, considering the modicum of experience that people with limited credit have under their belts and the fact that issuer risk is not capped by a security deposit or limitations regarding where the card can be used. And it doesn’t mean that failing to pay your bill in full one month would ruin you financially.
However, it does indicate that this card was not built for financing and that revolving debt will prove to be quite expensive over time. As such, it should be avoided whenever possible.
No Reduced Introductory Rates
You probably wouldn’t expect to find 0%, or otherwise reduced, introductory interest rates on a credit card catered to credit newcomers that charges such a high regular APR. And the Platinum Card from Capital One won’t prove you wrong in this regard. It doesn’t have any, further illustrating its incompatibility with financing purposes.
Other Things To Consider About Capital One Platinum
- Free Credit-Score Access: This is a benefit conferred upon all Capital One credit card customers, not just those packing Platinum, but websites such as WalletHub.com offer that feature plus a whole lot more. This includes free credit reports updated on a daily basis and 24/7 credit monitoring.
Capital One Platinum vs. The Competition
Capital One Platinum Credit Card
Capital One QuicksilverOne Cash Rewards Credit Card
Secured Mastercard® from Capital One
|Rewards Rate||N/A||1.5% Cash Back||N/A|
|Purchase Intro APR||N/A||N/A||N/A|
|Transfer Intro APR||N/A||N/A||N/A|
|Regular APR||26.99% (V)||26.99% (V)||26.99% (V)|
|Editors' Rating||5.0 / 5||4.7 / 5||5.0 / 5|
|Details, Rates & Fees||Learn More||Learn More||Learn More|