Capital One has a wide range of credit cards for all types of consumers. They have some of the best rewards cards for those with the best credit, and they also have options for credit newcomers and those who are at the rebuilding stages of their credit. For those who have limited credit history, Capital One offers a credit card that will allow consumers to start building their credit responsibly. That product is the Capital One Platinum Credit Card. The card offers no rewards and has no introductory APR, and while many people might not be partial to the “no frills, no fees” style of the Platinum card, we believe that it’s absolutely worth it to have if you have zero or fair credit.
What’s good about the card?
Capital One designed this card specifically with limited and fair credit consumers in mind, so if you don’t fall into that category, you definitely won’t get approved. This is not the card for people with excellent credit—Capital One has products specifically for those. The purpose of this card is to help you build your credit responsibly, as Capital One will report your progress to the major credit bureaus. While some people might not like the “no frills, no fees” style, it’s actually beneficial for someone who’s just starting out. Most rewards credit cards will have an annual fee and plenty of other fees such as a monthly fee and foreign transaction fees. With this card, you won’t have to worry about any of those at all.
Another great thing about the Capital One Platinum credit card is the opportunity to have a higher credit limit. If you sustain a great credit-to-balance ratio and maintain monthly payments on time, Capital One will automatically give you a credit line increase within 5 to 6 months. That should show you how much progress you are making with your credit. After some time, you can ask for another credit increase from Capital One, given that your monthly payments are always on time. The card presents you with a tremendous opportunity for working your way up to a better credit score, which will pave the way for better credit card offers and benefits in the future.
What’s bad about the card?
If you plan on carrying a balance each month and only paying the minimum, the Platinum card might not be the best option for you. The interest you will accrue on that balance is higher than the national average among credit cards made for fair credit. You’ll also get a pretty high variable APR of 24.99% straight off the bat. The card offers no introductory APRs of 0% or any lesser percentage whatsoever. This might not bother some people, but there are those who like to take advantage of 0% APRs in order to rebuild credit or even to make larger purchases and be able to pay them back in installments without incurring too much interest.
You’ll also get a high APR on cash advances and a 3% fee as well. If you have a credit limit of $1,000 and would like to take out a $500 cash advance (which is probably the maximum you could get out with that kind of limit), you’ll have to pay a fee of $15 just to get the money out. While that may be standard, there are credit cards out there that offer cash advances without any fees.
The Capital One Platinum credit card is worth it if you can guarantee to yourself that you will keep up with the monthly payments on time. It’ll be even better if you can pay off your entire balance each month instead of just putting in the minimum. If you do this for a good 6 months or so, you will see a steady rise in your credit score. Continue it for another year, and you should get a better credit card offer from Capital One. If you fail to pay your credit card on time, this card will just be worse for your credit score much like any other credit cards. Apply for this credit card if you’re serious and ready to increase your credit score. There aren’t many other cards out there that can be more beneficial than Capital One’s Platinum credit card.