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Building credit is essential to establishing a healthy and sustainable personal finance strategy.
Credit cards are one of the easiest ways to build credit by opening an account, charging for purchases, and paying off your balance at the end of every month.
However, everybody needs somewhere to start at the beginning of their credit Journey, and the Capital One Platinum credit card is one of the best options for many consumers because it charges no annual fees, does not require a security deposit, and will automatically review your creditworthiness after six months to see if you qualify for an increased credit limit.
While the interest rates on introductory credit cards like the Capital One Platinum Card can be very high, it is still a strong contender for a first credit card or a credit repair credit card if you can pay off your monthly balance.
The Platinum Mastercard® from Capital One is an unsecured credit card issued by Capital One targeted at consumers with limited credit histories who want to increase their credit score without paying Annual fees or security deposits.
Cardholders receive an additional benefit that may help increase their credit scores from Capital One; after six months of opening the account, Capital One will automatically review your credit behavior to see if you are eligible for a credit line increase.
Although the Capital One Platinum credit card primarily serves to help consumers build and repair credit, it does come with some practical benefits.
The Capital One Platinum credit card does not charge any annual fee, nor does it require a security deposit, making it a powerful hybrid tool to help rebuild and establish credit.
This card also does not charge any foreign transaction fees, so even though it doesn’t generate any rewards, it can still save over 7% in expenses when you use it abroad
Capital One Platinum credit card does not charge a balance transfer fee at the balance transfer APR, but it does charge a 3% fee on all cash advances with a minimum of a $10 fee.
One of the primary benefits of the Capital One Platinum Mastercard® is helping cardholders establish and rebuild their credit scores.
Since it is hard to improve your credit score if you do not know what it is, Capital One offers a free CreditWise monthly credit report to help you see your progress and areas of potential improvement.
Keeping up on your credit card bill means that you need to have cash on hand to cover your monthly balance.
Capital One makes this very easy for cardholders because they allow them to select their payment due date.
Customers can pay their credit card bills online, through the mobile app, over the phone, or in-person by cash or check.
Capital One makes it easy to build your credit score because cardholders of the Capital One Platinum credit card will automatically have their accounts reviewed every six months to see if they qualify for a higher credit limit. Higher credit limits help credit utilization ratios and ultimately help boost your credit score.
Capital One offers a $0 fraud liability If your card is lost or stolen and used to make fraudulent purchases.
Consumers with limited and poor credit histories may have a difficult time receiving approval for a new credit card because each credit card application will result in a hard credit check which can be detrimental to your credit score.
Thankfully, Capital One offers a preapproval tool to help potential applicants see if they are likely to be approved if they apply without running a hard credit inquiry until they submit a formal application.
The Capital One Platinum credit card is unique because it is targeted at consumers with low or limited credit history, but it is not a secured card.
Let’s see how it Compares with cards in its category:
The Discover it® secured credit card is one of the best-secured credit cards on the market because Discover offers cash back rewards and bonuses for cardholders, which is almost unheard of for a secured credit card.
Cardholders will have their accounts automatically reviewed six months after opening the account, so Discover can determine whether they can upgrade them to an unsecured card or not.
Since this is a secured credit card, you will need to put down a security deposit to open the account, but the dollar-for-dollar match on 2% cash back restaurants and gas stations and unlimited 1% cash back on all other purchases make this a standout secured credit card.
Cardholders are also eligible for a one-time bonus with the Discover it® secured credit card, where they will earn a cashback bonus that doubles the entire cashback earned over the first year.
The OpenSky® Secured Visa® card is a powerful credit-building tool because it does not require any credit checks when you apply.
Instead, OpenSky® Secured Visa® credit card allows you to set your own credit limit that is defined by your refundable security deposit.
The OpenSky® Secured Visa® credit card enables cardholders to rebuild their credit no matter how damaged it is because it does not pull a hard credit check; instead, the security deposit for the card is the collateral for a credit limit.
Both the Capital One Platinum card and the Chime Credit Builder card do not charge annual fees; however, the Chime credit Builder card is a secured credit card which means you will need to submit a security deposit to open an account.
There is no credit check when you apply for the chime credit Builder card, making this a great option if you have no credit history or damaged credit history.
Consumers can move money from a chime spending account directly into the Chime Credit Builder card account to use for their security deposit.
Capital One Platinum credit card is unique because it offers many benefits associated with secured credit cards, but it does not require a security deposit or charge an annual fee.
Below we will discuss some of the most common questions associated with the Capital One Platinum credit card.
Since the Capital One Platinum Card is designed to help customers build or repair credit, applicants should have a fair credit score or higher (630-850) to qualify for this card.
If you qualify for the Capital One Quicksilver card, it is overall a better option because it offers Rewards and a more powerful earning potential than a Capital One Platinum Card.
However, these credit cards are aimed at two different consumer demographics because the Capital One Platinum Card is designed to help build and repair credit, whereas the Capital One Quicksilver card is a rewards credit card.
The Capital One Quicksilver earns unlimited 1.5% cash back on all purchases.
It carries an annual fee of $39, which means you will have to spend $2,600 annually to recoup the Fee in cash back.
The Capital One Platinum credit card is a great option if you want to establish and rebuild your credit history because it does not require a security deposit, has a $0 annual fee.
In addition, capital One will automatically review your account after six months to see if you qualify for a higher credit limit, boosting your credit score.
Keep in mind that the standard APR is very high, so you may not want to get this card if you plan on carrying a balance.
The minimum credit limit for the Capital One Platinum Card is $300, but you may qualify for a higher credit limit depending on your income and credit history.
Capital One will review your credit account after six months to see if you qualify for an increased credit limit.
The Capital One Platinum credit card sits in a Sweet Spot between an average unsecured credit card and a starter secured credit card.
Since the APR on this card is very high, up to 26.99%, it’s best not to carry a balance because interest fees can quickly become very expensive.
If you can pay off your balance every month and want a credit card that will help boost your credit score so you can eventually get a rewards credit card like the Quicksilver Cash Rewards Card from Capital One, the Capital One Platinum credit card may be a great option for you.