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- Capital One Platinum Credit Card
Good no-frills unsecured card for building credit
- NoneRewards Rate
- 30.74% VariableAPR
- $0Annual Fee
- Fair – GoodRecommended Credit
The Capital One Platinum Credit Card is a practical tool for those beginning their credit journey or looking to rebuild their scores. This card is a budget-friendly option with an accessible entry point. It doesn't offer reward perks and requires careful balance management to avoid the high APR, but it can be used to foster credit health when used responsibly.
Capital One Platinum Credit Card Overview
The Capital One Platinum Credit Card is a decent choice for those focused on building credit without fronting a security deposit. Here’s a quick overview of some of its main features:
- Regular APR: 30.74% variable
- Deposit required: None
- Potential credit limit: See terms
- Annual fee: $0
- Rewards rate: None
Important Card Details
Understanding the specific features and potential pitfalls of each card is crucial for making informed decisions, especially when you’re working to build your credit. The Capital One Platinum Credit Card is a mixed bag, requiring no security deposit or annual fee but offering few special features and perks. Here are some key details about this card:
No Security Deposit Required
Unlike secured credit cards, the Capital One Platinum Credit Card doesn't require a security deposit as collateral. This is an excellent advantage for those who want to build credit without a hefty upfront cost. The absence of this deposit makes the card more accessible, particularly for those just starting their credit journey or repairing their credit history. However, it's important to remember that fiscal responsibility is key — late or missed payments can negatively impact your credit score.
High APR
The Capital One Platinum Credit Card has a high variable annual percentage rate (APR) of 30.74%, which is considerable compared to the national average. While this card may be attractive due to its lack of specific fees and security deposit, carrying a balance month-to-month can lead to significant interest charges. You should only consider this card if you know you can pay your balance in full each month to avoid the cost of this high APR.
Likely Low Credit Limit
Given that this card is tailored to those with fair or recovering credit and does not require a security deposit or annual fee, Capital One will likely start you with a fairly low credit limit — likely in the hundreds. However, after six months of on-time payments, Capital One reviews your account for a potential credit limit increase. This is an excellent incentive for responsible spending and prompt payment habits. Remember, though, that a lower credit limit can limit your spending and affect your credit utilization ratio, an important component of your credit score. Other cards may offer a higher limit in exchange for a security deposit.
Few Fees
One of the standout features of the Capital One Platinum Credit Card is its minimal fees — it has no annual fee, no foreign transaction fees and no penalty APR. Avoiding unnecessary fees can save cardholders money in the long run and help to maintain a healthier credit score.
How the Capital One Platinum Credit Card Compares
Here's a look at how the Capital One Platinum Credit Card compares to another card designed for those with limited credit.
How This Card Compares
Capital One Platinum Credit Card
- Regular APR: 30.74% variable
- Deposit required: None
- Potential credit limit: See terms
- Annual fee: $0
- Rewards rate: None
- Best for: Building credit with no deposit
Capital One Platinum Secured Credit Card
- Regular APR: 30.74% variable
- Deposit required: $49 to $200 (depending on your credit)
- Potential credit limit: $49 to $1,000 (depending on your deposit)
- Annual fee: $0
- Rewards rate: None
- Best for: Outsized credit limit with no annual fee
sources
- Capital One. "Get Pre-Approved for a Capital One Credit Card." Accessed August 19, 2021.
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