Capital One Platinum Credit Card Review

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.

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.

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.

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.