Capital One Platinum Credit Card Review

If you’re embarking on the challenging task of raising a low credit score, the Capital One Platinum Credit Card is one of the best credit-building cards you can find. It may be a good pick for those who are trying to recover from a financial misstep and college students or new U.S. residents with little or no credit history in the country.

It has a $0 annual fee and offers a variety of credit tools through CreditWise from Capital One, including the unlimited ability to keep tabs on your credit score as you build your history. The downsides of the card include a high interest rate, no sign-up bonus and no rewards. But it’s still a good credit card for beginners and rebuilders, since it doesn’t require a deposit and it’s not laden with hidden fees. If you responsibly manage your card, you may eventually qualify for a Capital One card with more robust features.

→ See the best credit cards for fair or average credit

• Qualify with Limited / Fair credit

  The Capital One Platinum Credit Card is geared to applicants with limited / fair credit. That means you may have an easier time qualifying for it with a low credit score.

  Examples of people who may have limited credit history include college students and new U.S. arrivals. But keep in mind that there are no guarantees: Cardholders with very low credit scores may not qualify and may want to consider the Capital One Platinum Secured Credit Card instead.

  If you plan on applying for the Capital One Platinum Credit Card, it’s a good idea to get preapproved first. This will give you a better sense of your approval odds without hurting your credit. You can do that via Capital One’s site.

• No deposit required

  The Capital One Platinum Credit Card is an unsecured credit card, which means you don’t have to put down a deposit. That’s a big plus for card users who need to build their credit but have limited funds in the bank. With a secured credit card, you would generally need a deposit of at least $200 on hand to secure your credit line.

  → Learn more: What is a secured credit card and how does it work?

• Limited fees

  The Capital One Platinum Credit Card has a $0 annual fee, no foreign transaction fees and few other fees (see rates & fees). There’s no penalty APR for paying your bill late (though there is a late fee you can avoid by paying your bill on time) (see rates & fees). In contrast, many other unsecured cards for people with low credit scores charge exorbitant fees, such as high annual fees and even monthly fees. These fees can set you back more than $100 a year.

  → Learn more: 9 common credit card fees and how to avoid them

• Tools to build credit

  The Capital One Platinum Credit Card offers a variety of credit-building tools:

  • Reports to credit bureaus: The card reports your credit use to the three major credit bureaus (Equifax, Experian and TransUnion), so you can be sure you’re actually building a credit history as you use the card.
  • Automatic account reviews: Capital One will automatically review your account starting six months after you open it to see if you’re eligible for credit limit increases.
  • Free credit score: You also get free unlimited access to your credit score through CreditWise from Capital One so you can monitor your progress.
  • Account alerts: You’ll receive alerts about changes on your credit reports to monitor your credit score progress and key you in to credit report errors and fraud.
  Applying for a new credit card can temporarily decrease your score. However, the credit-building features offered by the Capital One Platinum Credit Card can help you raise that score over time, if you use the card responsibly. Learn how to build credit with a credit card

• No rewards program

  One big downside of the Capital One Platinum Credit Card is that it doesn’t offer any spending rewards. Even if you’re not a frequent traveler seeking points or miles, it’s nice to be able to bank some cash back from everyday purchases.

  If you’re singularly focused on building credit, you might not mind giving up rewards for now. Otherwise, you may want to consider an alternative like the Capital One QuicksilverOne Cash Rewards Credit Card, which is open to applicants with limited / fair credit and earns rewards on every purchase.

• High APR

  This Capital One credit card’s interest rate is high, even for a card geared toward those with limited / fair credit. With a 29.74% (Variable) APR, it’s a poor choice for anyone who wants to do a balance transfer or make a big purchase they will pay off over time (see rates & fees). That said, a high APR is pretty common with cards designed for building credit.

  If you’re looking for a credit-building card with a more reasonable APR, you might consider the Navy Federal Platinum Credit Card. Or, if you can qualify, a student credit card, such as the Discover it^® Student Cash Back, might make sense.

  → See the average credit card interest rate in America today

• Late payment fee

  If you miss a payment due date, the late fee for this card can be up to $40 (see rates & fees). Meanwhile, the average late fee is closer to $32. If the late fee is a deal-breaker, you might consider the Petal^® 2 Cash Back, No Fees Visa^® Credit Card, which doesn’t have a late fee.

  According to the Consumer Financial Protection Bureau (CFPB), a late fee of just $8 would be enough for most major credit card companies to cover collection costs.

Capital One QuicksilverOne Cash Rewards Credit Card

The Capital One QuicksilverOne Cash Rewards Credit Card is a better alternative to the Capital One Platinum Credit Card for people who don’t mind paying a modest annual fee in exchange for the ability to rack up rewards (see rates & fees).

It offers 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply). This card charges a $39 annual fee (see rates & fees). However, if you spend $2,600 a year on the card, you can earn enough rewards to cover the annual fee.

Petal^® 2 Cash Back, No Fees Visa^® Credit Card

The Petal^® 2 Cash Back, No Fees Visa^® Credit Card is a great rewards card for applicants with limited credit histories. You can use your bill payment history in lieu of a credit history to qualify for the card.

It offers up to 1.5% cash back on everyday purchases, and you may be able to get up to 10% cash back on purchases from specific merchants. The card also provides access to a credit tracker, which can help cardholders raise their scores over time.

But the major draw here is that the card has zero fees — including late, annual and foreign transaction fees — so you can focus on putting your money toward more impactful things, like getting out of debt.

Chase Freedom Rise® Credit Card

If you’re looking for a simple cash back card that can also help you build credit, the Chase Freedom Rise® Credit Card is one of the best cards you can find. While it’s targeted to applicants with good / excellent credit scores, you can boost your approval odds with a balance of at least $250 in a Chase checking or savings account.

It offers a flat 1.5% cash back on all purchases, and those rewards don’t expire. It also lets you earn a $25 statement credit when you sign up for automatic payments within the first three months of opening your account and remain enrolled for at least 90 days. (This isn’t a lot, but it’s something.) And it provides access to a credit tracker, as well as advice about building credit via Chase Credit Journey.

Plus, you’ll be automatically evaluated for an upgrade if you make on-time payments for a year.

1. Check your credit score. This can help you figure out if your credit score is high enough to apply. If it’s not, you have the opportunity to take steps toward a higher score. The Capital One Platinum Credit Card is targeted to applicants with limited / fair credit, which starts at around 580**. If your score is below that, you may want to look at your credit history to identify areas of improvement.
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2. See if you’re prequalified on Capital One’s website.This step won’t hurt your credit. Capital One will ask for information like your date of birth and income to perform a soft pull of your credit report.
3. Carefully fill in the application form. Be sure to include all of your sources of income to boost your approval odds.
4. Review the card’s terms carefully. Make sure you’re familiar with the card’s rates and fees and other requirements in the fine print. Then you can accept the offer.

→ See How to Apply for a Credit Card in 7 Steps

We rate credit-building cards on how they help you build credit and how much they help you save in the process:

• Annual savings (50% of rating): We calculate how much the average cardholder can save with the card on a yearly basis. If it’s a rewards card, we use U.S. Bureau of Labor data and $300 in monthly spend (the typical starting credit limit for an introductory card) to calculate how much the average cardholder can earn in rewards. We then subtract fees — including annual fees and maintenance fees — from this amount.
• Credit building features (50% of rating): We give points for features that help build credit, including reports to all three credit bureaus, regular account reviews for card upgrades and free credit score access. We take away points for features that can be costly to cardholders trying to build credit, such as security deposits, penalty APRs and late payment fees.