Capital One QuicksilverOne Cash Rewards Credit Card Review

With a low annual fee and flat-rate cash back on every purchase, the Capital One QuicksilverOne Cash Rewards Credit Card is a solid choice for people with limited / fair credit. In particular, it’s an especially good option if you want to avoid paying a security deposit.

Most cards targeted toward consumers with fair credit require deposits that tie up hundreds of dollars, money that may be needed for basic living expenses. With the Capital One QuicksilverOne Cash Rewards Credit Card, you simply pay an annual fee of $39. Many cardholders can recoup that through their cash back earnings.

Still, while the perks of this card are nice, the lack of a sign-up bonus and intro APR offer on new purchases and balance transfers make this less valuable than other cards. The annual fee and high regular interest rate add to the reasons why you should consider other credit cards to build credit in addition to this one.

• Easier to qualify for

  The Capital One QuicksilverOne Cash Rewards Credit Card is geared toward applicants with limited / fair credit. According to FICO, a fair credit score is one that falls within the 580 to 669 range. With responsible use of this card, it’s possible to improve your credit.

• Cash rewards on every purchase

  With the Capital One QuicksilverOne Cash Rewards Credit Card you can earn 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply). Considering this is a card that caters to applicants with limited / fair credit, these are pretty good rewards. Quite a few credit cards to build credit don’t offer a rewards program, while the cards that offer 2% cash back (or more) generally require good or excellent credit.

  Tip: It’s important to not overspend for the sake of earning rewards. An earning rate of 1.5% means that for every $100 you spend, you’ll receive $1.50 — much less than the interest you’ll owe for carrying a balance. Use your credit card responsibly, and know that improving your credit score will save you even more money.

• Foreign transaction fee: none

  Don’t forget to take this card with you when traveling — when it comes to the foreign transaction fee, you’ll pay none! However, be sure to charge only what you can afford to pay back by the statement date. You won’t help your credit by overspending and getting into credit card debt, something that plagues millions of Americans.

• Helps you build credit

  The Capital One QuicksilverOne Cash Rewards Credit Card reports your payment history to all three credit bureaus monthly. This is a key feature for building credit that some cards don’t include. The card will help improve the length of your credit history, as well as your payment history — as long as you make your payments on time.

  You can also use CreditWise from Capital One for free. This gives you unlimited access to your credit score, educational content, SSN tracking and a simulator that lets you see how financial decisions impact your credit.

• No security deposit required

  The Capital One QuicksilverOne Cash Rewards Credit Card doesn’t require a security deposit, which can run upwards of $200 with many secured credit cards. That said, you will pay a $39 annual fee with this card.

  Remember that an annual fee is not refundable, whereas a security deposit will be returned when you pay off your balance and close your credit card or upgrade to an unsecured card. It may seem that you need to choose between a card with a security deposit or an annual fee. But that’s not always the case — the Capital One Platinum Credit Card requires neither (see rates & fees).

• Opportunity for credit line increases

  Cardholders are automatically considered for a higher line of credit in as little as six months. This is beneficial when it comes to improving your credit. A higher line of credit paired with the same level of spending means that you’ll have a lower credit utilization ratio — which has a positive impact on your credit score.

• Annual fee

  The Capital One QuicksilverOne Cash Rewards Credit Card (see rates & fees) has an annual fee of $39, though this is relatively low for an unsecured card geared toward applicants with lower credit scores. Since this is a cash back card, you’ll need to spend just under $220 a month to recoup the annual fee in cash back rewards. Groceries and gas could easily cost that much, so most people may come out ahead despite the annual fee.

  Still, if you can afford to put down a deposit, a secured credit card might be better. Many secured cards don’t charge an annual fee, and while you’ll have to pay a deposit, you can get it back when you close your account in good standing or graduate to an unsecured card. For example, the Capital One Platinum Secured Credit Card offers the same rewards as the Capital One QuicksilverOne Cash Rewards Credit Card with no annual fee (see rates & fees).

• High APR

  Think twice about carrying a balance on this card, as the Capital One QuicksilverOne Cash Rewards Credit Card has a high 29.99% (variable) APR (see rates & fees). You can avoid paying any interest charges by paying off your statement balance by its payment date.

• No intro APR for purchases or balance transfers

  There’s no introductory APR offer on purchases or balance transfers (see rates & fees). A balance transfer to a card like the Citi Simplicity^® Card could be helpful for getting out of debt. However, these cards generally aren’t open to applicants with lower credit scores.

• No sign-up bonus

  Many cash back cards give you a sign-up bonus between $200 to $300 for meeting a spending threshold in the first three months — however, the Capital One QuicksilverOne Cash Rewards Credit Card doesn’t include any sort of welcome offer. You should note that sign-up bonuses are rare among credit cards for fair credit.

• Low credit limit

  If you’re approved for the Capital One QuicksilverOne Cash Rewards Credit Card, you’ll likely start with a low credit limit. But keep in mind that Capital One will regularly review your account for a possible credit line increase starting at six months — With responsible use of the card, you could get a larger credit line in less than a year.

Compare it to the Discover it^® Secured Credit Card

The Discover it^® Secured Credit Card is a great alternative to the Capital One QuicksilverOne Cash Rewards Credit Card. It’s targeted at those with limited / poor credit, so the eligibility requirements aren’t out of reach.

You will have to put down a security deposit of at least $200 to open the card, but it comes with a $0 annual fee. Plus, at seven months Discover will begin reviewing your account to upgrade you to an unsecured card. If you make your payments on time, you could possibly score an unsecured Discover card by the end of the year, without an ongoing annual fee.

The Discover it^® Secured Credit Card offers a solid rewards program where you earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically.

For new cardholders, Discover will match all the cash back you’ve earned at the end of your first year. This makes it a definite winner in the first year.

Compare it to the OpenSky^® Secured Visa^® Credit Card card

If your credit history is damaged and you’re worried about being turned down for the Capital One QuicksilverOne Cash Rewards Credit Card, you should check out the OpenSky^® Secured Visa^® Credit Card. It’s an affordable alternative that doesn’t require a credit check to get approved.

You’ll have to pay a $200 deposit, as well as a $35 annual fee, but these are very reasonable fees for a card that doesn’t require a credit check. It also has a lower-than-average APR, which means carrying a balance won’t hurt as much with this card. Plus, you can gain eligibility for an unsecured card in as little as six months and have your deposit refunded.

The Capital One QuicksilverOne Cash Rewards Credit Card is a good card for anyone who has limited credit and wants to avoid putting down a deposit for a secured card. The annual fee is modest enough that you can recoup your cash easily by taking advantage of the rewards program (see rates & fees).

But if you do have an extra $200 or more that you can use as a security deposit, the Discover it^® Secured Credit Card is a better option. Not only is there a $0 annual fee, but within a matter of months you could have your deposit back and an unsecured card.