If you have a good credit score, you know how difficult it can be to get your hands on an unsecured credit card with no annual fee. If this sounds familiar, you’ll probably be interested to learn more about the Capital One Platinum credit card, which accepts a fair credit score, charges no annual fee, and doesn’t require a security deposit to use the card. .
Although the Capital One Platinum card doesn’t offer the most attractive benefits for cardholders, it does offer a solid range of benefits to enjoy while you get the most out of this credit card.
Benefits of the Capital One Platinum card
Capital One Platinum Credit Card Highlights
- Reward rate: Nothing
- Welcome offer: Nothing
- Annual subscription: $0
- Introductory purchase APR: N / A
- Intro Balance Transfer APR: N / A
- Regular APR: Variable APR of 26.99%
The Capital One Platinum Card is an unsecured credit card that can be used to build your credit score. You need to have a fair to good credit score (580 to 740) to qualify for the Capital One Platinum credit card, but if you use it responsibly, you can work towards a better credit score.
Because the purpose of this card is to build credit, it doesn’t come with any flashy perks or perks. That said, this unsecured credit card comes with some useful features that make it easier to manage and build credit, such as an automatic account review after six months to see if you qualify for a higher credit limit. The Capital One Platinum card also comes with credit monitoring through CreditWise and basic card protections.
Rates and Fees
The good news is that you don’t need to pay an annual fee to use the Capital One Platinum credit card. This credit card is one of the few unsecured, credit-based, no-annual-fee cards available to those with a fair credit rating.
As great as not paying an annual fee, this card comes with higher rates and fees. If you pay your bill after its due date, you run the risk of paying up to $40 in late fees. And if you have a balance, the card includes a variable APR of 26.99%. That’s why, when using this card, it’s important to only make purchases that you can afford to repay immediately, or your interest charges will quickly add up.
Additionally, one of the notable benefits of Capital One Platinum is that you can take out a cash advance with this card. As a general rule, financial experts don’t recommend taking cash advances unless you’re in a real financial emergency, as credit card issuers tend to charge high APRs for cash advances. With the Capital One Platinum card, you’ll have a variable APR of 26.99% and incur a cash advance fee of $10 or 3% of each cash advance amount, whichever is greater.
If you can pay your balance on time and in full each month, and avoid taking cash advances, you can use this credit card to boost your credit score for free.
You won’t have to pay foreign transaction fees when shopping outside the country, which can save you money when shopping abroad. Other useful travel benefits associated with this card include $0 fraud liability, emergency card replacement, security alerts, and virtual card numbers from Eno.
Another benefit of using a credit card to make purchases, in addition to getting a better credit score when you pay your bills in full and on time, is that many credit card issuers, including including Capital One, offer extended warranties on eligible items when you make a purchase with your credit card. The Capital One Platinum credit card offers this advantage, which can prove useful.
CreditWise Credit Monitoring
If your goal is to improve your credit score, you’ll appreciate that the Capital One Platinum credit card offers unlimited access to Capital One’s CreditWise. This feature provides you with your credit score and the tools to understand and track it over time. If you are committed to improving your credit score, this is a powerful tool to use in addition to practicing good credit habits.
Capital One Automatic Account Review
If you practice good credit habits with the Capital One Platinum card, your credit score will likely increase over time, along with your credit limit. Although you may be offered a low credit limit when you first open your credit card account, Capital One will automatically review your account after six months to see if you are eligible to receive a higher credit limit.
Is Capital One Platinum a good credit card for those with fair credit?
If you have a fair credit score and want to improve your credit rating, the Capital One Platinum card may be right for you.
For those with no credit history or a bad credit rating, it is often necessary to start with a secured credit card. To qualify for this card, you must have a FICO credit score of at least 580. The Capital One Platinum is one of the only no annual fee, unsecured credit card options available at this level of credit. Since the card is unsecured, you don’t have to pay any money as a security deposit to use this credit card, which you would with a secured credit card.
Although your credit limit may improve over time, you’ll likely start out low. Capital One does not disclose its minimum starting credit limit for the Capital One Platinum, so you must apply and be approved for this card to find out what your credit limit would be. Similar unsecured credit cards typically offer starting credit limits of at least $300. It’s not a guarantee that the Capital One Platinum card will come with such a high credit limit, but it does give you a general idea of what your credit limit might be.
How to Maximize the Benefits of Capital One Platinum
To get the most out of the Capital One Platinum card, you should only make purchases that you can afford when your monthly bill is due. Paying your credit card bill on time and in full each month is the best way to improve your credit score and avoid paying high interest charges and late fees. You should also use the unlimited CreditWise credit monitoring tool that comes with this card to better understand how you can improve your credit score.
The bottom line
While the Capital One Platinum credit card doesn’t come with any flashy benefits, if used responsibly, this card can help build your credit score, which can help you qualify for a better card, like a credit card with rewards, all the way. Since this credit card does not charge an annual fee, you can enjoy the credit-building benefits and other services it offers at no cost to you. If you have a good credit score, this card is a solid option to consider as long as you keep a low balance and always pay your bill in full and on time.