Capital One Platinum Review

Capital One Platinum Credit Card is a no-frills, no annual fee credit card for people with average credit. Read this review before you apply.

If you have limited credit, you know getting a credit card can be a challenge. You might not qualify for some popular cash back or low interest credit cards, but you might not have to resort to a secured credit card, either.

Read on for a full review of the Capital One Platinum.

How It Works

This card is straightforward. It won't earn a bonus promotion or rewards, but it also doesn't carry an annual fee.

Here are some of the basics:

Capital One Platinum offers a no annual fee credit card to people with fair credit.

Having an average credit score or limited credit history won't necessarily bar you from being approved for this card. In fact, it's geared toward people who want to build their credit. As long as you spend well below your limit and pay your balance on time each month, this card can be a big help.

Why We Like Capital One Platinum

Even for such a basic card, the Platinum does come with some nice features and perks. Here are some reasons this card might be for you:

• No annual fee: Not having to pay an annual fee is always a plus, but especially in a card geared toward helping you improve your credit.

• Monitor your credit: The Platinum helps you monitor your credit via CreditWise, displaying your TransUnion VantageScore 3.0 credit score. You'll be able to check your score and receive alerts when it changes.

• Upgrade to another card: Once you establish a positive history with your Capital One Platinum, you could be eligible to upgrade to another Capital One card: Capital One Quicksilver Cash Rewards Credit Card. Even if you don't upgrade with Capital One, hopefully your improved credit history will make you eligible for other, more highly valued cards.

• Fewer fees: This card comes with no foreign transaction fee and no balance transfer fee. The Platinum generally isn't a great candidate for balance transfers - considering its high variable APR - but it's always nice to not have to worry about extra fees.

Reasons You May Look Elsewhere

Considering this card doesn't carry an annual fee, there aren't too many downsides to using it. Still, there are a few reasons you might want to consider other options:

• Low credit lines: As the Platinum is geared toward people with average credit, it offers relatively low credit lines: its minimum credit line is $300. Still, if you have average credit or a limited credit history, you might have a hard time being approved for a higher line of credit with other unsecured cards.

• You carry a balance: The Platinum's high APR means carrying a balance on this card will result in having to pay a lot of interest. Most cards geared toward people with average credit come with a high APR, but they're not all quite as high as the Platinum's.

• Your income doesn't qualify: In addition to having an "average" credit score, your income will need to meet a certain threshold. To determine if yours qualifies, you can do some quick math: your disclosed total annual income divided by 12 should exceed your monthly rent/mortgage payment by at least $425.
  Here's an example: Let's say you earn $30,000/year and pay $750 per month in rent. Your income would qualify because $30,000/12 = $2,500, and $2,500 is over $450 more than your monthly rent payment of $750.

How It Compares

When it comes to cards for people who need to build their credit, there are options. Here are some other options if your credit is just below or slightly above what the Platinum requires:

Capital One QuicksilverOne Cash Rewards Credit Card vs Capital One Platinum
The main draw for the QuicksilverOne is that it earns rewards - although the tradeoff is paying an annual fee. Other than that, these cards are similar.

Capital One Platinum Secured vs Capital One Platinum
The Platinum Secured is Capital One's alternative to the Platinum for people with bad credit. It reports to the 3 major credit bureaus, so you'll still be able to improve your credit with responsible usage. The major difference is that, like all secured cards, it requires that you put down a security deposit in exchange for a line of credit.

Common Questions

• Does the Capital One Platinum come with any perks?
  The Platinum carries the perks and benefits associated with the Platinum MasterCard program. You can browse the full details on Capital One's site.

• Should I apply for the Capital One Platinum or the Capital One Platinum Secured?
  In short: that depends. You'll generally need to have a higher credit score to qualify for an unsecured card. The benefit is that, unlike with the Capital One Platinum Secured, you won't have to put down a security deposit in exchange for a credit line. That said, for people with below-average credit, the Platinum Secured can be helpful for building that credit back up.

  All other factors being equal - like your credit line, spending, and payment activities - neither card will have a stronger influence on your credit score.

• Should I apply for a credit card with a low line of credit, like the Capital One Platinum, or a prepaid debit card?
  There are a few major differences between the Platinum and prepaid debit cards. To start, prepaid debit cards won't help you to improve your credit. Instead, they're an alternative for people who want to manage their budget but don't qualify for a checking account and/or don't have average credit.

Bottom Line

If your credit is just below qualifying for a standard rewards card but just above qualifying for a secured card, the Capital One Platinum is a solid choice. The fact that it doesn't carry an annual fee makes the Platinum a generally helpful card to have for people with fair credit - as long as you don't carry a balance.

Still, if you're applying for your first credit card or are a student, there are other options to consider. And if you don't mind paying an annual fee or getting by with a lower credit line, you can even find options that offer rewards.