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The Capital One Platinum credit card is an ideal option for those with average credit who need to take some time to build credit before they can qualify for a better rewards credit card. You can apply with average credit score, not paying usual fees such as balance transfer or annual fee and get a credit limit raise after you make on-time payments for the first 5 months. However, you won’t be able to participate in any rewards program and get the usual benefits as well any sign-up bonus.
Capital One Platinum Card
On Capital One’s Secure Website
Very Beneficial For Average Credit
Build Your Credit – build credit over time and you can get a credit limit raise after you make on-time payments
No Annual / Foreign / Balance Transfer Fee – most of the usual fees are free of charge
No Rewards – no rewards program where you earn cash back on purchases and no sign-up bonuses
- No APR increase penalty for late payments
- Can qualify with an average credit score
- Enjoy Platinum Mastercard benefits
Here’s a summary of the main pros & cons (click to see explanation or scroll down):
|Build Your Credit||No Rewards|
|No Annual Fee||High APR|
|No Foreign Transaction/ Balance Transfer Fee|
Capital One Platinum Credit – Benefits
Build Your Credit / Higher Credit Limit
If you don’t have great credit and can’t qualify for a large credit line with most cards, then this one could be beneficial to you. You can use the Platinum card to build credit over time and you can get a credit limit raise after you make on-time payments for the first 5 months. It’s a great perk considering most credit cards have low credit limits when you have a low or average credit score. Over time your credit line increases which reduces your credit utilization rate helping boost your score.
No Annual Fee
Most credit cards have annual fees and they can be high fees running $95 to $295. A benefit you’ll enjoy with the Capital One Platinum card is not having to pay any annual fees. This allows you to use the card as long as you need to until your credit improves and then switch to another card without worrying about an annual fee for keeping the Platinum card.
No Foreign Transaction Fees
Going on vacation? You don’t have to worry about spending money with your credit card. There are no foreign transaction fees so feel free to swipe away with this MasterCard. Since it’s a Mastercard it should have good recognition with vendors overseas which is another benefit since cards like Discover don’t get recognized as widely as Visa or Mastercard.
No Balance Transfer Fee
Typically, credit cards charge 3% to 5% on balance transfers but with the Capital One Platinum card you won’t pay any fee to transfer an existing balance from another credit card. However, the high APR rate doesn’t make this credit card ideal to transfer to if you’re carrying a large balance that will take a long time to pay off.
Capital One Platinum Credit Card – Drawbacks
Let’s take a look at the drawbacks of the Platinum credit card and see if it’s the right one for your wallet or not.
A major drawback of this credit card is that is has no rewards program where you earn cash back on purchases and no sign-up bonuses. Considering the average credit card offers 1-2% cash back rates, if you spend $20,000 annually for example, that would be about $200 to $400 in cash back rewards. This is what you’d be missing out on by choosing the no rewards Platinum card.
Higher than Average APR
The 26.96% APR is quite high for a credit card. You’ll want to pay off your balance in full each month or you can dig yourself a hole in debt quite quickly with a high APR rate like that.
Alternatives to Capital One Platinum Credit Card
There are several credit cards that could serve as an alternative to someone with average credit. Like the Capital One Platinum, these credit card options are easier to qualify for making them ideal if you need to build up your credit score.
The Quick Silver card is a great alternative for those with average credit who struggle to qualify for most credit cards. It offers many similar benefits to the Platinum card but in addition you get access to 1.5% cash back rewards on every purchase. It does have a $39 annual fee, but this is offset if you spend more than $2,600 on the card annually. Enjoy features like no balance transfer fees, no foreign transaction fee, and no penalty to your APR rate if you miss a payment.
The Credit One Platinum offers an attractive 1% cash back rewards rate on purchases making it an ideal option if you want to build credit while also earning rewards back. The Visa Platinum does have an annual fee of $79 to $99. Additionally, if you add another user to the account this adds an additional $19 to the annual fee. Despite the extra fees, it’s fairly easy to qualify for as Credit One has been known to approve those with no credit
The Capital One Secured Mastercard is another alternative card option to help you build your credit until you can qualify for a better credit card. It does not offer any sign-up bonus or cash back rewards program but there are no foreign transaction fees and no annual fee. Upon making a secured deposit of $49, $99, or $200 you’ll get a minimum credit line of $200 to start. You can increase your credit line up to $3,000 by making a larger security deposit. It comes with a high APR of 26.99% which can make this card expensive if you have a balance.
Is the Capital One Platinum Credit Card Right for You?
We’d recommend the Capital One Platinum card if you can’t qualify for other credit cards that offer rewards programs and lower APR rates. It has no annual fee and no foreign transaction fees which make it ideal for using freely anytime, anywhere. It’s also doesn’t have a balance transfer fee so it’s ideal for those with fair credit and trying to build higher to reach eligibility for other credit card alternatives someday. However, the high interest rate can be a major drawback if you have an existing balance or don’t have the financial means to pay your balance in full every month.