If you have a limited credit history, a fair credit score, or have had difficulty being approved for a credit card, the Capital One Platinum Credit Card is an easy choice to take a step in the right direction.
As credit repair or starter credit card, the Capital One Platinum gives you the opportunity to build up your credit history and improve your FICO score. This credit card comes with no balance transfer fees, no annual fees, and access to a higher credit line after five on-time monthly payments. This makes it easier to climb the credit ladder if you’ve had a secured credit card in the past. However, it does have a very high APR of 24.99%, which may be off-putting or counterproductive for consumers that carry a balance.
Once you’ve established yourself as a responsible credit holder, you can then upgrade this card to a better Capital One credit card, such as the Capital One Quicksilver Cash Rewards Credit Card, which comes with a rewards program, lower APR, and other perks.
In this article, we’ll take a finer look the Capital One Platinum Credit Card and how Sift can help you take advantage of this card’s ability to build better credit.
Credit Card Perks
No Balance Transfers Fee
The most outstanding feature of the Capital One Platinum Credit Card is the fact that it has no fee for balance transfers. Typically, credit cards charge anywhere between 3% and 5% for users to move over a balance from another card.
No Security Deposit
The Capital One Platinum Credit Card is an unsecured credit card. If you’re upgrading your credit cards from a secured card, a big difference is that you don’t have to put money upfront to order to borrow against it as credit each month.
Free Credit Score Access with Capital One CreditWise
Upon signup, all Capital One credit cards are given access to Capital One CreditWise – a credit monitoring service. Because the purpose of credit repair credit cards is to rehabilitate your credit score, having a free reference can make you a more responsible cardholder. It may clue you into when you may qualify for other credit cards with better terms and credit card benefits.
No Annual Fee
One of the common pitfalls for many cardholders is forgetting about an annual fee, only to wonder why their balance is higher than it should be. Luckily, the Capital One Platinum credit card comes without an annual fee.
“Credit Steps” Spending-Limit Increase Program
Depending on your initial creditworthiness, the Capital One Platinum Credit Card will issue you a balance when you sign up. However, if you pay your first five monthly bills on time and in full, you may qualify for a credit limit increase. The spending limit increase program, Capital One Credit Steps, isn’t a guarantee per se, but it does give you an idea of when you may qualify from a large credit limit. For instance, an initial credit limit of $200 can typically increase to $500 after five months.
No Foreign Transaction Fee
If you plan on traveling abroad with the Capital One Platinum credit card, you won’t have any tacked-on charges for spending outside of the US.
Credit Card Drawbacks
Before applying for the Capital One Platinum Credit Card, be aware that there are several drawbacks with this debt-repairing credit card:
While the TK comes with no annual fees or balance transfer fees, it also doesn’t come with a rewards program. Your purchases will not earn you cash back or any other perks. However, this is common for many credit-repair cards.
Because credit-repair cards are for those that may not have the highest creditworthiness, issuers charge higher APRs than cards that need a good credit score to qualify for. Therefore, it shouldn’t come as a surprise that the Capital One Platinum credit card’s 24.99% variable APR. If you don’t make it a habit of paying your balance in full each month, you could face high-interest costs.
One side effect of the 24.99% APR is that, though this card doesn’t have any balance transfer fees, the APR may cancel out any benefits that those missing fees provided. Therefore, unless you’re currently paying a penalty APR on your credit card (typically 27% – 29%), it may be an unwise decision to transfer your balance if you can’t pay it in full.
No Reduced Introductory Rates
Similar to the reasoning for Capital One Platinum’s high APR, issuers also don’t offer a 0% introductory rate. After all, credit-repair credit cards should be undertaken as a serious decision—a limited period at a 0% interest rate may have some individuals forget about paying extra when carrying a balance after the period expires.
If you’re looking for more info (terms, conditions, rates, fees, etc.) about the Capital One Platinum credit card, click here.
Credit Card Benefits
The Capital One® Platinum has a number of credit card benefits. These include:
- Extended warranty
- Travel accident insurance
- 24-hour travel assistance services
- 24-hour roadside assistance
- Fraud protection
- Zero liability protection
- Car rental loss and damage insurance
- Accident insurance
While these benefits are great for cardholders, they can be hard to keep track of or hidden to customers. That’s where using Sift can really come in handy. Sift user can take advantage of their benefits, track and manage these benefits, and automatically file claims to get the cash back they deserve—no need to decipher jargon or mark your calendar.
Want to know more? Click here to see how Sift can help your credit card put cash back in your wallet!
For more specific information about the Capital One Platinum credit card, click here.