Using a credit card can be a blessing or a curse when it comes to your credit score and overall credit. It really depends on how you use your credit card, including whether you hit your limit and pay your monthly bills on time.
Of course, the right credit card can also help you improve your credit score or correct credit mistakes you've made in the past. The biggest problem with this strategy is that most card issuers by and large reserve the best credit card offers for people with good or very good credit.
Enter the Capital One Platinum Credit Card, which empowers consumers to change their credit history with a fair credit rating. If you need to build credit but aren't sure where to start, read on to learn more about this credit card.
Capital One Platinum Credit Card Details Before we dive into why you'll love the Capital One Platinum Credit Card, here's a quick rundown of its key features:
5 Reasons to Love the Capital One Platinum Credit Card While the Capital One Platinum Credit Card doesn't offer rewards on your purchases, there are other reasons to sign up. Kyle Kroeger, owner of the travel website ViaTravelers, did just that more than a decade ago when he graduated from college.
In Kroeger's mind, he chose this card for a number of reasons, and he has no regrets.
1. Generous permission First, it's worth noting that the Capital One Platinum Credit Card allows potential customers to be pre-approved without rigorously checking their credit report. Also, this unsecured card is available for people with good credit ratings. These typically include FICO credit scores ranging from 580 to 669.
Capital One goes even further, saying the card is for people who have defaulted on a loan in the past five years or have a limited credit history.
Ultimately, Kroeger chose the card because of the ease of the approval process and his need for a card that would allow him to build credit for the future.
2. Automatic credit limit verification Kroeger said he was initially assigned a very low line of credit, but that helped him control his expenses and allowed him to pay off his balance in full each month.
"This card has been a godsend for me to build credit and go on to a higher credit limit and a card with other benefits," he said.
Speaking of higher limits, the Capital One Platinum Card offers an automatic credit limit check with at least six months of on-time payments. With a higher credit limit, cardholders can expect a higher credit rating. A higher credit limit can also hold a larger balance without showing a high credit utilization ratio.
3. No annual fee Also note that the Capital One Platinum Card has no annual fee. This was a big advantage for Kroeger when he first started borrowing money, as he tried to keep costs as low as possible.
While purchases made with this card come with a high variable APR of 29.74%, also note that if cardholders pay their bills every month, they don't pay a penny in interest charges.
4. Cardholder Rights and Interests You should also be aware of the Capital One Platinum benefits, all of which are free to cardholders. Not only does this card have no international transaction fees, but you also get free credit monitoring from Capital One CreditWise, $0 fraud liability insurance, and security alerts to help you spot fraudulent transactions made with your card.
5. Report to the three credit bureaus In the end, Kroeger said the card was a great way to get his credit history rolling. This is possible because Capital One reports cardholder balances and payments to three credit reporting agencies—Experian, Equifax, and TransUnion.
As we mentioned, the Capital One Platinum credit card even offers a free credit score through the Capital One CreditWise program to help cardholders monitor their credit score and progress over time. This is especially helpful for new cardholders or those who are learning to develop good financial habits.
Of course, the right credit card can also help you improve your credit score or correct credit mistakes you've made in the past. The biggest problem with this strategy is that most card issuers by and large reserve the best credit card offers for people with good or very good credit.
Enter the Capital One Platinum Credit Card, which empowers consumers to change their credit history with a fair credit rating. If you need to build credit but aren't sure where to start, read on to learn more about this credit card.
Capital One Platinum Credit Card Details Before we dive into why you'll love the Capital One Platinum Credit Card, here's a quick rundown of its key features:
5 Reasons to Love the Capital One Platinum Credit Card While the Capital One Platinum Credit Card doesn't offer rewards on your purchases, there are other reasons to sign up. Kyle Kroeger, owner of the travel website ViaTravelers, did just that more than a decade ago when he graduated from college.
In Kroeger's mind, he chose this card for a number of reasons, and he has no regrets.
1. Generous permission First, it's worth noting that the Capital One Platinum Credit Card allows potential customers to be pre-approved without rigorously checking their credit report. Also, this unsecured card is available for people with good credit ratings. These typically include FICO credit scores ranging from 580 to 669.
Capital One goes even further, saying the card is for people who have defaulted on a loan in the past five years or have a limited credit history.
Ultimately, Kroeger chose the card because of the ease of the approval process and his need for a card that would allow him to build credit for the future.
2. Automatic credit limit verification Kroeger said he was initially assigned a very low line of credit, but that helped him control his expenses and allowed him to pay off his balance in full each month.
"This card has been a godsend for me to build credit and go on to a higher credit limit and a card with other benefits," he said.
Speaking of higher limits, the Capital One Platinum Card offers an automatic credit limit check with at least six months of on-time payments. With a higher credit limit, cardholders can expect a higher credit rating. A higher credit limit can also hold a larger balance without showing a high credit utilization ratio.
3. No annual fee Also note that the Capital One Platinum Card has no annual fee. This was a big advantage for Kroeger when he first started borrowing money, as he tried to keep costs as low as possible.
While purchases made with this card come with a high variable APR of 29.74%, also note that if cardholders pay their bills every month, they don't pay a penny in interest charges.
4. Cardholder Rights and Interests You should also be aware of the Capital One Platinum benefits, all of which are free to cardholders. Not only does this card have no international transaction fees, but you also get free credit monitoring from Capital One CreditWise, $0 fraud liability insurance, and security alerts to help you spot fraudulent transactions made with your card.
5. Report to the three credit bureaus In the end, Kroeger said the card was a great way to get his credit history rolling. This is possible because Capital One reports cardholder balances and payments to three credit reporting agencies—Experian, Equifax, and TransUnion.
As we mentioned, the Capital One Platinum credit card even offers a free credit score through the Capital One CreditWise program to help cardholders monitor their credit score and progress over time. This is especially helpful for new cardholders or those who are learning to develop good financial habits.