Is the Capital One Platinum worth it?

The Capital One Platinum Credit Card is targeted toward people with less-than-perfect credit. Capital One markets its Platinum card as requiring fair credit, which is in the range of a 580 to 669 FICO score.

Unlike the similar-sounding The Platinum Card® from American Express, the Capital One Platinum card is a fairly bare-bones card. It does not offer rewards or a sign-up bonus, and the benefits it does offer are fairly meager. One nice feature is that Capital One’s Platinum card comes with no annual fee, which can make it useful if you’re looking to build up your overall credit profile at no extra cost.

When is the Capital One Platinum card worth it?

The Capital One Platinum has no annual fee and a few benefits that may come in handy in certain situations. One perk is that you will be considered for a higher credit line if you make six consecutive on-time payments. So even if you don’t get a high credit line right away, know that it will likely increase over time as long as you stay current on your account.

Increasing your credit line can be a great way to improve your credit score. That’s because one of the key credit score factors is your overall credit utilization ratio. Increasing your available credit can raise your credit score, as long as you keep your monthly balance low or at zero.

Another great way to raise your credit score is by showing that you are responsible with the credit that you have been given. If you pay all of your bills with cash, checks or money orders, you’re typically not getting credit for making on-time payments for those bills (although some programs like Experian Boost can help with that).

By opening up a credit card and making regular, on-time payments, you will raise your credit score. That can make you eligible to sign up for credit cards that offer potentially lucrative rewards.

When is the Capital One Platinum card not worth it?

If your credit score is good enough that you’ll qualify for other credit cards, the Capital One Platinum card probably isn’t for you. You may be able to qualify for a card with a sign-up bonus and rewards for everyday spending.

Even if you have fair credit, you may be better suited for the Capital One QuicksilverOne Cash Rewards Credit Card, which gives 1.5% cash back on all purchases. The QuicksilverOne card does come with a $39 annual fee, so you’ll have to run the numbers to see which card makes more sense for you.

But as your credit score and overall credit profile improve, you’ll have plenty of other options that offer better rewards than the Capital One Platinum card. A card like the Citi® Double Cash Card has no annual fee and earns 2% back on all purchases (1% when you make a purchase and the other 1% when you pay it off on time).

The no-annual-fee Wells Fargo Active Cash® Card also earns 2% cash rewards on purchases and has a $200 cash rewards bonus when you spend $1,000 on purchases in the first three months. So while it can be worth it to sign up for the Capital One Platinum card if your credit score is low, you’ll have plenty of better options as your credit score inches up out of the fair range.

Should you get the Capital One Platinum card?

The Capital One Platinum card is a no-frills credit card. It has a few benefits, but if your credit score is good to excellent, there are many better credit cards out there. But if your credit score is still in the fair range, the Capital One Platinum card could be a decent option.

With automatic credit line reviews, it can be a good starter card to get you into the Capital One ecosystem. Then you can work on paying your monthly statement on time each month and improving your credit score, potentially giving you access to other Capital One cards that offer rewards.

Bottom line

If you’re wondering whether the Capital One Platinum card is worth it, the answer is going to depend on your specific financial situation. If your credit score is good or excellent, you almost certainly have better options. In that case, you don’t want to bother applying for the Capital One Platinum card.

But if you are still working on improving your credit score, consider the Capital One Platinum card. It has no annual fee, and while it also has no sign-up bonus or rewards program, benefits such as an automatic credit limit increase for consistent on-time payments could make it worthwhile. By building up your score, you’ll have access to a wider range of cards.