Transcription
Hey there, I'm Jeff with creditcards.com. Today we're covering the Capital One Platinum credit card, uh, which is an unsecured credit card for people with pretty limited credit history, generally around, you know, a 580 FICO score or above.
So, this card is very basic, doesn't offer any rewards, but that's okay because it's designed for somebody that wants to build credit over time, not somebody that wants to rack up a bunch of points or miles. So, in this video, we'll cover the main things you need to know about this card, but we do have a full review on our website, so it's going to be a quicker video. But if you have any further questions, check out our full review. If you're watching on YouTube, I will link that in the video description below.
Alright, so let's start off with the fact that this card has a zero dollar annual fee. So, it's not costing you anything to keep in your wallet. And it also comes with zero dollar fraud liability. And what that means is that if somebody steals your credit card, or maybe they write down the card number and they use it without your authorization, essentially, if there are any fraudulent charges on the card, if you find those and report those in a timely manner, you won't be out any money with this card. And that's why a lot of people say it's safer, actually, to spend with a credit card than a debit card. That's part of the reason that it generally is safer to spend with a credit card versus a debit card.
Now, on top of that, in addition to zero dollar fraud liability, the card does not charge any foreign transaction fees. So, I'm not sure that's totally relevant to this card, but if you do find yourself outside the U.S., you can use this card normally, just like you would inside the U.S., and you don't incur, you know, a three percent foreign transaction fee in the process.
Now, one thing you want to be mindful of, particularly if you have a limited credit history, is the credit limit on your new credit card. Now, with this card, you're likely to have a smaller credit limit to start, but you can be automatically considered for a credit limit increase after six on-time monthly payments. And what's nice about that is that if you can get a higher credit limit, you want it for a couple of reasons. One reason is having a higher credit limit provides you more of a buffer, more cushion. So, it means that on a day-to-day basis, you're less likely to approach your credit limit or even try to exceed it.
On top of that, your credit limit can impact your credit score, not directly, but through something that's called credit utilization. And credit utilization, or your credit utilization rate, is the current balance on the card divided by your credit limit on a card. So, just mathematically, if you want a lower utilization rate, which you do, that would be a positive sign for your credit score. If you have a higher credit limit, it makes it easier to keep your utilization rate lower. So, if you can be considered for a credit limit increase, if you can get it, you want to get it for a couple of different reasons, not the least of which is credit utilization is a major impact on your credit score.
And speaking of your credit score, Capital One also provides you free access to see your credit score and to see how it progresses over time. And that's through, uh, CreditWise, through their mobile app and on their site. My wife actually has a Capital One credit card, and she does use the CreditWise feature to keep tabs on her credit score. So, I think it's really nice with this card because, you know, a big reason you're getting it is to build credit over time, and they provide you the tools to make sure you're on track.
But that's about it for the credit card. Like I said, it is a very basic credit card. I think it's a great option though if you have limited credit history and you're looking for a place to start. You should definitely check out our full review though, there's a lot more to learn about the card. Thanks for watching the video. Have a great day. [Music]