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Which Capital One card is the better credit-builder?
By DeVonne Goode | Published: November 30, 2018
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If you’ve been looking for a card to help you
build credit, but you’re nervous about your ability to qualify, Capital One has
some solid options. The Capital One® Platinum Credit Card and Capital One®
QuicksilverOne® Cash Rewards Credit Card are two bare-bones, yet serviceable
cards that provide a welcome mat for cards beginners and security for
credit-builders. The main difference between the cards is that only the
QuicksilverOne has a rewards program, and a minimal one at that. So how do these two compare?
Capital One Platinum vs. Capital One QuicksilverOne
How they’re similar
Both require fair credit for approval. Since both the Platinum and the QuicksilverOne are designed to
build credit, you don’t have to worry about having a high credit score to be
approved for either one. Both require a fair credit history (a score above 580)
Initial credit limit. The Platinum and
QuicksilverOne want to set you up for success in building your credit score. So
they both set a spending limit of $300 right out of the gate. This allows you
to spend within comfortable guardrails during your statement periods without
your budget getting away from you.
Higher APR. The average credit card
interest rate is around 17 percent. The Capital One Platinum offers an APR
between 22.97 and 26.97 percent depending on your credit score. The
QuicksilverOne offers a 24.99 percent APR. Due to the higher APRs of both cards,
it’s in your best interest to not carry a balance from month to month on either
card. Pay your bills in full so that you won’t find yourself in a hole while
trying to build your credit score.
How they’re different
Rewards. With the QuicksilverOne,
you not only have the opportunity to build credit, but you can also earn 1.5
percent cash back on every purchase you make. You can find higher rates with
other cards, but it’s an added incentive, nonetheless. In fact, if you spend a
sufficient amount on the QuicksilverOne card, you can earn enough cash back to
outmatch the annual fee. For example, a cardholder who spends $300 on the card
each month would earn $54 in cash back – $15 more than the card’s $39 annual
fee. The Capital One Platinum card, on the other hand, doesn’t offer a rewards
package for making purchases.
Annual fee. The Capital One Platinum
comes with no annual fee – and, due to its high APR, that is a benefit. You can
spend without having to budget for an annual bill. The lack of an annual fee may be especially appealing if you’re trying to build your credit on a tight budget.
Best for building credit with no annual fee:
Capital One Platinum
The Capital One Platinum card doesn’t come with
a rewards package, but it does have plenty of features in place to help you
build credit. One in particular is the CreditWise feature, which allows you to
check your credit score and monitor your credit over time. The card also comes
with a number of protections such as travel accident insurance, auto rental
coverage, fraud protection, extended warranties, price protection, 24-hour
roadside assistance and 24-hour travel assistance services.
Having all of this with no annual fee is a much
more inviting option than going the secured credit card route. You want a card that will help you build credit over time
while allowing you to practice responsible cardholder habits. Once you’re able
to bring your credit to good enough standing to be approved for another card,
the Capital One Platinum will leave you in good shape.
Best for building credit while earning cash
back: Capital One QuicksilverOne
What the QuicksilverOne offers over the Platinum
is the added incentive of earning cash back while building your credit. It also
comes with protections such as security and account alerts, personalized due
date, compatible with Apple Pay, no foreign transaction fees, travel accident
insurance, roadside assistance, price protection, travel assistance, car rental
insurance and extended warranty. It doesn’t come free, however. You’ll be paying a $39 annual fee, a higher APR and the card
doesn’t offer a sign-up bonus. But it could end up being a small price to pay
for the added cash back benefit.
these options will help you build credit while practicing good spending habits.
Choosing between the two comes down to the additional benefits that each one
offers, and how you feel they can set you up for success down the line.
See related: Capital One launches new CreditWise tools, Tips for getting that first credit card and building credit, How to build credit if you can’t get a secured card or personal loan
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