Credit card review: Capital One Platinum

Occasionally CreditBloggers.com likes to dig deep into credit card offers to expose if they really are a good deal for consumers. In the past, we've reviewed the Blue from American Express card and the Citi Upromise Visa card.

Today, we're going to take a look at the Schumer's Box for Capital One Platinum Card for Credit that Needs Some Improvement.

• APR - 14.9%. Pretty darn low for a card designed to accept borrowers with bad credit.
• Credit Limit - $3,000 to $5,000. That's also pretty decent for borrowers with credit problems.
• Other APRs - You'll get 14.9% on balance transfers and 19.8% on cash advances. Both these rates are below the industry standards.
  
• Default APR - If you are late on your account, the default APR is an average 27.4%. Some cards go as high as 31% for the default rate.
• Annual Fee - $19 annually. Even though this is a small amount, it's disappointing to see an annual fee on this card.
• Other Fees - $29 to $35 per late payment depending on balances. 3% cash advance fee for each transaction. $19 to $29 over the limit fee.
  
• Universal Default Clause - Capital One expressly denounces the practice. Their default rate disclosures are unusually clear for a credit card issuer: "Unlike Some Companies, We Won't Increase Your APRs Because: You pay late only once, You go over your credit limit, Your credit record changes with another lender. We May Increase Your APRs If: You pay late twice in 12 billing periods."   
• Online Banking - Free online account management.
  
• Perks - Roadside assistance, rental car insurance, travel services, travel accident insurance.
• Negatives - Capital One is notorious for not reporting credit limits accurately to the credit bureaus. This missing reporting can impact your credit scores.
• Acceptance Requirements - You can have credit issues and still receive this account.
  

Overall, the Capital One Platinum card is a great choice for someone struggling with credit issues. In this credit category, most other offers have higher interest rates and lower credit limits. Although I have issues with the way Capital One reports to the credit bureaus, I do appreciate their policy concerning universal defaults.

Do you have a Capital One card? Share your thoughts and tips in the comments section below.

Comments

[R.L. Wilson]

We have a Capital One credit card. Our credit rating is very high. We have never been late or missed a payment. Mostly we do not run a balance. However, we have received notice that they are raising our rate to 17%. WHAT DO YOU HAVE IN YOUR WALLET? NO LONGER CAPITAL ONE. We just changed cards to one that offers 7.9%. Good-by Capital One.

[Chris N.]

They raised mine as well. Was fixed for 5 years at 6.9%, now 17%. They said all cards are raising it because of the economy. Looks like they changed their minds about the universal default clause. Also said I could've read the fine print and refused the terms. If they stop sending me all the junk mail, then maybe I'd read the important documents.