Does Capital One Help Build Credit? (2024)

FAQs

Does Capital One Help Build Credit? ›

If you're looking to rebuild your credit, that could mean that you've defaulted on a loan more than once or that you've been declined for a credit card in the last three months. The Capital One Platinum Secured Credit Card may be a good option for those rebuilding credit.

A credit builder card, like the Classic card from Capital One, can help you to build your credit score. A credit card to build credit should be used responsibly. This means repaying (at least) the minimum amount each month and staying within your limit. This can help create a positive record of you managing your money.

There is no general starting credit limit for Capital One credit cards. Your credit limit will be based on your creditworthiness once your application has been approved.

With pre-approval from Capital One, you can answer a few questions to find out if you're eligible for cards. The process won't harm your credit because it uses a soft inquiry. Apply only for the credit you need.

The winner: It's a toss-up. Both Capital One and Discover student cards offer decent cash-back rewards and sign-up bonuses with no annual fees. If you're newer to establishing credit, you may be more likely to qualify for the Discover cards. But if you have fair credit, your options open up a bit more.

The Capital One Platinum Secured Credit Card may be a good option for those rebuilding credit. And as you explore your credit card options, consider getting pre-approved. Doing so won't damage your credit score, and you'll be able to get a clearer sense of which cards you may qualify for.

Capital One credit cards remain popular for good reason: Its offerings run the gamut from cash back to travel rewards to cards aimed at small businesses. A common thread among all Capital One cards is no foreign transaction fees, making a Capital One card a solid traveling companion abroad.

Capital One credit cards are available to people of all credit levels. The cards for people with bad credit are designed for those who are in the process of rebuilding their credit.

Good credit basics

And VantageScore says good credit scores fall between 661 and 780. Scores above those might be considered very good, excellent or exceptional.

Which Credit Bureau Does Capital One Use? Capital One appears to pull from any of the three major credit bureaus: Experian, Equifax and TransUnion.

What is the #1 credit card to have? ›

The best credit card overall is the Wells Fargo Active Cash® Card because it gives 2% cash rewards on purchases and has a $0 annual fee. For comparison purposes, the average cash rewards card gives about 1% back.

Make small purchases and pay them off quickly

Credit bureaus look most favorably on on-time and early payments, even if they're for relatively small amounts. If you're building credit from scratch and are on a tight budget, this could be an effective approach to get some momentum on your card.

A request may be denied because of previous missed payments or a high balance. Or it may be because the account hasn't been open long enough. If your credit limit increase request is denied, it doesn't mean you can't get approved for one in the future.

Often, you have to ask for a higher credit limit, and then the creditor will evaluate your credit, income and other financial details to decide whether to increase your credit limit. But with some Capital One cards, you have a chance to get a credit line increase in as few as six months with on-time payments.

To reach an 800 credit score, you'll want to demonstrate on-time bill payments, have a healthy mix of credit (meaning accounts other than just credit cards), use a small percentage of your available credit, and limit new credit inquiries.