BUSTED: 3 Capital One Credit Card Myths You Need to Know

Hey everyone, Phillip here from Points with Phillip! Today, we're tackling some common misconceptions about Capital One credit cards. If you've heard Capital One is only for those with less-than-stellar credit, rarely offers credit limit increases, or never gives out signup bonuses, keep reading! We're separating fact from fiction, and the truth might surprise you.

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Myth #1: Capital One is Only for People with Poor Credit

This is a big one! It's true that Capital One built a name serving customers with fair or rebuilding credit. But they aren't just for subprime borrowers. Capital One has premium cards like the Venture X, a direct competitor to cards from American Express and Chase. They also have excellent no-annual-fee cards that are great starter options.

The truth is, all banks make money on interest. American Express is increasingly pushing "pay over time" features, encouraging users to carry balances. Chase offers similar options through programs like Amazon's payment plans, allowing you to pay interest while still earning rewards.

Capital One has become friendlier to those who spend on their cards, they want profitable customers!

The takeaway: Capital One caters to a wide range of credit profiles. How you use the card is what matters most.

Myth #2: Capital One "Buckets" You and Never Gives Credit Limit Increases

There's some truth to this. Capital One is known to start people with lower credit limits, especially those with fair credit (what Capital One calls "not-so-great" credit). It can be frustrating to be stuck with a low limit.

However, you can grow your limits with responsible use! Pay on time, use your card regularly, and they'll consider an increase. Capital One will even tell you if you're not using the card enough when you request a credit limit increase.

In Phillip's experience, his Platinum card started with a $700 limit, and his Quicksilver started with a $500 limit. By using them responsibly and even paying interest, those limits increased over time. Eventually, he got the Savor card and transitioned his Walmart card to a Venture card with a $6,000 limit right off the bat.

The takeaway: Bucketing happens, but it's not a permanent state. Show Capital One you're a profitable customer, and they'll likely reward you.

Myth #3: Capital One Won't Give Me a Signup Bonus

This one's a bit tricky. Capital One does have a pre-approval tool, which is great. However, if you're pre-approved for the "fair credit" version of a card, you likely won't see a signup bonus or an intro APR offer. The exception is if you use the pre-approval tool specifically for the Venture X, which does come with a solid welcome bonus.

Even if you apply for the Savor card and you're approved, you'll still earn the 3% cash back on dining, groceries, entertainment, and streaming purchases. However, you won't get the signup bonus, you will have to apply directly for the version that includes the signup bonus. There is a chance for a denial.

Capital One pulls your credit report from Experian, Equifax, and TransUnion which is viewed as one pull from each.

The takeaway: Capital One will tell you if you're approved for a card without a signup bonus. While it's a risk, you can still apply for the version with the bonus, but approval isn't guaranteed.

Final Thoughts

So, are these myths completely busted? Not quite. Like most things in the credit card world, the truth lies somewhere in the middle. Capital One has its quirks, but also some competitive products, especially if you're looking for no-annual-fee cards, solid cash back, or premium travel perks.

If you found this breakdown helpful, hit that like button, subscribe to Points of Phillip, and drop a comment below if you've ever run into one of these myths yourself! Has Capital One surprised you? I'd love to hear your experiences. Until next time, this is Phillip, helping you make sense of points, miles, and credit cards. Have a great day!