Capital One's WORST Card EVER?! The Savor One DEBUNKED!
Hey friends, Philip here with Points with Phillip! Today, I'm asking a tough question: Did Capital One just launch their worst credit card ever?
Let's get into it!
The Culprit: The Capital One Savor One Card
Okay, so the name is a bit clunky, but let's break down the theory behind this card, and then why it just...doesn't make sense.
Savor One Rewards from Capital One:
This card is almost identical to the regular Capital One Savor card, except it has a $39 annual fee, and it's aimed at people with "fair" credit. Now, when Capital One says "fair," they pretty much mean "bad."
The (Supposed) Perks:
For that $39 annual fee, you get:
3% cashback on dining, restaurants, and entertainment (unlimited!)
1% cashback on everything else
On the surface, this seems like the best rewards card for someone with poor credit. But there’s a problem.
Why It Fails: The Rebuilding Phase
People in the rebuilding phase of their credit are looking for cards that:
Enhance their credit: The best cards are ones you can keep long-term to boost your average age of credit.
Help with utilization: Higher credit limits are key!
Why Discover (Usually) Wins:
Path Program: If you can't qualify for their standard cards, you can get a secured credit card and graduate to a full card after 6 months of good behavior.
$0 Annual Fee: Across all Discover cards.
Higher Credit Limits: A decent increase after 6 months helps with credit utilization (as long as you don't spend it all immediately!).
Capital One's Problem: Stingy Limits
Capital One is historically stingy with credit limit increases. So, if you qualify for this Savor One card, you might get a credit line of only $500-$1,000.
The Punishment Sandwich:
$39 Annual Fee: Paying to hold the card.
Low Credit Limit: Hurting your credit utilization.
Short-Term Solution: Eventually, you'll have to close the $39 card, potentially hurting your average age of credit.
The Better Option: Patience
If you just wait a little bit, you can eventually qualify for the regular Capital One Savor card, which has all the same benefits without the annual fee.
Why It's Capital One's Worst:
The Saver One gives you goodies but spending for rewards isn't the goal when you're rebuilding your credit.
Focus on These Goals:
Taking control of your spending.
Taking control of your budget.
Establishing a positive relationship with banks to help your financial future.
Cards like the Capital One Platinum card don't reward you for spending, but at this point in your credit journey, maybe you shouldn't be focused on rewards.
It's Not Predatory, But...
The Savor One confuses enough incentives that it can be unhealthy for people in that rebuilding phase. If you're someone who can really benefit from 3% cashback on those categories, you probably don't need the Savor One version.
My Advice:
Get the Discover It Miles card
Get the Discover it Secured Card.
Get the Capital One Quicksilver. (pre-approval link below!)
Get the Capital One Platinum (pre-approval link below!)
Rebuild your credit in a way that isn't costing you money every year. That $39 adds up!
The Regular Savor Card IS Great!
The regular Capital One Savor card is a great addition to your wallet (3% cashback on dining, restaurants, and entertainment is solid!). I pair it with my Venture card to transfer points.
What You Can Do:
Use the Discover pre-approval tool.
Use the Capital One pre-approval tool for the Quicksilver card.
If you only get approved for the Quicksilver One (with an annual fee), I'd probably pass. The Platinum card might be a better starting point.
The Bottom Line:
I'm not saying you should throw out free money. I'm saying that people building their credit are either young/inexperienced or have already trashed their credit. Rewarding that spending can be unhealthy.
Capital One recently acquired Discover:
Even though the acquisition is still being integrated, Capital One and Discover still have different approval processes.
What do you think? Is the Saver One Capital One's worst card? Let me know in the comments!