Capital One is one of the major credit card companies in the US. As such, once you apply for a Capital One credit card, Capital One will be able to get to your credit record and credit scores so it may discover in case you qualify for a credit card and the kind of credit terms you most likely will be allowed. He proceeds, saying particularly Capital One considers the FICO score from one of the credit detailing agencies Experian, TransUnion, or Equifax.
The state in which an applicant lives determines the kind of FICO score Capital One applies for credit cards.
FICO scores range from 300 to 850; higher scores indicate a person with an excellent credit standing and thus high capacity not to default on loans or other credit products. Based on the best information, Capital One performs best for consumers with high to exceptional credit histories—which are well-represented by FICO scores of 670 or above. Still, the minimum FICO scores could not be set and might vary depending on the credit card offers.
Here’s an overview:
- There is no strict minimum credit score requirement; nevertheless, most of the applicants possessing this secured credit card belonged to low to good credit scores of 300 to 669.
- The Capital One Quicksilver One Cash Rewards Credit Card is anywhere from 301 to 669, which is why it does not need good credit at all.
This credit card is the Capital One Quicksilver Cash Rewards Credit Card and for this one, the corporation targets consumers with high to exceptional credit scores; the majority of the accepted applicants have a credit score of 670 and above.- For those individuals having high to an exceptional credit rating of 670+ or above, the Capital One Savor Cash Rewards Credit Card With a score of 670+ the candidates are considered eligible for the Capital One Venture Rewards Credit Card.
- However, it has probably sourced approvals with high to exceptional credit ratings of 670+ each, with it targeting a decent credit score of 640+.
However, apart from FICO scores, Capital One also considers other elements within the credit report that may give an insight into the credit risk which includes past accounts, payment history, balances, credit history as well as number of credit inquiries.
Why Different FICO Scores?
Lenders do not tend to know your exact credit score when you apply for new credit; instead, they provide a range of scores that they consider acceptable risks for the particular type of product being offered. However, the Platinum is offered to the consumers even if they are in the process of credit reconstruction, while the rewards cards are issued to consumers with good/excellent credit scores, which implies that the former is more consumer-friendly while targeting the latter as responsible consumers likely to pay on time.
What Number Is Good and What Number Is Excellent in Credit Score?
Here is how different FICO score ranges are generally categorized:
- 800 to 850 – Excellent.
- 700 to 749 – Good 600 to 699 – Fair 500 to 599 – Poor 400 to 499 – Mediocre 200 to 399 – Bad 100 to 199 – Very Bad 0 to 99 – Excellent 80 to 99 – Very Good
- 670 to 739 is a good credit rating.
- 580-669 – This credit rating is considered to be fair.
- 300 to 579 – Very Poor/Bad Credit.
FICO alters its scoring models from time to time to ensure that it adapts to the current trends, especially those relating to consumers. Presently the most common model is the FICO Score 8 model and there is also the FICO Score 9 model as well. Thus, the core factors that determine scores are rather stable; however, 9 was modified after the financial crisis to reflect more modern tendencies.
Finally, is the inquiry that Capital One performs a hard or soft credit check?
This means after you apply for a Capital One card, they will run a hard credit check also referred to as a hard inquiry. While the different types of inquiries can slightly decrease your scores for a short time, hard inquiries also demonstrate to lenders that you are actively seeking out new credit.
However, soft pull is only informative for you and does not affect your score in any way. However, Capital One may refresh customer accounts to check for increased credit risk through a soft pull but definitely, no new tough pulls when you already have the product.
The following are the steps one needs to follow to build credits with the Capital One credit company:
Here are some tips to build your credit with responsible use of a Capital One card:
- Applicants can also use a starter product such as the Platinum even if their scores are low or they are yet to access credit files.
- Make sure that the balances on credit cards are small as a percentage of the total available credit – ideally, below 30 percent.
- Make at least the minimum monthly payment on the credit card before the due date of each statement.
- If allowed, make sure to set up autopay so that in case you forget to pay, you are sure that the money will be deducted on time.
- Do not exceed the credit limit or almost reach it because this will only bring extra costs.
- Extend its usage for 6 months or more to gain the best score before applying for the upgrade for cash-back rewards approvals.
Now if you consistently and responsibly continue these habits over the years they will also help you improve another crucial factor in your credit reports and FICO score for more approvals and better rates on your Capital One card. It is advisable to review your scores now and then, especially to track progress. However, if you have been a responsible credit card user for about 6 months to a year, then it is advisable to choose a reward approval.
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