Rebuilding Credit May Take Time But You Can Start Taking Steps Today To Help Improve It
When it comes to rebuilding your credit, there are no shortcuts. Rebuilding credit takes time. And rebuilding credit is important since healthier credit reports and scores make you more attractive to lenders. Your credit can even play a role in decisions made by employers, insurance companies, landlords and utility providers.
There may not be a quick fix to rebuild credit. But thereâs good news: Understanding credit reports and the factors that influence credit scores can help you use credit responsibly and improve your credit over time.
Capital One Redemption Options
You have two broad options for redeeming your Capital One miles: for a fixed value or transferring them to airline and hotel partners. Transferring will usually get you a better value. Still, its the ability to mix and match redemptions to suit your personal travel needs that gives Capital One such a unique edge here.
Lets take a closer look at these two redemption alternatives.
How To Redeem Capital One Miles At A Fixed Value
First, sign in to your Capital One account, click on your mileage balance and youll be taken to the rewards page. There, youll see four fixed-value redemption options you can use your miles for travel, gift cards, cash or transfer them to another account.
When it comes to redeeming miles for travel, you can either book new travel or use the miles as a statement credit against previous travel purchases. Regardless of which route you take, the redemption rate when using Venture miles for travel is always 1 cent per mile.
Option 1: Redeem a previously made travel purchase
Clicking Redeem Travel Purchases will bring you to a screen with all your eligible travel purchases made with the card in the last 90 days. The term travel is used quite broadly and includes everything from flight and hotel bookings to Uber and Airbnb purchases. From there, youre just two clicks away from essentially erasing travel expenses from your statement.
After selecting the purchase you would like to redeem for, you can either approve the redemption outright or edit the number of miles used for a partial credit of the charge. Note that there is no minimum redemption amount unless youre redeeming for partial credit, in which case youll need to use at least 2,500 miles.
Option 2: Book new travel through Capital One
Option 3: Redeem miles for gift cards
Option 4: Shop online
Option 5: Redeem for cash back
Option 6: Transfer miles to another account
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Make Payments On Time
As the Consumer Financial Protection Bureau explains, you should make your payments on time, every time. Thatâs because your payment history is an important factor when it comes to your credit scores. And missed or late credit card payments can not only affect your creditâthey can lead to late fees and interest rate increases, too.
You could consider setting up automatic payments or electronic reminders to help you make sure you pay on time.
Should You Get The Capital One Venture
But Capital One deserves credit for continuing to add transfer partners to its roster, and the bonus of 60,000 miles is a good way to start things off. So if youre normally a casual traveler that values simplicity in earning and wants to dip your toe into the world of points and miles, the Capital One Venture Rewards credit card ticks all the boxes.
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How To Monitor Your Credit For Free With Creditwise
Itâs a good idea to monitor your credit so you can keep an eye on your credit utilization and other factors that impact your credit score.
With , you can access your free TransUnionÂ® credit reports and weekly VantageScoreÂ® 3.0 credit score anytime, without negatively impacting your score. You can even see the potential impacts of financial decisions on your credit score before you make them with the Credit Simulator.
You can also get free copies of your credit reports from all three major credit bureausâEquifaxÂ®, ExperianÂ® and TransUnion. Call 877-322-8228 or visit AnnualCreditReport.com to learn how.
Government and private relief efforts vary by location and may have changed since this article was published. Consult a financial adviser or the relevant government agencies and private lenders for the most current information.
We hope you found this helpful. Our content is not intended to provide legal, investment or financial advice or to indicate that a particular Capital One product or service is available or right for you. For specific advice about your unique circumstances, consider talking with a qualified professional.
The CreditWise Simulator provides an estimate of your score change and does not guarantee how your score may change.
Capital One Quicksilver Student Cash Rewards Credit Card: Best Student Card For Flat
Why we picked it: The student version of this popular cash back credit card from Capital One offers a best-in-class 1.5% cash back on all purchases and provides simple, yet generous redemption options.
Pros: This card makes it simple to earn and redeem rewards. Plus, students will enjoy a number of consumer-friendly benefits, including no annual fee and no foreign transaction fees.
Cons: Some students might not be prepared for a rewards credit card. If spending to earn rewards causes any concern, consider a more basic student credit card that offers credit-building incentives.
Who should apply? This is a great choice as a first credit card for students, combining consumer-friendly terms with a straightforward and generous rewards program.
Who should skip? Students who are entirely new to credit and rewards may be a tad more susceptible to the temptations of incentivized spending. Tread cautiously.
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How To Get A Capital One Virtual Credit Cardread Full Answer
The Capital One virtual credit card information is tied to your credit card but is not the same as your actual card number. This way, any hackers who get ahold of the merchants records wont be able to see your real card information. In other words, virtual credit card numbers help prevent fraud by adding an extra layer of protection to your credit card purchases.
Keep in mind, however, that not all cards issued by Capital One have access to Capital One Eno. Make sure you read through your cards guide to benefits to see whether it qualifies. If your card isnt eligible, you can use to get a virtual card number. Click to Pay works with credit cards on all four major card networks.
Capital One Platinum Secured Credit Card
Best for bad credit
- This card is best for: Anyone who wants to start their credit-building journey and needs a low barrier to entry to do so.
- This card is not a great choice for: Those who want to be rewarded for their spending or carry a large balance .
- What makes this card unique? The Capital One Platinum Secured Credit Card is a smart option among secured credit cards since it doesnt come with an annual fee, and you can get started building credit with a security deposit as low as $49. In addition, you will be automatically considered for a higher line of credit in as little as six months with on-time monthly payments.
- Is the Capital One Platinum Secured Credit Card worth it? If you have bad credit and need easy approval, this card can set you on the right path to prove your creditworthiness and earn a higher credit limit over time.
Jump back to offer details.
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Using Miles To Buy Gift Cards
If you still want to redeem your Capital One rewards for something other than travel, you can also choose to use your miles to purchase gift cards. With this option, you can often get the full point value of 1 cent per mile. However, that value is subject to change. Using your miles for travel purchases still offers the best consistent value.
Check And Monitor Your Credit Reports And Credit Scores
Now that you know why your credit is so important, you can see why itâs a good idea to check and monitor your credit. But how do you do it?
How to Request Free Copies of Your Credit Reports
You can get a free copy of your credit report from each of the three major credit bureausâEquifax, Experian and TransUnionâby visiting AnnualCreditReport.com. Youâll need to provide your:
- Legal name.
- Social Security number.
- Current address.
If youâve moved in the past two years, you may need to include your previous address as well. There may be a limit on how often you can obtain your reportâcheck the site for details.
Once youâve provided the information above, youâll pick which credit reports you want before answering a few additional questions that help verify itâs really you. âThese questions are meant to be hard,â according to AnnualCreditReport.com. âYou may even need your records to answer them. They are used to ensure that nobody but you can get your credit information.â
How to Check Your Credit Scores for FreeâWithout Hurting Your Credit
Keep in mind that your credit scores donât actually appear on your credit reports. So what do you do if you want to check your scores?
Depending on your lender, you may be able to find your scores by checking your statement or by logging in to your account online. You can also get your scores directly from the credit bureaus and credit-scoring companiesâbut you might have to pay for them.
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How Credit Cards Work
Now you know the main players. But how does using a credit card actually work behind the scenes?
Say youâre checking out at the grocery store, and you decide to pay with your credit card. Hereâs how the credit transaction works, step by step:
That might sound like a lot of steps, but the entire process typically only takes a few seconds.
Whatâs on Your Credit Card Statement?
When you get your credit card statement, it will include the amount you charged at the grocery store. Youâll ultimately owe that amountâplus any other purchases you made, any interest that might be charged, fees and previous unpaid balanceâto your bank or card issuer.
Keep in mind that while you might only have to make a minimum payment, the Consumer Financial Protection Bureau recommends paying as much of your full balance as you can each month.
After Youve Canceled Your Credit Card Over The Phone
After you hang up the phone, send a letter to Capital One reiterating your cancellation request.
Include your credit card number and account number, sign it and send it to:
Attn: General CorrespondencePO Box 30285Salt Lake City, UT 84130-0287
For additional steps to take after your call, read our guide to canceling your credit card.
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Capital One Platinum Secured Credit Card: Best For Secured Credit Card
Why we picked it: This secured credit card is designed to help people with thin to no credit establish a payment history. Given the Capital One Platinum Secured Credit Card accepts people with bad or limited credit, its also an option for people looking to repair their credit scores.
Pros: Secured credit cards require a security deposit, but the barrier for entry with this Capital One card is quite low: $49 to $200. Higher security deposits may qualify for up to a $1,000 credit limit. Cardholders can be considered for higher credit lines by making their first six monthly payments on time.
Cons: As we mentioned, you are required to put down a refundable deposit that you will be borrowing off of for your credit limit. Plus, if you do carry a balance, the annual percentage rate is rather high . There is no sign-up bonus or ongoing rewards.
Who should apply? The super-low $49 security deposit requirement makes this a good card for someone on a limited budget who is trying to establish credit through responsible card usage. In this case, that means paying your monthly balance in full. One misstep, however, and the high variable APR could potentially derail your attempt at building good credit.
Who should skip? Students and other young adults new to growing credit might shy away from a card that requires a deposit. The Journey Student Rewards from Capital One allows for novice cardholders and comes without an annual fee.
Capital One Quicksilverone Cash Rewards Credit Card
Best for fair credit
- This card is best for: Anyone with fair credit who wants to improve their score through responsible use and earn a respectable amount in cash back rewards.
- This card is not a great choice for: Those who want to receive a sign-up bonus or carry a large balance .
- What makes this card unique? The Capital One QuicksilverOne Cash Rewards Credit Card provides cash back rewards on every purchase and is one of the few cards that is available to those with fair credit. Plus, cardholders are automatically considered for a higher line of credit in as few as six months with on-time payments.
- Is the Capital One QuicksilverOne Cash Rewards Credit Card worth it? If you have fair credit, this card is very much worth it. There arent many rewards credit cards available for those with fair credit, so you can use this to both build your credit and get cash back on all your purchases, but keep the $39 annual fee in mind.
Jump back to offer details.
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Redeeming Capital One Miles For Travel Vs Cash Back
Generally, Capital One miles have a redemption rate of 1 cent per mile, which makes it easy to calculate their total value. If you have 50,000 miles, that would be worth $500 in awards redemptions. This valuation is true when you use miles to cover your purchases, book using miles through Capital One Travel, or when you redeem miles for gift cards.
This valuation does not include redeeming miles for cash back. If you redeem your miles for cash back, each mile is only worth 0.5 cents instead of 1 cent. So 50,000 miles would only be worth $250 if you cash out your miles for a statement credit.
Using your miles for travel would typically be the best redemption option because youll get the most value, whether youre using miles to cover purchases or transferring them to an airline or hotel loyalty program.
Other Credit Cards Similar To The Venture
The Capital One Venture card stands largely alone in the niche its created. Its a low-fee card with a great sign-up bonus, a simple 2x-on-everything earning structure, a host of transfer partners for savvy travelers and a few perks like a Global Entry/TSA PreCheck credit that are often reserved for cards with loftier annual fees.
If youre looking for transferable travel points, the Chase Sapphire Preferred Card is the granddaddy of the genre. It has the same $95 annual fee as the Venture, but it doesnt earn nearly as many rewards as the Capital One Venture on your everyday non-category purchases.
But Chase Ultimate Rewards points transfer to all of its airline and hotel partners at a 1-to-1 ratio, and the Chase transfer partner lineup is more enticing, with United Airlines, Southwest and Hyatt Hotels included on the list. So your choice between the Venture and the Sapphire Preferred might come down to which airlines and hotels youre more likely to utilize.
To reel in a longer list of luxury travel perks , youll need to look to cards like the Chase Sapphire Reserve, the American Express Platinum or the Citi Prestige® Card, all of which have significantly higher annual fees. Those credit cards only make sense for people who travel many times a year and can take advantage of the high-end travel benefits on a regular basis.
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You Can Cancel Your Capital One Account Over The Phone Or Online
In the age of online banking, why do banks still require a call for you to cancel your credit card?
The short answer: Credit card companies dont want to lose you, and so they make it difficult to cut ties.
When you call, a representative will bend over backward to convince you to stay, which means youll need to dig in your heels.
How Much Should I Ask For Credit Limit Increase
At the same time, you don’t want to ask for too much or seem too confident. For example, don’t insist the rep double your credit limit. Instead, ask for 10 to 25% more up to $250 for every $1,000 in credit you already have. If you have excellent or even good credit, you may be able to ask for more.
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