In a world of Plastic, some are ?different?. Capital One Credit Cards from the USA, come from the Capital One family of companies that include Capital One Bank, Capital One F.S.B., and Capital One, N.A., members FDIC. The card is easily available to anyone over 18, even those with a poor credit rating or those with no history of credit cards. Naturally, applicants cannot be bankrupt or known criminals! Apart from age and these pre-requisites, other eligibility conditions are that the applicant should be a resident of the country where it is on offer. A minimum annual income is also mandatory, for example UK residents should have an annual income of over ?10,000.
Before you decide to go in for a Credit Card, you obviously ought to know about the pros and the cons of what you are getting into and this is no exception. Capital One Cards are suitable for students as they help in building and strengthen the user?s credit rating. So it is the first choice for people with a low credit rating and for those who have no credit history. On the aesthetic side, for users who do not want plain, staid-looking Credit Cards, Capital One allows you to choose from different card designs!
Capital One offers three kinds of personal cards:
1. Capital One Classic, which is targeted at those who would (quote) "like to strengthen
our (my) credit history".
2. Capital One Platinum, which is targeted at people "with excellent credit history".
3. Capital One No Hassle Platinum, which is targeted at the real elite who have an "excellent credit history"
Like most other credit cards, the user gets up to 54 days interest free on new purchases as well. In addition, "free" identity theft assistance is available on all the Capital One Cards too, like other Cards. Similarly, Balance Transfers are possible, with deals as low as 0% APR depending on spending patterns. Finally, as long as you continue to use the card and make all payments on time and never go beyond your credit limits, there is no annual renewal fee too.
So where is the catch? Read on!
For new purchases which are not paid off within 54 days, the APR charged (APR) varies, depending on the kind of card:
• For the C1 Classic Card Holder, the APR is 29.9%
• For the C1 Platinum Card Holder, the APR is 15.9%
• For the C1 No Hassle Platinum Card Holder, the APR is 6.9%
Notice the huge difference in the APRs? Now, since the user needs to cough up for this huge difference in APR, those choosing the Classic Card would end up paying nearly 5 times more that those choosing the Platinum Card!
Poor Credit Rating, yet want a card? Be prepared to shell out more than other credit card holders then, month-after-month!
There are other expensive penalties as well, and these are common to all three card types:
• 18 for going over the credit limit
• 18 for missing a payment
• 18 for late payment
Penalties run parallel ? meaning, if you have stepped beyond your credit limits AND are late to pay, you are slapped ? 36!
To add insult to injury, Capital One?s policy is that the user is responsible for spending on his/ her account, even after the account is "closed"!
The other aspect for any service is the level of customer support one gets. Capital One does have a 24 x 7 Customer Support cell, but finally getting to speak to a human voice is possible only after you punch in your Card Number and Date of Birth into your telephone. Nevertheless, it works in real-time, apart from technical glitches that are part-and-parcel of any kind of service. Arguably, the best part is that there is a toll-free telephonic service.
Perhaps not satisfied with the initial scan, the human voice needs to double-check. Therefore, you need to have the expiry date of your card and the 3 digit security number above the signature block handy, if you need any kind of service out of Capital One. Obviously, your bill would not have these details - these are after all ?secure? data! The ameliorating factor here is that at least the humans are friendly and helpful!
Moving on to the quality of the customer service, users have reported unsatisfactory support. Although there is an online complaints facility, reports suggest that action on complaints is extremely slow. Unsatisfactory reports include denial of a received (and encashed by Capital One!) cheque payment. Now this is something which any credit card user simply abhors!
A report even mentions that the applicant was asked to pay ?200 for receiving a card with a credit limit of ?200! If correct, this is certainly a completely ?different? practice from that employed by other Credit Card vendors!
Capital One is also reportedly slow in responding to applications for a card, with the time between applying for a card and receiving it being as long as a month, interspersed along the way are their communications requesting the applicant for more details, documents and proofs. This is the case, whatever the kind of card applied for.
Bottom Line:
Capital One is a great way to enter the world of Credit Cards, since it does not insist on a good Credit Rating ? it does not even ask for a credit history. But then, the option you have, the Capital One Classic Card, could prove to cost you a lot more than what you bargain on! Especially if your choice is the Classic Card! Therefore, it pays to keep your eyes peeled open, after you get your Capital One Classic Card!
Tip:
You could use your Capital One Classic Credit Card to get a card with a higher credit limit later on, provided you repay on time and never exceed the credit limit! Even if you do not intend to go in for a different card, strictly following a good repayment schedule will benefit you, whatever be your choice of credit card.
Before you decide to go in for a Credit Card, you obviously ought to know about the pros and the cons of what you are getting into and this is no exception. Capital One Cards are suitable for students as they help in building and strengthen the user?s credit rating. So it is the first choice for people with a low credit rating and for those who have no credit history. On the aesthetic side, for users who do not want plain, staid-looking Credit Cards, Capital One allows you to choose from different card designs!
Capital One offers three kinds of personal cards:
1. Capital One Classic, which is targeted at those who would (quote) "like to strengthen
our (my) credit history".
2. Capital One Platinum, which is targeted at people "with excellent credit history".
3. Capital One No Hassle Platinum, which is targeted at the real elite who have an "excellent credit history"
Like most other credit cards, the user gets up to 54 days interest free on new purchases as well. In addition, "free" identity theft assistance is available on all the Capital One Cards too, like other Cards. Similarly, Balance Transfers are possible, with deals as low as 0% APR depending on spending patterns. Finally, as long as you continue to use the card and make all payments on time and never go beyond your credit limits, there is no annual renewal fee too.
So where is the catch? Read on!
For new purchases which are not paid off within 54 days, the APR charged (APR) varies, depending on the kind of card:
• For the C1 Classic Card Holder, the APR is 29.9%
• For the C1 Platinum Card Holder, the APR is 15.9%
• For the C1 No Hassle Platinum Card Holder, the APR is 6.9%
Notice the huge difference in the APRs? Now, since the user needs to cough up for this huge difference in APR, those choosing the Classic Card would end up paying nearly 5 times more that those choosing the Platinum Card!
Poor Credit Rating, yet want a card? Be prepared to shell out more than other credit card holders then, month-after-month!
There are other expensive penalties as well, and these are common to all three card types:
• 18 for going over the credit limit
• 18 for missing a payment
• 18 for late payment
Penalties run parallel ? meaning, if you have stepped beyond your credit limits AND are late to pay, you are slapped ? 36!
To add insult to injury, Capital One?s policy is that the user is responsible for spending on his/ her account, even after the account is "closed"!
The other aspect for any service is the level of customer support one gets. Capital One does have a 24 x 7 Customer Support cell, but finally getting to speak to a human voice is possible only after you punch in your Card Number and Date of Birth into your telephone. Nevertheless, it works in real-time, apart from technical glitches that are part-and-parcel of any kind of service. Arguably, the best part is that there is a toll-free telephonic service.
Perhaps not satisfied with the initial scan, the human voice needs to double-check. Therefore, you need to have the expiry date of your card and the 3 digit security number above the signature block handy, if you need any kind of service out of Capital One. Obviously, your bill would not have these details - these are after all ?secure? data! The ameliorating factor here is that at least the humans are friendly and helpful!
Moving on to the quality of the customer service, users have reported unsatisfactory support. Although there is an online complaints facility, reports suggest that action on complaints is extremely slow. Unsatisfactory reports include denial of a received (and encashed by Capital One!) cheque payment. Now this is something which any credit card user simply abhors!
A report even mentions that the applicant was asked to pay ?200 for receiving a card with a credit limit of ?200! If correct, this is certainly a completely ?different? practice from that employed by other Credit Card vendors!
Capital One is also reportedly slow in responding to applications for a card, with the time between applying for a card and receiving it being as long as a month, interspersed along the way are their communications requesting the applicant for more details, documents and proofs. This is the case, whatever the kind of card applied for.
Bottom Line:
Capital One is a great way to enter the world of Credit Cards, since it does not insist on a good Credit Rating ? it does not even ask for a credit history. But then, the option you have, the Capital One Classic Card, could prove to cost you a lot more than what you bargain on! Especially if your choice is the Classic Card! Therefore, it pays to keep your eyes peeled open, after you get your Capital One Classic Card!
Tip:
You could use your Capital One Classic Credit Card to get a card with a higher credit limit later on, provided you repay on time and never exceed the credit limit! Even if you do not intend to go in for a different card, strictly following a good repayment schedule will benefit you, whatever be your choice of credit card.
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