Capital One Classic Credit Card

Capital One credit card review: Classic

IF you have a bad credit history, or have been turned down for credit cards in the past, the Capital One Classic credit card could be just what you need.

Designed specifically for people who want to strengthen a poor credit score, use the Capital One Classic card wisely and not only will you start to build yourself a better credit history, you'll be able to see it getting better.

The Capital One Classic credit card can provide a credit limit between £200 and £200. Though it's not huge, it's enough to get you started with credit again, and if you stay within your credit limit and make all your payments on time, Capital One will increase your initial limit on your 4th statement.

You'll also get access to Equifax services which alert you to any changes to your credit report and give you access to a full report twice a year.

However, this card is definitely not suitable for letting debt languish as the astronomical interest rate could lead to unmanageable debt.

Use the card responsibly, though, paying off the balance in full within the up to 56 day period and you'll be back on the ladder towards a better credit score in the future.

Interest Rates and Fees
		Notes..
Typical APR	34.9% APR (variable)	The typical APR is the rate most people are offered.
Balance Transfers	34.94% p.a.	-
Balance Transfer Fee	3%	-
Cash Withdrawal Rate	34.94% p.a. (variable)	-
Cash Withdrawal Fee	3% (£3 minimum)	-
Annual Fee	None	-
Foreign Transaction Fee	2.75%	This fee will be charged if you make a purchase or cash withdrawal in a foreign currency.

Cardholder Services & Extras
Online Account Management		You can manage your Capital One Classic credit card account online. Optional Paperless statements.
Internet Fraud Guarantee		100% Internet fraud guarantee if your card is used without your knowledge.
Fraud Monitoring		Active Fraud Protection Capital One will monitor your account for any unusual activity and alert you straight away.
Identity Protection		Identity Theft Assistance Help and guidance on how to prevent identity theft, as well as your own named advisor to help with your case from start to finish if you ever experience identity theft.
Credit Report Access		Identity Alerts If your credit report changes, for example if someone applies for your credit using your name or if any key changes are made to your Equifax credit report you will be alerted. 2 Free Credit Reports a Year Free access to your Equifax credit report two times each year.
Verified by Visa		An extra layer of security when shopping online. Register and set up a password-protected identity-check when you shop online with participating online retailers.
Purchase Protection Insurance		Up to £1,000 per claim, up to £20,000 in any 12 month period Most items bought with the Capital One Classic credit card will be covered against loss, damage or theft for 100 days after purchase (restricted to the UK only and any stolen purchases must be reported to the police within 24 hours). - Does not cover delivered items. - Exclusions apply.
Purchase Delivery Insurance		The 'Purchase Protection Insurance' policy does not include delivered items.
Comprehensive Travel Insurance
Travel Accident Insurance
Travel Inconvenience Insurance
Assistance Abroad
Emergency Card Replacement
Other Extras	- Up to 3 additional cardholders free.
Optional Extras	These are extras that you can choose, but you will have to pay for them. - Payment protection.

Payments & Payment Details
		Notes..
Credit Limit	£200 minimum, £1500 maximum	If you stay within your credit limit and make your payments on time, Capital One will increase your initial limit after 3 monthly statements. You can choose to decline any limit increases.
Interest Free Period	Up to 56 days	For purchases only if you pay your balance in full and on time each month. There is no interest free period on cash withdrawals or balance transfers.
Minimum Monthly Payment	1% (£5 minimum)	The minimum monthly payment will be the greater of: - 1% of the outstanding balance, plus all interest applied in that month, plus all default sums incurred in that month, plus one twelfth of any annual fee, OR - £5
Allocation of Payments	Fees, Charges & Expenses » Interest » Insurance Premiums » Promotional Balances (lowest rate balances first) » Standard Rate Balances (balance transfers, then purchases, then cash withdrawals).	-
Default Charges	£12	This is how much you will be charged for late payments, returned payments and if you go over your credit limit.
Copy of Statement Fee	£3	Maximum £10 per request.

Card Details
		Notes..
Online Application	Yes: Instant Decision	Get a decision in 60 seconds when you apply online.
Card Type	Classic	-
Payment Company	Visa	The company who provides the payment technology and infrastructure to allow you to use this credit card. Retailers and ATM machines displaying the 'Visa' logo will accept this credit card.
Card Issuer	Capital One	The bank who issues this credit card.
Card Advertiser	Capital One	The company who advertises and promotes this credit card.

Review Continued...

Getting the credit you need to rebuild a poor credit score can seem like an almost impossible task; lenders won't lend you credit due to a poor credit history, and you can't improve your credit history without credit!

However, with the 'fairly' recent additions of financial products designed specifically for people with a poor credit score, the impossible task has now become a pretty straight-forward one.

The Capital One Classic credit card is just the ticket for making that first step back into the world of improving your credit report.

Rebuild, strengthen and check

Use this card wisely, and diligently, and you will start to improve your credit score by adding good money management to your credit history.

The best way to improve your credit score is to borrow money and then make sure you repay it the whole balance on time each month.

If you do this you'll be able to see your credit score improve in a free full report from Equifax twice a year.

Equifax is only one credit reference agency so that won't be the last word - in fact, there's no definitive 'credit score' as such - but it is a big provider so should give you a good idea of where you stand.

Spend carefully

The APR on the Capital One Classic credit card is more than double that of the average card, so be very wary about spending more than you can afford.

If you are trying to build up a good credit score, the best way to use this card is to spend often and pay it off in full each month.

Remember to budget your income so you can always repay your card balance each month. Repaying only the minimum amount won't harm your credit score, but with the high interest charges, it will harm your pocket and won't lend towards staying debt-free.

The card offers up to 56 days of interest free credit on purchases, so you'll have plenty of time to repay your balance and escape any interest bills.

Avoid the ATM

Remember that the Capital One Classic credit card is specifically aimed at those with poor credit so you shouldn't go too wild.

In particular, avoid using the card to withdraw cash from an ATM machine, as the interest free period doesn't apply to cash withdrawals.

In other words, you will be charged interest from the moment you draw the cash, even if you pay your balance off in full at the end of the month.

Remember, cash withdrawals also include buying foreign currency or traveller's cheques and spending on gambling transactions.

Instant decision

Note that most applicants to the Capital One Classic credit card will receive an instant decision.

Applying online is quick and easy via the secure one page application form on the Capital One website.

Final word

The Capital One Classic credit card is an excellent way to strengthen a weak credit score, whether you've had problems in the past or are just suffering from a lack of experience.

With such a high APR, this is not the kind of card you want to rack up debts on but if you're diligent with your payments you can look forward to seeing your credit history and score improve.

Apply Online for Capital One Classic credit card »