Capital One Progress Credit Card

Capital One credit card review: Progress

Ever feel like you're not making progress with improving your credit score? The Capital One Progress credit card is designed to remedy your malaise.

Not only can you keep track of your credit report with free updates from Equifax if you manage your account well you'll see your interest rate shrink.

We'd hesitate to call the Capital One Progress credit card's incredible shrinking interest rate a reward exactly - even at it's lowest ebb, 19.9% APR, there are much cheaper ways to borrow.

It's better to think of the Progress card as the next step after taking the Capital One Classic - a card designed for those with poor or non-existent credit histories.

If the Capital One Progress credit card is just a step on the path to more rewarding forms of borrowing, though, at least it's a clearly defined path.

Capital One have partnered with Equifax to offer credit monitoring services including an alert when any major changes appear on your Equifax report and the opportunity to see your credit history from the reference agency's perspective twice a year.

You'll need some history of managing credit arrangements well in the UK to apply and you won't be accepted if you currently hold a Capital One card or have applied for one in the past six months.

If you do fit the bill, though, you'll be pleased to hear that the Capital One Progress credit card gives you an instant decision when you apply online.

In all, the Capital One Progress credit card could help you to change a good credit score into an excellent one.

Interest Rates and Fees
		Notes..
Typical APR	34.9% APR (variable)	The standard rate for purchases and balance transfers will reduce to 19.9% p.a. over 22 months if you keep within your credit limit and always make the minimum monthly payment. The interest rate will reduce as, after: - 1 month: 34.9% p.a. (variable) - 5 months: 29.9% p.a. (variable) - 11 months: 24.9% p.a. (variable) - 17 months: 19.9% p.a. (variable) - 22 months: Reverts back to 34.9% p.a. (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 Progress 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.
MasterCard SecureCode		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	£300 minimum, £2500 maximum	Credit limit may vary from person to person and is subject to status.
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 in most cases.
Card Type	Platinum	-
Payment Company	MasterCard	The company who provides the payment technology and infrastructure to allow you to use this credit card. Retailers and ATM machines displaying the 'MasterCard' 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...

If building up an outstanding credit score, and keeping your identity and purchases safe while you do it, is top of your new credit card wish list the Capital One Progress credit card could be for you.

Shrink your interest rate

When you're well behaved when you use the Capital One Progress credit card you'll find that your interest rate begins to shrink.

Good behaviour means staying within your credit limit and making at least the minimum repayment each month. When you do that the interest will be reduced in the following way:

• From a starting rate of 34.9%...
• 29.9% after 5 months
• 24.9% after 11 months
• 19.9% after 17 months

Somewhat mystifyingly, though, the Capital One Progress credit card will return you to your original high interest rate after your 22nd statement which doesn't seem very rewarding.

However, by that time you should be able to apply for a more rewarding credit card in any case.

Keep track of your credit score

Credit scoring is a tricky subject - each lender has slightly different criteria and so does every credit reference agency - but services from a major reference agency will definitely help to de-mystify things.

The Capital One Progress credit card will give you access to two free full credit reports a year.

You'll also be alerted when any changes are made to your Equifax credit report - you'll know straight away if anyone applies for credit using your name, for example.

More security

As a Capital One Progress cardholder your purchases will be protected by the provider's coverage and they'll also keep an eye on your identity.

The purchase protection covers items that cost up to £1000 against loss, damage and theft for up to 100 days after you buy them. This is much more protection then you get from section 75, which only covers you if the purchase fails to be delivered at all.

There are some notable exclusions - including delivered items - but this is still an excellent extra piece of protection.

Capital One's active fraud protection also monitors any possibly fraudulent activity on your account.

Am I suitable?

To be suitable for the Capital One Progress credit card you'll want a credit card to build up your credit reputation and little else.

An extremely high rate of interest - typically 34.9% APR - means that the Capital One Progress credit card is unsuitable for carrying a high balance over a number of months.

With a fairly generous 56 day interest-free period and a credit limit of up to £2500, however, keeping to that shouldn't be too difficult.

As with most credit cards, it's best not to use the Capital One Progress credit card for cash transactions to avoid the 34.94% interest rate from the moment you make a transaction and the 3% 'handling fee'.

To apply for the Capital One Progress credit card you'll need to be over 18, on the electoral roll and have had some form of UK credit in the past.

You'll also need to have avoided CCJs or defaults in the past 12 months and not have applied for another Capital One card in at least 6 months.

Final Word

The final word on the Capital One Progress credit card is that it's a card that's great for building up an excellent credit score but, unfortunately, not much else.

Apply Online for Capital One Progress credit card »