Four reasons to apply for a Capital One Classic credit card

By Emily Gorton Staff Writer 23 October 2009

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CREDIT has become increasingly hard to come by in these darker times, with banks and credit card firms crunching down on how much they lend and to whom.

So those of you with a poor credit score or no credit history whatsoever might find your borrowing options increasingly limited.

The Capital One Classic credit card could be your solution.

Targeted at those with poor credit histories and a mind to improve them, Capital One will consider every application carefully and in most cases provide an instant decision.

Successful applicants will receive a credit limit of up to £2,500 with flexible monthly repayments and no annual fee.

So why should you get one?

One: To improve your credit history

This is the big reason: unless you are really committed to improving or repairing your credit history the Capital One Classic credit card won't be suitable for you.

Most cards aimed at helping people get credit when they've been refused elsewhere have a high APR to deter reckless spending and the Captial One Classic is no different.

The looming typical APR of 34.9% is designed to discourage you from getting behind on repayments.

Staying within the credit limits and meeting monthly repayments will demonstrate sensible money management and you'll begin to rebuild your credit score.

Two: You can keep up the repayments

If you are confident that you can make the repayments every month the Capital One Classic can offer all the benefits of paying by credit card such as ease of online payments and credit within the interest-free period.

However, this point is so important that it bears repeating: only if you can make the repayments. If you let a balance roll over on a month then the disadvantage to your credit score will outweigh any benefits.

For first-time borrowers the Capital One Classic credit card could be a useful card to start with to build up a good credit history but, again, set up a direct debit for at least the minimum repayment amount as soon as you get the credit card to avoid

Three: For extra security on purchases

With businesses going bust all around us, Section 75 (of the Consumer Credit Act 1974) has become a very advantageous feature of credit cards.

This piece of legislation means that if you use your credit card to pay for something, whether it's household furniture or the weekly food-shop, both the credit card provider and the supplier are responsible for the purchase, ensuring extra protection if something goes wrong.

So, for example, if you buy something that turns out to be faulty and the supplier has gone out of business, you could claim a refund from your credit card provider. Debit cards do not provide this extra protection.

Four: You have an irregular income

Usually, credit card providers like to see regular sums of money appearing in your account to prove you can consistently make the repayments.

But if you're a contractor or self-employed, and income is a little erratic, Capital One will still consider you and will try and provide a deal to suit.

An alternative to the Capital One Classic...