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By David Stevens
Personal Finance Correspondent
Tuesday, 29 July 2008
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JUST as we had picked our jaws up off the floor following Capital One’s hat-trick of top credit cards in our ‘compare credit cards’ tables they go and change them – and not necessarily for the better.
While some of the cards affected have seen their introductory rates lengthened or cash back offered, in some cases the APR of the cards has increased, spelling trouble for card holders who have racked up debts on the cards.
The changes affect the following popular Capital One credit cards:
- Capital One Platinum card
- Capital One Balance Transfer and Purchase Credit Card
- Capital One Low Rate Credit Card
- Capital One Low Rate Balance Transfer Card
Many of the positive changes will come as a welcome surprise to existing Capital One card holders, as well as new customers using sites like ChooseMoney to compare credit cards.
Capital One Balance Transfer and Purchase Credit Card
While the introductory rate for purchases and balance transfers has been extended by a month each, the APR on the card has sadly risen by 1% taking it to 15.9% APR.
This increase in APR is not the end of the world, but you should warned that if you use this card for balance transfers and purchases (which the name implies you can, but which we strongly advise you don’t) you will land up accruing even more interest on your purchases until after your balance transfer has been paid off in full.
Changes to cheer about!
- 0% balance transfer rate has been extended by one month to December 2009
- 0% interest on purchases has been extended by one month to December 2008
Changes to moan about!
- The APR of the card has increased by 1% to 15.9%
 Apply for this card now
Read review of Capital One Balance Transfer & Purchase Credit Card
Capital One Low Rate Credit Card
The Capital One Low Rate Credit Card has only been improved, with the introduction of a cah-back incentive of 0.5%.
With a low purchase rate of just 8.5% APR coupled with an identical 8.5% APR on balance transfers for the life of the balance, this is one of those cards you may miss when you compare credit cards, but which should stand out with a glowing halo.
Changes to cheer about!
- Introduction of 0.5% cash back
Changes to moan about!
Apply for this card now
Read review of Capital One Low Rate Credit Card
Capital One Low Rate Balance Transfer Credit Card
Only a positive change on this popular low rate balance transfer card: the 0% period for purchases made on the card has been extended by one month to 1 February 2008.
We should point out however that if you have made a balance transfer on this card, you should not be using it for purchases, despite the 0% introductory rate.
This is because you will not be permitted to pay off your purchases until the balance transfer has been paid in full.
Changes to cheer about!
- 0% on purchases pushed back a month, ending in February 2009
Changes to moan about!
- Despite the positive change above, you should be warned that this card is not suitable for purchases if you have used it for a balance transfer which you have not yet paid off. Capital One should not be promoting spending on this card.
Apply for this card now
Read review of Capital One Low Rate Balance Transfer Credit Card
Capital One Platinum Credit Card
Probably the cream of Capital One’s credit card crop, the Capital One Platinum gets a boost to its 0% balance transfer and 0% purchase rate, but sadly sees its APR rise by a whopping 2% to 14.9%.
Nonetheless, this is the only Capital One credit card that is suitable for both spending and balance transfers, as the introductory rates end at the same time.
Changes to cheer about!
- 0% on balance transfers pushed back a month to 1 December 2009
- 0% on purchases also pushed back a month to 1 December 2009
Changes to moan about!
- APR increases two points from an excellent 12.9% to a rather ordinary 14.9%
Apply for this card now
Read review of Capital One Platinum Credit Card
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