Capital One Classic Credit Card

Best Features of the Capital One Classic Credit Card

• A great card for first timers
• Suitable for people with bad credit
• Instant decision for online applications
• Read the terms and conditions

Our Review

The Classic from Capital One is a high interest credit card with no perks, incentives or rewards. The major selling point of this credit card is that the eligibility requirements are so low. If you have poor credit history or are looking for a first-time credit card for emergency situations, then the Capital One Classic may be the choice for you.

Who it’s for

Capital One’s Classic credit card is ideal as a first-timer’s credit card who needs a card just for emergency situations. It may also be a good choice for people who have had credit problems in the past and want to build up a better credit rating. Only responsible credit card holders should use this card because, if you don’t pay your bills in full every month, the debt can quickly accumulate.

Eligibility

To be eligible for this card you must be at least 18 years old, on the electoral roll, not already have a Capital One credit card, and have not declared bankruptcy in the past year.

Balance Transfers

There are no special deals for balance transfers with the Capital One Classic card. Since the interest on balance transfers is a hefty 34.94% p.a., you wouldn’t want to switch your debt to this card anyway. You will also have to pay a 3% balance transfer handling fee. If you do for some reason decide to transfer a balance to the Capital One Classic card, you will have to start paying interest right away. You also won’t get any interest-free days on your purchases so long as you have an outstanding balance.

Purchases

This card is far from attractive when it comes to its interest rate for purchases. You will pay 34.94% p.a. and there aren’t even any introductory offers for new customers to sweeten the deal. Cardholders have up to 56 interest-free days until their purchases will start acquiring debt.

Keep in mind that the Capital One Classic credit card has a credit limit on par with a first-time credit card. The minimum limit is £200 and maximum credit limit is £1,500.

If you want to use your Capital One Classic card overseas, you will pay a 2.75% foreign currency conversion charge. This is on par with the industry standard. Other fees include £12 for late payments, failure to pay the minimum default amount, over limit, and returns.

Rewards

With Capital One Classic Credit Card, you are not going to get any rewards or special incentives. This card is for first-time applicants or people who would like to rebuild their credit rating.

Cash Advances

Cash advances are never a good deal with credit cards. However, they are particularly unattractive with this one because you will pay the same interest rate as for purchases or balance transfers: 34.94% p.a. There is also a 3% or £3 fee (whichever is greater). With cash advances, you will have to start paying the interest right away. You won’t get any interest-free days on your purchases until your balance is paid in full.

Security and Fraud Protection

Capital One offers a fraud guarantee that you will not be held responsible for unauthorised misuse of your card. They give you fraud monitoring and alerts if they have detected any unusual activity on your card. As a useful bonus for cardholders, there is also purchase protection for up to £1,000 on items lost or damaged within 100 days of purchase.

Conclusion

If you have decent credit rating, then you will want to avoid applying for the Capital One Classic and take advantage of one of the many deals that are probably available to you. For all of those people who have less-than-perfect credit or no credit, then the Capital One Classic credit card may be a good choice to help rebuild your credit score, allowing you to work your way towards a credit card with better rates in the future.