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Capital One credit card review: Classic

Best Buy alert! The Capital One Classic credit card is currently the best buy credit card for features and services for people with a poor credit history or who are new to credit - check it here.

THE Capital One Classic credit card is geared to helping people with a poor credit history strengthen and rebuild their credit rating, even if they've been refused credit in the past.

With good credit increasingly hard to find, the Capital One Classic credit card can also be an option for those whose credit history is fairly short.

Whatever the reason, by giving you a 'foot in the door' to credit the Capital One Classic credit card offers an opportunity to improve your credit score by demonstrating that you can manage credit well.

What's more, the credit card rewards you for using it as it was designed to be used - responsibly. When you make at least the minimum payment on time each month (although we advised you to repay more than this if you can) and stay with your credit limit Capital One will increase your credit limit after 4 months.

In addition, you'll have access to Capital One's cardholder services in association with Equifax - notifications about any changes to your credit file to help alert you to fraud and access to your full Equifax credit report twice a year - offering you a great chance to see your credit improving.

With an instant decision on your application, you won't even have to wait around for notification by e-mail, phone or snail mail.

All in all, the Capital One Classic credit card is our best buy for repairing a poor credit score.

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.

Capital One Classic Credit Card User Reviews

Review Continued...

You can take a second shot at credit with the Capital One Classic credit card and keep track of your improving credit score.

Build a better credit score

If you've had problems with bad debt in the past and are looking to repair your credit rating or you are fairly new to credit and finding it hard to borrow elsewhere then the Capital One Classic credit card could be for you.

A prohibitively high rate of interest - 34.9% typical APR - underlines the point that the Capital One Classic is a credit card designed for repairing credit ratings, rather than borrowing over a number of months.

However, with a 56 day interest-free period on purchases and a credit limit of up to £1500, it is suitable for short-term borrowing.

By making at least the minimum repayment every month (although it's recommended that you pay more) and staying within your credit limit, you'll be able to have that credit limit extended: not only increasing your spending power but making you more attractive to other lenders.

To apply you'll need to be over 18, on the electoral roll and have previously had some form of UK credit. You can still be accepted if you've had CCJs or defaults in the past but not if you've been declared bankrupt in the past 12 months.

If you've applied for a Capital One credit card in the past six months or you already hold a Capital One credit card then you shouldn't apply for the Capital One Classic.

Most importantly, though, to get the most out of the Capital One Classic you need to be willing to commit to borrowing responsibly, particularly if you've had problems in the past as getting into unmanageable debt will only harm your credit rating further.

Keep track of your credit rating and stay card safe

It's to Capital One's credit, however, that they provide services with the Capital One Classic to help you do just that.

There is a free e-mail alert service which will remind you when payments are due and free services from the credit reference agency Equifax. You'll be able to access two free full Equifax credit reports a year.

So-called 'credit ratings' aren't standardised so Equifax can only provide one point of view on your history but the opportunity to track your progress with a major provider of personal financial information is still useful, particularly if improving a credit score is your aim.

Capital One Classic cardholders can also take advantage of Capital One's excellent fraud monitoring, identity protection and purchase protection services.

Capital One's active fraud protection monitors any possibly fraudulent activity and alerts you if they suspect fraud on your account, you will also get alerts when any major changes are made to your Equifax credit report and get alerted if anyone applies for credit using your name so that you can look out for fraud yourself.

Your purchases on any credit card are protected under law as part of section 75 of the consumer credit act but with the Capital One Classic credit card you will also be covered against loss, damage or theft for 100 days after you purchase an item up to a maximum of £1,000 per item claimed on.

There are some exclusions - delivered items, jewellery, cameras and second hand goods - won't be protected. See the terms and conditions for full details.

You'll also be eligible to register for the Verified By Visa scheme for extra protection when you shop online.

But don't withdraw cash

The Capital One Classic credit card is unsuitable for withdrawing cash and use abroad.

The same high 34.94% per annum interest rate also applies to cash withdrawals but it starts from the moment that you make a withdrawal and will apply even if you pay off your statement balance in full. There's also a 3% 'handling fee' on cash withdrawals with a minimum fee amount of £3 so, in all, it's potentially very expensive.

Use of the credit card abroad will be subject to a 2.75% transaction fee.

Final Word

All in all, using the Capital One Classic credit card responsibly is one of the best ways to repair a credit score with a supportive credit card provider.

Apply Online for Capital One Classic credit card »