Capital One Low Rate Balance Transfer Credit Card Review
 Best Buy for life-long balance transfers
5.5% p.a. on balance transfers until Jan 2011
0% on purchases until 1st May 2009 too
Best Buy alert! The Capital One Low Rate Balance Transfer credit card is currently the best buy credit card for the lowest rate life of balance transfer deal - check it here.
THE Capital One Low Rate Balance Transfer credit card is a best buy credit card from Capital One, offering an incredibly low interest rate of just 5.5% per annum on balance transfers, and it's fixed until 1st January 2011 - that's around 26 months - or 2 years and 2 months.
Subsequently, you don't have to worry about promotional periods ending, meaning that your life is made much easier.
This fantastically low rate of 5.5% p.a. is the lowest rate available for 'life of balance transfers', putting Capital One in first place for low rate balance transfer credit cards.
The Capital One Low Rate Balance Transfer credit card comes with online account management so you can quickly and easily manage the repayments of your balance transfer.
Capital One also offers a range of security features to protect you against fraud.
These include an online fraud guarantee to guard against fraud taking place over the Internet, as well as active fraud protection - which means Capital One will check your account and let you know as soon as they notify anything they feel might be fraudulent - and, if it is, you won't be held liable if it was done without your knowledge or consent.
As a Capital One cardholder you will also be able to benefit from an identity theft service and register for free Equifax credit file notifications and free access to your Equifax credit report twice yearly.
For a best buy balance transfer deal that will last until you've paid off every penny - the Capital One Low Rate Balance Transfer credit card offers the cheapest balance transfer rate in the UK.
| Interest Rates and Fees |
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Notes.. |
| Typical APR |
15.9% APR (variable) |
The typical APR is the rate most people are offered.
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| Introductory Purchases |
0% until 1 May 2009 |
Payments are applied towards promotional purchases before promotional balance transfers. |
| Balance Transfers |
5.5% until 1 January 2011 |
Fixed interest rate. |
| Balance Transfer Fee |
1.7% |
When you transfer a balance to this card you will be charged a 'handling fee'. |
| Cash Withdrawal Rate |
25.94% p.a. (variable) |
This is the rate you are charged on balances resulting from using a cash machine, getting cash back at the supermarket or buying foreign money. |
| Cash Withdrawal Fee |
3%
(£3 minimum) |
When you use your credit card to get cash you will be charged a 'handling fee' for doing so. |
| Annual Fee |
None |
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|
| Foreign Transaction Fee |
2.75% |
This is fee you will be charged for credit card transactions made abroad.
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| Cardholder Services & Extras |
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Notes.. |
| Online Account Management |
Yes |
You can manage your Capital One Low Rate Balance Transfer credit card account online. |
| Internet Fraud Guarantee |
Yes |
You will be protected against Internet fraud when you shop online with the Capital One Low Rate Balance Transfer credit card. |
| Identity Theft Service |
Yes |
Help and guidance on how to prevent identity theft, as well as you own named advisor to help with your case from start to finish if you ever experience identity theft. |
| Optional Extras |
Payment protection |
These are extras that you can choose, but you will have to pay for them. |
| Payments & Payment Details |
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Notes.. |
| Credit Limit |
£500 minimum, £16000 maximum |
Credit limit may vary from person to person and is subject to status. |
| Interest Free Period |
Up to 56 days |
For purchases 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 |
3%
(£5 minimum) |
The minimum monthly payment is the smallest amount you must pay each month (unless your credit card balance is zero). |
| Allocation of Payments |
Fees, interest, promotional purchases, promotional balance transfers, balance transfers, purchases and then cash withdrawals |
When you make a payment to this card they will be applied to charges / balances in this order. |
| Default Charges |
£12 |
This is how much you will be charged for late payments, returned payments, if you go over your credit limit and returned credit card cheques. |
| Card Details |
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Notes.. |
| Online Application |
Yes |
You can apply online for the Capital One Low Rate Balance Transfer credit card. |
| Card Type |
Platinum |
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| 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. |
Capital One Low Rate Balance Transfer Credit Card User Reviews
What do you think? Add your review of the Capital One Low Rate Balance Transfer credit card.
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At a Glance
Capital One Low Rate Balance Transfer Credit Card
| Typical APR: |
15.9% APR |
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| Purchases: |
 0% until 1 May 2009 |
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15.94% p.a. thereafter |
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| Balance Transfers: |
 5.5% until 1 January 2011 |
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1.7% transfer fee |
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| Interest Free Period: |
Up to 56 days |
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| Annual Fee: |
£0 |
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| This card includes: |
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 Online Account Management |
| Fraud Security |
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| You should only apply if you are: |
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| • Aged 21 or over |
| • UK resident |
| • Earn more than £10,000 per annum |
Review Continued...
Capital One has realised that with hectic lifestyles, people want simplicity from their credit cards, and with the Capital One Low Rate Balance Transfer credit card they've provided it.
If you know that it will take you longer than 12 months to repay a balance, then a low interest life-time balance transfer deal would be ideal.
Balance Transfers
While 0% balance transfer deals might be appealing, they are not always best for people who wish to pay off their balance transfer over a longer period of time.
Many 0% offers are around a year in length, and are suited to people who have a small amount to pay off.
If you're looking to pay off a large amount over an extended period of time, the Capital One Low Rate Balance Transfer credit card could offer a better money-saving and hassle-free option.
With a life of balance transfer deal offering just 5.5% per annum, this credit card is the UK's best buy for low rate balance transfers.
The promotional rate here for balance transfers is also fixed - so it can't change like a variable rate. This low rate balance transfer deal will last until 1st January 2011 - that's around 26 months, or 2 years and 2 months - this should hopefully be long enough to pay back even the larger balance.
The balance transfer handling fee has recently been slashed in half on this credit card, to just 1.7% of the amount you are moving across (it was previously 3%). This fee will be quickly outweighed by the amount you save in interest charges by moving a balance from a high rate credit card to this very low rate.
As the low balance transfer rate lasts for the next two years - hopefully you won't have to move the balance again and subsequently you won't have to pay any more handling fees to get a good promotional balance transfer deal.
It is important to remember that you do have to pay at least the minimum monthly amount required, which will be 3% of the total balance outstanding. If you miss a payment you may lose the low interest rate - so be sure to set up online banking and keep on top of your monthly payments.
0% purchases and spending
The Capital One Low Rate Balance Transfer credit card does come with a 0% purchase offer that will last until 1st May 2009.
However, it's not advisable to use the Capital One Low Rate Balance Transfer credit card for purchases if you are also making use of the balance transfer deal.
The allocation of payments clause sets out the order in which payments you make will be applied to different balances on your account. On this credit card payments are applied towards balance transfers before purchases.
This means that any new purchases you make will become 'trapped' behind any balance transfers on the account, and after 1st May 2009 will start accruing interest at the standard typical rate of 15.9% APR.
So make sure you keep any spending limited to a different credit card or debit card to allow you to pay back the spending, and use this credit card to manage the repayment of your balance transfer.
Alternatively, if you want a credit card that allows you to both spend on it at 0% and transfer a balance to it for a promotional rate you will need a credit card that offers an equal length and equal rate deal on both these transactions. The Capital One Platinum credit card is currently the best credit card for this.
Security Features
Everyone is aware of the need to protect oneself against fraud and identity theft, and Capital One's enhanced security features offer real peace of mind.
With their free identity theft service, you will receive a personal adviser should your identity be stolen who will help to restore your identity.
Capital One also offers 2 free Equifax credit reports per year and continued notifications of any changes to your credit file, helping to protect you against identity theft and fraud.
Capital One's Internet fraud guarantee policy and active fraud protection mean that you can shop online with confidence that you won't be held liable for any unauthorised transactions.
Final Word
The Capital One Low Rate Balance Transfer credit card is aimed at people who want a simple credit card without having to worry about promotional periods coming to an end.
The low rate of just 5.5% per annum is the best on offer in the UK today, so if you're looking to pay back a balance transfer over an extended period of time, with the minimum of fuss, this is the ideal credit card for you.
Apply Online for Capital One Low Rate Balance Transfer credit card 
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