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Capital One Progress Credit CardIndependent review with up to date rates, fees and special offers for this card...
Capital One credit card review: ProgressNow here's a new concept: a shrinking interest rate. The Capital One Progress credit card is the first that we've seen to offer this service - we'd hesitate to call it a reward, exactly - which slowly reduces the initial high 29.94% p.a. (variable) interest rate. If your account is managed well - without exceeding your credit limit or missing any minimum monthly payments - it will reduce by 2% every 6 months until it reaches 17.9% p.a. (variable). What's more, when the offer is over it will now remain at 17.9% p.a. (variable). Recent changes to this offer now mean that if you do miss a payment or go over your credit limit your interest rate won't shoot back up - instead you'll just remain on your current rate and you'll still be eligible for the next reduction in 6 months. The rate reduction now applies to cash withdrawals as well as purchases and balance transfers - so all transaction types will stay in line with each other cost wise. It's still important to note however that even at the lowest 17.9% p.a. interest rate it'll be fairly costly to carry a balance on the credit card and it is advisable to keep any spending repaid in full each month. Also - don't forget, just because the cash withdrawal rate will now reduce with the purchase rate - there is no monthly interest free period on cash withdrawals or balance transfers so these transactions will be charged interest even if you pay off your balance in full each month. It's certainly best to think of the Capital One Progress credit card as a step-up from the Capital One Classic which is designed for consumers with a poor or non-existent credit history: you'll need to have avoided any CCJs or defaults in the past 12 months to apply. With credit increasingly hard to find the Capital One Progress credit card is another opportunity to use good spending habits to build a strong credit history. This is underlined with the extra credit history monitoring services from Equifax that are included as part of this credit card's member services. Capital One progress cardholders will be able to get two Equifax credit reports a year for free plus personalised alerts of any changes to their credit file. There's also an instant decision service available when you apply online. All in all, the Capital One Progress credit card is a great way to continue to build a good credit score into an excellent one.
Review Continued...The Capital One Progress credit card is an innovative credit card that can help to build an outstanding credit score and allow you to monitor your progress. Build an excellent credit score If you've previously used a credit card for those with poor credit scores successfully or are fairly new (but not completely new) to credit then the Capital One Progress credit card could be for you. If you're over 18, on the electoral roll and have previously had some form of good UK credit (no CCJs or defaults in the past 12 months) then you'll be a suitable applicant. An extremely high rate of interest when you start out - typically 29.9% APR - makes the Capital One Progress credit card unsuitable for carrying a high balance over a number of months but it will become slightly more suitable to occasionally carry a balance at the end of the month if the need arises as the interest rate starts to fall, particularly the lowest tier 17.9% p.a. (variable) which is much more inline with rates seen on more mainstream credit cards. In general, though, the Capital One Progress credit card's greatest benefit is helping to create an excellent credit score. By making at least the minimum repayment every month (although it's recommended that you pay more, if not all of it) and staying within your credit limit the per annum interest rate will be reduced as follows:
This offer has recently been updated and as such after the 36 months the interest rate will remain at 17.9% p.a. (variable). It's worth noting that if you do miss a payment or go over your credit limit, while your rate won't reduce by 2% - it won't shoot back up to the starting rate either, instead it will remain at the current rate and you'll still be eligible for the next rate reduction in 6 months. Monitor your own credit score The Capital One Progress credit card comes with a few extras to help you to monitor your credit score. The services are provided by the credit reference agency Equifax absolutely free: two free full credit reports a year; service alerts when any major changes are made to your Equifax credit report whether you gave your permission or not and an alert if anyone applies for credit using your name. All banks and credit providers assess your 'credit score' differently but even so this system allows you to track your progress with a major provider of personal financial information, and that can't be bad. No cash The Capital One Progress credit card is unsuitable for withdrawing cash and using abroad. The same high initial 29.94% per annum interest rate on purchases applies to cash withdrawals but it starts from the moment that you make a withdrawal and will apply whether you pay off your statement balance in full or not, so it's potentially very expensive. There's also a 3% 'handling fee' with a minimum fee of £3. Using the credit card abroad will be subject to a 2.75% transaction fee. Monitor security Finally, Capital One Progress cardholders are protected by Capital One's excellent identity protection, purchase protection and fraud monitoring services. For extra protection on your online purchases you'll be able to register for Verified By Visa or MasterCard SecureCode services and Capital One's active fraud protection will monitor any possibly fraudulent activity on your account. Your purchases with the Capital One Progress credit card will be covered against loss, damage or theft for 100 days after purchase up to a maximum of £1,000 per item claimed on and as well as your protection under law as part of section 75. There are some exclusions on this protection including delivered items, jewellery, cameras and second hand goods, so it's worth looking at the terms and conditions for full details. Final Word All in all, the Capital One Progress credit card is an excellent way to build up a credit score with a supportive credit card provider. |
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