Capital One Classic Credit Card Review

Published: 21 April 2011 By MoneyHighStreet Staff Leave a Comment

Having an impaired credit history will prevent you from applying for many credit cards, however the Capital One Classic Credit card could help you on your way to improving your credit score.

Capital One Classic Credit CardOnce your credit history becomes impaired with unpaid debts or late loan payments then it can be very difficult to receive any form of credit, particularly credit cards, now that lenders have become very cautious after the credit crunch.

The problem is that you can only start to repair your credit history if you can demonstrate that you are now in a better position to manage your finances more efficiently and can be trusted with credit facilities.

So you need to show responsibility with credit, but how do you do that if no one will give you credit any more?

This is where a credit card such as the Capital One Classic can be very helpful. They are likely to accept your application (but it is not definite) as long as you have some credit history, even if it contains CCJ’s or loan defaults.

You have to be over 18 and listed on the electoral roll, too, but the one thing that Capital One will not accept is if you have been declared bankrupt in the last twelve months.

Note that last sentence. You may have been made bankrupt more than twelve months ago, in which case your application will be considered, though once again it is not definite that Capital One will accept you.

At least you have a chance, which is more than many credit card companies will give you.

You are probably saying to yourself that there must be catch.

There is.

There is a 39.4% representative APR variable interest rate, which is by no means competitive if you consider that more conventional credit cards have rates around 16.9%, but they, of course, will be denied to you if you need to repair your credit history.

You will also receive a low credit limit, which starts from £200. In our opinion that is acceptable as it will help you control your spending and help get you back on track with your budgeting and personal finances.

That rate of 39.4% is also uncompetitive when compared to the Barclaycard Initial credit card, however you must realise that the Capital One Classic card is designed more for those with worse credit histories than would be acceptable at Barclaycard.

Interest rates are at historic lows at the moment so saying that you should seriously consider a card like the Capital One Classic with its 39.4% representative APR rate seems to go against the grain. However it is a great way to start on the long haul of regaining credit worthiness.

If you have had debt problems and want to improve your situation then the Capital One Classic credit card could well be exactly what you need. Be very responsible with it though, and try to pay off your monthly bills in full to avoid those interest charges.

If you want to know more, or apply for one of these credit cards, click here.

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