What we think of it...

IF you have a bad credit history, or have been turned down for credit cards in the past, the Capital One Classic credit card could be just what you need.

Designed specifically for people who want to rebuild and strengthen their credit score, use this card wisely and you can start to build yourself a better credit history.

The Capital One Classic credit card can provide a credit limit between £100 and £2,500. Though it's not huge, it's enough to get you started with credit again, and if you stay within your credit limit and make all your payments on time, Capital One will increase your initial limit on your 4th statement.

This card is definitely not suitable for letting debt languish on the card as the astronomical interest rate will soon see you struggling with debt again.

But if you use the card responsibly, paying off your balance in full within the up to 56 day period, you will be back on the ladder towards a better credit score in the future.

A little more detail

Rates and Fees

			Special Note..	Any good?
Typical APR		34.9% APR (variable) -	-
Balance Transfer Rate		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%	-

Extras

			Special Note..	Any good?
Online Account Management		Yes	-
Optional Extras	-	Payment protection insurance	This is not a free service, but is available for this card.

Payments

			Special Note..	Any good?
Credit Limit		£100 - £2,500.00	If you stay within your credit limit and make your payments on time, Capital One will increase your initial limit on your 4th statement.
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		4% (£5 minimum)	-
Allocation of Payments		Fees » Interest » Balance Transfers » Purchases » Cash withdrawals	-
Default Charges		£12	-

Card Details

			Special Note..	Any good?
Online Application	-	Yes	Instant decision in most cases.
Card Type		Classic	-
Payment Company		Visa	-
Card Issuer		Capital One	-
Card Advertiser		Capital One	-

At a Glance

Typical APR	34.9% APR
Credit limit	£100 to £2,500
Balance transfer	34.94% p.a. (3% transfer fee)
Interest free period	Up to 56 days
Annual fee	£0

	This card includes:
	Online Account Management
	Instant Decision Online
	Poor Credit History Suitable
	It is best suited for:
	Rebuilding and strengthening a poor credit score by using the card diligently to demonstrate you can be trusted with credit.
	Wait! Only apply if you are...
Aged 18 or over UK resident

More about this card...

Getting the credit you need to rebuild a poor credit score can seem like an almost impossible task; lenders won't lend you credit due to a poor credit history, and you can't improve your credit history without credit!

However, with the 'fairly' recent additions of financial products designed specifically for people with a poor credit score, the impossible task has now become a pretty straight-forward one.

The Capital One Classic credit card is just the ticket for making that first step back into the world of improving your credit report.

Rebuild and strengthen
Use this card wisely, and diligently, and you will start to improve your credit score by adding good money management to your credit history.

The best way to improve your credit score is to borrow money and then make sure you repay it, on time each month, and no less than the amount requested.

Spend carefully
The APR on the Capital One Classic credit card is more than double that of the average card, so be very wary about spending more than you can afford.

If you are trying to build up a good credit score, the best way to use this card is to spend often and pay it off in full each month.

Remember to budget your income so you can always repay your card balance each month. Repaying only the minimum amount won't harm your credit score, but with the high interest charges, it will harm your pocket and won't lend towards staying debt-free.

The card offers up to 56 days of interest free credit on purchases, so you'll have plenty of time to repay your balance and escape any interest bills.

Avoid the ATM
Being a card specifically aimed at those with poor credit, it is vital to remember that you shouldn't go too wild using the card.

In particular, avoid using the card to withdraw cash from an ATM machine, as the interest free period doesn't apply to cash withdrawals.

In other words, you will be charged interest from the moment you draw the cash, even if you pay your balance off in full at the end of the month.

Remember, cash withdrawals also include getting 'cash back' from the supermarket, buying foreign currency or traveller's cheques and gambling transactions.

Instant decision
The great thing about the Capital One Classic credit card is that in most cases they will give you an instant decision on whether your online application is successful.

Applying online is quick and easy via the one page application form available on the Capital One website. It's secure too, so only Capital One will be able to read your information.

Final word
The Capital One Classic credit card is an excellent starter card for anyone wishing to rebuild and strengthen their credit score.

With such a high APR this is not the kind of card you want to rack up debts on, but if you're diligent with your payments you can look forward to seeing your credit history and score improve.