Occasionally CreditBloggers.com likes to dig deep into credit card offers to expose if they really are a good deal for consumers. In the past, we’ve reviewed the Blue from American Express card and the Citi Upromise Visa card.
Today, we’re going to take a look at the Schumer’s Box for Capital One Platinum Card for Credit that Needs Some Improvement.
- APR – 14.9%. Pretty darn low for a card designed to accept borrowers with bad credit.
- Credit Limit – $3,000 to $5,000. That’s also pretty decent for borrowers with credit problems.
- Other APRs – You’ll get 14.9% on balance transfers and 19.8% on cash advances. Both these rates are below the industry standards.
- Default APR – If you are late on your account, the default APR is an average 27.4%. Some cards go as high as 31% for the default rate.
- Annual Fee – $19 annually. Even though this is a small amount, it’s disappointing to see an annual fee on this card.
- Other Fees – $29 to $35 per late payment depending on balances. 3% cash advance fee for each transaction. $19 to $29 over the limit fee.
- Universal Default Clause - Capital One expressly denounces the practice. Their default rate disclosures are unusually clear for a credit card issuer: "Unlike Some Companies, We Won’t Increase Your APRs Because: You pay late only once, You go over your credit limit, Your credit record changes with another lender. We May Increase Your APRs If: You pay late twice in 12 billing periods."
- Online Banking – Free online account management.
- Perks – Roadside assistance, rental car insurance, travel services, travel accident insurance.
- Negatives – Capital One is notorious for not reporting credit limits accurately to the credit bureaus. This missing reporting can impact your credit scores.
- Acceptance Requirements - You can have credit issues and still receive this account.
Overall, the Capital One Platinum card is a great choice for someone struggling with credit issues. In this credit category, most other offers have higher interest rates and lower credit limits. Although I have issues with the way Capital One reports to the credit bureaus, I do appreciate their policy concerning universal defaults.
Do you have a Capital One card? Share your thoughts and tips in the comments section below.
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We have a Capital One credit card. Our credit rating is very high. We have never been late or missed a payment. Mostly we do not run a balance. However, we have received notice that they are raising our rate to 17%. WHAT DO YOU HAVE IN YOUR WALLET? NO LONGER CAPITAL ONE. We just changed cards to one that offers 7.9%. Good-by Capital One.
They raised mine as well. Was fixed for 5 years at 6.9%, now 17%. They said all cards are raising it because of the economy. Looks like they changed their minds about the universal default clause. Also said I could’ve read the fine print and refused the terms. If they stop sending me all the junk mail, then maybe I’d read the important documents.
in my opinion, Capital One is junk, “What do you have in you wallet?” Hopefully, not Capital One. Someone needs to make a utube video with the barbarians running over the Capital One customer. They make you an offer and then not only ignore the offer they made you but raise your regular rate through the roof. When you ask for the regulatory agency in charge so you can contact them, they say they can’t provide that in writing, need to call them. What ever happened to ethics. Maybe I will make that video, should be fun.