HELPS REBUILD YOUR CREDIT - BUT NOT CHEAP! (Capital One)

Member Name: poogie

Product:	Capital One
Date:	18/03/01 (399 review reads)
Rating:

Advantages: offers a credit card facility to just about anyone

Disadvantages: high interest rates, low credit limit

This is one of those credit cards that you see advertised for people who can't get one anywhere else.

We have had several mailings come through the post from Capital One, for both of my sons who had rather shot themselves in the foot with injudicious use (to put it mildly) of their first credit cards. Fine so they were both 18, had a bit of money to spend, but they both looked upon the credit limits given to them by their Midland Bank mastercard as a 'bonus'. They forgot that once they'd used it - they had to pay it back.

One of them has since had a loan turned down by his bank - not because he is in really dire financial strats, but because he ran his c/c up to its limit within 2 weeks of getting it and there it has stayed.

Capital One offer two cards - the Platinum (which is not the one we are discussing here) and the Premier. It is the Premier that is designed for the less financially responsible of us/you. Yhey guratantee you a credit limit of between £200 and £1000 - not a lot, but enough I suppose that the user can show that he or she is now responsible enough. They charge an annual fee of £10 for providing the card - the price that you pay for being financially irresponsible I suppose. The other price you pay is the Annual Interest rate. You don't get a preferential rate here - none of the introductory rate of 6% or something. Oh No, you want this card well you damn well pay for it - 29.9% !

So it's not cheap if you use extended credit. It's not cheap as you have a big annual charge (not as big as some I grant you) - but if you are looking for a second chance to prove you can handle a credit card - look for one of their promotional leaflets next time it drops out of a magazine or comes through your letterbox.

Then rebuild your credit, act responsibly and get a better rate and a better deal elsewhere.

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