Ok to start you off... (Capital One)

Member Name: celosia

Product:	Capital One
Date:	23/05/01 (323 review reads)
Rating:

Advantages: Accept anyone, so you can start off your credit history, good customer support

Disadvantages: High charges, high APR on purchases and cash advances

I applied for a Capital One credit card basically because it was the only one I could get (I was 18 at the time and now am nearly 20). They gave me their basic card with a £200 limit. I did what a lot of people may well have done in my situation - I ended up right up near my credit limit pretty quickly.

Ok, I thought, no prob, the minimum payment is the greater of 3% or £5. So there I was, thinking I had to pay £6, and WHAM! along comes an annual fee of £18. My fault, I overlooked it, I wasn't used to dealing with credit cards. I not only had to pay my minimum payment and the £18 annual fee, but also something like £30 for paying late (I paid some then got the bill with the charges!) and £30 for going over my limit! I can't remember if those are the exact figures, it was a while ago, but you get the gist.

After some hard work I am clearing my balance in full each month, but they didn't exactly make it easy - there was so much interest to clear (the APR is 30-odd% on purchases and cash advances).

Once I have a good enough credit history, I will be off like a shot - there are plenty of companies with a *much* lower APR and no annual fee.

Capital One's advantage (for them) is that they give a card to anyone, but often at that young an age you're not used to dealing with your finances and are likely to get in trouble. And because their charges are so high, when you make a mistake it can be hard to get back on track.

On the plus side, their customer support was good when a payment arrived but didn't show up on my bill, and I go charged for late payment. I explained the situation and they sorted it out and calculated exactly what I needed to pay them. Also, statements are breif and easy to read, with the customer support number if you have any queries.

My advice would be to get one if you have to, to start off your credit history, but be very careful and transfer to another provider as soon as y
ou can.

Summary: