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Capital One Classic Card

Last Edit: 23/11/18

The Capital One Classic credit card is one of the most popular credit cards available for people who: a) have bad credit, and want to improve their credit rating; b) people wanting to build a credit rating. Credit cards, such as the Capital One Classic, are generally referred to as 'creditbuilder' credit cards; the drawback to creditbuilder cards typically is: a) they have a low credit limit so card owners cannot go on a big spending spree or make large purchases; b) the APR (interest rate on purchases) is high compared to standard credit cards -- typically 30% and above; c) a cash withdrawal fee and immediate interest on the cash withdrawn; d) some creditbuilder cards have a higher APR -- for people with a poor credit history -- than the advertised APR.

Capital One Classic credit card
(Pictured: Capital One Classic credit card)

As would be expected of a creditbuilder credit card, Capital One advertise their Classic card as a 'stepping stone' to becoming eligible for a higher credit rating, stating: "To build your credit rating and potentially be eligible for credit limit increases." So, what factors will make it more likely that an applicant will be accepted for the card? Capital One state that the following factors will help: a) the applicant for the card is over 18; b) the applicant has a credit history, even if this includes defaults or a CCJ (better if the defaults or CCJs are a year old or older); c) the applicant is on the electoral roll. Capital One state that the following factors will decrease the likelihood of an applicant being successful for the card: a) the applicant has never owned a credit card before; b) the applicant has no credit history; c) the applicant has suffered a bankruptcy in the past twelve months.

The Capital One Classic currently (subject to change) has the following advertised product features:

In conclusion, the Capital One Classic is a standard creditbuilder credit card, with product features that are typical of this type of credit card. The general advice for creditbuilder credit cards is to only spend a small amount each month and to repay the balance in full, if not, the level of APR can make them very expensive (especially so if the APR is higher than the advertised APR).