Capital One-Build Your Credit-Credit Card Questions??

Mads13

Hi There

My sister-in-law has applied for one of the Capital One "build your credit" credit cards. She has been given a £200 limit, I think she said APR was an extorniate 29.9%. How do these cards work? She is terrible with money and dont think personally she should have been accepted for any credit card-when she cant even pay her normal bills(rent, council tax) etc. :mad:, but not my problem...lol.

The questions she has are;

(1)Will her credit limit be increased ever & if so how long?
(2)Do they eventually upgrade the card to a more competitive APR rate CC?
(3) Is there a standard interest free period?

Thank you all in advance. :T

Mads13
xxx

Mr_Softy_Top

1. I had mine for 12 months, after 7 months I asked for an increase, they said no. I never missed a payment and usually settled in full every month.

2. Nope.

3. I dont think so, I never had any.

It is what it says it is, a credit rebuilder. Once your credit is improved drop the card.

Reaper

The low limits and high APR mean these cards are unsuitable for borrowing. She must set up a DD to pay it off in full automatically each month if she is as hopeless at money as you say, that way she won't forget.

Each time she makes a payment on time it will slowly improve her credit rating with all lenders making it possible to get more competitive cards in the future.

kevtrader

I've got this card as it's my first credit card and here's what happened to me regarding the questions.

1. I've had it for 4 months and I've had the limit increased from £400 to £1,000 even though they say they will look at it after 7 months.

2. Don't know about this one.

3. I got mine with 0% on BT and purchases for 6 months. I did apply from a leaflet advertising it but I don't know about normal application methods.

I seem to have been lucky compared with Mr_Softy_Top. At the time of the application I had been working for over 2 years so perhaps that had something to do with it. I don't know if things like that helps with this sort of credit card.

I agree with Reaper about setting up a DD to pay off the card in full each month.

Rafter

1&2 They have no incentive to improve your APR but will try to increase your limit.

3 Although like many cards it says 'up to 50+ interest free on purchases, like most other cards this ONLY applied if you pay your card in full. Otherwise interest is charged from date of purchase.

mitcho_uk

Forgive me for asking a really stupid question but i want to be 100% sure before i take this any further. If i purchase something on the card and pay off the balance in full each month then i shall incur no interest!

Am i right

zcaprd7

Generally yes, but there are some sneaky cards that charge from the day of the purchase!

What card are you using? (if in doubt check your T&Cs).

mitcho_uk

I was considering the capital one classic card to build up my credit history

Reaper

According to this page it gives up to 54 days interest free between purchase and the payment date. So yes, paying it off in full will mean no interest is paid (for purchases that is, there's no free period for Balance Transfers or Cash Advances).

Rafter

Think you are ok with that one. It is a standard card offering interest free IF YOU PAY IN FULL.

You have to watch the sneaky tricks the card companies use around interest though.

If you don't pay in full you will be charged interest from the original purchase date - you won't get the first X days interest free.

Similary some cards charge 'trailing interest'. So if you haven't been paying your card in full but then decide to, you still have to pay interest the next month from the date of the last statement to the date you made the full payment. Very sneaky!

mitcho_uk

I think ill just buy 1 thing on the card each month and pay it off straight away. will i have to wait for a payment date or could i technically buy it in the shop then go home and pay it off via internet banking.