just read the small print on the capital one credit card

londonTiger

not really impressed.

cashback is paid yearly (paid every January)

5% is a great introductory rate, but you can only earn £100 max @ 5% (£2000 spend required)

but then, it drops to 0.5% for the next £4k, and increases to 1% for the following £4k and then 1.25% after that.

i don't really care about the 1.25%, I got the card just to capitalise on the 5% and surf to the next credit card.

But it seems to me the credit card will inevitably win and make money from me. I'll have to hold onto this credit card until Jan 2013 in order to get my cashback. Pretty sure I will keep the card and then make purchases on it at some point where I go over my monthly affordable limit and pay interest a few months. It will take the credit card just a couple of months of interest to claw back their cashback.

source http://www.capitalone.co.uk/creditcards/world-mastercard.jsf

*5% cashback is earned on all purchases for 99 days from account opening up to a maximum total cashback of £100. After this period you will earn 0.5% cashback for all subsequent purchases up to an aggregate of £5,999.99, increasing to 1% for aggregate purchases from £6,000 to £9,999.99 and increasing again to 1.25% for aggregate purchases from £10,000. There is no limit to the cashback you can earn after the first 99 days of account opening. These rates are applicable until you reach the anniversary of your account opening. From each anniversary you will begin earning cashback at 0.5% and your cashback rate will increase as your aggregate purchases pass each threshold (see above). Cashback is paid every January as a credit to your account.
Credit is available subject to status and conditions. The interest rates per annum are variable. If you have applied for a Capital One card in the last six months your application may be declined. If you are not a UK resident please do not apply.
For more information read the Pre Contract Information and the full Credit Card Agreement.

CLAPTON

and there I was thinking that cap 1 was a charity

dzug1

The card exists to make money from you in exchange for providing you a service. Why would you expect anything different?

bluebird

we are planning on dumping our card,had it a couple of years now but 3 months ago the sign in name changed,then 2 months ago the password altered now this month i am trying to pay my card bill online like i do every month and its saying the sort code is wrong, i've triple checked and its correct 3 problems in 3 months, not great eh!

Fruit_and_Nut_Case

Not exactly "small print". It's very clearly stated HERE.

Stephen_Leak

Well, at least you read the small print. Now that you know "the rules of the game", why not use the card on your terms not theirs. Try not make those purchases that would earn them interest, set up a DD to avoid any late payment charges, etc.

londonTiger

I was just surprised because I came across people talking about the "amazing 5%" which isn't that great after all the clauses to be honest.

After earning the full 5% I'm going to go back to my american express nectar that gives me the equivalent of 0.5% (1 point per pound), at least they pay the points monthly unlike cap1 which pay every January.

That was my biggest gripe to be honest, the fact that they pay every January. It means I have to hold onto the card until that time before I get my cashback.

having said that I used my HSBC mastercard for years to make purchases online and I didn't get any perks (did it cos CCs offer more protection against non-delivery/bad sellers)

keithnic_2

I think 1.25% cashback is excellent and apart from American Express one of the best cashback deals out there. Receiving it in January is ideal, because it really helps pay for the stuff you buy for Christmas.
Previously we'd used our Tesco card all the time, but it only works out at 0.75% cashback if you get one of their 3 for one deals. The problem is that you are restricted to offers they have on the Tesco rewards website or buying groceries from Tesco, but that works out at only 0.25% cashback.

thegoodman

londonTiger wrote: »

I was just surprised because I came across people talking about the "amazing 5%" which isn't that great after all the clauses to be honest.

After earning the full 5% I'm going to go back to my american express nectar that gives me the equivalent of 0.5% (1 point per pound), at least they pay the points monthly unlike cap1 which pay every January.

That was my biggest gripe to be honest, the fact that they pay every January. It means I have to hold onto the card until that time before I get my cashback.

having said that I used my HSBC mastercard for years to make purchases online and I didn't get any perks (did it cos CCs offer more protection against non-delivery/bad sellers)

The terms are clear, the card is for people who would spend over £7000 a year and unlike Amex you can use it everywhere. Otherwise other cards might be better for you. I still can't see what point are you trying to make?