Dodgy Capital One

oueyouey

One of my boyfriends friends applied for a capital one credit card. He hasn't got a very good credit score but they have told him if he gives them £200 up front they will give him a credit card. This sounds very dodgy to me

Milarky

I haven't heard about that one - it does sound a dodgy as you say - but they do now offer savings accounts [where the money is in your name and earning good interest]. Although the 'savings' and the 'loans' arms of organisations tend to be quite separate, I wonder if having a savings product with Capital One before applying for a credit card could help your chances?

johnllew

oueyouey wrote:

This sounds very dodgy to me

Why? If your boyfriend's friend has a poor credit history, maybe he's the dodgy one! If he can't otherwise get a credit card, a secured one may be worth getting for all the advantages a card can give you; it will also help him to build up a good history for the next card.

zcaprd7

How would he get the £200 back?

Is it loaded onto the card or something?

johnllew

zcaprd7 wrote:

How would he get the £200 back?

Is it loaded onto the card or something?

From the CapOne T&Cs:

25. Security.

You must pay to us, within 28 days of the date of this agreement, by way of security, the advance amount specified in clause 10 and notified to you ('the security deposit') by cheque payable to Capital One Bank (Europe) plc crossed with the words 'account payee' or 'a/c payee' (with or without the word 'only') or by postal order payable to Capital One Bank (Europe) plc and crossed, or by cash. If we do not receive the security deposit, or it is returned unpaid, we will not open the account nor issue any cards and will return any amount we may have received from you by way of security. No interest will accrue on the security deposit. You charge to us, with full title guarantee, all your rights to the security deposit as continuing security for the repayment of all amounts owing or which may become owing by you to us under this agreement. You may not dispose of the security deposit, create any security over it or withdraw any of the monies held on security except as stated below. You may not set off the security deposit against any amount you owe us, whether in your name or jointly with any person, under any other agreement with us. The security deposit will be repaid to you, and may be withdrawn by you, not earlier than 30 days after the account has been closed, provided that we are reasonably satisfied that there is no undisputed amount owing or which may become owing by you to us under this agreement. Subject to any prior written notice we may need to give you, we may set off and apply the security deposit towards repayment of any undisputed amount owing by you to us under this agreement. We may return the security deposit to you at any time should we no longer require security under this agreement.

Leylauk

I've heard about this card - it's a credit-rebuilder card ie. if you have a crap score, get this card, spend a bit on it every month then repay immediately. After about a year your credit score should look a bit better and you can progress onto a better card.

The APR is something like 29.9% though - so watch out if you can't pay it off in full.

oueyouey

johnllew wrote:

Why? If your boyfriend's friend has a poor credit history, maybe he's the dodgy one! If he can't otherwise get a credit card, a secured one may be worth getting for all the advantages a card can give you; it will also help him to build up a good history for the next card.

I think it's a bit unfair of you to brand him as being "dodgy" just because he can't get a credit card.

Big_Cheese_2

Capital One are currently advertising an 18 month 0% transfer deal on various internet sites. When you click, though, you are taken to "searchanything.com." The actual Capitol One site doesn't mention (as far as I can tell) the 18 month deal. Dodgy seems about right...

Cardinal-Red

My brother has used one of these securities before but his was a lot higher - so maybe they don't consider your boyfriend as 'risky' as my brother.

As others have said though it did go some way to repairing his credit and except for the loss of interest on his security (his was £750) there were no ill effects from the system.

empfun

I've got the same card. And it's great for building or rebuilding one's credit rating. You can request for the security deposit back after 6 months.

Justin_Credit

The OP's friend has two choices, either take it or leave it. I don't see anything dodgy in it though. This is just the price he will have to pay to start to rebuild his credit score. Capital One cannot be blamed for his poor credit rating.

Many people would complain that Capital One were being utterly reckless if they dished out credit cards to people with previous poor credit histories without any form of security.

Looking at the T&C's posted earlier in the thread, who knows, the £200 may be refunded fairly soon after the start of a well managed account?

Lots of people have a poor credit history but they must realise that only they are responsible for this, nobody else. The financial institutions are bound to be reluctant to lend to them at reasonable rates until a decent history is built up. At least Capital One are giving those people a chance to prove themselves and to eventually move on to a lower % rate card.

JC