Capital One classic Visa what to do???

funnylee_2

I am completely new to credit card and thinking I might have one, too. So I signed up for Capital One online a week ago. I just sent out my confirmation and signiture back to Capital One and noticed this sweet forum.

Sweet lord, what I discovered here! It's probably because I have such bad credit history, I've been offered a Capital One Visa for such a person I am. I don't mind with this bit much, but when I use it in the future, it'll be like I'm being tagged with this stinky bad credit history label. But then I had a second thought, as this credit card, if used in a wise way, could be a potiential mean to increase my credit history, say "use it for a year"?

So here are the questions + problems I finally got for myself:

1 Do I not using cash withdrawl because this "stealth charge scheme" ( in which Capital One secretly done, without telling you what truely happened with your cash repayment. e.g. say if you purchase 100 and cash withdrawl 50 as listed on the statement, paying them back 150 may still left you non zero setllement figure for that month in the past)?

2 Then how much do I pay them back immediately after purchase, say, 200? Do I pay more than 200? If I do, what is the immediate advantage of this credit card compare to a cash card?

3 With monthly rate of 2.2% and Annual Percentage Rate of 29.9%, is this account a pure cr*p? Or give an example how people should plan their spending with it?

4 Should I consider cancelling this Visa card by, er, ignoring it? Or not paying them security deposit (not sure if they require any)?

Please laugh at the other end of the monitor also give me some advise.
Thank you in advance.

funnylee

empfun

Hi funnylee, it's not a credit card for people only with bad credit. Capital One is just like any other regular credit card company and issue cards with high limits too 10K+.

Since this is your first credit card it's a great starting point, just make sure you clear off the full balance every month. After 6 months, you can request for your security deposit back and and credit limit increase if it is in good standing. All the best!

grumbler

funnylee wrote:

1 Do I not using cash withdrawl because this "stealth charge scheme" ( in which Capital One secretly done, without telling you what truely happened with your cash repayment. e.g. say if you purchase 100 and cash withdrawl 50 as listed on the statement, paying them back 150 may still left you non zero setllement figure for that month in the past)?

2 Then how much do I pay them back immediately after purchase, say, 200? Do I pay more than 200? If I do, what is the immediate advantage of this credit card compare to a cash card?

3 With monthly rate of 2.2% and Annual Percentage Rate of 29.9%, is this account a pure cr*p? Or give an example how people should plan their spending with it?

4 Should I consider cancelling this Visa card by, er, ignoring it? Or not paying them security deposit (not sure if they require any)?

1. Never use either this or other credit card for cash withdrawals (unless this is absolutely unavoidable).
2. Do not pay anything ‘immediately’. Pay balance in full every month by Direct Debit and you will never pay any interest. You can use cash card only for cash withdrawals. You can use credit card for purchases including internet ones. And you have up to 54 days interest-free period.
3. See 2
4. Why? Use it for purchases. Enjoy up to 54 days interest-free period. Build/repair you credit history. Read this site and soon you will be able to apply for some better credit card.