Capital One has Launched a 4% Cashback Card

melbury

I also have a good credit history, but last year applied for that GE cashback card and didn't hear a word back from them and still don't know why.

I don't understand exactly what criteria you are supposed to meet with these credit card companies. Perhaps they don't want people who pay off their balance in full every month because they don't make money out of them.

waterstar

Just received my acceptance and Credit Card Agreement ("CCA") to sign and return.

As I read through the CCA I see in the "OTHER FINANCIAL INFORMATION" section something which has caused alarm bells to ring:

"Total Charge for Credit:
At the time the agreement is made, is £123.63
Comprising interest in the sum of: £123.63"

With no explanation provided and I have NOT asked to transfer any balance to Capital One. But it seems to me if I signed the agreement I would immediately owe Capital One £123.63!

Not sure if this is simply an error or there is an innocent explanation - but I will be calling Capital One first thing on Monday morning. But even if an error it certainly does not leave me with a good feeling about signing up with Capital One even for 4% cashback.

My purpose in posting is twofold:

(i) to enquire if anyone has experienced similar or has an explanation; and
(ii) to draw this matter to the attention of others.

DeepSporran

waterstar wrote: »

Just received my acceptance and Credit Card Agreement ("CCA") to sign and return.

As I read through the CCA I see in the "OTHER FINANCIAL INFORMATION" section something which has caused alarm bells to ring:

"Total Charge for Credit:
At the time the agreement is made, is £123.63
Comprising interest in the sum of: £123.63"

With no explanation provided and I have NOT asked to transfer any balance to Capital One. But it seems to me if I signed the agreement I would immediately owe Capital One £123.63!

No need to worry. They have to give an example of how much interest you would pay if you make a purchase and then pay it back over a number of months rather than pay the total outstanding balance every month.

You should see something like this very close to the text you've quoted:

" This is based on credit of £1500 being borrowed over one year at the standard interest rate ...... and repaid in equal monthly instalments .... " etc

So IF you did buy stuff for £1500 in month one, and didn't pay it off immediately, but instead took a year to pay it off (and didn't make any other purchases), then you would pay £123.63 in interest.

However, if you always pay off the card every month by the required date, you won't have to pay any interest.

There's always a clause like this in every credit card agreement these days. It's just an example. They are not saying that you will borrow £1500, and they are not saying that you will pay interest of £123.63.

waterstar

Hi DeepSporran

thanks for your reply and your explanation makes sense as it stating the amount that would be payable as interest in a "hypothetical example".

However, in the CCA I have received from Capital One there is no statement to the effect " This is based on credit of £1500 being borrowed over one year at the standard interest rate ...... and repaid in equal monthly instalments .... " etc. very close to the statement I quoted originally.

I'll call Capital One on Monday and see if I get a sensible response from them.

Special_T

Hi

I too applied over the interent and was told they would give me a reply in 7-10 days. Slightly surprised as I have a really good rating and usually get an immediate yes response.

Anyway, been over 2 weeks, but I got a letter yesterday saying that I had been accepted and need to send off the CCa agreement so they can issue my card - no idea what the credit limit is though.

HTH those still waiting a response.

YorkshireBoy

waterstar wrote: »

However, in the CCA I have received from Capital One there is no statement to the effect " This is based on credit of £1500 being borrowed over one year at the standard interest rate ...... and repaid in equal monthly instalments .... " etc. very close to the statement I quoted originally.

It's lower down in section 11 (financial particulars)...

[FONT=Arial, Helvetica, sans-serif]In calculating the APR and Total Charge for Credit we are required by law to assume that: the credit limit will be £1,500 unless we know the credit limit when this agreement is made, in which case we will use that credit limit; [/FONT][FONT=Arial, Helvetica, sans-serif]the credit is provided for a period of one year beginning with the date of the agreement; [/FONT][FONT=Arial, Helvetica, sans-serif]the rate of interest payable in relation to the whole of the credit under this agreement is that applying to purchases; and that the credit is repaid in twelve equal monthly instalments, beginning one month after the date of this agreement.[/FONT]

waterstar

Hi YorkshireBoy

Thanks for the reply and "yes you are correct" is it in "section 11"

Sorry for my "dumbness".

many thanks fellow MSE'ers

Waldir

Do you know if there is a limit on the amount of cashback in the first 3 months?

jojo1978_3

Waldir wrote: »

Do you know if there is a limit on the amount of cashback in the first 3 months?

I believe theres no limit, its not capped, but you can only spend up to your credit limit...so what i mean is, you can't load your card up and pay in more than your credit limit then spend it. e.g credit limit set at £6000, you cant overpay to give you £9000 available and then get cashback on the £9000, they'd only give you cashback on the £6000.
Does that make sense?

lisyloo

But can't you spend £6K in week 1, pay it off in week 2 and then spend it again in week 3.
This isn't "pre-loading" just paying off what you've spent then spending it again.

Isn't that possible? or is it limited to your credit limit per month?