Capital One - No Hassle Cash Platinum Visa Review

Capital One is a well- known credit card issuer that was founded in 1995 and has grown exponentially since then. It specializes in extending credit card offers to people with poor or damaged credit, allowing consumers with low credit scores a way to obtain a credit card and rebuild their credit record.

Credit Card Commentary:

Capital One is a marketing- driven business and even though it spends most of its advertising dollars targeting individuals with below- average credit ratings, it still targets others, too, and that's why I have received so many offers from this company to sign up for the Visa card. My credit record is very good, so I don't fit the characteristics of the typical Capital One prospect. Still, I received numerous offers from this company and I finally agreed to accept a card that included a balance transfer offer.

Interest rates on Capital One usually include a "teaser" rate at the beginning, which then shoots skyward after the initial introductory period has expired, which is commonplace for credit card companies nowadays. If you are not timely with your payments, and you miss your billing due date for two months in a row, the rate will also increase instantly. When I accepted my offer, I was given an introductory rate of 0% on all purchases for six months, and 4.9% on balance transfers for six months. At the end of this introductory period, the rate was scheduled to increase to 19.8%. And if two payments are missed in a row, the rate climbs to Capital One's "default rate", which is determined quarterly by adding 16.4% to the prime rate (ouch!). This rate can easily be anywhere from 21% to 25%.

Since Capital One specializes in credit cards for risky individuals, the company has to have some way to cushion the additional risk that it incurs. Capital One accomplishes this through its fees. The minimum finance charge is 50 cents; the cash advance fee is equal to a percentage (3 or 4) of the borrowed amount; there is a late payment fee; and there is an over the credit limit fee. If Capital One has to return a bad check to you, they will charge a fee for that, too.
 
Besides the high fees, Capital One is annoying in many other ways. The aggressive marketing department at Capital One keeps pushing and pushing until they get you to accept an offer. I cannot count how many times I received an offer from this company in the mail to sign up for a credit card or the number of phone call solicitations to accept a new Visa card. I get stacks of mail from credit card companies on a regular basis, but none of them can top Capital One. I get more junk mail from this company than any other. Even today, several months after closing my account, I still get offers begging me to come back.

Capital One also needs to improve its customer service. The company has grown very quickly in the past several years and because of this, it has been unable to keep up and has had a difficult training its staff at a fast pace. These are common growing pains associated with companies that are expanding quickly. The weakness of the service, in fact, caused me to end my relationship with Capital One in only a few months.   

Bottom Line:

Capital One is a company I will not likely use again. It only takes one bad experience to turn me off from a credit card company. I can tolerate the fact that they feel the need to charge over the limit fees, late fees, etc. But I can't tolerate the weak customer service, high interest rates, and other issues. With so many other credit card companies to work with, why should anyone accept this low level of service? Do yourself a favor and pick someplace else.