Building a credit history can be a challenge, especially for those consumers searching for their first credit cards. Credit card issuers reserve their best interest rates for those consumers who already have a long and solid credit history.
Of course, earning this history often means that consumers have to take on credit cards that come with high interest rates and precious few perks.
But there are exceptions. And one of those is the Capital One Cash Rewards for Newcomers credit card. This card is designed specifically for those consumers who are new to the world of credit cards.
How This Card Works: The best feature of this card? It comes with a rewards program. That’s a relative rarity among cards designed for consumers with little to no credit. the Capital One Cash Reward for Newcomers card offers 2 percent cash back on airline tickets and hotel stays and 1 percent cash back on all other purchases that consumers make with the card.
Cardholders can then redeem their cash back for gift cards, checks or credits to their card accounts.
This isn’t the most versatile or rewarding cash-back program out there. But it is one of the few being offered to consumers with little or no credit. So that’s a big positive with this card.
No Annual Fee: Another positive? The Capital One Cash Rewards for Newcomers card also comes with no annual fee. This is a huge benefit to this card’s target market, most of whom don’t boast much extra spending money.
It’s Not All Good News: Capital One is taking a risk by providing credit cards to consumers with little to no credit history. To help offset this risk, the company is charging a high purchase interest rate with its Cash Rewards for Newcomers card.
How high? Try 24.99 percent. That makes it essential for owners of this card to always pay their credit card bill in full each month. Otherwise, they’ll see their balance grow quite quickly with a purchase interest rate that high.
The Final Verdict: The Capital One Cash Rewards for Newcomers card is a good one for those consumers with no or little credit. Consumers who pay their credit card bills on time, and who don’t run up huge amounts of credit card debt with this card, will steadily build up their credit scores. They can then apply for new credit cards that come with more generous reward programs and lower interest rates.
Similar Posts:
- Get the Most Out of Capital One’s No Hassle Points Program
- Things to Consider When Looking For a Small Business Credit Card
- PNC Everyday Rewards Visa Credit Card Review
- $100 Bonus Cash Back With Chase Freedom® MasterCard
- How to Maximize the Potential of a Cash Back Rewards Card
Recent Comments