Capital One has launched a competitive new cashback credit card, which comes with an £18 annual fee, but also a £10 bonus cashback payment each January.
The new Capital One World MasterCard is aimed at consumers with a perfect credit score, so is not suitable if you have missed payments in the past, or if you have any county court judgments against you or do not have an established credit history.
According to Capital One, you will have a greater chance of being accepted for the card if you have existing credit card balances of less than £10,000, are aged 21 or over, and are a home owner with an annual income of at least £20,000.
Competitive but complicated cashback credit card
Martyn Saville, Which? credit card expert, commented: ‘The new Capital One World MasterCard offers a competitive cashback rate of 1% of your spending, with no upper limit. However, following the example set last year by the Egg Money World MasterCard, the new Capital One card comes with an annual fee, in Capital One’s case £18 a year.
‘This annual fee is partly offset by an annual £10 bonus cashback credit, paid every January “to say thanks for choosing Capital One”. While the annual fee and bonus cashback system seems unnecessarily complicated, this is still a competitive cashback deal, particularly for medium- to big-spenders. If you spend £500 a month on the card, you’ll earn net cashback over a year of £52, once the fee and bonus are taken into account. The Egg card would pay £48 over the same period.
‘The hefty 19.9% APR on this credit card makes it unsuitable for borrowing, so you should only consider applying for the card if you pay off your bill in full every month.’
Expert credit card reviews from Which?
To compare this card with the other best cashback deals on the market, check out Which? Best Rate cashback credit card reviews.
If you’re not sure which credit card is best for your circumstances, read the free Which? guide to choosing a credit card.
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