Capital One has increased the standard interest rate (APR) for purchases on its Plus MasterCard by 5%, from 14.9% to 19.9% for new customers.
The increase means that none of Capital One’s four credit cards offers an APR below 19.9% – the Plus MasterCard and World MasterCard both charge 19.9%, while the Progress and Classic cards both charge 34.9%.
Which? credit card expert Martyn Saville commented: ‘It’s incredible that at a time when Bank of England base rate is still at a historic low of 0.5%, Capital One can hike its rates in this way, taking the APR up to a massive 40 times base rate on even its cheapest credit card. There are far better cards available for borrowing.
‘Furthermore, the Plus MasterCard offers no 0% balance transfer deal and only offers 0% on purchases until 1 October 2010. This 0% period of less than four months is no way near the 12-month deals available elsewhere.
‘The only card from Capital One that is currently worth considering is the Capital One World MasterCard, and only if you clear your credit card bill in full every month. The World MasterCard offers an attractive 1% cashback on all spending with no maximum on the amount that can be earned. The card also offers a bonus cashback payment of £10 every January. However, the annual fee of £18 makes this cashback card most suitable for big spenders. You’d have to spend £800 a year on the card just to cover the net fee of £8 (the annual fee of £18 less the bonus cashback of £10). For all other types of credit card, I’d recommend looking elsewhere.’
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