Capital One's cashback deal for poor credit borrowersClassic Extra offers 0.5% cashback and £5 bonus
10 May 2012
Capital One has become the only provider in the market to offer a cashback credit card to customers who have had credit problems in the past with launch of its Classic Extra cashback card.
Which? Recommended Provider Capital One have expanded their range of cashback cards to include customers who are keen to repair their credit rating. The Classic Extra Visa comes with no annual fee and offers 0.5% cashback on all purchases, paid as credit in your January statement each year. All new customers earn a £5 bonus when they open an account.
To encourage responsible management credit limits on the card are kept relatively low, ranging between £200 and £1,500.
Cashback card for responsible borrowing
Customers should not borrow on this card, with a very high representative APR of 34.94% interest can build up quickly and eat into any cashback earned.
Capital One encourage customers to set up a Direct Debit where possible to to pay their bill in full each month. Customers can also set up email alerts to notify them when payments are due or when they are reaching their credit limit to help manage their finances.
Which? credit card expert Bobby Nicholls says: 'This is an excellent opportunity for people keen to repair their credit rating and be rewarded for doing so. Capital One have taken initiative to provide a useful product for people in this situation, but anyone considering this card should be wary of the high interest rates that come with it.'
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