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Capital One credit campaign ignores own high APRs

Campaign is welcome but provider could do more

Capital One logo

Credit card giant Capital One has launched a credit education campaign, known as ‘Credit Made Clearer’, to help consumers handle their personal finances.

The new campaign, including a series of animated short films, aims to help consumers improve their financial management skills. 

New research from Capital One reveals that half of credit card holders haven’t reviewed their monthly payments or balance in the past year. That rises to 82% for people with overdrafts and to 86% for customers with personal loans. Furthermore, 53% of consumers in the study have never checked their credit rating.

Capital One needs to get its own house in order

However, despite the campaign, Capital One is overlooking the fact that its own products are uncompetitive for borrowing. Capital One also still operates a negative order of payments system, meaning that any repayments you make are allocated to the cheapest debt first, leaving the most expensive borrowing to rack up interest until promotional balances are repaid in full.

Which? credit card expert Martyn Saville commented: ‘Any move by card providers to raise personal finance and credit awareness among their customers is to be welcomed. This new research from Capital One reveals that too many consumers are still burying their heads in the sand when it comes to problem debt.

‘Yet, the irony is if its new education campaign is truly successful, Capital One may see many customers who borrow on Capital One credit cards deserting the provider. With Bank of England base rate still at 0.5%, it’s incredible that Capital One’s cheapest credit card still charges 19.9% APR, compared with under 7% available elsewhere. If it is to offer advice on dealing with borrowing, Capital One should set its own house in order first.’

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