Looking for a cheaper way to clear existing credit card debt? If there’s a chance your credit score won’t stand up to the market’s top deals, Capital One’s Balance Transfer offer could be a strong contender.
Representative Example
Assuming a credit limit of £1,200 and an interest rate on purchases of 34.94% p.a. variable, the representative APR will be 34.9% APR variable
Pros
- Up to 24 months’ 0% on balance transfers
- No annual fee
- Possibility of 0% on purchases
- Up to £8,000 credit limit
- Mobile app to track spending and make payments
Cons
- High representative APR
- Longer 0% promotional periods offered elsewhere
- Terms are advertised as ‘up to’. What you are offered will depend on your credit score
- No perks or rewards
- Foreign transaction fees apply for use abroad
Table of Content
Key features
- 0% interest for up to to 24 months on balance transfers – with fee
- 0% for up to three months on purchases
- Maximum credit limit of £8,000
Rewards
There is no reward offering with this card.
Charges
If you are looking to transfer a balance over from one or more existing credit cards, it will cost you up to 3% of the debt transferred. So on a £3,000 debt, the maximum fee payable would be £90.
When the 0% window on balance transfers expires, any debt remaining will be charged at a representative annual percentage (APR) of up to 34.9% (variable).
New purchases made on the card after the initial three-month 0% period will be charged at the same rate of up to 34.9% APR (variable).
However, you will benefit from 56 days’ interest-free credit on purchases. This means that, as long as you clear your balance in full – and on time – every month, you won’t pay a penny in interest.
If you are late making a card payment, you will incur a £12 fee. The same fee applies if you breach your credit limit. You also risk having your 0% promotional perks withdrawn, while your credit score is likely to suffer.
Protection
As with any credit card, Capital One’s Balance Transfer card offers protection under section 75 of the Consumer Credit Act. This safety net applies to items or services costing more than £100 and up to £30,000.
This protection applies even if you only use the card to pay for part of the cost – such as the deposit – as long as it is between these two values. Find out more about Section 75 with our guide.
Will I be eligible?
To get the best terms against this card, most notably the full two years at 0% on balance transferred, you will need a robust credit score. But the card is advertised as an ‘up to’ so you may be offered less according to your score.
Using an eligibility checker before making your application will mean you can find out the likelihood of being accepted for the card, and on what terms, without leaving any marks on your credit report.
What more should I know?
You must be disciplined about making at least the minimum monthly payments on your card or you risk losing any promotional period you might be offered on both balance transfers and purchases.
Aim to clear the balance by the time both 0% introductory offers end, or costs could skyrocket when interest kicks in.
If you use your card to withdraw cash, interest will be charged immediately. You will also be charged a fee. Try to avoid this at all costs.
Is it the right card for me?
If you have nuisance balances on other credit cards, and need a reasonable amount of breathing space to clear what you owe, the Capital One Balance Transfer card could be right for you.
But use an eligibility checker to assess your chances of what cards you could be accepted for and on what terms before applying.
What are my alternatives?
You may be able to find cards offering a similar balance-transfer offering with a lower balance transfer fee or a lower APR, but you’ll need to check if you are eligible.
If you don’t have existing card debt, and also have a decent credit score, you might want to look at a card offering a longer 0% window on purchases, or a card offering rewards.
