Capital One’s Low Rate Card

Capital One has just announced a new low rate credit card.  The annual percentage rate of the credit card is 8.5 percent.  It is a variable interest rate that works on both balances and purchases.  They also don’t have a balance transfer fee for the credit card.

Capital One is also adding identity theft assistance to the card with free identity alert services.  If anyone tries to open a credit card under the card holders name or apply for any other type of credit under their name, the alerts will be emailed to the card holder.  This new Capital One card is also offering two free credit reports a year, as well as an advisor to help during identity theft if that becomes an issue.

Srini Gopalan is the head of Capital One in the UK.  During the launch of the new card Srini stated that the low rate with no balance transfer fee and identity theft protection services is going to make the card the most attractive to any consumer, especially with the credit crunch affecting everyone’s ability to spend.

The new card may not be for everyone according to Srini; it does have terms and conditions that will restrict some card holders to obtain the credit.  It is aimed at individuals will an excellent credit rating.

Capital One’s new card has been launched to entice more consumers to start looking for fair options in the credit card department.  There are several new cards making their way onto the market.  For a while there was a question as to whether some of the credit card deals would remain on the market or be removed during the credit crunch.  A lot of economists believed the zero percent balance transfer options would be taken off the market.  Instead several banks and credit card companies left these deals on and changed them to look more appealing.

The trouble with the new credit cards being released like the Capital One is that they are mostly great deals for the low risk consumer.  Consumers who are struggling to make payments or decrease their debt usually don’t have an excellent credit rating.  It means they are still not benefiting from a lower interest rate.

It is of course part of the enticement to get credit scores fixed to take part in these good deals, but for many it is just another aggravation they can’t correct.  For those looking to apply for new credit cards it is important that the terms and conditions are read fully before an application is submitted.  It will help keep the consumer from being denied and decreasing the already lowering credit rate.

Many of the new deals on the market are also offering identity theft protection services at a discount or free for new consumers to entice them into switching cards.  By comparing the new deals with all other deals it is easy to see what cards should be obtained and which ones should be ignored, due to the credit card company practices.

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