Capital One Balance Transfer Mastercard review
- Representative example:
- When you spend £1,200 at a purchase rate of 34.94% (variable) p.a., your representative rate is 34.9% APR (variable).
- 0% interest on balance transfers
- 24 months
- 0% interest on money transfers
- 6 months
- Account fee
- £0
Our verdict
Capital One's credit card for applicants with lower credit scores.Capital One is known for providing credit cards for bad credit, and this card is no exception, offering a competitive balance transfer deal for those with lower credit scores.
However, it comes with a maximum credit limit of £1,500, and the 0% interest period is only 6 months, which is reasonable for a card geared towards those with bad credit, but might not suit those struggling to pay off a large existing balance.
It's also worth noting that the balance transfer facility comes with a 3% fee attached, and that after the 0% introductory period any outstanding balance will start to accrue debt at the card's standard purchases rate (see table below).
Pros
- Applicants with low credit scores may be eligible
- Customers report excellent customer service when dealing with Capital One
- Two years of 0% interest to focus on reducing your current credit card debt
- Three months to spread the cost of purchases
- No annual fee
Cons
- Don't forget that balance transfer fee! If cutting the interest on existing card debt is your main reason for considering this card, check out no-fee deals first
- You may be offered an opening credit limit as low as £200
Details
Product overview
| Issuer | Capital One |
| Network | Mastercard |
| Annual/monthly fees | £0 |
| Balance transfers | 0% for up to 24 months reverting to 34.94% |
| Balance transfer fee | 3% |
| Purchases | 0% for 3 months reverting to 34.94% (subject to eligibility) |
| Purchases interest-free period | Up to 56 days |
| Money transfers | 0% for 6 months reverting to 34.94% |
| Cash advances | 34.94% |
| Minimum credit limit | £200 |
| Maximum credit limit | Subject to status: £8,000 |
| Additional cards available | 3 |
| Potential costs | 2.6 ★★★★★ |
| Doing its job | 4.0 ★★★★★ |
| Extras | 3.3 ★★★★★ |
| Overall Finder Score | 3.4 ★★★★★ |
Fees and charges
| Minimum monthly payment | 3% or £5 (whichever is greater) or the total of any interest, default fees and charges, 1/12th of annual fee plus 3% of the outstanding balance. |
| Annual/monthly fees | £0 |
| Balance transfer fee | 3% |
| Money transfer fee | 3% |
| Foreign usage charge (EU) | 2.75% |
| Foreign usage charge (rest of world) | 2.75% |
| Cash advance fee | 3% (min. £3) |
| Late payment fee | £12 |
| Duplicate statement fee | £0 |
| Exceeding limit fee | £12 |
| Additional card fee | £0 |
| Dormancy fee | £0 |
Application requirements
| Availability | Available to new customers |
How does this card compare with other similar cards on the market?
Approval for any credit card depends on your status. The representative APRs shown represent the interest rate offered to most successful applicants. Depending on your personal circumstances, the APR you're offered may be higher, or you may not be offered credit at all. Fees and rates are subject to change without notice. It's always wise to check the terms of any deal before you borrow. Most of the data in Finder's comparison tables is provided by Moneyfacts.
Repayment options
You can make manual repayments through Capital One's app by logging in to your online banking or over the phone (03444 812 812). Alternatively, you may wish to set up a direct debit.
A direct debit protects you from forgetting to make a repayment and losing your promotional interest rate as a result (as well as damaging your credit score and incurring the late payment fee of £12). You could use a fixed-amount direct debit to ensure you've cleared your debt before the 0% period expires – simply divide your outstanding balance by 24 to see what you'll need to pay each month (this assumes you don't use the card for additional spending).
You can arrange a direct debit for repayments when you apply for the credit card. The table below shows the options available.
Choose from the following direct debit options for your monthly repayments:
| Minimum amount | Fixed amount | Fixed percentage | Full amount |
|---|---|---|---|
How to apply
If you've compared cards and settled on the Capital One Balance Transfer Mastercard, completing the secure online application form takes about 15 minutes. Before you apply, check that you meet the eligibility requirements and have the information and documents you'll need to make the process as straightforward as possible. You can request a balance transfer as part of your application.
Frequently asked questions
What credit limit will I get with the Capital One Balance Transfer Mastercard?
If Capital One offers you this deal, it will specify a personalised credit limit based on Capital One's assessment of your situation. The minimum limit offered on the card is £200, while the maximum is £8,000. Once you've had the card for a while and shown Capital One you're reliable, you may wish to apply for a credit limit increase.
Can I withdraw cash using the Capital One Balance Transfer Mastercard?
Although it's possible, withdrawing cash from a credit card account is generally not a good idea, as "cash-like transactions" (such as withdrawing cash at an ATM, getting cashback at the till, spending at a casino or buying currency) often incur steep fees and/or higher rates of interest.
The cash advance fee on the Capital One Balance Transfer Mastercard is 3% (min. £3). For example, if you withdraw £50, you'll incur a fee of £3.00. Withdraw £250 and you'll incur a fee of £7.50.
The interest rate on this part of your balance will be 34.94%, which is the same as the standard purchase rate (chargeable from the day of the transaction – the card's usual "up to 56 days interest-free" grace period won't apply).
What should I do with my old credit card after transferring the balance to the Capital One Balance Transfer Mastercard?
Transferring a balance doesn't automatically close your old account. In most cases, you'll want to close the old account(s) straightaway, especially if they have an annual/monthly fee or if you might be tempted to use them in the future. There is an argument that you should keep the old account open to help your credit score. That's because doing so keeps your "credit utilisation ratio" lower (that's a measure of how much credit you're using compared to what's available to you) and helps the average age of your credit accounts. However, unless you're just about to apply for a new mortgage, it's probably fair to say that most people would prefer to have no more bank accounts open than was truly necessary.
How much does it cost to use the Capital One Balance Transfer Mastercard abroad?
Non-sterling transactions are subject to a 2.75% charge. For example, if you spend 200 euros (£168.65), it'll cost you around £4.64 in fees.
Can I transfer money from the Capital One Balance Transfer Mastercard to a bank account?
Yes. That's what's known as a "money transfer" (rather than a "balance transfer") in credit card jargon. You can arrange this from your online banking or using Capital One's app. New customers will pay no interest on this part of their card's outstanding balance for up to 6 months. The fee for a money transfer is 3%.
Finder credit card scores
Our experts score balance transfer cards to determine their value against similar products on the market. We look at a number of important factors, like the length of the balance transfer offer, the balance transfer fee, any restrictions to making a transfer, plus the potential costs involved with running the card both in the short and longer term.
You can read more about our scoring criteria on our credit card methodology page.
