Capital One made a big entry into the credit card marketing years ago with its unprecedented low interest rate (APR). I signed up for one as soon as I could and still have that card to this day. It’s APR is 9.99% which can’t be beat for a credit card.
Naturally, it didn’t take long for Capital One to expand its credit card line into other types of cards including the Capital One 0 balance transfer credit card.
The Capital One 0 balance transfer credit card is a top pick by this credit card site (at the time this post was published).
Pros of the Capital One 0 balance transfer credit card
Fairly long 0 percent interest period
Presently, you don’t pay interest on balance transfers to January 2013 (15 months). Please keep in mind this post was published in November 2011, so be sure to check to see whether the 0 percent balance transfer period is extended. I highly suspect it will be.
Essentially, it’s a 14 or 15 month 0 percent interest balance transfer period.
No Annual Fee
Most decent 0 balance transfer credit cards don’t charge an annual fee. The Capital One card doesn’t either. Unless the perks are amazing, there’s no need to get a zero balance transfer credit card requiring an annual fee payment.
Interest Rate (APR) at end of 0 percent balance transfer period
Capital One built its reputation on lower APRs. It’s no exception with their 0 balance transfer credit card. The APR at the end of the interest free period is 10.9% to 18.9% which is lower than many other similar credit cards.
Note that you’ll find that 0 balance transfer credit card APR is higher than many other cards. The fact is the selling feature is the 0 percent interest period on balance transfers. You know that credit cards will make sure they get paid in the long run, and with these types of credit cards, they have higher APRs to make up for the interest free period.
This is why it’s smart to pay off your balance transfers before the interest free period ends. Also, going forward, don’t accrue a balance on these types of credit cards because you’ll pay more in interest, even with the lower APR Capital One card. Besides, whenever possible, avoid accruing balances on credit cards because the mounting interest charges can be staggering.
If you anticipate carrying a balance in the long term, consider applying for a low interest credit card.
Custom Design
If approved for this credit card, you can create your own design with your own picture (this is kind of cool and not offered by every card).
Customer service
I’ve been a long-time Capital One user and have always been very pleased with their customer service.
Cons to the Capital One 0 balance transfer credit card
Excellent credit required
You need excellent credit in order to be approved. If you don’t have excellent credit, you will have to look for another credit card such as a credit card for people with bad credit. Of course this type of credit card doesn’t solve your situation of an existing high balance on which you wish to stave off interest payments for some time.
High cash advance APR
The cash advance APR is 24.9%. This is high, but most credit cards charge a high APR for cash advances.
Transfer fee
The Capital One 0 balance transfer credit card has a 3% transfer fee. This means your transfer fee is 3% of the balance you transfer. This can add up on large balance transfers. Therefore, before tansferring a balance, calculate that you will indeed save more money on interest charges than you will pay for the transfer fee.
Click here for general information about 0 balance transfer credit cards.
Click here to compare 0 balance transfer credit cards.
Please note that the information in this Capital One 0 balance transfer credit card review may change at any time (i.e. APR, interest free duration, etc.)