Capital One new card offering

Commenting on the launch of Capital One’s new Platinum Card offering Rob Kenley, head of credit cards at moneysupermarket.com, said: “This revised offering from Capital One is a great all rounder.

“In a time of ever-increasing balance transfer fees it’s relaunching with a fee of just 1.7 per cent against a typical balance transfer fee of between two and three per cent. The card also offers 0 per cent for balance transfers and purchases until 1st May 2008 as well as a competitive typical APR of 9.9 per cent.

“The credit card market is forever competitive, but until now competition has been restricted to 0 per cent offer periods or ‘go to’ rates – could undercutting the typical balance transfer fee be a signal that competition is reaching even greater heights?”

“A person using a card for a £1000 balance transfer and spending £250 each month for a year, making only the minimum repayment each month, will have a balance of £4,149 at the end of 12 months if using a Natwest Platinum card, which has a 0 per cent introductory offer on balance transfers for 13 months, and a 0 per cent offer on purchases for just three months. However, if they opted for the Capital One Platinum card for the same use, they would have a balance of £3,735 – a saving of £414. This clearly highlights the fact people should ensure they have the right cards for their needs, or end up paying over the odds.

“Overall this card can be seen as the consumer’s ‘flexible’ friend – with its lengthy introductory offers for both balance transfers and purchases, a low balance transfer fee and ‘go to’ rate Capital One have hit the nail on the head. This card is a clear winner for people with multi-purpose credit card usage.”