Is this a good offer for a credit card?

Question

Its a Mastercard from Capital One, the credit line is $300, 0% APR on purchases until May 2008 - 9.9% after that and a $59 annual fee. I have 1 other credit card, Visa from WaMu with a $500 credit line, 28% APR (HIGH). My credit score is 605. Thanks to answers I need to know whether or not to accept this or is there something better.

Answer 1

Your credit is not in the best of shape. If it is a 9.9% permanent rate after the intro rate expires, that is very respectable.

However, I am not a fan of annual fee cards.

Do you intend to pay the card of every month, or carry a balance? If you intend to use it for emergencies and pay the card off regularly, then APR is irrelevant.

Answer 2

The $59 fee isn't great, but neither is your credit score. I'd say take it and use it to rebuild your credit history. With a 605 fico, you're not going to find much without an annual fee. You're not going to be able to beat the 9.9% purchase rate. That said, Capital One is a notoriously bad company to deal with and they are one of the top ones to change your rate with the explanation that it's in the terms and agreements that they have the right to do that "at any time for any reason". As soon as you have re-established your credit well enough to be approved for a better card with a better company, do it.

Buy only what you know you can afford to pay off at the end of the month. Try not to carry balances, Keep the WAMU, but with a 28% rate, do not use it. If you have been a good customer with WAMU, not late or overlimit recently, call and ask if they can reduce your rate because you have gotten better offers. They may or may not, it's worth asking.

Answer 3

No. $300 is a very low credit line and the $59 annual fee is not good. You should be able to get a card with no annual fee.

To the person who said Capital One is the worst, in my experience Chase is the worst about raising interest rates and fees. Capital One, Citi and Discover are fine in that regard.

Answer 4

I pay an annual fee but get 2% of my purchases back as cash.
Good deal if 2% of the annual purchases is greater than the fee; and they are.

Premium cards usually have additional benefits associated with them. If you do not need them then do not subscibe to the card.

In this case the annual fee perhaps buys you a lower credit cost. If you do not always pay-off your account it could be a benefit. Personally though you should establish a line of credit and always make sure you pay off your credit card balances.

Answer 5

Try to get a credit card that you do not have to pay an annual fee, check out www.fastcreditcardapprovals.com here they have all major credit cards and you are able to compare rates, fees and rewards, GOOD,BAD OR NO CREDIT they have the right card for you.

Answer 6

Personally, I would never accept a credit card that has an annual fee. I've had that card before and that fee is a huge waste of money, which they will charge you EVERY year. I would keep shopping around until you find one without that fee.

Answer 7

I doubt if you'll want to hear this, but take it from someone who has been down that road--don't get any more credit cards. They use any excuse to jack up your annual fee, your late fee, your APR, etc. And in my opinion, Capital One is the *worst*.

Answer 8

For building your credit score, it would be to your benefit to get the Capital One card. Make sure you keep the Washington Mutual card open but just don't use it. It will continue to report to the bureaus as an open account with a zero balance. Having open accounts like those with zero balances will get your scores higher.

Answer 9

You should never have to pay a annual fee for a credit card , so , no , no it is not a good deal...

Answer 10

Annual Fee= No chance. You have to look at yourself in the sense that you are bringing them your business and they need your business so refuse to do any business with them unless they eliminate the annual fee