Capital One Rewards for Travel, Not for for Everyday Purchases
Capital One is the company that claims they have No Hassle when it comes to their credit cards but when it comes to their miles and points redemption programs it’s a maze of tiers and numbers. I was sent a Capital One offer in the mail back in January and decided I would try out one of their cards again. Seems like I could not remember why I did not like them from the last time I gave them a try.
Turns out their rewards program may be the worst of the bunch and is more hassle than I can afford to spend my valuable time with. The upside to all Capital One cards is that they do not charge a Foreign exchange fee like all big bank credit card issuers such as American Express. This is no doubt the only reason I would bring a Capital One card with me for a European Vacation. Three percent is the typical foreign exchange fee charge and that adds up. Adds up to much more than you would earn with any other rewards card cash back of 1% to 2% you would earn. On top of that you could get the measly rewards they offer at Capital One.
Let’s talk about the rewards you would earn with Capital One. Most of their cards seem to give you 2 times the rewards the first year then it goes down to 1 point per dollar. The Venture Card offers 2 miles per dollar but you have to pay an annual fee of $59 a year (which kind of takes some of those miles away). The Cash rewards card that has “cash” in the name gives you a straight 1% back and is the best selection of a true rewards card if you want a real redemption of 1:1 ratio.
The redemption rate of using the Venture Card will be better for travel than the other cards and not on a tiered level. Most of the other Capital One Cards redeem at a tiered level with travel rewards where if you spend $150 or less (one cent to $150) on travel you have to use $15,000 miles. $150 .01-$350 is a redemption of 35,000 points. Then it tiers up to the next level after that until you get to $600.01 and greater and the cost and then the number of these No Hassle Rewards needed would be the cost of travel times 100.
It makes more sense to use your no annual fee Capital One Visa for a year at 2 times the points then move on to the Venture Card to get a better redemption value from your travel purchases without the tiered mess. Although the Venture has an annual fee it pays itself with that better redemption value. A spend of $50 in travel would be 5,000 points with Venture. A spend of $90 would be 90,000 miles.
Say if you had a car rental with the regular version you would pay $90 for the car rental but Capital One would make you use your entire 15,000 miles to pay for that $90 rental since its under $150.
The ratio in the first year on the typical Capital One Visa rewards card is not all that bad since it is 2 points per dollar then you go to redeem it it seems to turn back into that one point per dollar so after a year it goes down to less.
An example would be spending $5,000 and not being able to redeem that for the 1% of that which would be a $50 gift card or statement credit like you can do on most rewards cards. You may have earned 10,000 points off of $5,000 the first year but when you go to redeem it you will have to have 7,750 for a $50 gift card. If you get 5,000 points you only get $25. 5,000 points can come from a first year multiple of $2,500 in spending though but after that first year when it goes down to 1 point per dollar its kind of a rip off to only get a $25 statement credit for spending $5,000.
I asked about foreign exchange fees on Business Credit Cards and they said they do not charge these fees on any of their cards so that is their best selling point at Capital One. If you do international travel this card is hands down a must have. One card that stuck out to me was the newer card offering 3x the miles on a select category including Advertising and Shipping or a category such as Travel and Lodging.
Capital One Prepaid MasterCard
Capital One prepaid has recently launched a reloadable prepaid debit MasterCard. This prepaid reloadable Mastercard is not an unsecured or traditional credit card.
Instead, you must first deposit money on your Capital One prepaid card. And then you can use your card for purchases online and over the phone. The prepaid and debit card industry was initially created and marketed to people looking for second chance checking accounts or non ChexSystem banks.
This is because many prepaid debit cards provide direct deposit with no fees which eliminates consumers from paying check-cashing fees , with an online bill pay system. This online bill pay system is a convenient way for cardholders to pay their bills without going to the store to purchase a money order and then mail in a payment.
This prepaid MasterCard by Capital One is ideal because there is no credit check. And in today’s economy it has become required to have a major MasterCard or Visa. Reloadable prepaid debit cards have grown like wildfire in popularity.
Many more major credit card issuers such as prepaid American Express and Chase Bank, among others are now offering a prepaid debit card. It is important to do your research and make sure you get a reputable and legitimate prepaid debit card with minimal or no fees.
This is not an unsecured credit card but instead is a prepaid debit card. Before you can use it to make purchases you must first deposit money in your account. This can be done for free by using direct deposit, you can also deposit cash at a Western Union locations, or by transferring money from a bank account.
There is no activation fee and your Capital One Prepaid Card is protected with a $0 fraud liability in case of theft or you lose your card. The money you deposit in your Capital One prepaid account is FDIC insured. You will pay a low $4.95 monthly maintenance fee.
And you can sign up for free text or e-mail alerts about your account activity. You can rest easy because you will never be charged an overdraft fee, bounced check fee, late payment fee or any interest fees ever! This is definitely one of the best reloadable cards we have reviewed.
It could prove interesting to see if Capital One begins to market their other bad credit cards to the prepaid card holders. If you have not heard Capital One purchased HSBC and the Orchard Bank credit card.
In other words, Capital One has staked an even bigger claim in the bad and no credit industry. To qualify for approval you must be 18 years of age, and have a verifiable identity, Social Security number, and U.S. Mailing Address.
If you’re sick of living with the expense and embarrassment of a less than perfect credit history, get a free credit consultation by calling toll-free 1-877-418-7596. For more tips and strategies with Dan Willis sign up for our free newsletter.
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Capital one prepaid mastercard bigger scam than credit cards
I opened a capital one debit card account at the beginning of the month.Received only a welcome email.
Was able to check my account online. up until the day I made a deposit. On the day my money was deposited, they decided to put a "hold" on my account AFTER they received the deposit. With no notification to me or anything. I had been checking my account consistently all during the day.
It wasn't until I stated getting error messages that I decided to actually call and see what the problem was. I was then told my account had been placed on hold would not be able to be verified until I physically faxed id verification into the company. I was not told this at sign up nor at any point before all my funds were deposited. I feel as if this company has committed fraud.
I received no email or info implying I would need to send in additional verification, neither at sign up nor when I called to activate the card.Why accept the deposit. HOW do you accept a deposit if the account is in holding status. I now still have no access to my money and will not until I fax in documentation.
Banks seem to have alot of hidden rules.I will never again use anything with the capital one name to it and I am going to suggest to anyone thinking of using their services to find a different choice.
Review #252266 is a subjective opinion of Bndaniels1982 .
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I PAID 90 pounds for a loadable capital one card as I did NOT want any more debt and my credit rating was bad. The idea was to load it before going on holiday so I couldn't spend what I didn't have! I now OWE over 370 and have a debt agency chasing me!
How does the Law allow these crox and scam from Capital one to screw us like that with there drama Prepaid Card ,pleas stop Them we have our own stress from jobs and life to be Touchers by these Big snakes as Capital ,stop there Mail stop There offers its Really sad what they doing to pepole of America
They are frauds and cheats, they used the capital one prepaid account to illegally obtain my employer info via direct deposit.then proceeded to go after me for garnishment of a collection account for a "capital one credit card" garnishing 25% of my disposable income while I had been unemployed and was only recently back at work and one a payment plan with Capital One Auto to get my car payment back up to date.
needless to say that plan fell through based on capital one's own garnishment. all this after illegally using my direct deposit information in a collection attempt..they are bottom feeders, cheats, and frauds, and we need to wake up in this country to the fact that "human nature" the dark sides of it, are not the worst problem we have. cuz most humans have a good side too. what about Corporate nature, especially as it pertains to Banks.
Cold Blooded, Cowardly(with the passive aggressive hidden rules, fees, down right theivery)..and no "good" side to soften the blow.Fundamently, it is OUR money why the banks exist at all. and they act like they are doing you a favor when they let you withdraw a portion of your money daily, etc., etc., and anyone out there who doesn't feel me. think about if you had a friend hold some of your money for you and you even let him invest it and keep most of the profits he made from the investments and give you a small token of appreciation like 1.3%, and now imagine he is gonna act like a bank to you when you came a . calling for your money. how long would it take for a fist fight to break out??
Just saw that after March 31 2013 the capital one prepaid program will cease to exist. Was told that I would need to contact those who provide direct deposit to my account to find another option. Now, I still have 3 months of ACH payments in my capital one prepaid account that are still being held because of security reasons. ( After sending everything including mothers death certificate) and they still request more documentation. But, it didnt stop them from accepting the ACH payments. Had to file the following,
Then when ruled in my favor
Had to hire Lawyer to Force them to honor ruling as they have the right to appeal, (HUH)
Capital One Lost on Appeal
They need proof of Idenity before releasing funds (WOW)
Recieved Documentation and Still havent gotten funds.
Capital One Announced that the PrePaid Program will terminate on March 31th. Cannot load funds on card after March 1st. (I dont believe it)