Existing Capital One MasterCard holders may or may not be getting the same deals, but new credit card offers from Capital One are arriving in the mail to new credit card users. These are not reserved for highly qualified borrowers with high credit scores either.
How do I know?
One good piece of financial advice that I frequently give is to use phony names when signing up for certain things, especially promotional offers and magazine subscriptions. The reason is that these companies like to turn around and sell your name and address to other companies that then send you plenty of junk mail. These mailing lists can be more profitable than the actual business of writing a magazine or newsletter!
Nothing helps sort out a real “Urgent! Response Required,” mailing from a phony one like seeing one of the fake names that you used to sign up for something in the past. Just like the one that appears on my no annual fee Capital One No Hassle Rewards World MasterCard offer that came to my house under a name used for magazine subscriptions. Since that isn’t even a real person, let alone someone with a high credit score, we know that these offers are either going out blind, or people with low credit scores can qualify for these credit cards.
Capital One Miles Rewards
This particularly Capital One MasterCard looks like it comes with the standard NoHassle miles reward chart and earning points follows the basic Capital One miles rewards earning plan. You get 1 mile for each $1 you spend. The miles do not expire and there is no limit to the number of miles you can earn with the credit card.
A bonus rewards points offer comes in the form of 30,000 bonus rewards miles comes with plenty of fine print. You actually get a 10,000 mile bonus reward with your first purchase. Then, if you spend at least $3,000 per year on the card, you get another 10,000 NoHassle miles reward bonus on your first anniversary and then 10,000 more No Hassle bonus miles on the second anniversary. So it might be a while before you want to use that Capital One Rewards Catalog to pick your free reward.
Also, there is no annual fee and this is a credit card with 0% interest rate APR on purchases until February 2011. After that, the regular interest rate is 17.99%, but that is not a fixed interest rate. Instead, this MasterCard from Capital One comes with a variable APR. The variable interest rate is calculated as PRIME + 14.74%. OUCH!
Folks, pay attention to these rates from banks on your credit card offers. 17.99% is not a low interest rate by any stretch of the imagination, but when the PRIME rate climbs to a measly 5%, which is still very low, by the way, this card will have an interest rate of 19.74%. That’s 20% interest on a credit card. No amount of miles is worth that.