Capital One's World Mastercard pays 1% cashback on all purchases, which sounds good. Is it worth having as your main credit card?
First things first. Capital One appears to be rather fussy over who it'll give this card too. You'll need a pretty much perfect credit record and to be a homeowner over 21 earning at least £20,000 a year to stand a chance of your application being accepted.
The main draw on this card is the 1% cashback on purchases, credited to your account every January. The 12.9% typical APR is also reasonable, for a credit card.
On the downside you'll be charged £18 a year, although this is partially offset by a £10 loyalty bonus paid every January. And if you apply for the card via cashback website such as Quidco you could get up to £18 initial cashback for a successful application.
Use the card to withdraw cash and you'll be slapped with a 3% charge (minimum £3) which is penal, although the interest charged is the same as for purchases, which is better than some competitors. And overseas spending incurs the typical 2.75% foreign currency charge, so use a 'no-load' card instead for heavy overseas spending.
The maximum interest free period for purchases is 45 days, a little less than some, and credit limits of between £4,000 and £7,500 are granted. Pay your bill late or exceed your credit limit and you'll incur a £12 charge.
And beware, if your card is lost, stolen or misused without your permission you may be liable for up to £50 of losses until you've informed Capital One. Don't delay calling them if you think your card is being used without your permission.
Capital One throws in free purchase protection insurance, which covers loss or damage of up to £1,000 per item for 100 days after purchasing with the card. This is a worthwhile extra and looks straightforward, but beware it only covers purchases within the UK and there's a £25 excess per claim.
So is this a worthwhile card?
If you usually pay off your bill in full and spend mostly in the UK then this card is a good source of cashback. But bear in mind you'll need to spend at least £800 over the year to break even after the net £8 annual fee.
If you'll spend more than around £8,500 a year then the American Express Platinum (cashback) Card is likely to earn more cashback and you'll have the added benefit of 5% cashback for the first 3 months (read our review here). But it's less attractive if you end up borrowing as the interest rate is a lot higher than Capital One's.
If you use a credit card to borrow then give this card a miss. Although the interest rate is reasonable you'll do better using a card with a 0% introductory offer or, failing that, a card with a lower everyday rate such as Capital One's own OneRate card at 9.9% APR.
Overall a decent card and a better option for most people versus a standard card...if your application is accepted...