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Capital One Newcomers Card Review

The Capital One® Cash Rewards for Newcomers card is clearly targeted at those who are new to the U.S. and want to build credit history, but the fact is anyone can apply for the card. If you're specifically looking for a bad credit credit card because you've made mistakes and had credit problems in the past, there are better options out there that you're more likely to get approved for, but this card is still appealing for a lot reasons if you have limited credit history or no credit history at all.

Here are my top 5 reasons to check out the Capital One® Cash Rewards for Newcomers card:

1.) Cash Back: Not only is this card meant to help you build credit history, but it also offers 2% cash back on travel purchases and 1% on everything else. That's an extremely rare thing to find when compared to other cards in its class.

2.) No Annual Fee: Enough said. If you've read any of my credit card reviews, you know that I love no annual fee credit cards.

3.) No foreign transaction fees: Planning to travel home and visit the relatives a few times a year? While most cards still charge currency conversion fees that normally add 3% on top of your purchases, there's no need to worry about that with the Capital One® Cash Rewards for Newcomers. This is a great perk that is actually enjoyed by all Capital One cardholders.

4.) Unlimited Cash Back: Not only is there no limit on the amount of cash back you can earn, but you can also get your cash back anytime as an account credit, check, or a gift card.

5.) MoneyWise Online Tutorial: Capital One has teamed up with Consumer Action to offer a free online guide (in various languages) to managing money and building credit. The tool is easy to use and covers important topics like how to create a budget, how to make good credit choices, and how to rebuild poor credit. What's bad about this card? The interest rate is horrible—a whopping 24.9%(V). Of course, the idea here is to build credit by using the card sparingly and always paying your balance in full.

If you plan on carrying a balance right from the start, this card is definitely not for you. However, if you're new to credit but understand how it works and why you should never carry a balance, the Capital One Cash Rewards for Newcomers could be a welcomed addition to your wallet. Updated June 29th, 2012

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Joshua Heckathorn's picture

Joshua Heckathorn was the President and owner of Creditnet.com. He shared his unique insights about credit cards, credit scores, investments, and all aspects of personal finance on Creditnet's blog, Credit¢ents. Joshua received a Bachelor of Science in Management (Finance) from Brigham Young University's Marriott School of Business and earned his Master of Business Administration from Seattle University in 2009.

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