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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Comments
New to the US , no credit history and was denied so i don't know what a newcomer card is suppose to be
How can I build my credit history as an international student new in the US?...
You may want to check out the Capital One Newcomers Card. [1] It's designed specifically for consumers in your situation. The card offers 1% cash back, has no annual fee, and doesn't charge foreign transaction fees, so it might be a great fit for you...
What credit score range is this card targeted at?
great post on credit and finance. Keep it coming and keep up the good work!
@TheGooch - Capital One says its meant for those with Average Credit, but obviously it's targeted to those that really have limited/no credit history as opposed to someone that's had major credit problems in the past. Average credit means a FICO score in the 650-699 range, but I think the point here is that if you're new to credit and seeking to build your credit scores, this card is a good option. If you're in credit rebuilding mode, it may not be for you.
@Broken Dream - Did Cap One provide you with a declination letter citing any specific reasons?
@Jason - Thanks for the update, and I'm glad to hear you were approved for the card. I'm sure your good income didn't hurt your chances.
Oh, and welcome to the US! What do you think so far?
I was approved for 300$ as a newcomer to the US
Happy about it as it will help me build credit.
I guess they approve you as a newcomer only if you have good revenue.
new to the US with a credit score of 0 since I had no credit at all and got approved cl of 300 which did not bother me since I will be using it strictly for small purchases w/o carrying balance!
@Lisa- thanks for the update. Glad to hear you were approved, and it sounds like you've got the right idea about how to responsibly build your credit. Good luck!
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