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Capital One Cash Credit Card Review

A cash-back card with a $100 bonus

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In addition to 1% back, you get $100 if you spend just $500 in the first three months plus a 50% rewards bonus each year. And there's no annual fee.

Who the Capital One Cash Credit Card Is For

  • People with excellent credit who want to earn cash rewards on their credit card spending.

Credit Rating Required

  • Excellent (740+)

About the Capital One Cash Credit Card

Pros

  • $100 introductory bonus.
  • Generous cash-back rewards.
  • No annual fee.
  • 50% rewards bonus after each year.
  • Flexible rewards redemptions.
  • Long 0% introductory period.

Cons

  • Not available for those people with weak credit.

Rewards

  • 1% cash back on all purchases.
  • 50% bonus on previous year's rewards, payable the next year.
  • $100 bonus if you spend $500 in the first three months.

APRs

  • 0% for first 12 months on purchases and balance transfers, then 12.9% to 20.9% after that.
  • Penalty interest rate: 29.4%.

Fees

  • Annual fee: none.
  • Late payment fee: Up to $35.
  • Over the limit fee: None.
  • Return check or payment fee: Up to $35.
  • Balance transfer fee: 3% of balance.
  • Foreign transaction fee: None.

Capital One Cash Credit Card Review

This new credit card from Capital One might set a new standard for cash-back rewards cards, at least when it comes to bonus rewards.

In addition to 1% back on all your spending, you get a 50% rewards bonus payable the following year. In other words, you get 1.5% back if you keep the card longer than a year. Capital One says it will pay the bonus within two billing cycles following your anniversary date.

What's more, you can earn a $100 introductory bonus just by spending $500 in the first three months you have the card. Most families spend that much on groceries and food in just a few weeks.

Redemptions are super easy and convenient, too. You can merely ask for them any time, automatically set a time each year you want them, or set a specific threshold, like $25 or $50. You can also redeem them for gift cards starting at $20. And you can change your mind any time.

The APRs on this card are pretty good, too. You pay no interest on purchases or balance transfers for the first full year; after that, your rate will be 12.9% to 20.9%, depending on your credit history.

Rewards don't expire, and there's no limit on how many you can earn. You can also transfer you rewards to other U.S. miles, points, or cash-back credit card accounts.

What's the catch? Capital One says you must have excellent credit to be approved for this card. If you do qualify, there's no pre-set spending limit.

Recommendation

The $100 introductory bonus, plus the 50% annual rewards bonus, makes this one of the best cash rewards credit cards. It seems that 1% back just doesn't cut it anymore.

Capital One has a variety of cash-back rewards cards. If you have average credit and don't qualify for this card, you might try the Capital One No Hassle Cash Rewards MasterCard. If you're a newcomer to the U.S. and trying to establish your credit history while earning rewards, check out the Capital One Cash Rewards for Newcomers Credit Card. There's even a rewards card for students.

If you're more interested in earning travel rewards, check out the Capital One Venture Rewards Credit Card.

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