Capital One’s No Hassle Rewards credit card for fair credit was a card that I frequently recommended for consumers with fair credit. That card, though, has been replaced with an “average credit” version of the Capital One Cash Credit Card.
I like seeing offers for those with fair credit because this group often gets forgotten. The new card, Capital One Cash Rewards, has similar rewards to the Cash card for excellent credit. You get 1 percent cash back on all purchases plus 50 percent cash back on what you earned for the year.
But the “fair credit” version is, as you’d expect, a little more expensive than the Cash card targeted at those with excellent credit.
Still, the costs aren’t outrageous. You get a zero percent APR on purchases until November 2012. After that, you get a 17.9 percent, 19.9 percent, or 22.9 percent (V) APR, which is competitive for the fair credit range (a FICO score between 650 and 699, give or take a few points).
There are no foreign transaction fees. There’s also no balance transfer fee. However, I don’t recommend this card for a balance transfer unless you’re currently carrying debt at a really high rate. There’s no zero percent intro period offered, so you’d be paying interest of at least a 17.9 (V) APR on your transferred balance.
You’re also asked to pay a $39 annual fee. But the fee is fairly small and I think it’s worth it if you’re looking for a cash back card that will also help you move up in the credit score world. Use this card responsibly and in time, you’ll qualify for better terms, especially when it comes to APRs.
Overall, I think this is a solid addition to the “fair credit” category.
Check out more credit card reviews by Beverly Harzog: