Today I am writing a review of Capital One and their Bad Credit Credit Card product. Seeing as though I am on a mission to rebuild my credit rating this Credit Card seemed to be perfect for me.
I already held credit cards with Aqua Card and Vanquis at the time of applying for my Capital One Credit Card. In the past my applications with Capital One had been declined so I waited another six months to see if my bad credit got any better.
My Credit Rating when Applying
When I applied for a credit card with Capital One I had what you would describe as bad credit. At the time I had a County Court Judgment and a number of defaults registered on my credit file. The positives would have been my Aqua Card and my Vanquis Card which were both being managed well at that time, along with a phone contract with O2.
Capital One say they aim to give a response in 60 seconds so I set about completing the application form. Once the application form was completed I submitted my details and awaited the result.
Six months previous I was declined so I was interested to see if things had improved since then and six months is a good amount of time to wait before reapplying.
This time round I was approved so at that time things looked like they were moving in the right direction but this wasn’t going to last forever.
Credit Limit Increases
After six months of running the card well my initial credit limit of £200 was increased to £400. This was a perfectly manageable credit limit and made sense given my sketchy credit history. Prior to the increase I had been using the card and paying it off in full each and every month.
Not long after the increase I had fell into some trouble with a number of my credit accounts and thus began the downfall of my credit rating.
What happened when I didn’t pay Capital One
Unfortunately I ran into some trouble. I was already a little bit on the edge with my Aqua Card and all my other debts at the time were taking their toll. In the end my £200 balance became £400 and the account was sold to a debt collection agency called Capquest. I have since repaid that debt in full as part of the process of me rebuilding my credit rating.
Looking back I should have just paid it off and closed it but that’s easy to say now.
On a personal note, if you are in the same boat with Capital One then my advice would be to try and work out a repayment arrangement with them in order to avoid loads of fees being added on.
A second note, if you think this could happen to you down the line then I would say don’t apply!
A third note. If you are sensible and most of you are and you are looking to rebuild your credit then go for it.
Final thoughts on my Capital One Review
If you are looking to rebuild your credit then the Capital One Credit card could be a good start. Just remember that if you feel you may get into the same difficulties as I did then it is probably best avoided as you will only do further harm to your credit rating.
Image: Stuart Miles / FreeDigitalPhotos.net