There are 5 key mistakes that people make with Capital One credit cards that you need to watch out for if you want to avoid wasting money. Capital One offers some of the most popular credit cards on the market, from cards for building credit to elite rewards cards, and avoiding mistakes ensures you get the most value.
1. Assuming You Need a Good Credit Score to Qualify
Many Capital One credit cards require good credit, or a score of 700+, to qualify. But there are still plenty of options for people with fair, limited or even bad credit.
In fact, Capital One has some of the best credit cards on the market for building or rebuilding credit. Plus, if you start off with one of those cards, you may be able to upgrade to an even better Capital One card after using it responsibly for a while.
2. Only Considering the Cards You See Advertised on TV
Capital One is a household name due in part to its prominent TV advertisements. But while you may see a few cards advertised on TV, the bank actually has a lot of different credit card offers.
It’s important to compare the different choices and pick the one that fits your financial needs and spending habits the best. A card you see in an advertisement may not have the right kind of rewards for you, or it may be unattainable with your current credit score, for example.
3. Carrying a Balance if You Don’t Have a 0% Intro APR
Carrying a balance from month to month is not ideal because you will begin to rack up interest, which can quickly become too expensive to handle if you’re not careful. That’s why it’s in your best interest to pay your balance in full every month if you can, so that you’ll only have to pay back what you borrow and nothing more.
If you encounter some big expenses that you can’t afford to pay off all at once, it’s best to apply for a Capital One credit card with a 0% introductory APR. This type of card lets you avoid interest on purchases for a certain number of months after account opening. You should strive to pay off your entire balance before the 0% period expires, though.
4. Missing Out on Special Offers and Upgrades by Not Keeping Your Account Information up to Date
Once you have a Capital One credit card, it’s important to keep the information in your online account up to date. Capital One may periodically send you targeted offers for bonuses, new cards or upgrades, but you might miss out on some of them if your information isn’t up to date.
For example, if you get a raise, you should update your income information so Capital One knows you’re making more money. A higher income means you’re more likely to be a candidate for upgrading to a better card.
5. Closing Your Account Before Redeeming All the Rewards
Many Capital One cards provide rewards for making purchases, and these rewards never expire as long as your account is open. However, if you close your account, you will forfeit any rewards that you have not yet redeemed. You should always check your rewards balance and redeem any remaining rewards before closing your account.
It’s worth noting that you’ll also lose your rewards if Capital One closes your account, but that won’t happen unless you break your card agreement or your account has been inactive for too long.
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