Capital One has raised the stakes in the new purchase market by offering nearly fifteen months interest free on its latest credit card.
The Platinum card charges no interest on new purchases and balance transfers until 1 September 2009, making it one of the best overall deals around.
Better still, it comes with a typical APR of 12.9%, well below the market average of 17.6%
Great if you can get it
So what’s the catch? Put simply, you’re going to need a credit rating so good it has its own halo if you want to qualify for this card.
For starters, you will need to own a credit card with a limit of at least £5000, and must never have missed more than two payments on a credit card or loan in your life.
You will also need to have owned a credit card(s) for at least 5 years, and have credit card balances of less than £10,000. It goes without saying that anyone with a previous credit default needn’t bother applying.
Raised the bar
While many people may lack the credit rating to get it, there’s no doubting that Capital One has raised the bar with its new Platinum card.
The new purchase side of the market has been stagnant for many months now, with HSBC the only bank offering a competitive deal at 12 months (incidentally, this is the card to go for if you’re rejected at Capital One).
Now, all the other cards on the market have been made to look distinctly average, and it will be interesting to see whether banks will be spurred into upgrading their own offerings in response.
Need a balance transfer?
Of course the Capital One Platinum card also comes with a matching 0% balance transfer offer (with a 3% fee), making it by far the best deal for those who want to put all their debt in the same place. The next best card on the market for this is the Halifax All in One card, offering 10 months on new purchases and transfers.
However, if you are only looking to transfer a balance, then there is a marginally better deal out there: Virgin’s credit card offers a full 15 months interest free, with a 2.98% fee.
