About Capital One® Cash Rewards - $100 Cash Back Bonus
- $100 Bonus after you spend $500 in the first 3 months
- 50% bonus on the cash back you earn every year
- 1% cash back on all purchases
The cash-back program of the Capital One Cash Rewards credit card (for those with excellent credit) is somewhat of an oddball in the crowded market of cash-back credit cards. Rather than offer bonus cash back on purchases in “this” category or “that” category, the Cash Rewards card adopts a simple, straightforward cash-back structure of 1% cash back on all purchases with a 50% bonus every year.
Because of its impartial cash back program, the Capital One Cash Rewards card is suitable as a general-purpose card -- ideal for purchases that don’t fall under a “bonus” category with another cash-back card.
When it comes to costs, the Cash Rewards card is easy on the wallet. Like many credit cards, this card has no annual fee and its APR range falls within the lines of other cash-back credit cards, which tend to charge higher interest rates to offset the ability to earn rewards.
To sweeten the card even more, Capital One offers a one-time $100 bonus if you spend $500 within the first three months of membership -- and this is not one of those "limited-time offers."
Pros Cons Simple cash-back program Excellent credit required Easy redemption process Possibility for a high APR Good for foreign travel
The Capital One Cash Rewards card carries no annual fee, a trait that few consumers can complain about.
Cards that carry annual fees tend to have a significant amount of benefits that cannot be found with most other credit cards. Because the Cash Rewards is largely a run-of-the-mill card, it’s not surprising (almost expected) that there is no annual fee.
The biggest advantage of having this card, as opposed to other cash back cards, is that it has no foreign transaction fees. The fee, which is usually equivalent to 3% of the transaction, is typically charged when the card is used overseas to make a purchase.
The Cash Rewards card, in addition all other Capital One credit cards, does not have a foreign transaction fee. So, this benefit means that the card is also good for cash back when spending abroad.
The Cash Rewards card has an APR range of 12.9% to 20.9% (variable) -- the exact interest rate will vary depending on your credit history. Capital One requires applicants to have excellent credit before being approved for this card. The APR range is rightfully higher than that of no-frills cards but lower than the rates charged on cards with extremely lucrative rewards.
If you qualify for a credit line of $5,000 or more, you will receive a Visa Signature card. Cardmembers with credit limits of less than $5,000 will receive a Visa Platinum card, which offers fewer perks than the Visa Signature version. The cash-back terms are unaffected by the types of Visa card.
Compared to cash-back cards like Chase Freedom and Citi Dividend Platinum Select, which offer 5% cash back on certain categories that change quarterly, the Capital One Cash Rewards card may seem inferior. However, these bonus cards place caps on bonus cash back and they hand out only 1% cash back on all other purchases. If you don’t shop in these bonus categories often enough, these cards are not worth it. Instead, the Cash Rewards card would be more appropriate.
There is no limit to the amount of cash back that can be earned.
With the Visa Signature version of the card, you get concierge service, purchase protection, warranty extension, travel and emergency assistance, travel accident insurance, lost luggage reimbursement, auto rental insurance and complimentary upgrades and offers on travel, entertainment, shopping and events on eligible purchases made with this card.
With the Visa Platinum version, you get warranty extension, travel and emergency assistance, travel accident insurance and auto rental insurance on eligible purchases made with this card.
Cash back can be redeemed as a check, statement credit or gift cards. Can set up automatic redemption (cash only) so that cash back is automatically redeemed when the cash back balance reaches a certain amount. You can also make manual redemptions without interrupting scheduled redemptions.
The $100 one-time signup offer (after spending $500 in the first 3 months) is also great way to start off your cardmembership.
Capital One has a mobile application that lets you manage your credit cards, pay your card bill and shows your balances, transaction history and available credit.
One very nice program is Capital One Deals, a merchant-funded rewards program. Credit card customers receive special offers (such as $5 off when you spend $25 or more at a retailer) from various major retailers. Additionally, there are featured deals that gives you credit to try out a certain merchant with no minimum purchase.
You can just activate these offers through the website or mobile app and they are loaded onto your Capital One credit card.
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