NEW: Capital One Cash, a Great No-Fee Cash Back Credit Card
Today, Capital One launched the new Capital One Cash, which gives a solid 1.5% back on all purchases made. It’s low-maintenance, with no annual fee or foreign transaction fee. In terms of straight-up rewards rate, it doesn’t fare well against the cash rewards heavyweights. However, its best feature is that in addition to giving rewards, it has one of the longer 0% introductory APR periods out there. We’ll break down the Capital One Cash’s benefits and compare it to the best cash back credit cards on the market. Read on!
Review: Capital One Cash
The card gives a flat 1% rewards rate on all purchases, but increases your rewards (spent or unspent) by 50% at the end of the year, so your effective rewards rate is 1.5% as long as you stick with the card. (Plus, you get your bonus all at once, which is pretty darn exciting). The card comes with a $100 cash back signup bonus.
Your rewards never expire, and you can redeem them via cash, check, statement credit, donation or gift cards. You can also automatically redeem your rewards by saying, for instance, that if you’ve accumulated more than $25 cash back by the third Tuesday of the month, you want a gift card.
It’s a no-frills card, as we’ve said, without the hassle of redemption tiers, spending caps, or enrollment bonus categories. It has no annual fee or foreign transaction fee, but best of all, it has a 0% purchase and balance transfer APR for the first 12 months. Most other balance transfer credit cards don’t give rewards at all.
Cash back credit card showdown
How does the Capital One Cash fare against our reigning cash back champions?
Capital One Cash vs. Chase Freedom
Capital One Cash vs. AmEx Blue Cash
on American Express's
on American Express's
Citi® Dividend World MasterCard® – $100 Cash Back
We wanted to compare the CapOne Cash with a credit card that has a balance transfer deal as well as rewards. The Citi® Dividend World MasterCard® – $100 Cash Back has a 0% APR period of 15 months*, but caps its annual rewards at $300. That’s $20,000 of spending on the Cash. If your annual spending exceeds $20k, you’re probably better off with the CapOne Cash’s unlimited rewards. On the other hand, if your spending is well below that threshold, you may prefer the longer 0% intro period.