The capital one website lists this card as offering up to 3% cash back (after you charge 6000 in a year). How much of a difference would that make to the rankings?
You're right Elizabeth, it looks like they improved their rewards! We're updating it in our database right now, and we've just made a note about it on our blog as well. Thanks for the heads up, and keep the feedback coming! http://www.nerdwallet.com/blog/2010/capital-one-c…
andrew
I disagree with your assessment that this card is not a good tier one rewards card.
I agree that mathematically, other cards can give superior rewards, but the behavioral aspect shouldn't be ignored.
I personally find this card to be excellent for that very reason. I don't spend enough to take advantage of AMEX's Blue Card, and I think it's poor financial advice to assume that everyone will spend regularly when rotating rewards incentivize purchases. I don't want my credit card pressuring me to make purchases to "save money." I don't spend very much at all on the majority of most of the rotating categories. This strategy isn't so different from "mile chasers" in frequent flyer programs–these users often spend more chasing reward miles than those customers who simply seek out the cheapest ticket from different airlines.
I would agree that if someone spends frequently enough on all of the rotating bonuses of some of the other cards, and doesn't allow the benefits to pressure them into making unwanted/necessary purchases, that this card isn't the best. But I know I'll always be buying $200-$300 worth of groceries per month. And the 2% is a nice piece of mind factor.
nerdwallet
Thanks for the note Andrew. In your case the 3% on groceries could be a great fit.
But for the majority of users who are using their credit cards for more than just groceries, the No Hassle Cash rewards are only middle-of-the-pack. For example the Fidelity Amex pays 2% cash back on every purchase (not just gas and groceries), and the PenFed platinum pays 5% on gas and 2% on groceries, so the No Hassle Cash doesn't rank nearly as well as these by most comparisons.
Cole
How does one redeem the rewards? I've searched the site and can't figure this out, which always makes me nervous.
nerdwallet
You can get your cash back any time you want by calling the Rewards Center toll free or going online to http://www.capitalone.com/nohasslerewards . There are three different ways to redeem them:
(1) upon request
(2) automatically at a set time each calendar year
(3) automatically when a specific threshold ($25, $50, $100 or $200) has been reached.
Cole
Damn–It looks like CapitalOne is no longer offering this card. At their website I see the same offer but with a $39 annual fee, or 1.25% back on all purchases.
nerdwallet
Where do you see that offer Cole? It looks to me like the 3%/1% for no annual fee is still there… ?
Cole
Erm, well it's a question of where I *don't* see it. I follow the "apply now" link above, and I see a list of 21 credit cards, which Capital One says is their entire list. I see five credit cards in the "excellent credit" section, none of which offer 2%/1% or 3%/1% cash back. I do see one that offers 1.25% cash back on all purchases. I don't see anything like this in the rest of the page either–there are similar offers with a $39 annual fee, or there are no-fee cards that offer miles instead of cash back.
If we are actually seeing something different, the only possible explanation I can think of is that I applied and was rejected for this card recently, but in that case they would have to have saved my IP address. If you see 22 cards on the page and 6 in the "excellent credit" category, then we'll know this is the case.
nerdwallet
That is interesting Cole, I see 21 cards with 5 in excellent credit. The third one from the top is No Hassle Cash with the 3/1 rewards and no annual fee. In fact, I don't see any cards with a $39 fee, only the Venture with a $59 fee and a few for average credit with $19 fees.
It must mean that CapOne is targeting their offers somehow, I'll investigate and see if I can figure it out…
Cole
That is bizarre indeed. Third from the top for me is called "No Hassle Cash" but offers only 1.25% back on all purchases. Further down, #6, at the top of the "Average credit" section, is another card also called "No Hassle Cash," which offers 2% on gas and groceries and 1% on everything else, but has a $39 annual fee.
Perhaps they are targeting by region? I'm in Northern California.
http://www.nerdwallet.com NerdWallet
Hi Cole, we’ve gotten our issues with Capital One resolved, so that offers should be pretty straightforward. They were certainly doing some sort of targeting beforehand, though I’m not quite sure how.
Thanks for pointing this out to us, sorry it’s taken so long!
Okwow
I ordered this card in March, and because my FICO score was 796, 4 points shy of what they consider excellent… they denied me THIS card and instead sent their NoHassle Platinum with a $39 annual fee. I canceled that account, but received a statement (with no charges), so called them to ensure that there was no account open. The first rep thought the account was open, but then hung up (by accident I assume), the second rep explained that it was definitely closed, but that the fee was waived for the first year and possible to waive yearly, so sent me to the New Applications dept. They would not believe that they would send a different card than I applied for out if the one I wasn’t qualified for the one I applied for. But the reality is it happened, leading me to believe that Capital One is not very trustworthy in their practices and hence this comment. Be wary with this company.
